The Bhutanese Leading the way.
The Ministry of Industry, Commerce and Employment (MoICE), in consultation with the Royal Monetary Authority (RMA), is currently assessing the feasibility of extending a 4% interest subsidy to hotels, according to the MoICE Minister, Namgyal Dorji.
The proposed support would be based on defined eligibility criteria, similar to what was offered to the manufacturing sector under the ESP Window I (Business Reinvigoration Fund).
The assessment follows repeated requests from the hotel sector for dedicated support under the Economic Stimulus Program (ESP). While the 4% interest subsidy remains under review, the government has already taken a broader approach to relief for the hospitality industry.
Lyonpo Namgyal Dorji stated that after months of consultation and deliberation, the government announced a set of seven post-June loan restructuring and support measures on 9th June 2025. These measures were designed specifically to address the challenges faced by the hotel sector.
Lyonpo explained that the measures are broad-based and give financial institutions (FIs) the flexibility to work directly with hotels on customized restructuring and repayment arrangements. FIs are also exploring interest rate reductions as part of the ongoing relief efforts.
According to MoICE, hotels, through the Hotel and Restaurant Association of Bhutan (HRAB), are currently reviewing which of the seven measures are most applicable to different categories of hotels.
The outcome of this internal assessment is expected to guide the government in determining whether additional targeted support, such as the proposed ESP interest subsidy, is warranted and effective.
In parallel, the ministry is preparing to roll out the Tourist Registration System (TRS). The new system is intended to improve data reliability on tourist movement, hotel occupancy, and usage of tourism infrastructure. Lyonpo Namgyal Dorji noted that the TRS aims to resolve persistent sectoral issues such as revenue leakage, under-declaration of room occupancy, and the lack of clarity on which hotels are genuinely under financial stress.
He stated that any new government intervention must be aligned with the seven restructuring measures already in place and must contribute to a durable and sustainable resolution of the long-standing loan deferral challenges affecting the hotel industry.
The Hotel sector has been the worst hit after the pandemic due to a drop in numbers of tourists.
