250,000 tourists per year

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September 12: Bhutan’s tourism industry, which is expected to grow considerably in the next three years, is very much a work in progress.

The GNH commission and a team of experts from McKinsey and company, a consultancy firm, have recently projected an increase in tourist arrival to 250,000 annually within the next three to five years. The number includes high-end as well as regional tourists.

“The number is the result of an in depth analysis, looking at the current policies, access, infrastructure, capacity and areas that require change to achieve the proposed number,” said GNH secretary Karma Tshiteem.

However, there have been two targets and projections on the increase of tourist arrival in the next three years: one set by the government for the 10th five year plan and other by the association for Bhutanese tour operators’ (ABTO).

The government’s target was to see an annual tourist arrival of 100,000 by the end of the 10th Plan. The 250,000 tourists arrival is five times what ABTO had projected. ABTO’s target is to receive 50,000 dollar-paying tourists annually by 2013.

“Our target of 50,000 and direct revenue of about USD 70m is based on the existing capacity, rules and regulations and policies,” said ABTO secretary general Sonam D Dorji. “The figure is also based on a very modest increase of 20 percent every year for the next five years.”

Bhutan has been seeing an increase of about 35 percent tourist annually in the last five years. About 22,000 tourists visited the country in 2007 and there were 28,000 tourists in 2008. About 10,000 non-dollar paying regional tourists also visit Bhutan yearly.

“If we are to have 250,000 tourists arriving in the country a year, a lot of change is needed because the number is huge, almost one third of our population,” said an ABTO official. “If we spread the number throughout the year, we’ll see about 685 tourists a day.”

GNH secretary Karma Tshiteem said that the consultants reached the number by spreading the tourists throughout the country and the calendar year.

“The prospect of 250,000 tourists annually has been seen through a lot of groundwork,” he said.

ABTO officials and tour operators however, said that there were many limitations. For instance, there are only two Drukair flights operating with a 228-passenger capacity.

“If they fly 365 days a year on full capacity of dollar paying tourists, it comes to about 83,220 a year. On the other hand, the demand of Bhutanese flying overseas is growing every year,” said an official. “The 250,000 tourists a year might seem ambitious looking at the current situation. Even with 28,000 tourists arrival last year, there was so much pressure on the two aircrafts in terms of capacity, on the number of qualified well trained guides, on transport, accommodation, ponies during trekking season and so on.”

Another ABTO official said: “To accommodate 250,000 tourists a year, the number one job would be to ensure coordination between the various sectors, such as home and cultural affairs, economic affairs, agriculture, communication to ensure smooth arrangements for tourists. Coordination is the challenge today.”

Meanwhile, GNH secretary Karma Tshiteem said that the project team is still working on the details of the project and the proposal would be released once the final draft is complete.

source: kuensel