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Soften three-star criteria and hire consultancy for better solutions: HRAB

December 11, 2022
in Business, Other Stories
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The country’s non-star or budget hotels are still waiting for a response from the government to allow them to cater to tourists. Currently, only three-star and above hotels are allowed to do so after a notification was issued in July by the then Tourism Council of Bhutan. Meanwhile, the budget hotels say most have fallen into desperate situations, with some even shutting down operations.

The hoteliers gathered in the capital yesterday to discuss possible solutions.

During the meeting, one member suggested modifying the interiors to the standard of a three-star hotel. Another solution was to soften the three-star criteria and hire a consultancy to find better solutions.

According to a hotelier in Thimphu, since they can only take in locals, her hotel gets only one or two customers in a month.

“Non-star hotels are going through a loss as it is currently the peak tourist season but we aren’t allowed to provide services to any guests. We are facing a lot of hardship. We cannot even keep our staff, pay rent or pay the loan on time. We are extremely worried,” said Nirmala Sharma, who runs a budget hotel in Thimphu.

Other budget hoteliers also expressed similar concerns.

“So my family has been in the tourism business for the last 28 years, and now with this new tourism policy. It has gravely affected me and my family,” said Sonam Pelden from Paro.

“Non-star hoteliers are facing difficulty paying rent to the owners. Even for me, I pay the rent with a loan but I’m worried about how long I can keep doing that,” said Sigay Dorji.

After the TCB’s notification in July, the Hotel and Restaurant Association of Bhutan (HRAB) along with the Bhutan Chamber of Commerce and Industry (BCCI) sent a letter to the government with the request to at least allow them to cater to regional visitors if not international tourists.

The hoteliers are still waiting and hoping that their plea will be accepted.

Meanwhile, according to the HRAB, none of the budget hotels has been able to upgrade to three-star hotels as suggested by the TCB.

“With the SDF, we have seen a decline firstly in terms of occupancy rates across the country. We have also seen a decline in the number of tourist arrivals and also in terms of the rates,” said Sonam Maekay Penjor, the chairman of the Hotel and Restaurant Association of Bhutan.

The HRAB says it has been about four months since they sent a letter to the government. But there has been no response yet.

The Department of Tourism was not available for comments.

Tshering Deki

Edited by Yeshi Gyaltshen

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