Bhutan is one of the most fascinating and remote travel destinations in the world. Its tourism model and visa system are famously unlike any other globally.
The country is committed to “high value, low impact” tourism – maximizing the financial benefits visitors bring while minimizing their environmental and cultural impact. In this case, “high value” means that travelers must pay a fixed daily fee (often referred to as a tourism tax) to secure a visa. Consequently, this makes the Himalayan kingdom one of the most expensive yet sustainable countries to visit.
Except for Indian nationals, every traveler is required to obtain a visa for their visits to Bhutan. However, this is just one of many steps involved in planning a once-in-a-lifetime trip to this unique and enchanting location. If you’re tempted to explore Bhutan, we’ve compiled the latest travel rules along with a step-by-step guide to arranging your journey.
Bhutan’s Unique Tourism Model
Bhutan’s tourism system reflects its prioritization of “Gross National Happiness” over mere gross national product. Environmental stewardship and the preservation of traditional lifestyles guide tourism regulations. Furthermore, as Bhutan adapts to post-pandemic travel trends, significant changes have been implemented in its tourism model.
Prior to 2020, virtually all foreign tourists were charged a flat minimum fee of US$250 per person, per day for a fully organized tour. A portion of this fee supported government initiatives like free education and healthcare for Bhutan’s citizens, while the rest covered tour expenses.
In 2022, new regulations were introduced, tripling the daily government charge to US$200 per person while this amount became separate from actual travel costs. As a result, tour prices are no longer fixed, granting companies the freedom to adjust their pricing based on customer demand and choices.
Initially, the sharp increase in fees adversely affected Bhutan’s tourism industry. However, following pushback from local businesses, the government announced in 2023 that the Sustainable Development Fee (SDF) would be halved to US$100 per person, per day until 2027. Therefore, if visiting Bhutan has always been on your list, now may be the right time to start planning your trip before prices rise again.
What does this daily fee fund? The SDF supports free healthcare and education, conservation efforts, sustainable tourism practices, carbon offsets, and organic farming. Bhutan’s unique approach has contributed to it being recognized as the first carbon-negative country globally, actively absorbing more carbon dioxide than it produces.
While paying the fees may seem burdensome, you can rest assured knowing your funds contribute to making the world greener.
The Cost of Traveling to Bhutan
In addition to the fixed SDF of US$100 per person, per day, travelers must also account for costs associated with hiring a guide, transportation within Bhutan, accommodations, and meals. Entry fees to major attractions will typically add another US$100–200 per person to most tours.
Under the current regulations, tourists have the flexibility to choose any hotel or homestay that accepts foreigners, starting at US$50 per night. However, many four-star tourist hotels charge approximately US$100 for a double room.
Overall, a complete itinerary arranged directly through a Bhutanese agency will likely cost between US$250 to US$350 per day, depending on itinerary details and group size. Individual travelers may find costs higher since they cannot share expenses for the guide, transport, or lodging.
Families may benefit from reduced costs, as children aged six to twelve pay only half the SDF (US$50 per day), while those under five are exempt from fees.
As an incentive, through April 2024, the government waives one day of SDF for travelers visiting border communities such as Samtse, Phuentsholing, Gelephu, and Samdrup Jongkhar.
Tourist Regulations for Indian Nationals and South Asian Visitors
An exception exists for Indian visitors. They pay a significantly lower SDF of just 1200 ngultrum (US$15) per person per day. Indian nationals are required to pre-arrange accommodation and a guide, along with permits for travel east of Thimphu. After securing these arrangements and prepaying costs, an actual visa is not required. However, they must apply for an entry permit online or at the border.
Many local travel agents highlight the challenges of the fee system, as Indian tourists constitute over 70% of annual visitors, frequently arriving in their own vehicles for budget trips. Thus, it raises questions about the sustainability of the fee structure that targets foreign visitors in the long run.
Planning Your Trip to Bhutan
Since 2022, travelers can book trips directly with hotels. Therefore, if you plan to visit Thimphu and nearby towns, you can book accommodation, a guide, and airport transfers directly through your hotel.
However, for itineraries including multiple overnight stops, cultural experiences, day hikes, and treks (which is common), it is advisable to consult an experienced local tour agency, of which there are numerous options.
It is crucial to initiate the planning process early. A minimum of one month is necessary to finalize itineraries, arrange payments, and receive visa approvals. If visiting during high season months such as October, November, March, and April, it’s wise to book international flights to Bhutan well in advance, as options are limited.
Once your itinerary and fees are confirmed, the next step involves making payment to your travel agency, often through a bank transfer to the Bhutan National Bank.
Most visitors pay the daily SDF directly to their travel agent, who subsequently remits the total to the government.
Visa Application Process for Bhutan
After arranging your trip and paying the SDF, acquiring a Bhutanese visa is a straightforward process. Simply complete a visa application form and send your agency a digital photo, a scan of your passport, and proof of mandatory travel insurance. Within a few days, the agency will email you a visa authorization letter. The visa costs US$40 and is typically included in the total tour pricing.
It’s essential to note that visas are not issued by embassies abroad; instead, they are stamped into your passport upon your arrival at Paro airport upon presenting the authorization letter. For land entry, your guide will assist you at the border, processing the visa while you wait.
Ultimately, while organizing your trip to Bhutan involves effort and expenses, the visa application process itself proves to be quite stress-free.
