𝐓𝐨𝐮𝐫𝐢𝐬𝐦 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐅𝐨𝐜𝐮𝐬𝐞𝐬 𝐎𝐧 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐀𝐧𝐝 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐲 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬

…𝒊𝒏𝒊𝒕𝒊𝒂𝒕𝒊𝒗𝒆𝒔 𝒊𝒏𝒄𝒍𝒖𝒅𝒆 𝒆𝒄𝒐𝒍𝒐𝒈𝒊𝒄𝒂𝒍 𝒓𝒆𝒔𝒕𝒐𝒓𝒂𝒕𝒊𝒐𝒏, 𝒄𝒐𝒎𝒎𝒖𝒏𝒊𝒕𝒚 𝒆𝒎𝒑𝒐𝒘𝒆𝒓𝒎𝒆𝒏𝒕, 𝒂𝒏𝒅 𝒉𝒊𝒈𝒉 𝒗𝒂𝒍𝒖𝒆 𝒆𝒙𝒑𝒆𝒓𝒊𝒆𝒏𝒄𝒆𝒔

By Lhendup Wangmo

Bhutan’s tourism sector, guided by the country’s “High Value, Low Volume” policy, is at a transformative stage with the launch of the Bhutan Integrated Tourism Master Plan 2025-2034. Tourism has long been a vital pillar of Bhutan’s socio-economic development, contributing to foreign exchange earnings, job creation, and rural income generation, while protecting the nation’s cultural identity and environmental integrity in line with the philosophy of Gross National Happiness. Since Bhutan formally opened to international visitors in the 1970s, the sector has steadily grown into one of the country’s largest sources of employment, supporting more than 52,000 people through nearly 7,000 tourism-related establishments.

Tour guides, hotel and restaurant staff, drivers, artisans, and cultural performers all depend on the sector, while farmers, cottage industries, and transport operators benefit from strong linkages. In 2019, before the pandemic, Bhutan welcomed 315,599 tourists, generating over USD 345 million in receipts and contributing 10 percent of the national GDP. More recent figures show revenue from tourism at Nu. 1,913.773 million in FY 2022-23, with Sustainable Development Fee contributions of USD 26 million in 2023 and USD 29 million in 2024. Despite setbacks caused by COVID-19, tourist arrivals rebounded from 20,897 in 2022 to 103,066 in 2023.

Officials highlight tourism’s multiplier effect across agriculture, entertainment, transport, and handicrafts, reinforcing its role in national and rural economic revitalization. With 100 percent value addition possible within Bhutan, the sector is positioned as a strategic lever for post-pandemic recovery and long-term economic diversification. Bhutan’s rich cultural heritage, pristine environment, and strong conservation policies are unmatched assets, positioning the country as a sanctuary for wellness and regenerative tourism. At the same time, disparities in regional development, limited infrastructure, and policy inconsistencies have hindered equitable distribution of tourism benefits.

Concerns include high SDF and airfare, talent migration, and inconsistent service standards. The Integrated Master Plan seeks to address these gaps by stabilizing tourism policy, modernizing the SDF framework, and encouraging private sector investment, particularly in ecotourism and regional development. It also emphasizes coordination among government agencies, private operators, and local communities. Initiatives include regional tourism action plans, identifying “hero attractions” in each dzongkhag, and promoting ecotourism, agri-tourism, wellness, and cultural circuits beyond the western region.

Looking ahead to 2035, Bhutan aims to establish itself as a global leader in regenerative tourism, with targets including annual visitor growth to 300,000, USD 2.56 billion in direct SDF contributions, private sector investment exceeding 50 percent, and 75 percent of tourism experiences contributing to ecological restoration and community development. Officials also aim to elevate guest satisfaction and strengthen Bhutan’s brand as an exclusive, sustainable destination. National initiatives such as the Gelephu Mindfulness City highlight the sector’s central role in Bhutan’s development trajectory.

A Department of Tourism official said, “The Tourism Master Plan 2025-2034 is built on four core pillars: Sustainable Growth, which integrates GNH with regenerative tourism to safeguard Bhutan’s ecology and culture; Strategic Market Development, which reduces reliance on a single market by diversifying international visitors through digital marketing and premium products; Regional Development, which expands tourism beyond western dzongkhags to foster balanced growth and rural revitalization; and Year-Round Destination, which disperses visitors seasonally to ease peak pressures and ensure stable community benefits.”

These priorities are guided by the Future Path framework, emphasizing governance, unified regional growth, talent development, sustainability, and innovation. The framework aligns with Vision 2035, supporting Bhutan’s aspiration for a High-Income GNH Economy by diversifying beyond hydropower, generating youth employment and private sector opportunities, advancing mindful capitalism, and reinforcing the national framework of people, progress, and prosperity while ensuring resilience to global challenges.

“These long-term plans will have numerous benefits. Tourism will be more evenly distributed, moving beyond sustainability to regeneration by restoring ecosystems, enhancing biodiversity, and empowering communities. Bhutan aims to evolve from a niche destination into a global leader in regenerative tourism, welcoming 300,000 high-value visitors annually by 2034, while preserving authenticity and supporting inclusive national development,” the official said.

“Since the introduction of the SDF, Bhutan has welcomed a good number of tourists with arrivals showing strong growth. In 2024, tourist numbers rose by 51.8 percent compared to 2023, and the first six months of 2025 recorded an additional 18.6 percent increase over the same period in 2024,” the official said.
Balancing revenue with visitor appeal, the official added, “We invest in environmental conservation, cultural preservation, infrastructure, diversifying regenerative tourism offerings, and workforce skilling. These investments enrich the tourism experience, create greater visitor value, sustain demand, and ensure lasting benefits for local communities.”

On rural livelihoods, the official said, “The tourism sector promotes community-based homestays, encourages authentic village experiences, and creates markets for local agricultural produce and traditional handicrafts. Farmers and artisans gain fair income, empowering rural communities and ensuring equitable tourism benefits across Bhutan.”
The official acknowledged challenges, noting, “One of the key challenges is the uneven distribution of visitors, with most tourists concentrated in a few popular destinations. To address this, we promote lesser-visited regions, diversify tourism products, upgrade infrastructure, and enhance community participation.”

Thinley Dorji, General Manager of Hotel Zangto Pelri in Punakha, said the Master Plan presents both challenges and opportunities. “Hotels must improve quality, embrace sustainability, and adapt to changing tourist expectations. Rising arrivals, diversification beyond the western circuit, and stronger private sector roles mean hotels can expect more business if they position themselves well,” he said.

He highlighted the SDF impact, explaining, “Previously the SDF was USD 65, then USD 200, now revised to USD 100 until 2027. These changes affect hotel occupancy. International tourists are cautious, and domestic tourism is almost negligible.”

On past revenue strategies, he added, “Events and conferences kept hotels alive during the lean tourist season, but that demand has gone down, leaving many properties struggling. During COVID-19, His Majesty’s Kidu was a lifeline for the hotel industry. Without that support, many hotels would not have survived.”

Thinley Dorji also noted the evolving tourist profile. “Tourists today seek immersive experiences in wellness, culture, sustainability, and authentic connections. If hotels adapt, there is real potential. Tourism recovery and hotel success are closely linked, and benefits should reach beyond Thimphu and Paro to Punakha, Bumthang, and eastern regions.”
Kinley, owner of Kuzu Zangpo Kingdom Journey, said the Master Plan encourages operators to improve services and expand beyond the western circuit. “It encourages us to invest in better guides, sustainable trekking practices, and innovative packages for high-value tourists. Trekking supports rural livelihoods, with income reaching guides, cooks, porters, horsemen, and villages along routes selling local food, handicrafts, and providing homestays,” he said.
Kinley added, “Challenges remain in infrastructure, high costs, and limited skilled staff. Some trails need maintenance, and finding experienced guides is difficult. With the Master Plan emphasizing regenerative and rural tourism, we can create hero treks in every dzongkhag, integrate wellness and cultural experiences, and attract high-value visitors. Close collaboration with local communities and the government can make trekking a key driver of sustainable development in Bhutan.”