Tourism blue print

February 28, 2010: When the Prime Minister last week met with the stakeholders of tourism industry to clear the air about the government’s decision to liberalize tourist tariff, a consensus was reached on two decisive numbers. The tourist tariff was raised by US$ 50 in addition to the existing tariff of US$ 200 a day and Bhutan would bring in a staggering 100,000 tourists by 2012.

The government and the tourism stakeholders decided that Bhutan will be marketed as a high end tourist destination with sufficient infrastructure in place with high quality service delivery, diversify products, ensure wider spread of tourism reach and draw tourist throughout the year.

To realize the goal, the government has outlined nine key initiatives. The government will take up destination marketing, identify two or three circuits and develop new products, define brand identity and shift from market to target audience marketing.

“Lhuentse can be a heritage site where tourists will have firsthand experience of the rich history of Bhutan. And Gasa can be another tourist attraction since it has hot springs,” said Home minister, Lyonpo Minjur Dorji, at the consultative meeting.

Lyonpo Pema Gyamtsho said the agriculture and forests ministry will come up with more herbal medicines as part of the initiative to sell Bhutan as a medical tourist destination.

At the aviation front, the government will build adequate international airports and airline capacity in the country at key destinations. The new Druk air operation in Guhawatti and the Bumthang airport which will be in operation by March this year is expected to ease aviation problems faced by the tourism sector.

The government will indentify land for new routes, bring FDI through international resort chain to develop properties, and develop heritage properties and home stay as private and community partnership. The floor price will also be removed when appropriate to ensure higher spending.

The government will roll out star classification system for hotels, create incentives for hotels supply upgradation, and upgrade hotel quality mandating minimum standards.

The Prime Minister said hotels in Bhutan can work in partnership with renowned hotels outside Bhutan so there will be an inflow of currency contributing to the nation’s economy.

Heritage homes in villages that can be converted into a tourist stay will be provided with incentives.

The government will integrate destination infrastructure by developing integrated infrastructure for the three new circuits in the centre (Bumthang, Trongsa, Trashiyangtse and Trashigang in the east, Manas and Zhemgang in the south). Tourism will be made responsible and sustainable by ensuring the highest compliance to the protection of environment, culture and communities, and certification for tour guides and operators, and develop key tourist’s amenities (e.g. visa process, credit card infrastructure, tourist’s information centre) for convenient access and stay.

Overall governance architecture for adequate capacity, autonomy and empowerment to execute tourism plans and integrate transport infrastructure, land availability talent development, will also be established.

The goal is to sell Bhutan as a high quality and low impact tourist destination said the Prime Minister, lyonchen Jigme Y. Thinley. And in order to provide world class Service to the tourists, first the nation has to build its basic infrastructure in the nook and corners of the country, he added.

The Prime Minister assured within the next three years, electricity and water supply will be available to every household in the country, have basic health care center with at least three doctors placed in district hospitals and mobile connection to every village across the nation. He said 60% has been achieved so far.

“Tourism is the fastest growing sector in the economy. We want to make Bhutan a high end tourist’s destination and make the country an eco friendly environment for the special visitors,” said the Prime Minister.

According to Tourism Council (TCB) of Bhutan report 2009, the tourism industry generates a GDP of US$ 76 million contributing 6% to GDP. According to the TCB initiatives report, by 2010 the GDP contribution is targeted to be 7%, 9% by 2011 and 13% by 2012. Gross revenue from tourism reported an average growth of 36.5% and 37.22% on royalty between 2004 and 2008.

In 2008, gross revenue was US$ 38.8 million.

Source: bhutantimes