Empowering local tour operators amid competition from international counterparts

While precise statistics on the percentage of tourists arriving through Bhutanese tour operators versus international operators are not available, it is known that international operators often collaborate with local businesses.

According to an official from the MoICE, this partnership allows foreign companies to attract clients while local operators manage the actual tours. Consequently, the market share between Bhutanese and international tour operators can fluctuate.

Currently, there is no available data to directly compare the pricing structures of Bhutanese tour operators with those of international operators. This lack of information also extends to understanding how these pricing differences may influence foreign currency inflow.

However, the average spending of tourists can vary significantly based on how packages are organized and the services offered by both types of operators.  Tourists are encouraged to book their tours through licensed Bhutanese tour operators, who provide invaluable local expertise. This recommendation stems from the seamless travel experiences that these operators can offer, ensuring that visitors enjoy the best of Bhutan’s culture and attractions. While tourists have the option to process their own visas and make other arrangements, any guided tours or structured itineraries must be organized through a Bhutanese operator. This requirement helps ensure that the economic benefits of tourism remain within the country, promoting local development.

The local tour operators play a vital role in community development and economic stability. By partnering with local businesses—such as homestays and handicraft vendors—they ensure that a significant portion of tourist spending supports small, local enterprises. This practice not only enhances the local economy but also encourages cultural preservation, allowing tourists to engage with authentic Bhutanese experiences. It also reduces economic leakage, keeping more of the revenue within Bhutan.

Looking ahead, MoICE plans to enhance the competitiveness of Bhutanese tour operators through various initiatives. A key focus is improving the digital presence of local Destination Management Companies (DMCs) by creating a comprehensive Tourism Service Portal. This centralized platform will showcase the diverse offerings of local operators, making it easier for international partners and tourists to access information and make informed choices.

Additionally, the ministry has launched the Tourism Bhutan App, designed to connect service providers with tourists directly. MoICE will continue to support familiarization trips for international agents and media, enabling local operators to showcase Bhutan’s unique tourism offerings and attract a broader audience.

Participation in global travel fairs and events will also be facilitated, allowing Bhutanese DMCs to increase their visibility in the international market. The exposure is expected to help local operators build direct connections with global stakeholders, gain insights into tourism trends, and strengthen their competitive position.

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