Bhutan opens up more entry point for visitor

Govt. to allow entry of regional tourists through all border towns

The National Assembly on 18th Jan, 2019,  endorsed entry and exit of regional tourists through the border towns of Samdrupjongkhar, Gelephu, Samtse, Nganglam, and Panbang.

Currently, Phuentsholing is the only entry point for regional tourists.

However, entry and exit would be allowed from these points with a condition that the tourists use Bhutanese vehicles and guides. This is to ensure security.

Of the 43 members, 40 voted “Yes’, two voted ‘No’, and one abstained from voting. The government is also likely to consider entry and exit through Lhamoizingkha and Jomotshangkha.

The House also endorsed the proposal to open direct flights between Guwahati to Yongphula, Bumthang and Gelephu with 40 ‘Yes’ votes. Three voted ‘No.’

Dewathang-Gomdar MP, Ugyen Dorji, moved the motion to institute special and targeted measures to promote tourism for balanced regional development. He said that tourism was an important sector for development.

In 2017, Bhutan recorded tourist arrival of 254,704, of which 183,287 were regional tourists. The sector contributed USD 79,807 to the exchequer.

While the sector has benefited the country in terms of revenue and employment generation, Ugyen Dorji said that not all 20 dzongkhags shared its benefits equitably. “Only a handful of dzongkhags have reaped its benefits. The others are lagging behind.”

Paro had the highest number of international arrivals at 27.5 percent in 2017, followed by Thimphu and Punakha with 26.4 and 23.1 percent respectively. Wangdue saw 7.9 percent arrivals while Bumthang received 5.1 percent of the arrivals.

The rest of the dzongkhags saw less than five percent of the total arrivals in the country. Pemagatshel, Tsirang, and Dagana did not receive any tourist in 2017.

Despite effort by the past government to promote tourism in the east, Ugyen Dorji said that nothing significant had happened to date. He said it would be difficult to ensure equal and equitable distribution of tourists throughout all 20 dzongkhags.

In terms of physical facilities, he said there was a need to provide adequate facilities, improve roads, open additional flight routes, both domestic and international, and put in place favourable policies.

“The need of the hour is to come up with targeted measures to promote and boost tourism in these regions so that the benefits of tourism is shared equitably by the people of all dzongkhags,” he said. “This will bridge the gap between the rich and the poor and ensure equity and justice, leading to the much-desired regional development.”

Draagteng-Langthil MP Gyem Dorji said that it was important first to have basic infrastructure like toilets. He said that there should be measures in place to address issues like the improper management of waste.

He said the regional tourists were seen bringing their own vehicles and affected the income generation of the people in the country.

On opening direct flights from Guwahati to Yongphula, Bumthang and Gelephu, he said that it was important to consider consulting with the airlines.

While the house agreed on the need to institute special and targeted measures to promote tourism for balanced regional development, it had a thorough discussion on the advantages and risks of opening additional entry points for regional tourists and direct flights from Guwahati to the three domestic airports in the country.

Phuentshogpelri-Samtse MP, Ganesh Ghimiray, said that he supported the proposal to allow additional entry points for the tourist in the country because it was the wish of the people of Samtse. “This was also one of our pledges.”

However, he said there were negative impacts and it was important to have measures in place for sustainable tourism management.

Prime Minister Dr Lotay Tshering said that Druk Nyamrup Tshogpa pledged to look into the entry and exit point issue during its campaign. “It is also clearly stated in our party manifesto to promote tourism and also look into the entry and exit point issues. I don’t think the members would not support this.”

Dechen Tshomo

Source – Kuensel

 

NEED PROPER MANAGEMENT FOR REGIONAL TOURIST DESTINATION

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Need for regional tourism to be managed more efficiently

There is huge potential in connecting Bhutan and North East India as a high-end tourist destination given the commonalities and proximity.

This was the general consensus among participants at the Bhutan-North East India dialogue on high-end tourism that ended yesterday.

One of the speakers, director and principle advisor of New India Hospitality, Rakesh Mathur emphasised promoting sustainable tourism and diversifying its products accordingly.

“The North East has a lot to offer with abundant wealth and there is a lot that the region can also learn from Bhutan,” he said. “We’ve to see what we can give to nature and not take from nature.”

In tapping the potential, participants were also reminded of the hurdles that Bhutan faces as a high-end destination. The two-day discussions also touched upon a wide range of areas such as the challenges confronting the industry.

While Bhutanese tourism stakeholders highlighted the issue of unregulated regional tourists, policy makers questioned if Bhutan really was promoted as a high-end destination.

Participants from both the countries agreed that there was a need for proper management to maximise benefits from regional tourists especially in view of Bhutan being promoted as a high-end destination. In catering to the increasing regional tourists, participants said the carrying capacity needs to be considered besides the tremendous pressure on the infrastructure.

Yangphel tours and treks CEO Karma Lotey said it was important to regulate regional tourism and route them through Bhutanese ground handlers, among others.

He said that regional tourists driving their own vehicles overcrowd tourist sites. He also pointed out that often times several tourists share a single room and toilet putting pressure on the infrastructure.

“Guests from the region have to be treated well,” he said, calling for interventions in place before it’s too late.

Examples of how regional tourists are often cheated by tour operators who bring them to Bhutan were also provided. “When regional tourists want to see the tiger’s nest, as its far they are often taken to a similar looking monastery in Paro instead,” he said.

With eastern Bhutan now listed as a top 20 sought after destination in the world as per National Geographic, Karma Lotey said there are a lot of inquiries on eastern Bhutan. “A lot of collaboration can be made between North East and the eastern Bhutan. We can talk on how best we can work together,” he said.

Presenting an overview of the hotel industry, the hotel and restaurant association of Bhutan’s president Thinley Palden Dorji said that the high value, low impact policy is important and a unique way of how Bhutan has presented and packaged itself.

While it must be preserved, he said it was not without issues.

“There is a solution to the increasing regional tourists. The solution is simple, its regulation and implementation,” he said, recalling a discussion with budget hoteliers wherein he was told that in absence of regulations, they don’t have a choice but to cater to regional tourists in such a manner.

As much as Bhutan is known as a high value destination, the reality also is that it is the rates of hotels that define a high value destination to some extent, he said. That way, he said there is a lot Bhutan can learn from Sikkim.

“Our accommodation rate is generally lower than in Sikkim,” he said.

The vice chairman of Singye Group of Companies, Ugen Tshechup Dorji spoke about the need to review the tourism policy emphasising on undercutting that is highly prevalent in the industry today.

“When the government says that the basic concept of our development is Gross National Happiness, it’s important to review our tourism policy. We’ve to look at how to keep the happiness potion alive.”

The reality, he said was that Bhutan wants regional tourists but of high value and low impact.

“If that is the concept we are following, why do we have a parallel tourism policy?” Ugen Tshechup Dorji asked. “Bhutan is not sold as an exclusive destination but packaged with visit India and Nepal.”

Even big tour operators don’t sell Bhutan by itself, he said. “Most of our tourists pay more than USD 250 for Bhutan but how much does our tour operators get?” he asked, further emphasising the need to promote destination Bhutan in a major way.

“We just can’t sit back and say that Bhutan sells itself. Bhutan sells itself because someone else sells it for us and they take the cream while our tour operators are left with bare minimum,” he said.

Another speaker from India, Himatoz Zhimomi who is in-charge of public works development in Nagaland said that cross border tourism has huge scope while focusing on sustainable tourism rather than creating tourist products but celebrating what already exists.

Citing the example of Nagaland, he said their focus is more on sustainable community based tourism than building five-star hotels to cater to tourists. “There is so much complexity in tourism that I would hate to say tourism is the main steak of Naga society,” he said.

“Tourism is important but it will not be a priority for us,” he added, highlighting the need for proper regulation rather than promotion.

National Council (NC) member Pema Tenzin gave a background of the council’s review of the tourism sector and policy, its recommendation and resolutions.

He then questioned if Bhutan really was a high-end destination.

Highlighting the importance of regional tourists, Pema Tenzin also questioned the carrying capacity of the country. “We talk a lot of carrying capacity but we don’t know our maximum carrying capacity yet,” he said.

Presenting the prevailing scenario in the industry today Pema Tenzin said, “Ours is a sick industry … Is the industry really doing well? Is it time to do things differently?” he asked.

Pema Tenzin also said that the government has ambitious plan for the tourism industry in the 11th Plan but achieved none of it.

Retired secretary of the tourism ministry of India, MP Bezbaruh said that there was a possibility of connecting the North East region with Bhutan and Myanmar that is emerging as a new and a competitive destination.

“Imagination can create more destination,” he said, while also touching upon the need for a tourism master plan for a way forward without which it would be difficult to address Bhutan’s existing challenges

Economic affairs ministry’s chief of policy and planning division Sonam Tashi gave an outline of the policies, ground realities and concerns of the industry.

He highlighted the need to move beyond standardised itineraries while watching out for global tourism trends and competition in promoting Bhutan as a high-end destination.

“We are proud to say that Bhutan is a high value, low impact destination, but when we look at the structure of how tourism is organised, we are no different from any other country,” he said.

“Despite the existing concerns of international and regional tourists, the fact is that Bhutan is still an untapped destination,” he said.

The two-day seminar organized by TCB, Centre for Bhutan Studies and GNH Research, and Asian Confluence was attended by experts and policy makers from both the countries.

Source: Kuensel (Kinga Dema)

REGIONAL TOURIST TOP SOURCE MARKET FOR BHUTAN

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India top source market for Bhutan

India continues to be the number one source market for Bhutan. With the latest regional arrivals touching 1,09,052 demonstrating a growth of 57 per cent over last year, India remains as the biggest market for both regional and overall arrivals. As part of its India agenda, Tourism Council of Bhutan has focused on Gujarat as one of the key source markets to enhance its Indian footprint in the year 2016, through a road show targeted at key travel agents in Ahmedabad. This would be the first of many initiatives to tap the Gujarat market. Damcho Rinzin, Head, Marketing and Promotion Division, Tourism Council of Bhutan, says, “As a leading international tourism destination, Bhutan is seeking to diversify its source markets and attract new visitors. Countries like India are emerging more and more in the world outbound tourism sector, and Bhutan believes it could offer a special proposition to visitors from India. Further, international travelers to Bhutan are lured by the myriad of offerings that include heritage, culture, natural beauty and a range of quality world class hospitality and tourism industry which make a strong proposition for Bhutan as a destination.”

Source: Tourism Breaking News

BHUTAN’S NATIONAL COUNCIL ON THE RECOMMENDATION TO LIBERALIZE THE DAILY TOURISM TARIFF

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The National Council  on 19th November sought more justifications on the recommendation to liberalize the daily tourism tariff from its Economic Affairs Committee before it endorses the report.

Some of the issues the house mulled over at length were whether Bhutan should drop the daily tourism tariff and leave it to the market forces and what could be the likely consequences of such a move.
The tariff remodelling recommendation is at the core of its Economic Affairs Committee’s yearlong tourism policy review report.
The committee had recommended keeping the royalty portion of the tariff and leaving the rest to be determined by the tour operators.
Trongsa Councillor Tharchen supporting the move said the fixed tariff until now had confined the business in the hands of a few.
He said if the country is to spread tourism benefits to other parts of the country and accomplish quality tourists with maximum revenue, liberalising is the way forward.
“Of the 1,700 tour operators, about 90 percent get only 30 percent of the tourist arrivals, while the rest goes to the top 10 operators,” he said.
He said even the Royal Monetary Authority had proposed to liberalise the tariff.
Despite the chairperson’s repeated calls for brevity and the session stretching beyond normal hours, the members pounded the committee with issues and concerns.
Eminent member Tashi Wangmo asked if it was necessary to liberalise the tariff.
“We should first explore administrative and management measures to solve the problems of undercutting,” she said.
She said one of the advantages of the fixed tariff was that the country could remain as a high-end tourist destination.
“If we leave the tariff determination to the market forces, the danger is that the sector could be solely driven by commercial interests and could encourage mass tourism,” she said.
Members also said that when the daily tariff becomes competitive, tour operators in desperation for business could further undercut.
“How can we ensure that the liberalisation of tariff would not benefit only the select few?” Bumthang Councillor Nima asked.
The committee’s chairperson and Chukha Councillor Pema Tenzin said tourism industry businessmen have been calling him saying they appreciate the committee’s recommendations and sharing their concerns.
“For the past 10 years they have been discussing this issue but nothing came out of it,” Pema Tenzin said.
Committee members said some vested interest groups prevented the proposed changes to the tariff until now.
“The fixed tariff really affects the service industry, which has been until now held at the mercy of the tour operators,” Dasho Tashi Wangyel said.
Committee members said the proposed pricing would not lead to mass tourism and poor quality of tourists.
“When prices become competitive, tour operators will come up with many tourism products from various parts of the country, which would actually benefit areas not touched until now,” Zhemgang Councillor Pema Dakpa said.
Deputy chairperson and Haa Councillor Tshering Dorji proposed increasing the royalty and doing away with peak and lean seasons rates as well.
Members said regional tourists should also be treated the same as international tourists.
“They have to be offered the same standard of services and care, for which a certain charge could be levied,” Bumthang Councillor Nima said. “At present, the tourists are processed in the same immigration office that deals with foreign labourers. This needs to change.”
Gasa Councillor Sangay Khandu proposed that regional tourists’ vehicles should also be levied green tax like the local ones.
Thimphu Councillor Nima Gyaltshen said unregulated regional tourist posed risk to the sustainability of the subsidised fuel.
Members said the regional tourists could not be blamed for the problems arising from lack of policy and proper mechanisms in the country.
“We need to urgently have a policy and other measures so that even our regional tourists can have an enjoyable experience and avert problems,” a member said.
The house will vote on the recommendations next week.

Source: Kuensel (Tshering Palden)

Tourism industry asks for policy on regional tourists

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Given the increasing arrivals, the industry feel there is a need to have a policy in place

Tourism: The drastic increase in the arrival of regional tourists over the years has pushed tourism stakeholders to call for a policy to govern regional tourists.

Tourism stakeholders raised the issue with the government recently expressing the need for a proper strategy on management and maximising benefits of regional tourists.

Records with the Tourism Council of Bhutan (TCB) show that as of May this year, 45,704 regional tourists visited the country. During the same period last year, 24,059 regional tourists visited the country. From 5,513 regional tourist arrivals in January this year, May alone recorded 18,342 visitors.

Visitors from India, Bangladesh and the Maldives are referred as regional tourists.

Unlike international tourists, regional tourists are exempt from paying the minimum daily tariff of USD 250 and 200 for the peak and lean seasons. They also do not require visas to enter the country.

Records indicate a steady increase in regional tourists over the years. From 50,722 regional tourist arrivals in 2012, it increased to 63,426 and 65,399 in 2013 and 2014 respectively.

Until a couple of years ago, regional tourists were not part of the tourism statistics. However, now that their numbers are used as a yardstick for achieving targets, tour operators said there should be certain regulations in place not just to monitor but also to effectively manage and optimise tourism benefits.

As most regional tourists enter the country unguided and drive their own vehicles without any restriction, tourism stakeholders feel that this could have an impact on the dollar-paying tourists.

Regional tourists process their entry and route permits from the immigration department. The trend is such that a majority of them enter from the border town of Phuentsholing via road. Hoteliers said most prefer to cook on their own and about three to five tourists share a room. Although most hotels don’t allow such arrangements, some do.

All international tourists have to be put up in a three-star category hotel and above while this requirement is not applicable for regional tourists.

Tour operators said that a regulation is a must for regional tourists to offer a meaningful trip. Tour operators have also raised the issue with the Association of Bhutanese Tour Operators (ABTO).

TCB attributes the increase in regional tourists to continued awareness on Bhutan as a destination through TCB’s participation in numerous tourism events. However, officials didn’t comment on whether its time for the country to have a tourism policy for regional tourists as well.

ABTO’s executive director Sonam Dorje said that the country has seen more increase in regional tourists than the dollar-paying tourists, especially in the last five years. “The drastic increase in the last two months is mainly owing to diversion of regional tourists whose trips to Nepal got cancelled following the earthquake.”

“As a small country with limited carrying capacity, we do need certain regulations in place even for non-tariff paying tourists,” he said. “A policy would not only help us in sustainably managing our resources but also help visitors have memorable experiences.”

Tour operators said if the issue is not addressed soon, the country could lose high-end tourists who prefer Bhutan as a niche destination.

“Bhutan is a cheap destination for regional tourists as they pay the same air fare as Bhutanese and entrance fees at monuments are also cheaper for them,” a tour operator said. “Some hotels also offer them much cheaper price as hotels get cash payment.”

Another tour operator who also caters to regional tourists said that as a small country, there should not be two different tourism policies. “We might have enough hotels now but we’ve only have few tourist sites and it’s getting over crowded,” he said. “This will discourage dollar-paying tourists who solely visit Bhutan as an exclusive destination.”

If regional tourists are regulated well, tour operators and guides said it would help solve the existing seasonality issue as most regional tourists travel to Bhutan to escape the heat during the summer months. Some suggested that a SAARC rate of just charging royalty should be in place.

Guides Association of Bhutan’s chairman Garab Dorji said that with the increasing regional tourists, the tourist hotspots become crowded during peak seasons. “Unregulated regional tourists are against our policy of high value, low volume,” he said, adding that regional tourists are difficult to manage and have disciplinary issues.

Garab Dorji also pointed out the need to assess the contribution of regional tourists to the economy should the trend continue.

Source: By Kinga Dema (Kuensel)