Tour operators feel airfare subsidy will make limited impact

As the Nu 96 mn airfare subsidy is launched, the tour operators have a different view on the feasibility and rationality of this execution.

“The Ministry is taking steps to help the tourism industry, and we appreciate that, but it was too short of a notice for us, and tourists plan holidays months or even a year ahead of schedule,” said a tour operator.

The tour operators say that instead of implementing subsidies on lean months, the government could rationalize the air fare in general so that it would be easier for the visitors to plan ahead of time, and would make a big dent in the tourism sector.

They said that this would boost the tourism sector and the effects would be immediate.

Another tour operator added that from a dollar paying visitor’s perspective, the subsidy is insignificant as they already have to pay for other amenities such as the SDF, the guides, and their hotels. He alludes to an example of a normal dollar paying tourist’s stay in Bhutan.

“If they decide to visit during the lean seasons and stay for five nights, their expenditure would approximately be around USD 1500, considering the fact that they stay at a three star hotel while paying the daily SDF of USD 100 and USD 50 a day to their guide. Then the airfare subsidy of USD 150 is just going to be spare change for them.”

In a recent letter to the Cabinet on 12^th November, the Opposition Leader, Pema Chewang, stated that the airfare subsidy for the dollar paying tourists only constitutes about six percent of the overall travel expenditure for them.

A tour operator said, “The government has realized that the tourism sector is in desperate need for a boost, and that is a positive start for us. In realizing this, it is also very important to rationalize the airfare completely because we also have concerns regarding the stability of this subsidy.”

The Ministry of Finance has submitted a letter to the Cabinet for their approval on 13^th December, and the Cabinet held a discussion on 20^th December. The subsidy is expected to be implemented soon.

The subsidy implementation is expected to happen soon.