The Bhutanese Leading the way.
The number of tourist accommodations in Bhutan has increased since the pandemic, but concerns remain over whether the growth in hotel capacity is keeping pace with the recovery in tourist arrivals.
According to the Bhutan Tourism Monitor 2019, Bhutan had 309 classified accommodations before the pandemic, including 17 five-star hotels, 13 four-star hotels, 130 three-star hotels and 149 village homestays.
In 2020, the then Tourism Council of Bhutan also received a list of 531 budget hotels from the Department of Trade and Industry that were not included in the classified accommodation figures.
While the accommodation sector has expanded in the post pandemic period, some hoteliers say their businesses are still struggling to perform well. The growth in hotel numbers, therefore, raises questions about occupancy, demand and whether the increase in accommodation capacity is aligned with the recovery and growth in tourist arrivals.
Bhutan had a total of 353 star rated hotels registered with the Department of Tourism as of 31st August 2026, according to the latest dzongkhag wise data.
The figures show 21 five-star hotels, 23 four-star hotels, 183 three-star hotels, 98 two-star hotels and 28 one-star hotels across the country. Thimphu has the highest number with 106 hotels, followed by Paro with 89, Punakha with 34, Chukha with 28, Bumthang with 26 and Wangduephodrang with 25.
The list includes star rated hotels with valid certification as well as hotels whose certification has expired but are still operating and pursuing recertification. It does not include new hotels awaiting certification, hotels with expired certification that are not operating, or non-certified hotels.
This means that Bhutan has far more number of hotels now than before the pandemic with numbers almost doubling.
Bhutan had a total of 200 village homestays (VHS) across the country as of August 2026, according to the latest dzongkhag wise figures. Wangduephodrang has the highest number with 38 village homestays, followed by Punakha with 28 and Bumthang with 21.
Bhutan’s tourist arrivals have increased steadily since the pandemic, with the latest figures showing continued growth in 2026. The country recorded 315,599 arrivals in 2019, before the pandemic, compared with 20,897 in 2022, 103,066 in 2023, 145,065 in 2024 and 209,376 in 2025. The 2026 total of 158,903 covers January to July only.
The figures show that tourist arrivals in the first seven months of 2026 have already exceeded the 145,065 recorded during the whole of 2024. However, the country is yet to return to the 315,599 arrivals recorded in 2019, before the pandemic.
