Stakeholders of the tourism industry discussed the fallout of the global recession in Thimphu on January 21.
The meeting was convened to meet the challenges of 2009. Tourism figures for 2008 were not affected drastically as more than half of the tourist arrivals were pre-booked. At the meeting, Jean Paul Tennant, Vice President of Geographic Expeditions, an adventure travel firm in the United States gave a lecture on global recession and its impact on tourism in Bhutan.
“Tourism in Bhutan is sensitive to global stock markets,” Jean Paul said. “Tourists have a concept that travel to Bhutan is seasonal. So there is an urgent need to promote the off-season,” he added.
He also suggested the Tourism Council of Bhutan (TCB) consider providing financial help like further rate-cuts and doing away with the royalty. “Royalty deduction could be shared with partnering travel agents to help them market better,” he said.
Damcho Rinzin, a Research Officer in the TCB, responded by saying that the tariff has not been revised for more than 17 years despite the overall increase in other costs. “After a consultative meeting with stake holders, it was decided that the proposed tariff revision will be deferred to a later date,” he said.
“Lowering the tariff rates would conflict with the TCB policy of attracting high end tourist. However TCB is looking into other areas to help the tourism industry,” Damcho added.
Karma Lotey, Managing Director, Yangphel Adventure Travel, expressed fear that benefits of the royalty concession would not reach the end consumers, the tourists, as it was an interim measure for the operators.
“In these bad times we shouldn’t be taking drastic measures like retrenching the staff but retain and train them better,” Karma said. “There is a need to draw out policies and relief packages to enable the tour operators to bounce back better when things become better,” he added.
Jean Paul Tennant said, “We all hope that the new leadership in the White House will resolve in a boost in economy. But realistically, it is going to take time.”
As unlikely as it may have seemed months ago, the tourist operators in Bhutan look to US President Barack Obama’s intervention with a glimmer of hope.
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>> Original story by Bhutan Observer