The Himalayan kingdom of Bhutan will halve the $200 daily fee it charges tourists in an effort to boost an industry still struggling to recover a year after the end of Covid-19 restrictions.
Bhutan increased its "sustainable development fee" to $200 per visitor per night, from $65, when it ended two years of Covid restrictions in September last year, saying the money would go to offset carbon generated by the visitors.
The new rate of $100 per night would take effect in September and last for four years, the government said in a statement late on Friday.
"This is in view of the important role of the tourism sector in generating employment, earning foreign currency... and in driving general economic growth," he said.
Isolated for generations, Bhutan opened up to tourists in 1974, when it received 300 visitors. The number shot up to 315,600 in 2019, 15.1% more than the previous year, official data showed.
Bhutan has always been wary of the impact of mass tourism and bans mountaineering to preserve the sanctity of its peaks. The tourist fee has limited arrivals to top spenders, who make up a fraction of those visiting nearby Nepal.
However, Bhutan expects to increase by 20%, from around 5%, the contribution of tourism to its $3 billion economy.
Dorji Dhradhul, director-general of the Department of Tourism, said halving the fee could boost arrivals in the peak tourist period of September to December, which includes many religious and cultural events in the mainly Buddhist country.
In June, the government eased rules on length of stay and rates for tourists, but the numbers have not risen as expected.
Dhradhul said more than 56,000 tourists had visited Bhutan since January, but around 42,000 were Indian citizens, who only have to pay a fee of 1,200 Indian rupees ($14.5) a day.
About 50,000 Bhutanese are employed in the tourism sector, which earned about $84 million a year in the three years before the pandemic in foreign exchange.
