Bhutan contributes 1.5% to Nepal’s tourism market

Bhutan contributes 1.5% to Nepal’s tourism market

Nepal’s tourism industry achieved a significant milestone in April 2025, recording the highest number of monthly foreign tourist arrivals to date. According to the Nepal Tourism Board (NTB), 116,490 international visitors entered the country last month—marking a record in Nepal’s post-pandemic tourism recovery.
Among these, Bhutan accounted for approximately 0.9% of April’s arrivals, with about 1,100 Bhutanese visitors. Although modest in absolute terms, Bhutan’s contribution to Nepal’s tourism volume generally hovers around 1.5%, reflecting a steady and growing bilateral tourism exchange.
In April 2024, Bhutanese visitor numbers stood at a similar figure—1,097—but represented just 0.3% of Nepal’s international arrivals at the time, indicating a proportional increase this year due to overall tourism growth.

Tourist arrivals from Bhutan have shown fluctuating yet generally positive momentum in 2025. A total of 1,072 Bhutanese traveled to Nepal in March, while 1,446 visited in February, both months contributing roughly 1.5% to the total foreign tourist pool. January 2025 saw the highest monthly share from Bhutan so far this year—3.5%—with over 2,700 arrivals, marking a 24.2% increase from January 2024, when 2,229 Bhutanese visited Nepal.
According to NTB data, 16,263 Bhutanese visited Nepal in 2024, with December recording the highest monthly count at 2,236, and March the lowest at 997. In contrast, 11,450 Bhutanese tourists visited in 2023, and just 3,022 in 2022. Numbers plummeted during the COVID-19 pandemic, falling to 2,139 in 2020 and a mere 344 in 2021. These figures include travelers entering by both air and land.

While Bhutanese tourists have traditionally traveled to Nepal for religious pilgrimages—particularly to sacred Buddhist sites such as Lumbini, Swayambhunath, and Boudhanath—a shift in travel behavior is increasingly evident. According to Kabindra Bhatta, Senior Officer at the Nepal Tourism Board’s (NTB) Research, Planning, and Monitoring Department, there is a discernible rise in Bhutanese visitors coming for leisure, holidays, and adventure-based experiences.
“We are now seeing more Bhutanese visiting Nepal for leisure and holiday purposes,” Bhatta told Business Bhutan, adding that this shift aligns with a broader diversification in tourism trends across South Asia. As disposable incomes rise and air connectivity improves, particularly between Paro and Kathmandu, a growing number of Bhutanese travelers are seeking short-term, affordable, and culturally familiar getaways.

Nepal offers a unique value proposition for Bhutanese tourists: shared religious and cultural heritage, accessible visa-free entry, and a range of experiences—from urban dining and shopping in Kathmandu to trekking in the Annapurna and Langtang regions. The increasing availability of Bhutanese-friendly tour packages, along with Nepal’s reputation as a cost-effective destination, has further fueled this trend.

Tour operators in Nepal have also begun tailoring their services to accommodate this emerging segment. Leisure travel itineraries now include wellness retreats, soft adventure activities, and family-oriented sightseeing, often with the flexibility and cultural sensitivity that Bhutanese tourists prefer. Furthermore, holiday periods aligned with Bhutan’s school breaks and national festivals have led to spikes in Bhutanese outbound tourism, with Nepal becoming a top regional choice due to proximity and familiarity.
This evolving pattern reflects a broader transformation in Bhutan’s outbound tourism profile—from predominantly purpose-driven travel to a more diversified and experience-seeking demographic. It also suggests untapped potential for cross-border collaboration in tourism marketing, product development, and cultural exchange between the two Himalayan nations.
Tourism trends in Nepal have shifted across the board. In 2023, 62.5% of international tourists came for holidays and recreation, an increase over previous years. Adventure tourism—including trekking and mountaineering—rose significantly, accounting for 15.2% of visitors, up from 10% in 2022. Pilgrimage tourism remained stable at 13.1%, while visits for other purposes fell to 9.2% from 12.4%.

Bhatta noted that Bhutan and Nepal—both nestled in the Himalayan region and rich in spiritual heritage, natural landscapes, and cultural diversity—naturally position themselves as competitors in the South Asian tourism market. Their shared appeal to global travelers seeking mountain adventure, wellness retreats, and religious pilgrimages creates overlapping offerings. However, rather than viewing this similarity as a zero-sum rivalry, Bhatta emphasized the significant opportunities for collaboration between the two nations.
“Bhutan’s tourism policy, particularly the Sustainable Development Fee (SDF), is regarded as a model for high-value, low-impact tourism,” he said, highlighting Bhutan’s pioneering approach to controlling visitor volume while maximizing economic yield and preserving ecological and cultural integrity.
The SDF, a daily levy imposed on international tourists, embodies Bhutan’s ‘High Value, Low Volume’ tourism strategy—an approach that has attracted global attention for balancing growth with sustainability. By channeling tourism revenue into conservation, infrastructure, and community development, Bhutan has cultivated a premium destination brand that appeals to conscientious travelers, while safeguarding its natural and cultural assets.

Nepal, while operating on a more mass-market tourism model, is beginning to experiment with localized versions of this policy. Some rural municipalities—such as Chumnubri in the Gorkha district—have introduced modest entry or trekking fees to generate revenue for local infrastructure and services. Inspired in part by Bhutan’s model, these initiatives are designed to foster responsible tourism while ensuring that host communities see tangible benefits.

Bhatta suggested that Bhutan and Nepal can learn from each other’s experiences to create complementary tourism ecosystems. For instance, Nepal’s well-developed adventure and trekking infrastructure could be a learning point for Bhutan, while Bhutan’s success in attracting high-end, culturally sensitive travelers offers strategic insights for Nepal’s efforts to diversify its visitor base.
Moreover, there is potential for coordinated regional marketing, shared cultural circuits, and cross-border packages that position the two countries as dual destinations. “Collaboration—not just competition—could elevate the Himalayan tourism brand as a whole,” Bhatta said.

Inspired by Bhutan’s approach, local governments in Nepal are beginning to adopt similar strategies. For example, the Chumnubri Rural Municipality in Gorkha district recently introduced a trekking fee system for visitors to the Manaslu region—Rs 1,000 for foreign tourists and Rs 200 for domestic travelers—aimed at generating local revenue and promoting responsible tourism.

Sangay Rabten Kathmandu, Nepal