Bhutan may humour China in Doklam, but depends on India, US to get tourists

Prime Minister of Bhutan Lotay Tshering

NIRMALYA BANERJEE, EOI, KOLKATA, MARCH 31, 2023 : Thimphu may be trying to improve relations with Beijing by ceding to China in the Doklam plateau territories which have strategic values, but in the tourism sector in Bhutan, the mainstay of the economy of the Himalayan kingdom, India, the USA and West European countries have a much bigger presence than its northern neighbour. 

The recent interview of Prime Minister of Bhutan Lotay Tshering in a newspaper in Belgium that Bhutan, India and China are equal stakeholders in Doklam, the trijunction area of Sikkim, Bhutan and the Chumbi Valley area of Tibet, and villages and roads that China has set up in Doklam are not in Bhutanese territory have led to apprehension in India that, in course of its border negotiations with Beijing, Thimphu could cede to China territories overlooking the Siliguri corridor. 

A report in the online edition of Kuensel, the national newspaper of Bhutan, indicates, however, that the tourism sector in Bhutan, which has been in doldrums since the beginning of the pandemic in March 2020, is dependent far more on Indian tourists and tourists from the United States and West European countries than on Chinese tourists. 

The Department of Immigration of the Bhutan government has approved2,214 tourist visas for the period between March 25and April 10, 2023. Of these tourists, 443 are Indians, 441Americans, 145 Germans,90 from Singapore and 88are Chinese. 

Notably, this is also the period of the celebrated Paro Tshechu, which will be held from April 2 to April 6; when lamas of Paro monastery will stage spectacular masked dances to mark the victory of good over evil. 

These dances, called ‘chham,’ are a tradition of Tantric Buddhism that Bhutan has inherited from Tibet; and one of the main tourist attractions in Bhutan. It is ironic that under Chinese occupation such colourful tourist attractions have been systematically destroyed in Tibet. Festivals like Tshechu may not hold an attraction for visitors from China, say observers. The introduction of Sustainable Development Fee (SDF) for Indian tourists to Bhutan and a stiff increase in the SDF for international tourists, however, continue to stand n the way of revival of tourism in the Himalayan kingdom, as the report from Bhutan indicates. 

 Hotel occupancy in Paro was close to zero in January and February; hotel occupancy rates have improved in Paro with the arrival of Paro Tshechu, some hotels are fully occupied but others continue to be only partially occupied. Bookings in Drukair flights to Paro continue to be disappointing. The occupancy rate in flights is about 75 percent. 

Unlike inthe pre-pandemic days, there is no need for additional flights to Paro. Since the resumption of tourism in Bhutan in September 2022, around 32,600 tourists have arrived in Bhutan; of them more than 19,000 from India; paying an SDF of Rs 1,200 per night. 

Over 6,000 international tourists have visited Bhutan in this period, paying the enhanced SDF of $200 per night and about 7,000 international tourists who had booked their visits earlier have paid the old SDF. In the six months, Bhutan earned about $10million on SDF, as against $23.5 million earned in SDF in 2019. 

To ensure smooth arrival of Indian businessmen to the border towns of Bhutan, however ,the government of Bhutan had recently relaxed some of the restrictions imposed since the days of the pandemic. 

One of them is to keep the border gates between India and Bhutan open round the clock. The other is to exempt from the SDF Indian visitors to the border towns of Samtse, Phuentsholong, Gelephu and Samdrupjhogkhar staying for not more than one night.