OVERVIEW OF TOURISM IN BHUTAN AND HOW IT FITS INTO THE GENERAL

OVERVIEW OF TOURISM IN BHUTAN AND HOW IT FITS INTO THE GENERAL DEVELOPMENT PLANS OF BHUTAN Mr. Sonam Tobgay, Program Officer, Tourism Authority of Bhutan, Thimphu, Bhutan Tourism and the General Development Philosophy in Bhutan Bhutan, with it‟s natural beauty, rich wildlife and unique culture makes a wonderful and exotic tourist destination. However, it was only in 1974 that Bhutan was opened to international tourism, beginning modestly with only 287 visitors. Bhutan‟s tourism policy is reflective of the larger development philosophy within Bhutan. While the government‟s basic goal, as with other developing countries, is to improve the living standards of its people, development in Bhutan is not judged merely by material prosperity and income growth. The Royal Government of Bhutan has repeatedly affirmed the importance of less quantifiable but more meaningful goals such as the happiness, contentment, and the spiritual and emotional well-being of its people. Thus, the government has taken a cautious approach to development. The Royal Government‟s view is that modernization and development should be guided by the “Gross National Happiness” of the Bhutanese people, rather than by the Gross National Product. Likewise, development should be consistent with Bhutan‟s capacities and needs. In formulating and implementing national goals and policies, the government places a great deal of importance on the preservation of Bhutan‟s natural resources and cultural traditions. This is believed by the government to be as important a priority as economic growth and development. This development philosophy is essentially one of sustainable and equitable development with a human face. Concerned about the impacts of rapid development, the government has adopted the concept of sustainable development, which has become a central theme to Bhutan‟s development plans. Bhutan‟s approach to sustainable development was articulated in the Paro Declaration in 1990, the salient points of which are as follows: “This is the challenge of sustainable development: to raise the material well-being of all our citizens and to meet their spiritual aspirations, without impoverishing our children and grandchildren... “The key is to find a development path that will allow the country to meet the pressing needs of the people, particularly in terms of food, health care and education, without undermining the resource base of the economy. New industries, new agricultural markets need to be carefully developed, with respect to their broader environmental ramifications... “Sustainable development, we believe, is a concept that is in harmony with the cultural and religious traditions of Bhutan. Our nation already has a strong conservation ethic, and indeed respect for the natural world is a central tenet of Buddhism. It is therefore essential that the traditional culture be kept strong so that its values can guide our sustainable development path”. 1 Tourism in Bhutan Initially tourism was managed by the Department of Tourism under the Ministry of Finance, which was later reorganized as the Tourism Commercial Organization under the Ministry of Communications and Tourism in 1980. While the policy was still cautious and regulative, tourism activities were made progressively more commercial. This trend continued and culminated in the formation of the Bhutan Tourism Corporation in 1983, which was made a fully autonomous corporation under the Ministry of Trade and Industry. In the Bhutanese government‟s 7th five-year plan, an emphasis was placed on increasing the role of the private sector. Thus, the tourism industry was privatized in October 1991. To date, there are 33 licensed operators under the Tourism Authority of Bhutan (TAB), the regulatory body which is a division of the Ministry of Trade and Industry. TAB oversees tourism activities and ensures that operators comply with government policies regarding tourism. Tourism policy The Royal Government of Bhutan recognizes that tourism is an important means of achieving socio-economic development. It also recognizes that tourism, by encouraging travel to other countries, can promote understanding among people and build closer ties of friendship based on appreciation and respect for different cultures and lifestyles. There are, however, problems associated with tourism which, if not controlled, can have devastating and irreversible impacts on the environment, culture and identity of the people. Realizing these problems and the fact that the resources on which tourism is based are limited, the government recognizes the need to develop the Bhutanese tourism industry based on the principle of sustainability (i.e. it must be environmentally friendly, socially and culturally acceptable, and economically viable). In order to achieve this objective, the government has adopted a very cautious approach toward the growth and development of the tourism industry. One reason for this was the low level of infrastructure in the country which still needs considerable upgrading. In order to minimize the problems, the number of tourists has been maintained at a manageable level, and this control on numbers is exercised through a policy of government regulated tourist tariffs, and a set of administrative requirements. Due to the government‟s desire to minimize the adverse effects of tourism, while ensuring a healthy flow of hard currency, the principle of “High Value Low Volume” tourism has been used. Rather than limiting the number of visas issued, tourist arrivals are controlled by a pricing policy. This pricing policy means that tourists must come to Bhutan on a package tour, organized by one of the 33 Bhutanese tour operators (foreign travel agents are not allowed to operate in Bhutan). The whole itinerary, whether it be a cultural tour, trekking or a mixture of both, is organized by the tour operator. The fully inclusive price set by the government is presently US$200 per day, per person. Of this tariff, a 10% commission goes to the external foreign travel agent, 35% is paid as a government royalty, and the remainder is the tour operator‟s to be spent in Bhutan. The tariff increases if tourists want to travel alone or in very small groups. This is because these small groups incur higher per capita expenditure and have a greater impact on the environment than larger groups. There are however concessions available for children and students. If at any point it is felt that the number of arrivals is escalating out of 2 control, the pricing policy may be reviewed and the prices increased. The manageable level of arrivals will depend on the current infrastructure in the country. As infrastructure improves, the carrying capacity will rise. Visa formalities are another means of ensuring that Bhutan, rather than customer demand, dictates the number of arrivals. Visas are not available upon arrival at any of the borders or the airport. Visas must be processed in advance of arrival, and clearance given by the Ministry of Foreign Affairs before tickets are issued to enter the country. All visa applications for tourists are processed through TAB, as are all visa extensions. This means that TAB is at all times aware of the number of tourists in Bhutan and ensures that the government royalty is always collected. Trekking in Bhutan requires another permit from the TAB. This is to ensure that no one route is over used or new ones opened without prior approval from the TAB. Trekking tours are only conducted on approved trails and camping in designated campsites. This also helps to even out the density of tourists on the different trekking routes, spreading the income from tourism evenly to the local communities in these areas. Tourism arrivals There has been a considerable increase of tourist arrivals since 1974, with approximately a 20% increase over the last few years. However, the number of tourist arrivals is still very modest by international standards (see Table 1). This is in accordance with the government policy to keep arrivals within manageable limits. There is significant seasonal difference in the number of arrivals (see Table 2). Arrivals are concentrated in the autumn and spring, with the peak times coinciding with the major Bhutanese festivals. Nearly 50% of the total arrivals during 1995 were during the two main festivals. This peak of arrivals is expected to continue, but TAB is attempting to even out this seasonality, by stressing services available at other times of the year. Table 1: Tourism arrivals to Bhutan 1985 - 96 Year Arrivals 1985 1,896 1986 2,405 1987 2,524 1988 2,129 1989 1,480 1990 1,538 1991 2,106 1992 2,748 1993 2,984 1994 3,971 1995 4,765 1996 5,150 Tourism Authority of Bhutan * Projected 3 Bhutan has always been considered a beautiful and exotic destination, and marketing strategies have focused on its rich cultural heritage and natural beauty. Visitors to Bhutan have tended to be those who are interested in the Himalayas, Buddhist culture or have a special interest in the region. Cultural tourists have, therefore, been the main source of tourism, constituting 75% of the total business in 1994, and 80% in 1995. Trekking has increased over the years to constitute about 25% of the market in 1994, though its popularity declined somewhat in 1995 to around 13%. Table 2: Tourist arrivals by Season 1996 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Arrivals 133 304 605 689 215 91 160 306 788 1,136 514 209 5,150 % of Annual 3 6 12 13 4 2 3 6 15 22 10 4 100 Tourism Authority of Bhutan Between 1988 and 1995 the largest number of tourist arrivals to Bhutan were from the USA (23.6%), while Japan followed closely (22.6%). The number of arrivals from Japan increased continuously to about 26% in 1995, overtaking the USA. Other important country markets are EU countries, particularly Germany, the UK and France. Taken as a whole, Europe forms the largest market for Bhutan, maintaining about 44% of the total tourist arrivals between 1988-95 (Table 3). Table 3: Arrivals in 1996 Nationality Japanese American German British French Italian Thai Austrian Swiss Dutch Belgian Australian Canadian Spanish Others Number of arrivals 1,213 969 725 384 329 241 181 161 160 131 77 71 56 49 403 4 Tourism Authority of Bhutan The average tourist is 45 years of age (the pricing policy has generally ruled out younger tourists), with a middle to high income (according to western standards). This Bhutanese tourist profile is very favorable to the country. The average tourist tends to be very aware of sustainable tourism, and the negative effects tourism can have if not managed carefully. The „standard‟ visitor comes to Bhutan because it is pristine and “untouched”, because the religion remains the focal point of society, and because of the absence of the “Coca Cola Culture”. Tourism earnings Tourism has always been an important source of hard currency, and today it is the sixth largest producer of revenue for the country, and the third largest foreign exchange earner. In 1995, tourism revenue increased by 42% and arrival numbers by 20%. The increase in the ratio of revenue to the arrival numbers was due to the increase in the tourist tariff. Local Participation in Tourism Revenue Because of the government‟s “High Value - Low Volume” policy, tourism in Bhutan has a very favorable income to arrivals ratio. The government monitors this ratio very carefully so that the money the tourist spends is directed to businesses in Bhutan, rather than to large overseas travel agents. These agents usually sell „package‟ holidays, and in many cases the percentage of revenue that actually gets to the host country is very small. In Bhutan, tour operators are given the chance to receive revenue directly from the price of the holiday, and the Bhutanese people receive an income from the tourists by way of the government royalty. This royalty collected makes up one sixth of the country‟s income, and one third of all foreign exchange earned. This is an important source of revenue for the Bhutanese people since all health services and education are provided by the government for free. Other examples of how tourism earnings get to the local communities: 1. Repairing and maintaining trekking trails. In many instances, park managers award contracts to local people for the maintenance of foot bridges and trails. 2. The rest and community houses along trekking routes, that were built by the government prior to the privatization of tourism, have been handed over to local residents. The income generated from tourists and trekking staff goes directly to the local community, and they have full control over these shelters. 3. Local communities along trekking routes supply provisions for trekkers. This provides additional income for local people. Tourists are given a local diet, rather than imported foodstuffs. 4. All transport for trekking - yaks, horses and human - is provided by local people. This is further safeguarded by the district boundaries at which transportation animals are changed to animals from the next district. Therefore, there is no possibility of large organizations 5 monopolizing the trekking transportation, or animals being moved for long periods of time from their owner‟s farm where they are much needed. The tour operators are at the mercy of the transporters, as the locals decide on the terms and often charge high prices for travel in remote areas. Table 4: Tourism earnings in US$ million from 1985-1996 Year Earnings 1985 1.67 1986 2.16 1987 3.40 1988 2.00 1989 1.95 1990 1.91 1991 1.93 1992 3.30 1993 3.22 1994 3.96 1995 5.82 1996 *6.00 Tourism Authority of Bhutan * Projected Handicrafts The sale of handicrafts to tourists is obviously big business, however handicrafts are also used by tour operators running trekking programs. For example, bamboo baskets are used as containers during trekking. Traditionally the bamboo basket is used for packing containers on horses and yaks. These baskets are purchased by tour operators. The life of the average bamboo basket is about two years, then it needs to be replaced. This is one indigenous product that is always in demand. The sale of handicrafts in Bhutan is as new as tourism. Items that were once considered just for everyday domestic use, are now produced for sale. The government (often with the help of UNDP and other external agencies) has established weaving centers and other handicraft centers around the country. These encourage the preservation of the skills involved in producing the handicrafts, enable people to remain in their villages where most of these projects are based, and they often enhance the role of women by enabling them to increase the family income. Employment Tourism has had a positive effect on rural employment in Bhutan. Rather than pulling people away from their villages, tourism has helped to benefit people in their own communities. On the other hand, in Thimphu (the capital city of Bhutan), where unemployment is becoming an issue for the first time, jobs in tourism are increasing. The demand for guides, drivers, office staff, and hotel and catering employees is increasing in Thimphu. To meet this increasing demand, TAB (with assistance from the European Commission) is conducting training programs in all the major areas of tourism. 6 Customs and culture Bhutan is well aware of how fragile culture is, and subsequently, TAB has issued guidelines to tourists and tour guides. The following is an extract from “Bhutan‟s Trekking Rules and Regulations” (1996): “Guides must respect the culture and traditions of the local people and help them maintain their dignity and pride. Guides must ensure that activities that can have a detrimental effect on the value systems of the local community are carefully avoided. In particular, guides must discourage members of the trekking group from: 1. giving away candy, medicine, money or gifts to local people, particularly children, as this would encourage an unhealthy trend among locals to start soliciting or begging. 2. buying household items or religious artifacts from the local people”. Environment Litter is a relatively new problem in Bhutan that comes with the wider availability of prepackaged foods, sweets, etc. The “Bhutan Trekking Rules and Regulations”, outlines the requirements of the disposal of litter on trails. This has been accompanied by a campaign for litter control and awareness. Every year TAB finances and organizes a „Clean up Campaign‟. The benefits of this project are twofold. First, the major trails in Bhutan are cleaned, and litter is collected. Second, the operation is carried out by the tourist guides, and acts as a training program in environmental awareness. Thus, TAB‟s attack on litter has had a direct effect on the campaign against domestic litter in Bhutan. The above mentioned regulations also stipulate the need to ensure the quality of local water supplies by the careful placement of toilets. This has been accompanied by a study of where local people place their toilets, which has highlighted the dangers posed at present. Obviously, TAB has little involvement in the promotion of hygiene, but it is hoped that the effect of local involvement in tourism activities will have a positive influence on other rural development activities. In 1996, TAB established a set of rules and regulations that deal mainly with safety and care for the environment. These regulations were developed with advice from environmental organizations around the country. There are fines imposed for any breach of these regulations. Improving Tourism Standards Ecotourism programs Ecotourism programs will be based on tourism management plans developed in consultation with the local people living in national parks. The plans will design programs such as the promotion of alternative income generation through tourism, training of local tour guides, and campsite and trail development. Funding commitments have been received from various donor agencies (Global Environment Facility project in Jigme Dorji National Park; Dutch Fund in Black Mountain National Park; WWF in the Royal Manas National Park). 7 Training of guides TAB has been training guides since 1994. The training curriculum includes navigation and map reading, first aid, guiding techniques and environmental awareness. Every year TAB conducts one training program for about 20 trainees. After successful completion of the training course, the guides are issued a licence by TAB, and only these licenced guides are permitted to escort tourists. Yearly „refresher‟ courses are also compulsory. Monitoring of tour operators The TAB, with the cooperation of the park authorities, has a system of monitoring visitors within the park areas. All trekking guides have a moral obligation to the country to preserve Bhutan‟s environment. To ensure that this obligation is fulfilled, the government has implemented a system where trekking tour permits are only approved by TAB if a licenced trekking guide is leading the group. The guide, on completion of the trek, files a report at TAB on the status of the trail, garbage and litter at camping sites. Apart from official inspections, these reports submitted by the guides are carefully scrutinised, and if any violations of the rules and regulations are observed, the tour operator is fined. For every violation a sum of Nu 5,000 (about US$140) is charged. Three violations can result in a tour operator being banned from trekking activities. In 1996, Nu 40,000 (US$ 1,140) was collected. This revenue was used by TAB for clean up campaigns and an environmental awareness training program. Development of campsites Park authorities and TAB are developing a more extensive network of designated campsites with basic facilities such as crude shelters, safe drinking water, and outdoor toilets. All trekking groups must stay at the appointed campsites and on the approved trails. This is intended to minimize the adverse effects their presence could have on Bhutan‟s fragile ecosystem. Fuelwood The increase of visitors to high altitude areas, where fuelwood is limited, could deplete the supply of fuelwood used by the local yak herders living in the high Himalayas. It has been made mandatory that all trekking groups carry sufficient cooking gas and stoves for all their cooking and hot water requirements. This is being monitored on the trekking routes, and at the beginning and end of trails where groups are required to provide evidence to verify that cooking gas was used. Japanese language courses Since the Japanese constitute the majority of tourists visiting Bhutan, TAB has started a Japanese language course open to all tour and trekking guides. TAB began the classes because the majority of Japanese tourists do not speak English and felt that guides conversant in Japanese would improve the quality of the holiday experience. Moreover, better language skills will ensure that the Japanese better understand Bhutan‟s culture and traditions. This is a modest way to implement the government‟s policy of cultural exchange. 8 Conclusion If carefully planned, tourism can assist in a country‟s conservation and development goals. Bhutan‟s experience with tourism has been positive because the Bhutanese government has controlled and carefully managed tourism policies within the country. Bhutan has learned from the experiences of other developing countries and tried to limit the extent to which tourism can damage the natural and cultural base of Bhutan. Likewise, Bhutan‟s tourism policies fit in with the general development strategies of the government and are guided by the principle of “Gross National Happiness”, rather than the accumulation of wealth which usually characterizes the tourism industry. 9