The McKinsey and Co’s presentation on tourism made to the cabinet in October 2009 proposed tariff liberalisation in phases and opening up the eastern, southern and central regions to tourism.
The presentation on the tariff liberalisation chalks out a short to medium term plan to be in operation by the end of 2010 and a medium to long-term plan by the end of 2012.
The overall objective is to do away with mandatory packages but retain the current level of high spending and royalty. Incentives would also be given for improving the hotels’ supply and quality, maintaining which would then be a mandate.
In the short to medium term plan it is proposed higher royalty discounts be given for longer stay. The government would also ensure that the discount is passed to tourists and not pocketed by operators. To control the one season tourism affect, it is proposed that higher premium be charged for popular festivals and discounts for children below 12 to encourage more families to travel to Bhutan.
Tour operators should specify package details for which they would also be certified on the basis of service delivery. Incentives like waiver of import duty and others will be given to hotels to upgrade or come up with new hotels. That would roll out the star-rating system.
The royalty’s purpose and value in terms of its benefits to Bhutanese citizens will also be more transparently communicated to tourists.
The medium to long-term plan would kick in when tariff liberalisation would be implemented with the minimum package being done away with and royalty is collected via visas by the government. Part of the US$ 65 royalty could be refunded to promote community-based tourism for days of stay at community-operated premises.
Within a time frame of three years only four star (now changed to three stars) and above hotels would be allowed to keep international tourists. Fully independent and direct marketing and sales by hotels of tours would be allowed.
Foreign tour operators would only be allowed to operate through Bhutanese ground handlers and user fees would be charged for visiting monuments, museums and other cultural sites.
A bottleneck, the presentation pointed out, is the mandatory requirement to enter Bhutan via tour operators discourages independent travelers. It also pointed out that the current tariff and package system did not give the tourist much choice in hotels, itineraries and other aspects.
Another issue was value for money in accommodation since rooms offered by Bhutanese ‘A’ class hotels at US$ 150 to 255 are internationally comparable to rooms of US$ 80- 100.
Community-based tourism in the Trashigang – Trashiyangtse area has been proposed for opening up eastern Bhutan. The focus would be on offering unique handicrafts and traditions. It would also include an all year retreat and wellness center with wildlife and bird watching. Fishing, Merak-Sakteng, orchid viewing and black mountain trek have also been identified.
For southern Bhutan the focus is eco-tourism in the Manas and Zhemgang areas. The tour would offer safari-like packages complimented with river rafting and bird watching. Included are the trek from Bumthang Ura to Kheng Singkhar, Duemgang hot spring and traditional medicated bath at Dangkar.
Central Bhutan would be packaged as the cultural heartland offering key Dzongs and festivals some of them during off seasons.
The presentation said that today, arrivals are limited to western Bhutan with 90 percent bed night, the tour package is 96 percent cultural tourism and 60 percent of arrivals are in five months. It also said that a lack of aviation and good road connection to central and eastern regions makes access and tourism development difficult in these areas. Source: Kuenselonline
