Bhutan offers ‘bargain’ on tourism taxes

Bhutan, which has perhaps the world’s stiffest tourist tax at $200 per night per person, is offering a bargain that some will welcome but will be difficult for many to take advantage of.

Visitors who stay for longer periods and therefore presumably spend more in the country, will have the $200 a night tax waived if they stay longer. Visitors who pay $800 for four nights will pay no extra tax for an additional four nights; those who pay for 12 nights can stay the whole month with the fee, called a ‘sustainable development fund’ capped at $2400. The discounts apply only to visitors who pay in dollars, not in rupees.

The country, which already had a $65-a-day tax before the pandemic, imposed the new rate on re-opening. It’s intended to raise the tourism share of the economy from 5% to 20%, with a goal of hosting 86,000 tourists per year. So far this year, it has already seen 47,000.

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