In an effort to draw more tourists from abroad to experience its stunning scenery, Bhutan is lowering its daily tourist fee.

Since September 2022, passengers have been obliged to pay an extra USD 200 (about SGD 271) per night as part of the “Sustainable Development Fee” (SDF). This will no longer apply starting on September 1, 2023, and will instead be USD 100 (or around SGD 136).

One of the main causes of this action is that, according to Reuters, Bhutan is still struggling to revive its tourism industry and draw new tourists even a year after restarting travel as a result of the COVID-19 outbreak.

In an effort to reduce the carbon footprint that guests leave behind, the SDF would be increased to USD 200 per night in September 2022 from USD 65 for night. The levy does seem to have decreased the amount of tourists visiting Bhutan, though.

With the new renovation, Bhutan, one of Asia’s most attractive cities, hopes to boost tourism. The new tax, according to a government announcement, will last for four years and end on August 31, 2027.

In the announcement, it is stated that “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.”