SDF waiver to boost tourism and business opportunities

YANGCHEN LHAMO

Thimphu

The Department of Tourism Bhutan has recently unveiled a groundbreaking initiative aimed at bolstering the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector in the country.

Effective immediately, organizers of MICE events can now take advantage of a waiver on Bhutan’s daily Sustainable Development fee (SDF). This move is expected to have a profound impact on the tourism industry, as it seeks to position Bhutan as a premier destination for MICE events in the region.

By waiving the SDF, the government aims to attract more international MICE travelers and provide a significant boost to the local economy.

In 2019, Bhutan played host to 904 MICE travelers, predominantly from Japan, the UK, Germany, and India.

These visitors not only contributed to the economic growth of the country but also fostered cultural exchange and community development. With this new initiative, Bhutan is poised to become a thriving MICE events hotspot, offering unique experiences and unparalleled hospitality to event organizers and participants.

The waiver of the SDF is a testament to Bhutan’s commitment to sustainable tourism and its recognition of the vital role that MICE events play in driving economic growth and creating meaningful connections between nations.

The MICE market plays a crucial role in the global tourism industry, contributing significantly to its revenue.

Understanding the immense economic benefits that MICE business can bring to Bhutan, the Department of Tourism is taking proactive measures to attract more group business to the country. In line with this, the Director General of the Department of Tourism, Dorji Dhradhul, emphasized the importance of providing incentives to MICE events by waiving the daily sustainable development fee.

This decision aims to encourage more MICE events in Bhutan, further boosting the country’s tourism sector and fostering economic growth.

The SDF in Bhutan serves as a daily contribution made by tourists towards the nation’s development. It is an essential component of Bhutan’s unique approach to tourism, which prioritizes sustainability and the well-being of its citizens.

The SDF is utilized transparently and responsibly by the government to support various sectors, including healthcare, education, environment, culture, and the economy.

This fund plays a crucial role in fostering long-term sustainable opportunities for Bhutanese citizens, ensuring that the benefits of tourism reach every corner of the country.

As a carbon-neutral nation, Bhutan leverages the SDF to uphold its exceptional forest cover and carbon neutrality, creating a serene and environmentally conscious experience for visitors.

In September, Bhutan introduced a significant development by implementing a 50% reduction in the SDF rate, effective until August 31, 2027, with special incentives for children.

The new rates now stand at USD 100 per adult night, while children between the ages of 6 and 12 pay a reduced rate of USD 50 per night. Children who have not yet turned six years old are exempt from paying any SDF fee.

This revised fee structure not only enhances Bhutan’s appeal as an environmentally conscious and welcoming destination but also makes it more accessible for families to explore and experience the country’s unique culture and natural beauty.

By promoting responsible tourism through the SDF, Bhutan continues to set an example for sustainable development and conservation.

Visitors can now embark on a journey to Bhutan, knowing that their contributions directly contribute to the well-being of the Bhutanese people and the preservation of the country’s pristine environment.

This remarkable initiative showcases Bhutan’s commitment to striking a harmonious balance between tourism and the preservation of its rich cultural heritage and natural resources.

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