One would think that liberalizing the tourist tariff would make tour operators happy as it empowers them to set their own charges.
Instead many object that removing the minimum USD 200 a day tariff right now could hurt the Bhutanese tourism industry in a way that it may be irreversible. Several contend that it just might be too early to do it.
The proposal to quash the tariff structure is coming from the government to generate more revenue and create employment opportunities by increasing the tourist numbers to 100,000 in the next three years. The government will collect its usual USD 65 a day royalty charges and leave the rest to the operators.
But tour operators say that more tourists will not necessarily mean more income. With the tariff structure gone, all kinds of tourists could come in who will not necessarily spend as much as those coming in today.
Bhutan, they point out, could end up like Nepal, which has no control over the kind of tourists visiting, and ultimately lose its allure as an exclusive destination. Bhutan’s culture and heritage could also be at stake because of the huge inflow of tourists.
What tour operators fear most is that they may be simply be reduced to the role of commission agents living off a commission instead of operating a tourism business.
But people, who know the tourism industry, say that many operators are anyway operating on commissions. Although the minimum tariff is USD 200 a day, undercutting is an industry norm, as operators compete for tour groups and make arrangements with other operators in the region. Exclusive Bhutan only visitors are not many and most tour groups come as a package tour visiting several countries in the region at a time, Bhutan being one stop.
The business itself is not easy and the quality of service, which tourists have complained about, sometimes suffers in the balance against margins.
Despite all that, tourism is still regarded as one of the cleanest businesses, because shortchanging tourists means the operator will be out of business and the government gets its royalty no matter what.
At the same time, some tour operators have been able to specialize and bring in tourists at a tariff much higher than the set minimum. Then there are the exclusive clientele, with the high-end resorts, who pay as much as a 1000 USD a night. Some operators only work with tourists of a particular country, they also speak the language and work as the guide as well.
This can only mean that quality of service should determine tariff.