Role Of Tourism In Economic Development

Tourism in Bhutan -Journey to the Land Of Thunder Dragon known as the Last Sangri-La

Discover the Country where Gross national happiness is more important than Gross national product, the scenic beauty of the tiny himalayan kingdom of Bhutan. Bhutan with its natural beauty,rich wildlife and unique culture makes a wonderfuland exotic tourist destination.

Bhutan Tourism Policy:

Bhutan Tourism Policy is reflective of the larger development philosophy within Bhutan. While the government’s basic goal, as with other developing countries, is to improve the living standards of its people, development in Bhutan is not judged merely by material prosperity and income growth. The Royal Government has repeatedly affirmed the importance of less quantifiable but more meaningful goals such as happiness, contentment, and the spritual and emotional well being of its people. Thus the government has taken a cautious approach to development. The Royal Government’s view is that modernization and development should be guided by the “Gross National Happiness” of the Bhutanese people, rather than by the Gross National Product. Likewise, development should be consistent with Bhutan’s capacities and needs.

Tourism Restriction Policy

The Royal Government of Bhutan recognizes that tourism is an important means of achieving socio-economic development. It also recognizes that tourism, by encouraging travel to other countries, can promote understanding among other people and build closer ties of friendship based on appreciation and respect for different cultures and lifestyles.

There are however, problems associated with tourism which, if not controlled, can have devastating  and irreversible impacts on the environment, culture and identity of people. Realizing these problem and the fact that the resources on which tourism is based are limited, the government recognizes the need to develop the Bhutanese tourism industry based on the principle of sustainability (ie. it must be environmentally friendly, socially and culturally acceptable, and economically viable).

Tourism Pricing Policy

Rather than limiting the number of visas issued, tourist arrivals are controlled by a pricing policy. This pricing means that the tourist must come to Bhutan on a package tour, organized by the Bhutanese tour operators (foreign travel agents are not allowed to operate in Bhutan). The whole itinerary, whether it be a cultural tour, festival tour, trekking or a mixture of both, is organized by the tour operator. The fully inclusive price set by the government is presently US$200 during peak season and US$165 during off season. Of this tariff, 10% commission goes to the external foreign travel agent, 35% is paid as a government royalty, and the remainder is the tour operators to be spent in Bhutan. The tariff increases if the tourist want to travel alone or in very small groups. There are however concessions available for Diplomats, children and students. If at any point it is felt that the number of arrivals is escalating out of control, the pricing policy may be reviewed and the prices increased. The manageable level of arrivals will depend on the current infrastructure in the country. As infrastructure improves, the carrying capacity will rise.

Bhutan Visa Formalities

Bhutan visa formalities are another means of ensuring that Bhutan, rather than customer demand, dictates the number of arrivals. Visas are not available upon arrival at any of the borders of the airport. Visas must be processed in advance of arrival, and clearance given by the ministry of foreign affairs before tickets are issued to enter the country.

All visa applications for tourists are processed through TAB, Tourism authority of Bhutan, as are all visa extensions. This means that TAB is at all times aware of the number of tourist in Bhutan and ensures that the Government royalty is always colected.

Local Participation in Tourism

Because of the government’s “high value-low volume” policy, tourism in Bhutan has a very favourable income to arrivals ratio. The government moniters this ratio very carefully so that the money the tourists spends is directed to businesses in Bhutan, rather than to large overseas travel agents. These agents usually sells package holidays and in most cases, the percentage of revenue that actually gets to the host country is very small. In Bhutan, tour operators are given the chance to receive revenue directly from the price of the holiday, and the Bhutanese people receive an income from the tourists by way of government royalty. This royalty collected makes up one sixth of the country’s income, and one third of all foreign exchange earned. This is an important source of revenue for Bhutanese people since all health services and education are provided by the government for free. Other examples of how tourism earnings get to the local communities:

1. Repairing and maintaining trekking trails. In many cases, park managers award contracts to local people for the maintenance of footbridges and trails.

2. Rest and community houses along trekking routes, that were built by the government prior to the privatization of tourism, have been handed over to local community residents. The revenue generated from tourism goes directly to the local community, and they have full control over these shelters.

3. Local communities along trekking routes provides provisions for trekkers. This provides additional income for local people. Tourist are given a local diet rather than imported foodstuffs.

4. All transport for trekking-yaks,horses and humans, is provided by the local people. This is further safeguarded by the district boundaries at which transportation animals or portors are changed from the next district. The tour operators are at the mercy of the transporters, as the locals decide on the terms and often charge high prices for travel in remote areas.

Handicrafts

The sale of handicrafts to tourists is obviously big business, however handicrafts are also used by tour operators running trekking programs. Eg, babboo baskets are used as containers during trekking. Tradionally, it is used for packing containers on horses and yaks. These baskets are purchased by tour operators. The life of the average bamboo baskets is about two years, then it is replaced. This is one indigenous product that is always in demand.

The sale of handicrafts in Bhutan is as new as tourism. Items that were once considered just for everyday domestic use, are now produced for sale. The government (often with the help of UNDP and other external agencies) has established weaving centers and other handicraft centers around the country. These encourage the preservation of the skills involved in producing the handicrafts, enable people to remain in their villages where most of these projects are based, and they often enhance the role of women by enabling them to increase the family income. Tours in Bhutan In this country known as Druk Yul, the ‘Land of the Peaceful Dragon, the fortunate visitor will find a rare combination of harmony and accord, amidst a landscape of incredible natural beauty. The air is clean and unpolluted the mountains magnificent and the architecture inspiring. Whatever the purpose, a visit to Bhutan is indeed a journey into an enchanted realm. Bhutan maintains a policy of strictly limiting the number of people who can visit the country in a single year. All visitors are charged fixed tariffs for services such as the provision of accommodation, transport, guides and meals. Our tours to Bhutan will give you the insights to this less spoiled Himalayan country. If carefully planned, tourism can assist in a country’s conservation and development goals. Bhutan’s experience with tourism has been positive because the Bhutanese government has controlled and carefully managed tourism policies within the country. Bhutan has learned from the experiences of other developing countries and tried to limit the extent to which tourism can damage the natural and cultural base of Bhutan. Likewise, Bhutan’s tourism policies fit in with the general development strategies of the government and are guided by the principle of “Gross National Happiness”, rather than the accumulation of wealth which usually characterizes the tourism industry. Allow Medieval bhutan tours to be your travel companion and guide to explore this magestic kingdom of Bhutan. We are recognised and registered by the tourism council under the Royal Government of Bhutan.
About the Author

Tshering is the CEO of . Medieval Bhutan Tours, Government registered tour company that offers various tour programs including cultural tours

http://www.medievalbhutan.com

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