The National Council endorsed the tariff revision for tourists, which is US$ 250 per night, today. NC’s economic affairs committee members recommended that the government relook at the tariff, which has remained unchanged since 1970s. They said the government should come up with a new pricing mechanism.
Of 21 members present in the House today, 19 voted for the endorsement.
The committee’s Chairperson, Pema Tenzin said the new pricing mechanism can discourage undercutting which apparently exists in tourism industry.
Undercutting happens when a tourism package is sold below the market price.
“When we talk about undercutting, it is about how the price of the service goes down. So if a tour operator undercuts, then the hotel has to undercut. And then guide’s services has to be undercut,” said the Chairperson.
He also said undercutting is not healthy for Bhutan’s tourism policy of high value low impact.
The committee has asked the Royal Audit Authority to conduct a thorough auditing process on economy and efficiency of the tourism sector.
Pema Tenzin also said they are changing their stance from their earlier recommendation. The Committee had earlier recommended maintaining the royalty, which is US$ 65 per night, and freeing up the rest of the tariff so that the market can decide depending on the values and experiences.
The recommendations will now be submitted to the cabinet.
