What is the Bhutan Sustainable Development Fee for Tourists
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Ever since Bhutan opened its borders to tourism in 1974 it has followed a "high value, low impact" tourism policy to preserve its rich cultural heritage.
In June 2022 the previously used "Minimum Daily Tariff" was abolished and replaced with a Sustainable Development Fee.
This article explains everything you need to know about Bhutan's Sustainable Development Fee.
What is Bhutan's Sustainable Development Fee?
It is a charge imposed by the Royal Government of Bhutan that all tourists wishing to visit Bhutan must pay. It is a daily charge, so the longer you stay in Bhutan the bigger the fee. The fee is PER PERSON PER NIGHT, not per booking.
How Much is Bhutan's Sustainable Development Fee?
Currently (as at 28/08/24) the fee is $US 100 per person per night.
The original sustainable development fee was actually $US 200 per person per night, but it was reduced in June 2023.
Children between the ages of 6-12 are charged $US 50 per child per night. Children under the age of 5 are exempt.
How much will I have to pay?
As it's a daily charge and per person it will depend upon the number of nights you are staying in Bhutan for.
One person staying in Bhutan for 5 nights will pay (5 x $US 100) = $US500
One person staying in Bhutan for 10 nights will pay (10 x $US 100)= $US 1000
But, don't forget the Bhutan Sustainable Development Fee is per person. So, every person on your private tour or trek of Bhutan has to pay their Bhutan Sustainable Development Fee too.
Thus....
Two persons staying in Bhutan for 5 nights will pay ( 2 x $US 100 x 5) = $US 1000 total (i.e. $US 100 per person per night)
Two persons staying in Bhutan for 10 nights will pay ( 2 x $US 100 x 10) = $US 2000 total (i.e. $US 100 per person per night)
What do I get in return for paying the Sustainable Development Fee?
It's best to think of the Bhutan Sustainable Development fee as a "Tourist Tax", so essentially you don't get anything for your money directly.
However, refer to "What is the Bhutan Sustainable Development Fee used for?" further below to see how your visit to Bhutan "as a whole" benefits.
So, the Sustainable Development Fee doesn't include anything?
Correct. All of the usual costs for your Bhutan holiday e.g. accommodation, meals, transport, guides etc are entirely in addition to the Sustainable Development Fee.
The previously used (and now abolished) "Minimum Daily Tariff" did used to include certain stipulated goods and services. But, the new Bhutan Sustainable Development Fee doesn't. Like we said, it's essentially a tax.
Does the Sustainable Development Fee apply to trekking?
Yes, even if you're going trekking in the Bhutan Himalayas and spending every night on trek in a tent the Bhutan Sustainable Development Fee still applies.
So, if you're thinking of undertaking something like the Snowman Trek (29 nights minimum!) then your Sustainable Development Fee alone is going to be almost $US 3000 per person and the cost of the trek support is in addition to that!
How do I pay the Bhutan Sustainable Development Fee?
We calculate the applicable cost of the Sustainable Development Fee according to your custom itinerary. As such the fee is then included in the overall cost of your holiday.
Consequently we pay the fee as part of the Bhutan Visa application process. In other words, when we apply for your Bhutan Visa we have to show the authorities your custom itinerary and that we have calculated the fee correctly and included it in the overall cost.
In fact we have to show proof that you've actually paid us (and consequently the Sustainable Development Fee) as part of the Bhutan Visa application process.
Is the Bhutan Visa included in the Bhutan Sustainable Development Fee?
No it isn't. Although we will include the cost of the Bhutan Visa within your overall holiday cost, it's actually around $US 40 per person extra.
What if I refuse to pay the Bhutan Sustainable Development Fee?
That would be a bit silly really. As the fee is (and has to be) included in your holiday cost overall. So, in effect if you' then refuse to pay the included Sustainable Development Fee you've effectively cancelled your booking and forfeited your deposit.
Anyway, the Bhutan Visa application would be refused if our final balance invoice (which includes the fee) hasn't been paid.
What is the Bhutan Sustainable Development Fee used for?
In simple terms and from purely a visitors perspective the Bhutan Sustainable Development Fee helps keep Bhutan special!
In other words because it is so costly it stops Bhutan being over run with tourists and it's just a fact that too much tourism has some very negative impacts.
So, whilst Bhutan does not impose an actual limit on the number of tourists visiting Bhutan, the Sustainable Development Fee is in effect a way of limiting the negative impacts of tourism and ensuring that Bhutan remains one of the most culturally intact countries in the world.
Like we said right at the start, Bhutan has had a "high value, low impact" tourism policy ever since it allowed tourist to visit back in 1974.
The funds raised by the Sustainable Development Fee are used for projects that promote Bhutan's economic, cultural, environmental and special development. So, the money you are paying is helping to enhance sustainability, upgrade infrastructure and preserve cultural traditions.
Check out our range of Custom Bhutan Tours and Treks
Bhutan is very vulnerable to climate change and the Sustainable Development Fee actually helps Bhutan maintain its status as one of the few carbon negative countries in the world.
The people of Bhutan benefit too, as the Sustainable Development Fee helps pay for free healthcare and education.
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