The National Assembly has once again asked the government to consider extending the Sustainable Development waiver for border areas from 24 hours to 72 hours. The National Assembly’s Economic and Finance Committee, in its review report of the Tourism Policy in the previous session, had recommended extending the 24-hour SDF to 72 hours, along with eight other recommendations.
Visitors travelling to designated border towns in Samtse, Phuentshogling, Gelephu, and Samdrup Jongkhar currently enjoy a 24-hour waiver on the Sustainable Development Fee. The move aims to give visitors more time to stay, spend and support local businesses.
The SDF waiver means tourists entering these border areas do not pay the standard daily tourism fee during that window. The waiver was first introduced in April 2023 to attract more visitors and boost trade in border communities.
During deliberations yesterday, most MPs discussed the need to extend the waiver period.
“In the border areas, the ministry introduced the 24-hour waiver. We consulted hotel owners, tour operators, and local leaders. They said it has benefited hotels, but not enough overall. They feel more needs to be done to strengthen the country’s economy. Tourists come to eat and stay for a short time, but many leave the country soon after because the time provided is limited,” said Harka Singh Tamang, Member, Economic and Finance Committee, NA.
“I feel the committee’s proposal to extend it to 72 hours may affect the high-value, low-volume tourism policy. I would suggest a middle path and extend it to 36 hours instead,” said Lam Dorji, MP, Wamrong, Trashigang, NA.
‘‘The minister said 24 hours is enough, but it is not sufficient for shopkeepers or tourists who may want accommodation. If 72 hours is considered too long, we can consider a middle path of 48 hours,’ said Lamdra Wangdi, MP, Nganglam, Pema Gatshel.
“Extending the waiver beyond 24 hours could help boost economic activity. The current timeframe is limited for visitors who want to stay, eat, and explore. As recommended by the committee, extending it to 72 hours would benefit people living in border areas,” said Tshering Penjor, MP, Dewathang_Gomdar, Samdrup Jongkhar, NA.
In response, Minister for Industry, Commerce and Employment Namgyal Dorji acknowledged the 24-hour waiver’s results. The Minister said that the ministry’s studies showed improved hotel occupancy rates and longer visitor stays, which have helped revive local businesses.
“The 24-hour SDF waiver in border areas has had a significant positive impact. Studies conducted on the initiative showed good benefits for tourists and businesses. Discussions with stakeholders also found that people are still benefiting from the current 24-hour scheme and need to fully utilise it.”
Meanwhile, Speaker Lungten Dorji settled the debate with a directive to the government to finalise the SDF waiver extension to 72 hours.
“Regarding the 24-hour waiver in border areas, members have proposed extending it to 72 hours, and we will finalise it accordingly. If we look carefully, the current timeframe is inconvenient. If we provide a waiver, it should offer visitors enough convenience. Therefore, the government should implement a 72-hour timeframe.”
Other recommendations from the Economic and Finance Committee of the House include reviewing the legislative reform, reviewing SDF and establishing an Independent Tourism Authority and improving operational systems.
Other recommendations call for a uniform airfare rate regardless of nationality, greater community participation, stronger support for hoteliers, and development of dedicated policies on culture-based tourism.
The House directed the government to submit a full progress report on all these actions to the Parliament in the summer session next year.
Sonam Yuden
Edited by Sonam Pem
