The prime minister of Bhutan suggests that the country's $100 daily tourism fee may not be enough and could potentially increase.

Bhutan's Prime Minister, Tshering Tobgay, stated on May 10 that the country may reevaluate its $100 daily tourism fees if its tourism industry recovers promptly.

But the fees are likely to go higher, he said.

In 2023, Bhutan lowered its "Sustainable Development Fee" to $100 per person per day to entice travelers to stay longer, before halving the fee across the board.

The daily fee of $100 for adults and $50 for children aged six to 12, which is valid until Aug. 31, 2027, is described as a "limited-time offer" by Bhutan's Department of Immigration.

But Tobgay indicated that the fee amount could change before that date.

"Tobgay stated that Bhutan will have a quota of 300,000 tourists. If the demand for visiting Bhutan exceeds the country's capacity to accommodate tourists, sustainable fees may need to be increased."

"That will be a welcome development," he added.

A slow return of international travelers

The tourism industry in Bhutan is recovering at a slower pace compared to other countries in Asia, according to Tobgay, who anticipates a quick change in this situation.

"I believe there will be a rush to visit Bhutan once we begin promoting our country and its offerings," he stated.

In 2019, Bhutan received 315,599 international tourists, with 73% of them being from India, as stated in the Tourism Council of Bhutan's annual report.

Last year, the country welcomed around 130,000 tourists, Tobgay told CNBC.

According to the manifesto of Tobgay's People's Democratic Party, Bhutan aims to attract 300,000 tourists annually, with half of them being from "third countries" and "dollar-paying visitors."

According to Bhutan's Department of Immigration, Indian travelers pay a reduced fee of 1,200 Bhutanese ngultrum ($14.50) per night, while daytrippers from India are exempt from the fee.

Fee changes following Covid

Travelers were required to pay a daily package rate of at least $200 per day before Bhutan closed its borders in March 2020 due to the Covid-19 pandemic. This rate typically covered hotel, transportation, and tour guide expenses, as well as the mandatory $65 Sustainable Development Fee.

The $100 Sustainable Development Fee does not cover the additional costs.

Bhutan's Sustainable Development Fees have caused confusion, but Tobgay is confident that the current rate of $100 will enable the country to meet its recovery goals promptly.

"He stated that many tourists are willing to pay $200 per day as a sustainable development fee, especially when they learn that the proceeds are used to protect the environment, provide free education, and healthcare to citizens."

Tourists are thrilled to contribute to Bhutan's sustainable development through small, significant actions, as stated by Tobgay to CNBC.