Sustainable Development Fee holds the centre-stage in National Assembly election in Bhutan

RAJESH SHARMA, EOI, JAIGAON, NOVEMBER 30, 2023 : In the ongoing process of National Assembly election in Bhutan, the controversial Sustainable Development Fee (SDF) imposed during the reopening of tourism in the Himalayan kingdom post-Covid is going to play a critical role. 

In the poll manifestos of two of the main opposition parties, the SDF issue has found a prominent place. The People’s Democratic Party (PDP) which ran the government in Bhutan from 2013 to 2018 has promised to review the tourism policy, including the SDF levy. It wants to remove barriers in the way of growth and development of the tourism sector and the participation of different stakeholders in the sector. 

The PDP has also promised that the SDF regulations will be reviewed to allow tourists from the southern border towns in India to visit the border towns of Bhutan without the need to pay any SDF. The PDP has also promised to do away with the system of collection of Nu 10 from Bhutanese people entering the country at Phuentsholing gateway. It may be mentioned that many people from the border town of Phuentsholing travel to the neighbouring Jaigaon in India and this levy of Nu 10 imposed since the post-Covid era has been a disincentive for them. Shopkeepers in Jaigaon, too, suffer if there are fewer customers from Bhutan visiting their shops. 

The Druk Phuensum Tshogpa which was in power in Bhutan from 2008 to 2013 in its manifesto has promised to review the SDF policy to revive and boost the tourism industry and make tourism to Bhutan more affordable for visitors. It wants also to amend the Tourism Act of 2022 to make it more encompassing and comprehensive and arrange fiscal incentives for tour operators and hotels. 

Druk Nyamrup Tshogpa (DNT), the party currently in power and the architect of the tourism policy of 2022 has, of course, plans to continue with the current emphasis on attracting high-end tourists to the Himalayan kingdom. Admitting that the tourism industry in Bhutan has been “impacted greatly firstly from the pandemic, the war in Europe and then the increase in SDF,” the DNT has pleaded that it has reviewed the SDF and brought it down to $100 per day and hoped that this will bring more tourists to Bhutan in the next season. 

It may be mentioned that under the new tourism policy introduced in Bhutan in 2022, the SDF on international tourists was enhanced from $65 to $200 per person per day and SDF of Rs 1,200 per person per day was newly introduced from tourists from India. 

The policy has been criticized by hoteliers and taxi operators in Bhutan as their business has suffered because of the reduced footfall of tourists. With the Bhutan government stepping up its engagements with China under the DNT regime, the result of the National Assembly election in Bhutan will be keenly watched by Delhi. 

The DPT in its manifesto has mentioned India by name and said: “Throughout our foreign policy initiatives, our party will prioritize strengthening our connections with the people and the Government of India and maintaining friendly relations with our neighbouring nations.” 

The PDP has announced a host of measures to open up the southern borders of the Himalayan kingdom with India to facilitate trade and tourism and set up a string of airports on the southern border. It also wants to use waterways with India through the southern border and liaise with the West Bengal government to streamline and ease the transport of goods from Bhutan through the seaport of Kolkata. 

The ruling DNT, however, plans to continue with its present policy of strengthening border security, building physical barriers such as fences and walls, and also deploy drones and cameras to monitor borders to prevent “illegal crossings of the border and to track down criminals.” It also wants to deploy more border security personnel.