Reflecting Tourism in Bhutan

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.