Coming to tourism’s rescue
Government, hoteliers and Druk air lend a hand to the industry in troubled times
12 January, 2009 – Following measures requested by the tourism sector against the present global downturn, the government yesterday agreed to defer the tariff revision till a later date and provide discount on royalty.
The association of Bhutanese tour operators (ABTO), around the end of last month, requested the government and stakeholders for interim measures.
A press release from the tourism council stated that the tariff revision, from USD 200 to USD 250 will be deferred immediately to a later date that will be determined by the performance of the industry. Starting July 1 this year, a discount of USD 20 (peak season) and USD 15 (off season) on the royalty will be given after the ninth night. Each night refers to the number of days a tourist spends in Bhutan and the royalty for each tourist amounts to USD 65 per day.
The response to the tourism sector’s proposal, unlike the steel industries, still waiting, was quick. However, most people in the tourism industry say that providing discount after the ninth night made no sense.
Tour operators say that the average number of night spent by tourists is only six and the discount therefore would not be applicable. “Most tourists travel to Bhutan in groups with packages, which are usually not more than 8 to 9 days,” said a tour operator. The proposal from ABTO was for discount after the sixth night.
In addition to these measures, the hotel association of Bhutan (HAB), which sees a yearly increase in rates of about 10 percent, also agreed to refrain from raising room tariffs this year, and Druk Air has approved resumption of their low season discounts and further reduce the surcharge, which earlier in December 17 was lowered by USD 3. For each tourist, it comes to around 90 dollars discount on airfares during the low season.
The general manager of Druk air, Tshering Penjor, said that Druk air, being the first stakeholder, is also looking into reducing airfares by 25 percent with effect from May.
He said that, though Druk air has the lowest fuel surcharge (10 percent) compared to other airlines, the corporation had made a further reduction to 7 percent, which would soon drop to 5 percent. The fuel surcharge from other airports is around 25 dollars. “The need of the hour for stakeholders is to re-assess the rates and take significant measures to make an impact on the current crisis in the tourism sector,” he said. Druk Air also plans to introduce group fares (10 persons or more) with more reduction on airfare.
The rising fuel prices of the past years had stung most airlines, making them pass on the bill to consumer by increasing airfare and fuel surcharge. 40 percent of Druk Air’s total operating costs is down to fuel expense.
By Passang Norbu (Kuenselonline)