Sustainable Development Fee
Bhutan has long embraced a unique and mindful approach to tourism, ensuring that visitor experiences align with the nation’s values of environmental conservation, cultural preservation, and economic sustainability. Unlike mass tourism models, Bhutan prioritizes exclusivity and responsible travel through its High Value, Low Impact policy, which safeguards its rich heritage while promoting sustainable growth in the tourism sector.
After the Covid-19 pandemic, Bhutan reopened its borders to foreign visitors on September 23, 2022, introducing a renewed tourism framework. This strategy places a strong emphasis on sustainability, enhancing infrastructure, and improving the overall visitor experience.
As part of this new approach, Bhutan discontinued the Minimum Daily Package Rate (MDPR) on June 20, 2022, and increased the Sustainable Development Fee (SDF) from $65 to $200 per person per night. However, in June 2023, this fee was revised to $100 per night. The SDF, collected by the government, plays a vital role in financing national development projects that improve facilities, services, and infrastructure, benefiting both citizens and tourists.
Currently, visitors are required to pay an SDF of $100 per person per night, with the exception of Indian travelers, who pay INR 1,200 per night. Children between the ages of 6 and 12 receive a 50% discount, while those aged 5 and under are exempt from the fee. The SDF is applicable for the entire duration of a traveler’s stay in the country.
Revenue generated from the SDF is channeled into initiatives that support Bhutan’s economic, social, cultural, and environmental progress. These funds contribute to the preservation of cultural traditions, promote sustainable tourism, enhance infrastructure, and ensure access to free healthcare and education. Given Bhutan’s vulnerability to climate change, the country remains committed to maintaining its distinction as one of the few carbon-negative nations in the world.
For further information on SDF, please visit https://bhutan.travel/journal/editorial/bhutan-s-sustainable-development-fee
