Bhutan is halving its daily tourist fee in order to entice more foreign visitors to enjoy its breathtaking landscapes.

The ‘Sustainable Development Fee’ (SDF) has required travelers to pay an additional USD 200 (about. SGD 271) each night since September 2022. This has now been decreased to USD 100 (about SGD 136), and is set to take effect on September 1, 2023.

One main reason for this action is that, even a year after resuming travel following the COVID-19 outbreak, Bhutan is still battling to restore its tourism business and attract more visitors, according to Reuters.

According to the source, the SDF would be raised to USD 200 from USD 65 per night in September 2022 in an effort to decrease the carbon footprint that visitors bring to the country. However, the tax appears to have reduced the number of tourists visiting Bhutan.

Bhutan, one of Asia’s most picturesque cities, seeks to increase tourism revenue with the new upgrade. According to a government statement, the new tax will be in effect for four years and will expire on August 31, 2027.

According to the statement, “this [change in the tourist fee] is in recognition of the tourism sector’s important role in generating employment, earning foreign exchange, realizing the potential for spillover benefits for ancillary industries, and boosting overall economic growth.”