The Bhutanese Leading the way.
A major measure that the Tourism Industry was looking forward to was the reintroduction of duration discounts.
Their hopes were up, especially after the Ministry of Industry Commerce and Employment (MoICE) asked the Bhutan Innovation Lab (BIL) office under the Prime Minister’s Office (PMO) to study the issue of duration discount, group discount and other tourism related issues.
BIL took its time doing an extensive survey and submitted its report to MoICE, and the MoICE in turn was looking at the report and discussing it.
In the earlier system, after the 9th night, tourists got a 50 percent SDF discount, and after the 15th night it was a 100 percent SDF discount. This encouraged longer stays by tourists.
In the older system, there was a group discount which meant that if there is a pac of 10 tourists then one of them or the tour leader would get a 50 percent discount on SDF by the old TCB, airfare by Druk Air and even hotels.
The talk until recently was that MoICE did not want to just bring back the old duration discounts, but do it more scientifically, and if necessary, even give it for shorter number of nights.
A source had earlier said the aim is to shorten the duration discounts. Thus means the 50 percent discount after the 9th night maybe reduced by one to two days and the days would also be reduced for the 100 percent discount. Smaller group sizes were also being considered for group discount.
However, in what will be a major disappointment for the Tourism Industry a reliable source told this paper that the MoICE has shelved any plans for duration discount for now.
There is a feeling that tourist numbers are already increasing without any duration discount, and the focus should be more in other measures.
For example, the Economic Stimulus Program (ESP) steering committee has approved that hotels are eligible for the concessional Reinvigoration Fund Loans (RGF). The Cabinet is likely to approve it next.
RGF offers two modalities for support: an interest subsidy on an existing loan of 4 percent for three years or an additional subsidized loan at 4 percent for three years.
The other area of support could be in terms of marketing.
The source said the average length of stay for international tourists is 5 nights and that of Indian tourists is 4 nights, and it is not felt that any duration discount will help much.
However, tour operators and hotel owners do not agree, and are instead arguing that duration discounts are vital to increasing the number of nights that tourists stay and also spreading tourism beyond Paro and Thimphu.
A tour operator who owns a hotel with many years of experience in the sector said the short nights of stay is keeping tourists just within Thimphu and Paro, when these days everything is about slow travel and soaking it in, and so tourists stick to Thimphu and Paro.
He said, “Forget about eastern and central Bhutan, even Punakha and Gangtey are suffering.”
He said the other thing is that trekking groups are really low. “Trekking is something that has a good future for Bhutan, and it is about sending people in the mountains and avoiding the impact in the cities and helping communities like those who keep horses but treks have some down a lot.”
He said in the past, there used to be 6 to 7 snowman treks happening with 10 to 12 people in each group but that is down to 2 or 3 groups. He said not many trekkers can pay USD 3,000 for a month.
The operator said that the Tourism Department is not showing the data on treks on its website which is really low now.
He pointed out that in Spring, Bhutan is a Birders paradise, and people come all the way to Bhutan to spend three weeks in eastern Bhutan, Gelephu, Manas, etc., for birding but this is hit too due to the lack of a duration discount.
At various forums, tour operators have been proposing keeping SDF for a week and then making it SDF free after that.
The operator said that duration discount will take away tourists from Paro and Thimphu and to other parts of Bhutan. He said currently, there is almost mass tourism level overcrowding at Dochula, Taktsang, etc., since tourists are not going further away due to a lack of duration discounts.
He said the Desuung and Tourism Department are working hard to promote the Trans Bhutan Trail, but it will not work without duration discounts.
The operator said that only some rich and older tourists who come for a luxury experience in a high end hotel will be fine, but trekking tourists are younger and while they will pay SDF, it becomes difficult over 30 days and long durations.
He said if tourists stay longer then it helps the whole economy, and everyone from drivers to hotels, shops and guides’ benefit.
He pointed out that the government should not just look at the increasing numbers, but also at the quality of the numbers, their duration of stay and their contribution to the economy.
