Businesses in Haa town are on the brink of shutting down as the post-pandemic economic landscape worsens, compounded by a steady population decline. The town, like many others across Bhutan, is seeing its youth move abroad, especially to Australia, or to other dzongkhags in search of better job opportunities.
50 percent of the shops have shut down with big locks and chains. Apart from shopkeepers themselves and a few Taxi drivers, the streets of Haa town look empty like a deserted land.
47-year-old Tshering Wangchuk, the owner of Hoentey Hotel in Haa town, shared his struggles after three years in business. He is the first shop one will see while entering the town.
“The post-pandemic period has been the hardest. I barely make Nu 1,500 to 3,000 a day, while my rent alone is Nu 30,000. Rarely 10 people come in a day. These customers are solely attracted to my restaurant since I cater to our local dish which is ‘Hoentay’.”
“The youth here are either going to Australia or migrating to other towns, leaving the place deserted. The ones left here have no money to spend as they would have invested all the savings and availed additional loans from banks. The only resort now would be to bring in training institutes or build colleges which would attract youths and help business boom,” he added.
A 70-year-old shopkeeper shared similar concerns. “It’s been eight years since I opened my shop, but the town has never been this empty. People only come by occasionally to buy Doma. With fewer residents, the situation is worsening.”
Although she owns her property, the shopkeeper said that many local vendors struggle to make ends meet while paying high rents.
“Well, I am lucky enough not to be paying rent. However, other business owners are really having a hard time. Firstly, they are not able to sell their products, and secondly, they have to pay rent at the end of the month. As the situation remains the same, the government has taken this into consideration and exempted us from paying business tax beginning a few months back, but it still remains the same.”
The effects of this demographic shift are felt across various businesses. Another hotelier in the area explained that, despite discounted rent, the lack of customers has forced her to reduce staff and scale back operations.
“Before the pandemic, business was booming with numbers of customers. However, now after the pandemic, there are no people. Initially, when I started my hotel business, I had 3-5 staff. Now, I don’t have any staff since there are no customers at all. My building owner was kind enough to offer several waivers on rent as we started from Nu 50,000 rent and now it is Nu 30,000. Though business is not running at all, we have to pay monthly rent, and till when and how much waiver can we keep asking.”
“There are sales only during festivals, like the IMTRAT Mela or Haa Tshechu, but it’s not enough to sustain the business year-round. As my tenancy contract ends in the following month, I am planning to give up the hotel and engage in agriculture activities,” she added.
Even small businesses, such as pan shops, are also facing challenges.
One owner, whose space is shared with a barber’s shop, said, “We’re just about covering our rent of Nu 10,000 each month, as there are fewer customers now. Haa used to be busier in the past, but it’s becoming more deserted. Once school resumes by the February month, students will make it a little vibrant. Still, it won’t be like in the past.”
The region’s shrinking workforce is another major concern. With a population of over 13,500, businesses are finding it difficult to find labor, and many agricultural sectors are facing the same problem. Products are available, but there are few buyers.