Commerce Minister says Tourist arrivals declined Post-Pandemic

The drop in tourist arrivals this year and next year projected by the Finance Ministry’s latest Macroeconomic Situation report actually reflects the ongoing recovery from the pandemic, according to the Minister for industry, commerce and employment, Namgyal Dorji.

The Minister, during the monthly meet-the-press on Friday noted that the pandemic has profoundly affected global tourism, including that of Bhutan. “Forecast figures are driven by the continuing stabilization of tourism trends, but government officials express optimism that as international travel confidence improves and strategic initiatives are implemented, the tourism sector will thrive, eventually achieving the target of 300,000 annual visitors in the coming years,” the Minister said.

In addition, Lyonpo Namgyal said that the Ministry is still in the process of rebuilding and strengthening the tourism sector to reach pre-pandemic levels and attain exponential growth, as there is huge potential in the country.

“Lots of initiatives are underway to enhance the overall visitor experience, promote Bhutan as a unique destination, and implement policies that ensure long-term sustainable growth in the tourism sector, including streamlining processes, systems, and developing new products and services,” Namgyal Dorji added.

Meanwhile, the Minister shared that starting in December this year, the government will provide airfare subsidies for Sustainable Development Fee (SDF)-paying tourists from the Rest of the World to reduce airfare costs and increase arrivals during the three winter months of December, January, and February, as well as the three summer months of June, July, and August.

Additionally, the Minister also mentioned that Bhutan had just over 100,000 tourist visitors in 2023, and the target of 150,000 by the end of this year represents an actual increase of about 150%, which translates to 95,633 from January to August.

The Minister said that the government’s goal is to increase the number of tourist arrivals to an annual average of 300,000 tourists, with 50% originating from third countries, thereby revitalizing the tourism industry.

“This means we will try to achieve the target as soon as possible. This doesn’t necessarily mean we will achieve it this year; this is a target, and we will strive to achieve it at the earliest possible time,” the Minister concluded.

By Sherab Dorji, Thimphu