Bhutan's tourism industry began in 1974. It was introduced
with the primary objective of generating revenue, especially foreign exchange;
publicising the country's unique culture and traditions to the outside world,
and to contribute to the country's socio-economic development. Since then the
number of tourists visiting Bhutan has increased year after year at faster rate.
By the late 1980's tourism contributed over US$2 million in
revenues to the royal government. In 1989, the royal government raised the
tourist tariff. That year only 1,480 tourists visited Bhutan but the government
still earned US$1.95 million through tourism. By 1992 tourist revenues contributed
as much as US$3.3 million and accounted for as much as 15-20% of the total of
Bhutan's exported goods and services.
The royal government has always been aware that an
unrestricted flow of tourists can have negative impacts on Bhutan's pristine environment
and its rich and unique culture. The government, therefore, adopted a policy of
"high value-low volume" tourism, controlling the type and quantity of
tourism right from the start. Until 1991 the Bhutan Tourism Corporation (BTC),
a quasi-autonomous and self-financing body, implemented the government's
tourism policy. All tourists, up to that time came as guests of BTC, which in
turn operated the tour organization, transport services and nearly all the
hotels and accommodation facilities. The government privatized tourism in
October 1991 to encourage increased private sector participation in the tourism
sector. Today there are more than 75 licensed tour operators in the country.
Tourism Regulatory Body
After the privatization process, a regulatory body, the Tourism
Authority of Bhutan, now called the Department of Tourism (DOT), was
established under the Ministry of Trade and Industry. The primary
responsibilities of the Department of Tourism include ensuring compliance by
travel agents with the tourism policy of the royal government, including the
regulation of the number and segments of foreign tourists; fixation of rates
for trekking, expeditions, and cultural tours; receiving of tourist payments
and processing of tourist visas; issuing and ensuring compliance with
guidelines and regulations related to tourism activities; ensuring conservation
of culture, tradition, environment and protection against ravages of pollution
and exposure from tourism activities; and developing new opportunities for generating
growth and foreign exchange through protective tourism, and to undertake
research and development in such areas.
The Association of Bhutanese Tour Operators (ABTO) was formed
in December 1999 with the overall objective of bringing together all the
private sector interests involved in the tourism industry. One of the
objectives of ABTO is to establish a channel for closer and more effective
collaboration between the tourism industry and the Department of Tourism. ABTO
is also the first step that the industry has taken to create a mechanism for
self-control and self-regulation.Currently the minimum daily tariff set by the
Department of Tourism for both cultural tours and treks is US$200 for the high
season and US$165 for the low season. There is no quota or limit on the number
of tourists allowed to visit Bhutan. Rather the volume of tourists coming to
Bhutan has been limited by the capacity constraints of tourism infrastructure
due to the pronounced seasonality of tourism in the country. March/April and
October/November are the top tourist seasons as the weather is best for Journal
of Bhutan Studies. The trekking and cultural festivals are taking place in
different parts of the country.
So far the royal government's overall objective of maximizing
foreign exchange earnings while minimizing adverse cultural and environmental
impacts of tourism seems to have paid off. The tourism industry has made
significant contributions to the socio-economic development of the country,
especially after the privatization of the industry in 1991. A high level of
profits is available to tour operators and an increasing number of Bhutanese
entrepreneurs are investing in the tourism sector. Bhutanese have also found
employment as guides, cooks, transport operators, and hotel and restaurant
owners. Tourism contributes significantly to rural incomes through earnings
from tourist transport and portage. Tourism has also provided the impetus for
the development of the service sector, including hotels, restaurants,
transportation and communication. Another visible impact of tourism has been
the promotion of the indigenous cottage industry and the setting up of
handicraft shops in Thimphu and other frequently visited areas.
Bhutan’s strength for
Tourism Development
Bhutan's main tourism attractions are its traditional culture
and way of life, its religious festivals, historic monuments and its pristine
environment. Bhutan has received much international acclaim for its cautious
approach to development that places a high priority on conserving the nation's
natural and cultural heritage. Protecting nature and culture is part of the
Bhutanese value system and is an important aspect of the traditional way of
life in Bhutan, and the tourism policy reflects these concerns. The policy of
imposing a high tariff has succeeded in making tourism in Bhutan an exclusive
and distinctive experience. However, with the increase in the number of
tourists coming to Bhutan every year there is a need to monitor and evaluate
the environmental and cultural impacts of tourism and offer measures to reduce
any adverse impacts.
World tourism is evolving as well as growing and tourists
increasingly want to engage in recreational or sporting activities, learn more
about local cultures or develop special interests. Among these special
interests is the natural environment resulting in what is commonly termed
"eco-tourism". This offers new opportunities and challenges for
Bhutan.
Sustainability of
Tourism
Bhutan is keen to develop its tourism industry in a way that
is socially, economically and environmentally sustainable. It should be
recognized that tourism in Bhutan has been sustainable so far due to the sound
environmental and cultural policies of the royal government which has
considerable authority over setting policy direction. The future sustainability
of tourism will, however, depend on greater participation from the tourism
industry. The tourism industry must realize that our environment and culture
are the basic resources on which it thrives and grows. It must recognize its
responsibility for conservation and sustainable natural resource management by
committing to and working within principles and guidelines to achieve
sustainable tourism development.
A few countries including Bhutan have demonstrated that
tourism is not ugly. Bhutan is perhaps the best example where controlled
tourism has been effective in ensuring the sustainability of the industry in
the long run. It has contributed significantly to foreign exchange earnings and
government revenues, to income and employment generation and to regional
development to a certain extent. It has created opportunities for the
development of locally owned and operated private sector enterprises. Tourism
has been an important mechanism for publicizing the country's culture and
traditions to the outside world, and interactions with tourists have
contributed to a sense of national identity, making Bhutanese proud of their
country’s unique culture and environment. Tourism has further enhanced the need
to conserve the country's natural and cultural assets.
Bhutan's tourism potential is considerable with comparative
advantages in many areas to ensure economic growth and diversification.
Cultural tourism, eco-tourism and adventure/sports tourism (rafting, canoeing,
climbing) which are based on the country's natural beauty, biodiversity and
unique and distinct culture offer numerous opportunities for further
development of the industry. The tourism industry can also generate jobs at a
time when unemployment is becoming a problem with limited job opportunities in
the government and private sector.
Bhutan has a clearly established framework for the
development of tourism. It has clear tourism policies, excellent tourism
resources, a developing and expanding private sector, qualified and experienced
personnel, established marketing channels and contacts. In short, the initial
phase of setting up the tourism sector, of privatizing the industry, and of
establishing Bhutan as an exclusive, distinctive destination has been achieved.
The future development of tourism should now involve a process of refinement
whereby attempts are made by the industry itself to mitigate any negative
environmental and cultural impacts; explore and develop the numerous niche
markets, such as eco-tourism, that offer significant growth potential and are
consistent with the other development objectives of the royal government; and
increase the participation of local communities in tourism activities.
The future development of tourism should still be guided by
the concept of high-value tourism and should include a well-defined and
effective policy on sustainable tourism. Such a policy should continue to
advocate caution and control instead of aggressive tourism development, and be
inclusive rather than sector-based. The policy should also promote value
consciousness and heritage conservation. Bhutan has considerable tourism
resources today because of the cautious approach adopted by the government. This
approach should be applied to policies regarding the future development of the
industry to ensure that tourism development is consistent with the royal
government’s goals of environmental and cultural preservation. A cautious and
controlled policy will also allow periodic monitoring and review to ensure that
the country’s tourism develops sustainably, avoiding the negative impacts of
tourism.
As tourism is a wide- ranging social and economic activity
that is multi-sectoral by nature, such a policy should include
inter-ministerial committees to facilitate coordination between different
ministries, agencies, and the industry. Bhutan’s traditional way of life and
culture, its religion and its pristine environment have always been the main
tourist attractions. A sustainable tourism policy should ensure that these
values are promoted amongst visitors and that our cultural and natural heritage
is preserved.
The sustainable development of tourism will require
partnership and cooperation within the tourism industry, and between the
industry, government, tourists and people. Local input and involvement are also
important for the long-term sustainability of tourism in Bhutan. If local
residents and communities are part of tourist operations and receive benefits
from tourism, then the goals of the local communities, tourism operators, and
the government can be met.
Conclusion
Bhutan is in a very fortunate position in terms of tourism.
While tourism resources are being destroyed elsewhere, Bhutan's assets in the
form of its natural environment and culture are well preserved. The
international community has lauded the country's policy of giving the highest
priority to environmental and cultural preservation. This has further increased
the profile of Bhutan as a prime tourist destination. The tourism industry has
created a wide range of opportunities for Bhutanese who have begun to grasp
economic opportunities offered by the industry. Tourism has also been a
self-financing mechanism for promoting the country's environment and
facilitating an awareness and understanding of the uniqueness of this country.
Tourism has resulted in some adverse impacts but the government has recognized
the need to address them.
Tourism has also promoted Bhutanese culture by creating
employment opportunities for traditional musicians and dancers and encouraged
the resurgence of local festivals in different parts of the country. Although
the government still maintains control over the industry, it has become much
more diverse and complex since it was privatized in 1991. The private sector is
being more involved in not only monitoring itself but also in developing future
tourism policies. Tourism bodies like the Tourism Development Committee and the
Association of Bhutanese Tour Operators have been established to foster
partnership between relevant sectors involved in the industry and within the industry
itself. Both the organizations are still in their formative stages but have
crucial roles to play in determining the future sustainability of tourism in
Bhutan.
So far the government's policy of "high value-low
volume" tourism has been successful in regulating the growth of the
industry and maintaining the number of visitors at an acceptable level. To
ensure that our valuable tourism resources are developed in a cautious manner
the government must continue to regulate tourism through its pricing policy. It
is also time for the government to think of a well-defined and effective policy
on sustainable tourism, especially ecotourism. Only the government can provide
the strategic planning base for tourism and ensure that valuable and fragile
habitats are identified, that baseline monitoring is carried out, and that the
overall needs and implications of tourism are assessed. For major developments,
environmental impact assessments should be carried out.
The tourism industry also has a fundamental role in
maintaining the sustainability of tourism in Bhutan. Individual firms can take
the lead role by showing how self-regulation can work in practice, by taking
voluntary action to reduce pollution, by initiating and abiding by the Codes of
Best Practices, and by educating clients. The tourism industry association must
continue to develop and adopt such codes of conduct and good practice, and
provide members with the information to implement them. The industry
association must also develop mechanisms for effective self- regulation and
introduce sound environmental practices.
The public involvement and input are essential for the
long-term economic and environmental sustainability of tourism in Bhutan. If
local communities are involved and have a stake in tourism activities, it will
be in their interests to ensure that tourism is sustainable. Furthermore,
partnership between the government, the private sector, and the local people
can open up a wide range of opportunities that make good economic sense and
benefit all the partners. Tourism will be sustainable only if tourism planners
and operators give due consideration to the carrying capacity of our natural
resources, recognize that people and communities, customs and lifestyles
contribute to the tourism experience and, therefore, accept that these people
should also get some of the benefits from tourism.
