Call for Regulation of Regional Tourism

“…When Bhutan opened to foreign tourist in the 1970s, our leaders resisted the temptations to harness the quick fortunes from mass tourism and was instead was prescient to formulate a visionary policy of High Value-Low Volume tourism. The wisdom of our tourism policy has led to the emergence of a strong Brand Bhutan - an exclusive destination.”

-His Majesty The Druk Gyalpo

Ever since Bhutan started welcoming foreign tourist in 1970s Bhutan became one of the top scorers as an exclusive tourist destination. Our country was able to harness the immense potential of tourism under the precondition of comprehensive planning and visionary leadership of His Majesty The Fourth Druk Gyalpo Jigme Singye Wangchuck. With “High Value-Low Volume” tourism policy, tourism is one of biggest revenue earners that contribute to our economic development. The cautious planning and visionary policy not only generated substantial revenue but also shielded us from many of the negative impacts and pitfalls of tourism growth. However, over time, as the country accelerated its investment in tourism growth, we have noticed high growth rate of tourist arrivals from the region which has resulted in its own set of challenges. Thus, this article assesses challenges and opportunities in the tourism sector and suggest a way forward for the sector that is in line with our national interest.

Tourism Policy and Regional Tourism: A Battle of Policies

Regional tourism in Bhutan is referred to tourist from neighboring countries of India, Bangladesh and Maldives. Lack of regulations for large number of regional tourist flooding our town, monasteries, and Dzongs has led to branding regional tourism as “Mass Tourism.” The skepticism in emergence is “Is regional tourism an Over Tourism?” Over Tourism is a situation in which conflict arise between locals and visitors at tourist destinations, due to perceived congestion or overcrowding. The inferential meaning of news and reports give clear indication of over tourism as a direct consequence of regional tourism.
In post-democracy era, the tagline became “High Value, High Impact.” Regional tourism was branded as mass tourism and unregulated tourism. It is unwise to conclude as high value-low volume tourism. With this understanding, “Is promotion of unregulated regional tourism breach of policy?” Since regional tourism was introduced by government, possibly considered after thorough deliberation, discussion of whether it is a policy breach or not may be obsolete, yet it is arguable. Nonetheless, despite tourism policy remaining unchanged, mass and unregulated tourism was promoted in the form of regional tourism. If unregulated regional tourism is not breach of tourism policy, is it a “parallel policy”? Bhutan is promoted as an exclusive destination to international tourist but does not apply the same to regional tourist which implies that our tourism is one system-two policies system. With such policies in place, is allowing of regional tourism a complement or impediment to existing policy?
Every year more than two hundred thousand regional tourist visit Bhutan whose financial spending is unaccounted. The statistical and economical correctness to measure success of tourism by measuring mere number of regional visitors visiting almost at free can be argued. Huge number of regional tourist is only good to show demographic increase but obviously not sensible enough to indicate economic and financial progression. Even if the data is tabulated in economic and financial report, it will exhibit regression of progress made thus far. The marked conclusion having understood the Royal Vision of tourism and the Tourism Policy is that, we are not fulfilling either. In absence of any practical action to regulate regional tourism, our tourism policy is getting regulated by regional tourism instead of tourism policy regulating the regional tourist.

What Regional Tourism offered to us?

Regional tourism is not zero pros and hundred cons analogy. It offered some remarkable advantage to us. Regional tourism boosted the business of some hoteliers, handicrafts and shops. It has also promoted people to people relation to some extent. It also created employment opportunities with some travelers come through Bhutanese tour agents and employ Bhutanese guides. A report stated that tourism will always have positive impact but Bhutan should prepare to ensure that the negative impacts of tourism is always lower than the positive impact, however, because there are no policy or rules and regulations of regional tourist, there the negative impact of tourism will be higher.

1. Future of National Objectives in the growing complexities of tourist influx

In the wisdoms of His Majesty The Druk Gyalpo, small nation cannot afford to have problems of bigger nation. In a country of just seven hundred thousand people, affordability to have 2-3 hundred thousand unregulated people roaming our country freely is big issue. Mass influx of regional tourist is not just coming in and going out of people, it comes with cultural modification and colonization, social issues, and national identity issues. Small scale issues such as story of regional tourist climbing the throne of Taktshang Lam, regional tourist being caught with possession of controlled substances, some hotels giving high regard and preference to regional tourist over fellow citizens, house owners of Thimphu shooing tenants to establish hotels to accommodate regional tourist, and reports of fronting to establish hotels in Thimphu are clear signs of slow emergence of social issues and cultural dominance. As these small scale issues gain momentum, it will lead to conflict between locals and tourist thereby affecting relation between people and governments. Critical analysis such trends and issues, gives us enough reason to worry about the future of nation, it social, culture and ecology. To survive as sovereign nation, it is fundamental that we pursue national interest. Decisions to open unregulated entry points by simply considering the lucrative business of few hotelier is not justifiable reason as a nation. For a sovereign nation control over boarders and regulating who enters the country is significant consideration to exert the sovereign status.

2.  Financial benefit accrued or forgone

According to a report “TCB made US$ 85mn from international and as per the conversation with regional tourist, most of them stay for a minimum of five days in the country and spend US$ 80 a day. And if US$ 80 a day is spent by 200,000 regional tourists, it would come to US$ 80mn…” This report indicate the financial benefit of regional tourism and this is the most credible statistics (to say) available. However, the credibility of the spending US$ 80 a day and overall spending of US$ 80mn can be questioned since the data is grossly generalized. The data was sourced from the conversation and overall spending of US$ 80mn is statistically unreliable. This statement, in fact, is smart way to say that we don’t have data and we are not sure of the financial benefit regional tourism brought.
On relative comparison, in 2018, Tourism Council of Bhutan made US$ 85mn from 63,367 international tourist, whereas around is US$ 80mn spending was estimated by 200,000 regional tourist in 2018. Which one is better choice for us? 63,367 International tourist contributing US$ 85mn or 200,000 regional tourist supposedly assumed to have spent US$ 80mn from High Value-Low Volume lens?
The most acclaim benefit of regional tourism is financial benefit it brought to hoteliers and handicrafts. Conversely, on deeper analysis, services provided by hoteliers and handicrafts are mostly dependent on imported items such as food, beverages and crafts with exceptions of only few items. Thus, the major share of financial benefit accrued by these service sectors doesn’t benefit our people rather the benefit gets across the border.
Shall we still believe that Bhutan is niche tourist destination when it is sold at dirt cheap prices to regional tourist? Tour agents operating at the nearby boarders sell package to Bhutan at around Nu. 900/- per day per tourist inclusive of all food and lodge which is said to be cheaper than going to Anuchal Pradesh and Sikkim. What financial benefit can we accrue from such tourist business?
Looking at the statistics of regional tourism, is financial benefit accrued or forgone? At least to those who view the statistics from High Value-Low Volume perspective, the financial benefit is forgone.

3. Dependent and redundant tourism sector

If regional tourism or mass tourism is not serious issues, at least Bhutanese market getting more dependent on regional tourism is serious issue. We have opened our door for mass tourism recently, yet we have not diversified our products. Our people lack creativity to diversify the tourism product and instead resorted to opening hotels after hotels who later complain about lack of customer, lack of support from government and financial loss without regional tourist. For an example, a man in Samdrup Jongkhar constructs big hotel clearly understanding the poor business prospects and lack of customer. After constructing the hotel, he tries all possible means to convince local leaders, politicians, and related stake holders to provide support such as opening entry point for regional tourist by undermining national interest. Are we being sensible? From Phuntsholing-Thimphu highway to all tourist destination there is nothing but hotels except for Dzongs, few Monastries and natural environment. Hoteliers who went on to construct hotels after hotels expecting good business from regional tourism only exhibit our dependency on regional tourism and redundancy of tourism sector. Most of the media reports on regulating tourism revolves around “planning to do” issues and discussions which is possible indication of negligence and inaction.

4. Employment and business opportunities created or lost

The motive of regional tourism is to create employment opportunities and boost the Bhutanese economy but the irony is it doesn’t happen always. We are not able to harness the full potential of regional tourism due to lack of clear regulatory policy. For instance regional tourist doesn’t employ local (Bhutanese) guides rather they bring along with them a person who already visited Bhutan as their guide. Media also reported the cases of groups of tourist coming with ration, preparing their own food and cramming themselves as large group in single room. With such circumstances gaining momentum, expecting employment opportunity and business prospect to improve without any regulation is skeptical.

Way Forward

There is a need to regulate regional tourism to provide quality service to tourists to ensure that regional tourist get rich experience by visiting Bhutan, provide social safety and assurance to our people, decongest tourist destinations, and pursue nation goals and objectives. By acknowledging the complexities related to regional tourism, it is important that we work to protect our country and people against unforeseeable problems.

1. Working the Policy

The simplest measure to regulate tourism is to walk the talking policy. We should not deviate from “High Value-Low Volume” policy. Tourism sector should not have parallel policy since the current policy is serving us well. Nullify populous ambition such as having 200,000 because high numbers of regional tourist doesn’t necessarily calculate to high value tourism.

2. Introduction Sustainable Development fee

Government is in process to introduce sustainable fee of either Nu.300 per day or Nu.3000 per tourist as per the reports. This should be done immediately to harness full potential of huge number of regional tourist coming to Bhutan. An international tourist pays Royalty/ Sustainable Development fee US$ 65 which calculates to more than Nu.4000 day. With regional tourist enjoying similar experience by visiting similar destination, it is logical to levy reasonable amount of sustainable development fee.

3. Cap Arrivals

Cap the number of visiting tourist to manageable size weekly/monthly that befits our infrastructure. A country of mere 7 Hundred Thousand people with limited infrastructure cannot afford 2-3 Hundred Thousand low value tourist lurking around the country. Capping number of regional tourist will decongest hotels and tour destinations to create space for high-end tourist to visit Bhutan.

4. Formalize Regional Tourism

Formalize regional tourist by channeling them through tour operators and proper guidance so that incidences such as climbing and sitting on the throne of Taktshang Lam doesn’t happen. Introduce online application and approval system so that people don’t have to travel till Phuntsholing to have immigration clearance.

In recent times some conscious efforts are being made to turn regional tourism to “High Vale Low Volume. In deep appreciation to the efforts being made, we hope our politicians will be wise enough not open another unmanaged mass entry point. In its stead, we should be serious enough to take up this issue as urgent call of the nation. For a country like our, national interest must precede any other benefits and regional tourism cannot be an exception.