A wooden bench and a few tree trunk tables giving quiet company to wild flowers and apple trees, overlooking the vast Paro valley at 10,000 feet in the majestic Himalayas, can be the most eco-friendly luxury spot in the world, but for busy city lives that refuse to allow a break to maddening crowds to catch the next flight to Bhutan. Raindrops afloat the cool summer breeze suddenly break the vast sky into a rainbow giving the illusion of another mountain albeit drenched in colours. A few peaks away, stands the world's largest mountaintop status of Lord Buddha immersing divinity into the ethereal beauty, a testament to Bhutan’s focus on preserving its heritage while promoting tourism.
"Tourism in Bhutan is evolving rapidly, with a notable shift towards diverse accommodation options. From luxurious five-star hotels to the increasing number of home stays, we are offering a wide range of choices to cater to every traveller," says Carissa Nimah, chief marketing officer for the department of tourism of Bhutan. "We now have around 140 home stays across the country, and we are working with them to implement strict standards to help them attract even more guests. We also see that many travellers are now mixing up their accommodation – spending some nights across various star segments, including homestays, for a more authentic and memorable experience.”
The bench artistically perched on the edge of the mountain has been designed by Tshering Om, 36, who runs Village View homestay in Paro, a 15-minute drive from the international airport. It is the first halt inside Tshering's home for visitors to sip hot tea and gaze at the fields running into the Valley where Tshering grows vegetables to suffice three square meals for her family and visitors alike. "Coming to my home is more than a tourist-y experience. A tourist would simply be someone who is unattached to the places he visits. But people who come here become our extended family around the world." Yeshi Samdrup, a guide of over 20 years experience, had driven us in his old Maruti car all the way up to Village View. Guides like Samdrup are a key link to the outside world ferrying visitors to rare hotspots expanding the canvas of the fast growing tourism industry of Bhutan. This industry is reinventing itself today to boost economy by creating a rich, clean and eco-friendly experience blending seamlessly with Bhutan's commitment to sustainability.
Ujjwal Deep Dahal, CEO, Druk Holding and Investments Ltd, an investment arm of the Bhutanese government says a lot of focus is being given to trying and creating an innovation culture and environment where everyone thinks like an entrepreneur. Tshering, a single mother, left her government job to create a homestay in 2016 and today she is supporting the education of her sons all by herself. "My elder son, Jambay, is staying with my mother near Thimphu city for his higher studies. I live with my old father and younger son Jamyang who goes to the nearby village school." The enterprising lady spends her evening cooking butter fried asparagus, ema datshi, ezay, jaju, green chilli, beans and herbs plucked from her field with red rice for her new visitors from India and Japan, as she narrates her story of managing the all-woman home stay run with the help of her sister and young niece who is busy plucking apples as parting gifts for the guests.
“Tourism in Bhutan appeals to a diverse range of travellers”, says Carissa. "We see a mix of adventure seekers, wellness enthusiasts, and cultural explorers. Adventure tourism is growing, with activities like trekking, cycling, motorcycling and river rafting attracting thousands of visitors annually." The hike to Tiger's Nest still remains an all time favourite as the cliff-side monastery in upper Paro valley is one of its kind in the world and very iconic.
Wellness tourism has also seen a significant rise, with more than 22 per cent of tourists in 2024 coming to Bhutan specifically for wellness activities, such as mindfulness, meditation, and traditional Bhutanese therapies, seeking a peaceful escape from their busy lives. However, the preferences and trends are offering more variety, fulfilling requirements especially triggered by post pandemic need for clean, green and serene retreats. The other main drivers for tourists to visit Bhutan are culture, nature and adventure. Today, the country boasts over 200 hotels, of which around 35 are four and five-star properties, catering to the high-end segment of tourists.
According to Carissa, "Bhutan hosts some of the world’s finest luxury hotel brands, alongside incredibly impressive boutique Bhutanese properties, with more on the way. These accommodations offer discerning travellers a unique experience, combining comfort with Bhutan’s pristine beauty, rich culture, and authentic traditions—all while embracing sustainability.” Which is why leading five star chain Pemako Thimphu , in the heart of Thimphu valley, has created an elegant blend of Bhutan's Dzong architecture and modern design with classical hand drawn Buddhist murals in private spaces, creating a mini Bhutan experience for those who may not be looking for a hectic travel around the country.
The pre-pandemic year of 2019 was the busiest year for tourism in Bhutan and there were around 350,000 arrivals. Out of the 350,000 arrivals, around 280,000 were Indian nationals. At that time there was no Sustainable Development fee charged from Indian nationals. But after the pandemic, in September 2022 the tourism policy changed and there was an SDF of Rs 1200 levied on Indian nationals per person, per day. This impacted the tourist footfall and in 2022- 2023, Bhutan received just more than 100,000 arrivals. "This year, we're looking at receiving around 200,000 plus guests. And next year, we will hit pre-pandemic levels of around 300,000 to 350,000 arrivals. So it's a gradual and steady increase, but with a higher daily fee."
Carissa has noticed that the type of guests coming into Bhutan have changed from pre-pandemic times. "We see that they're spending more, they're staying longer, and they are interested in different guest experiences," she says. In 2023, Bhutan collected around $26 million in revenues from the Sustainable Development Fee alone, marking the highest earnings from the SDF in Bhutan's history and exceeding revenues collected before the pandemic.
In 2024, the top 10 source markets for Bhutan were India, the USA, the UK, Singapore, China, Germany, Vietnam, Malaysia, Australia and Canada. 2024 marks Bhutan’s golden jubilee of tourism, with the first foreign tourists arriving to the country in 1974.
The challenge for Bhutan's tourism sector today is to share its story of protecting the tiny Kingdom from climate change for a better experience. "Once people understand that the SDF money is being spent on free healthcare for Bhutanese, free education, upgrading roads, infrastructure, upskilling people and protecting the environment, then the acceptance goes up," says Carissa. "Plus, it means that the whole country benefits from tourism and not just the tourism stakeholders. And you know you are making sure that the next set of people who come to Bhutan have an even better experience."
The Department of Tourism Bhutan has recently launched a new Tourism Services Portal to help guests find their perfect Bhutanese Tour Operator, Hotel, Guide and Homestay. So far, 428 tour operators, 972 guides, 115 hotels, and 26 homestays have registered on the portal. Tourism is by far the biggest source of jobs and employment in Bhutan and many locals depend on it for their livelihood. Dahal explains that the vision is becoming broader with each passing year as opening up of Bhutan's economy isn't focussing only on domestic job creation but also bringing fresh ideas and exposure to Bhutanese youth in the digital era. "Innovation in technology, investments and financing are being explored to create a conducive atmosphere for partnerships with strategic partners globally in many explored areas such as energy and resource, sustainable mining, technology, digital assets and infrastructure,"says Dahal. Explaining the country's Innovation Strategy aimed at developing a National Innovation EcoSystem to create a Start-Up Economy, Dahal says the establishment of a SuperFab Lab in collaboration with MIT Cambridge, will focus on collaborations between national and global public, private or government institutions. "We are now conceptualizing a “multi channel Technology fund” to seed and scale the start-ups to create value based innovative products and services for the national and global market," he says. As the kingdom plans to open another ambitious but lesser known gateway, Gelephu Mindfulness City, located near Assam border as a key tourism and economic corridor, the Bhutanese are surely prepping themselves up for inviting the world to their doorstep. An authentic suja (butter tea) and some exotic Bhutanese dishes are only waiting to be served.
