Revision of Minimum Daily Tariff for Bhutan Travel Packages

rp_BhutanMinimumTariff.pngWhat is Minimum Daily Tariff? 

The Bhutanese Department of Tourism has fixed a minimum daily tariff for all travel packages. However, tourists can plan their own itineraries. The tariff includes all meals, accommodations, entrance fees, internal transport, internal taxes and government royalty, camping gear in case of trekking trips and services of a licensed local tour guide and porters. A ten-dollar contribution to the Tourism Development Fund is also included in the tariff.

The tariff depends on group size and season. Currently, the minimum daily tariff amounts to USD 200.00 per person, per night for the high season, spanning between February to May and August to December.. The tariff aggregates USD 165.00 per person, per night for the low season consisting of January, June and July.

A surcharge is levied on free individual traveler’s (FIT) packages and group packages developed for less than three tourists. The corresponding surcharges amount to USD 40.00 per night and USD 30.00 per person, per night respectively. Thus, total high-season price will be USD 240.00 per night for a FIT, USD 230.00 per person, per night for a group of two tourists and USD 200.00 per person, per night for a group of three or more tourists.

Proposed Changes 

The government has planned to discontinue low season discounts on the minimum daily tariff in order to promote the country as an “All-year-round” destination. It will come into effect fromJuly 1, 2011, and royalty for children under 12 years age will also be waived off.

From January 2012, the tariff will be increased to USD 250.00 per person, per night exclusive of surcharge, a jump of 25% over high season tariff and more than 50% increase over low season tariff. The revised tariff will include accommodation in 3-star hotels. The rate revision plan was introduced in 2008 but deferred due to recession. Let’s wait and watch if new tariff plan is implemented or not?