MoICE Awaits Cabinet Response on Tourism Policy

The government’s comprehensive review of Bhutan’s tourism policy—including the Sustainable Development Fee (SDF) structure, regulations, and targeted incentives—has been completed and submitted to the Cabinet for recommendation.
The Minister of Industry, Commerce, and Employment (MoICE), Namgay Dorji, said the proposed changes are the culmination of over a year of research and extensive consultations with stakeholders. The aim is to ensure that the reforms support the tourism sector while safeguarding Bhutan’s globally recognized “High-Value, Low-Volume” tourism model.
“Once the Cabinet provides its decision, the Ministry will move swiftly to operationalize the approved measures,” the Minister said. He noted that the Ministry has already submitted recommendations on key areas, including incentives designed to increase tourists’ length of stay and encourage travel to lesser-visited districts.
To address deeper structural issues within the tourism ecosystem, MoICE, in collaboration with the Bhutan Innovation Lab (BIL), carried out a thorough review of the sector. The study revealed that Bhutan’s tourism goals now extend well beyond the regulatory and marketing responsibilities of the Department of Tourism. In response, the government plans to establish a time-bound Tourism Mission Board (TMB), chaired by the Prime Minister, which will meet monthly from December 2025 to December 2026.
According to Minister Dorji, the TMB will tackle key challenges such as hotel credit distress, service standardization, financial plough-back mechanisms, and the transformation of tourism data. It will also ensure better coordination across multiple sectors—including economy, culture, environment, infrastructure, security, and foreign affairs—so that tourism’s benefits are maximized nationwide.
“Early priorities will include strengthening marketing and quality assurance, developing critical tourism infrastructure, introducing non-monetary incentives to complement SDF reforms, and aligning policies with financial institutions to ease hotel loan pressures,” the Minister added.
On the marketing front, the Department of Tourism (DoT) has intensified efforts to rebuild Bhutan’s visibility in regional and international markets. Between July and October 2025, the DoT spent Nu 17.8 million on targeted promotional campaigns, international media collaborations, and familiarization trips for editors and influencers from India, Singapore, Japan, Australia, and Korea. “These initiatives have resulted in extensive media coverage and digital content showcasing Bhutan’s diverse tourism experiences,” the Minister noted.
Bhutan has also participated in major tourism fairs and roadshows in India, Vietnam, Japan, and Korea, and organized cultural events such as Bhutan Culture Day in Seoul and Busan. Preparations are also underway for the Osaka Expo 2025, further enhancing Bhutan’s global tourism profile.
To promote Bhutan as a year-round destination, the Ministry launched digital campaigns such as “Bhutan 365” and “It’s Easy to Visit Bhutan,” highlighting simplified travel procedures and improved flight connectivity, including the new direct route to Dubai. Familiarization trips to lesser-visited dzongkhags, such as Pemagatshel and the eastern circuit, are being organized to encourage tourist dispersion and ensure that benefits reach remote communities.
The Minister highlighted that the tourism sector is showing steady signs of recovery, with 161,440 tourist arrivals recorded between January and October 2025. He expressed optimism that the sector’s potential can be fully realized through mechanisms like the Tourism Mission Board, which aim to not only increase revenue but also generate employment, promote regional equity, and preserve Bhutanese culture.
“The focus is not on whether the sector is underperforming, but on unlocking its full potential to drive growth, innovation, and prosperity at the community level,” the Minister said. “The government remains committed to ensuring that Bhutan’s tourism continues to evolve as a cornerstone of our sustainable and inclusive economy.”
In order to diversify tourism products, the DoT, under the MoICE has undertaken new initiatives, such as the Bathing Carnival, which was held in Pemagatshel district. In April, 2025, the Rhododendron Festival, which is traditionally held at Lamperi was taken to Sheytemi, Trashigang district. Towards the end of March, 2026, the first-ever Tragopan Festival will be held at Kholdung in Khaling Gewog. Named after the bird species, the festival aims to celebrate the region’s rich biodiversity and promote Kharungla as a birding destination.

Nidup Lhamo
From Thimphu