The Bhutanese Leading the way.
The recent India-Pakistan conflict, which took place from 7 to 10 May 2025, has led to a wave of travel cancellations in Bhutan, particularly affecting Indian tourists. The impact comes at a time when Bhutan’s tourism sector was showing signs of strong recovery after a slow start to the year.
Hotels across the country have reported a sharp increase in cancellations, with both individual and group bookings affected. Hotel Ugyen in Babesa had four group bookings cancelled, while The Happiness Farm in Paro lost five room bookings originally scheduled for 19 May.
In Thimphu, Pelyang Boutique had 14 rooms cancelled scheduled from 9 to 19 May. Kingaling Hotel in Punakha had 11 rooms cancelled on 15 May, 6 rooms on 17 May, and 5 rooms on 18 May 2025.
Legphel Hotel in Phuentsholing reported more than 5 room cancellations, while Hotel Dralha in Thimphu and Hotel Druk in Phuentsholing faced 25 and 27 room cancellations, respectively.
Tour operators were also affected. One operator reported that four tourist groups cancelled their trips scheduled for this week, stating concerns over airports located in high-risk zones. The families of the tourists also discouraged travel under the circumstances.
Another operator said one group cancelled their visit scheduled from 12 to 17 May, as they were travelling through an airport, which was deemed a high-risk area. The operator clarified that the cancellations were due to external factors, and not related to Bhutanese airlines. The tour operator also said that they have begun some rebooking of regional tourists.
The Chairman of the Hotel and Restaurant Association of Bhutan (HRAB), Ugyen, stated that many budget and three-star hotels have received a significant number of cancellations. Member hotels have reached out to HRAB expressing their concern. He mentioned that the issue will be reported to the Department of Tourism, but he said that there is little that can be done in the current situation. He added that the only hope for affected hotels lies in the Economic Stimulus Plan.
A tour operator said that he heard that some hoteliers in Gangtey saw cancellations due to the termination of certain flights during the conflict. The operator said that May is the peak month for travellers from India, and the conflict coming at this time impacted the numbers, as many Indian tourists due to the uncertainty decided to stay home.
The operator said that some western and European tourists would also be impacted, as quite a few of them come via Delhi apart from Bangkok and Kathmandu. The operator said he is aware of a hotel in Thimphu where three groups from India cancelled due to the flight issues.
A major tour company that deals in US and European tourists said one group postponed its travel but eventually did come in.
Another major tour company known for handling Indian tourists said that 3 groups from India with around 4 members each postponed but did come in later. He said the ceasefire helped, but if the conflict comes up again then it would really be damaging.
An owner of a tour company said that the conflict has led to a 10% decline in Indian tourists due to cancellations. He said the conflict will affect numbers of Indian tourists in both May and June which are the main months of travel for Indian tourists.
In case of Indian tourist cancellations, one issue that has cropped up is talking to airlines within India to refund the ticket charges.
The conflict could not have come at a worse time when tourism numbers were just starting to recover in Bhutan this year. While the January to March tourist numbers were not much and comparable to last year, there was a major improvement in April.
The country received 28,674 tourists in April 2025 increasing by 12,293 compared to April 2024. This marks a 74.96% increase in the tourist arrivals in the month of April.
However, the May numbers got hit with the conflict between the two countries. It also did not help that a large number of Indian tourists come from the affected areas or areas not far from Pakistan like Gujarat, Delhi, Maharashtra, etc.
Looking ahead, tour operators said that the numbers overall look better for September, October and November, but if there is to be real progress then things, like airline fares, duration discounts, team leader discounts, etc., need to be addressed too.
