The subsidised airfare scheme for international tourists is likely to be discontinued six months after its launch. Twenty-one out of 40 MPs in the National Assembly, by a show of hands, supported the Economic and Finance Committee’s recommendation to slash it, citing limited impact and inconsistency with the country’s high-value, low-volume tourism policy.
The committee, in its budget review report for the fiscal year 2025–2026, observed that Nu 49.5 M was allocated for airfare subsidies to help the country meet its annual target of 250,000 tourist arrivals.
However, the committee argued that the subsidy was too small to attract Sustainable Development Fee-paying tourists and contradicted Bhutan’s high-value, low-volume tourism strategy.
The government, last year, initiated it for dollar-paying tourists visiting the country in June, July and August in summer and December, January and February in winter. Tourists get a 25 per cent subsidy on airfares.
The subsidy is paid to Drukair and Bhutan Airlines on a per-ticket basis, monthly.
“We graduated from LDC. We always say that we do not have money, but we give a subsidy to the sector that we are supposed to get money from,” said Rinchen Wangdi, the chairperson of NA’s Economic and Finance Committee.
The industry, commerce and employment minister, Namgyal Dorji stated that the initiative did not incur any losses for the government. He added that the programme is still in its early stages and its overall impact is yet to be fully assessed.
“Between December last year and February this year, over 4,236 SDF-paying tourists visited Bhutan. Of the Nu 49 M allocated for the airfare subsidy, Nu 38 M was used. In return, these tourists contributed over Nu 1.4 bn in Sustainable Development Fees alone,” said the minister.
The recommendation will be passed tomorrow.
Samten Dolkar & Deki Lhazom
Edited by Phub Gyem
