The year 2008 was a good year for the tourism industry. The coronation of His Majesty King Khesar, the Centenary Celebrations and the forming of the first democratically elected government boosted the tourist arrivals.
The tourist arrivals increased from 21,097 in 2007 to 27,665. Tourists arrived from 7 more countries taking the figure from 75 countries in 2007 to 82 countries in 2008. The number of arrivals in terms of nationality saw the same trend with the Americans topping the list followed by British, Japanese, Germans, Australians and French. Cultural tourism attracts more number of tourists than trekking.
The year saw 40 percent increase in tourist arrivals surpassing the Tourism Council of Bhutan’s (TCB) growth expectation of 20 percent.
The industry generated USD 40 million in royalty to the government. In 2007, the total revenue amounted to USD 29,84,6274.16. There were 122 new registrations in 2008 taking the total number of tour operators in the country to 465.
2008 also saw much debate on the mandatory requirement for the tour operators to pay a security deposit of Nu 300,000 per year. Smalltime tour operators argued that the requirement would snuff them out. In the face of fierce resistance from tour operators, particularly smalltimers, the mandatory security deposit could not come into force.
Global recession has markedthe end of 2008 with uncertainties for the tourism industry. According to Association of Bhutanese Tour Operators (ABTO), there have already been more than 1,500 cancellations.
“Recession didn’t affect us in 2008 as most of the tourists had already booked and paid for the travel but we are worried about 2009. Tourist arrivals are expected to fall by 30 percent, if not more,” said Karma Lotey, Managing Director of Yangphel Tours and Travels.
In the wake of the world recession, consultations held between TCB, ABTO, Druk Air and the Hotel Association of Bhutan (HAB) adopted some preventive measures. HAB will not raise room tariff in 2009. Druk Air will resume their low season discounts and reduced the fuel surcharge by USD 3.00 from December 17, 2008.
Government intervened by deferring the proposed tariff revision to USD 250 immediately to a later date which will reviewed according to the performance of the industry.
From July 1, 2009 a discount of USD 20 during peak months and USD 15 for the months of January, June and July on the royalty will be given after the 9th night.
Tourism industry employs 3,000 regular staff and about 2,500 additional workers every tourist season.
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>> Original story by Bhutan Observer