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Tourism industry earns US $ 24 million in 2006

Just as the Department of Tourism had projected last year, the tourism industry earned about US $ 24 million from 17,365 tourists that visited the country in the past 12 months. 17,365 tourists visited the country in 2006.

The visitors came through 166 registered tour companies of the total 250 in the country. Royalties paid by the industry to the government increased from US $ 6.5 million in 2005 to US $ 8.3 million in 2006.

Like in the past, the Bhutan Tourism Corporation Limited (BTCL) brought in the maximum number of tourists, 2,63 9 in all. BTCL officials said that they had projected to get only about 2,000 tourists in fall of 2006.

"This has been a very fruitful year for us," said an official from BTCL. "We look forward to as successful a year in 2007."

Etho Metho Tours and Treks saw about 1,721 tourist arrivals last year compared with about 1,549 in 2005 followed by Yangphel Tours and Treks which brought in over 1,012 tourists in 2006 compared with 891 in 2005. Yangphel's managing director Karma Lotey said that their business was more or less stable with a 10 percent increase in the number of tourists they brought in.

The BTCL Luxury Division comprising the Aman Kora and UMA together brought in another 967 tourists. Records with the tourism department in Thimphu show that about 37 tour operators brought in between 950 and 100 tourists in 2006. Between 100 and 50 tourists visited the country through 16 tour operators, between 50 and 20 tourists through 30 tour operators and 21 tour operators brought in between 20 and 10 tourists.

The rest 58 tour operators saw between 10 and one individual tourist visiting the country in the whole of 2006.

Month wise records of tourist arrivals show a dropping trend in December, January and February, which sees about 300 to more than 600 tourists and picking up in March and April to more than 1,000 to 3,000 tourists.

The number dwindles again between May and August to 200 and 900 tourists and peaks between September till November, which sees between 2,000 and 3,000 tourists.

The increase in the number of tourists, tourism officials said, was a global phenomenon and in Bhutan, it could be clearly attributed to the kind of promotion done over the past five years.

"We have been in the international news for sometime and we were always reflected in a positive light," said the director general of the tourism department, Lhatu Wangchuk. "We have been declared as the number one tourist destination in the world."

Tourists from the USA still topped in terms of numbers followed by the UK and Japan. The country continues to get "matured tourists" between 40-years and 70-years of age.

The director general said that tourists from European countries was also increasing and so were tourists from China, Taiwan, Hong Kong and Thailand. Although trekking is improving, Lhatu Wangchuk said that culture tourism still remains the main product in tourism in the country. He said that as the tourism department develops more trek routes and encourages community tourism like the Nabji and Korphu trail, they expect to have more tourists into trekking. "We operated about 15 groups on that trail in one season in 2006, which is quite a good number to begin with," said Lhatu Wangchuk. "The package is still continuing since it is a winter activity, between October and March." He also that the department was developing winter packages for tourists, in places like Trashigang, Mongar, Trongsa and Zhemgang.

Considering that the tariff on tourists visiting the country has not been revised for the last 15-years or so, Lhatu Wangchuk said that they were looking into possibilities of raising the tariff by 20 or 25 percent a day for each tourist.

"We have to ask the tour operators to sell their packages at higher price but provide quality services and facilities like better transportation, food, guide services and standard accommodation," he said.

He said that having spent the last four years focussing on policy issues, strategy and tourism act, the department would now shift its focus on raising hotel standards and creating better infrastructure.

"The minimum standard for hotels in the country should be three star for Bhutan to do well," Lhatu Wangchuk said. "We will not accept anything lower than that."

The Zhiwaling resort in Paro, which recently started operation saw 24 percent occupancy with inquiries and reservations still coming in.

Hotel Druk in Thimphu had about 47 percent occupancy in 2006. In the last two years, it saw only one or two percent increase in the number of tourists putting up in their hotel. "Although the number of tourists is increasing every year, they get consumed by the many new hotels coming up and offering slightly lower rates and introducing new products," said the hotel's senior manager, Dilu Giri.

Contributed by Samten Wangchuk, KUENSEL, Bhutan's national newspaper, 2007