BHUTANESE TOUR GUIDES SAY NO TO TOURISTS’ TARIFF LIBERALISATION

December 25, 2015
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Guides against tariff liberalization

A majority of about 100 guides who attended a discussion on issues and challenges in the guiding profession yesterday wanted the current system including the tariff to remain the same.

The Guides Association of Bhutan (GAB) organized the meeting to discuss the National Council’s recommendations on tourism particularly the tariff liberalization, standardization, daily allowance and training opportunities for guides, among others.

Discussions on tariff dominated the forum and despite requests to take turns, all guides spoke at the same time.

GAB chairman Garab Dorji said that, personally, he felt it was time for some reform in the industry to bring about healthy competition in the market.

Last year’s international tourist arrivals of 58,022, he said translates to 12,000 groups. “This means that each guide, on an average catered to about four groups,” he said.

This indicates that a guide was employed only for a month, he said, which means guides are unemployed going by the labour force definition of employed. “It becomes a part time job,” he said.

GAB’s former executive director Sangay Phurba who is now a trainer said while it would be easy to liberalize, the reality would be different. If the issue was about undercutting, he said the government gets its taxes and royalty. “Technically, there is no undercutting,” he said, adding there are few cases but that’s business. “How sure are we to be employed if liberalized?”

A specialized guide Dr Norbu Wangchuk said he was for liberalization, as the country’s economy did not benefit much in the current system. “The overseas travel agents sell Bhutan for USD 500 to 600 but the money doesn’t enter our economy,” he said.

With liberalization, he said regional tourists would balance the tariff paying tourists. “Going by the increase in regional tourists, it won’t be long before the unregulated regional tourists overtake international tourists,” he said, emphasizing the existing issues of regional tourists.

If liberalized, he said that GAB could take the lead role in categorizing guides based on experience and market.

The guides agreed on the need to set a minimum base rate for guides based on which tour operators could “top up” depending on a guide’s expertise. The guides also requested that they be paid as per the clientele, specialization and experience.

Guides are paid Nu 500 to Nu 1,500 a day during peak season while during lean seasons they earn about Nu 500 to 1,000.

Guides said they have been paid the same amount since they joined the industry and the limited allowance was not enough to cover food and accommodation, unless its provided for free.

A guide said the government proudly claims that the unemployment rate has been reduced when the reality is different. He said the labour ministry must step in to address the issue of freelancing by providing stipend until they are permanently employed.

The issue of unregulated regional tourists and lack of training opportunities for guides to enhance their skills also came up for discussion.

Senior guides said there were training opportunities for guides until 2000 after which it was done away with. Guides also agreed to propose authorities to ensure that all regional tourists avail guides.

With about 640 guides entering the industry every year, a guide said it was a concern while another suggested that training institutes stop producing more guides so as not to affect employment opportunities. “Currently, guides are produced like chips from a factory,” a guide said.

Sangay Phurba said just because there are unemployed graduates or trained teacher today don’t mean that the colleges close shop. “This is not how it works, it’s a free market and the same applies to the rest of us,” he said.

There are more than 2,700 licensed guides today.

SOURCE: KUENSEL

BHUTAN TOURISM STAKEHOLDER REMAIN DIVIDED FOR CHANGE IN POLICY

December 21, 2015
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The cost of maximizing tourism benefits

The National Council’s proposed changes in the tourism industry have left the industry divided.

Tour operators are against any reform in the existing tariff or policy while the guides and hoteliers welcome it.

The EAC recommended the government to retain the royalty of USD 65 a day a tourist and lift the tariff to ensure all stakeholders maximize tourism opportunities and minimize revenue leakages.

The EAC’s chairperson and Chukha’s councilor, Pema Tenzin said that the government reviews the Council’s recommendations for its practicality and provides a follow up report on its status.

The players

The tourism industry is governed by the “high value, low impact” policy. All tariff-paying tourists have to route through tour operators. They design the itinerary for tourists, chose hotels and assign a guide and transportation. Tourists who opt to stay in their preferred choice of hotels have to bear the surcharge. Of about 1,700 tour operators, only about 400 are operational. The top 10 tour operators bring in about 30 percent of the total international tourists.

There are about 133 hotels across the country with the highest located in Thimphu, Paro and Punakha. The occupancy rate is about 30 to 35 percent on an average for hotels in the western region, about 17 percent in central and seven percent in the eastern region.

There are about 2,500 licensed guides of which a majority are cultural guides. They are paid about Nu 500 to Nu 1,500 a day during peak season while in the lean season they get about Nu 500 to 1,000.

Today, small vehicles hired for tourists are paid Nu 18 to 21 a km while coaster busses categorized as medium vehicles get about Nu 30 to 35.

Issues 

The prominent issues confronting the industry today are hotel occupancy, equal spread of tourism benefits, seasonality and the alleged undercutting practices. The sector has been grappling with these issues for more than four decades.

Questions are also raised on how effective the Tourism Council of Bhutan’s (TCB) and tour operators marketing strategies are. Lack of innovation among tour operators is another issue. A majority of tour operators still sell the same tour packages and every year cultural tourists top the list of arrivals while less than 10 percent visit for adventure tour. Other products such as Buddhism, wellness and spa or biking, community based tourism and retreat are yet to pick up.

Unregulated regional tourist arrivals, which is increasing is seen as a threat to the country’s brand as a niche destination. Until a couple of years ago, regional tourists were not part of the tourism statistics but now the numbers are used as a yardstick for achieving targets.

Hoteliers’ and guides’ stand

Hoteliers and most guides laud the Council’s recommendation on doing away with the fixed tariff. The proposed change, they said would tackle the regional spread of tourism benefits and the seasonality issue. They said in the current system, tour operators decide where guests stay, what they do, eat or visit. The profit from tourism is not distributed within the industry, as tour operators want the lowest price for transportation, hotel, and guides.

Reasoning that hoteliers make the most investment in the industry and create the highest employment, they said its time tour operators promote Bhutan as a niche market instead of undercutting. They said the current system worked only in the past when there were fewer hotels, guides and tour operators.

Three-star hoteliers said they sell a room for about Nu 1,500 to 2,000 a night after offering 30 to 40 percent discount and removing all facilities in a bid to save costs.

“Although there is a huge scope, most hotels are unable to break even,” a hotelier and tour operator in Paro said.

In the current system, hoteliers and guides said that if they don’t have good relations with tour operators, they don’t get business. “Even if a tourist chooses your hotel, the tour operator would tell them that the rooms are booked and move them to another.”

Hoteliers said that the existing system has forced guides to depend on commission and take guests to the shops and hotels, depending on who provides them the highest commission besides demanding free food and lodge from hotels where tour operators keep their guests.

Guides Association of Bhutan’s (GAB) chairman Garab Dorji said the whole issue boils down to undercutting, which he said is rampant. “After offering a huge discount to overseas agents, the discount is pushed onto hotels and guides,” he said. “Hotels and guides don’t have a choice but to accept it as its better to have some guests than none.”

“The proposed changes will level the field for all where everyone gets equal chance,” Garab Dorji said.

It is alleged that most tour operators especially the bigger players sell tour packages for USD 130 to 170 a day.

Hotels and Restaurants Association of Bhutan’s (HRAB) president Thinley Palden Dorji said there is no denying that there is a problem.

“There is an issue with the way the industry is structured,” he said, calling for reform for the long-term health of the industry. “What makes the situation worse is that many hotels don’t receive their payment on time.”

Tour Operators’ take

Tour operators contend that not all undercut. They insist that any reform in the policy would affect the industry and Bhutan as a destination. Their argument is mainly based on “why fix something that is not broken” and that any change would mean, “killing the golden goose.”

Tour operators argue that if changes come through, it would mean undercutting is legalized. The increase in tourists, they said would promote mass tourism considering the tourist population ratio.

“The carrying capacity in terms of services and infrastructure need to be studied well,” a tour operator said, adding that any reform would add pressure on the limited resources.

Some tour operators attributed undercutting to management lapses, which they said would worsen if the existing tariff were removed.

“It’s not true that tour operators dictate the market. Not anymore,” one said. “It used to function that way in the 90s where information was solely dependent on tour operators but today hoteliers market themselves while clients seek information online prior to their visits.”

They said that although the price or tariff is just one component of the overall aspect of tourism, it was different for Bhutan as the tariff is the only factor that has maintained the country’s policy of high value, low impact for the past 41 years.

“Instead of meddling with the tariff that has worked so well, its time we come up with a proper plan and system in place,” Association of Bhutanese Tour Operators’ (ABTO) executive director Sonam Dorje said.

Citing that there are bigger issues that need to be tackled, Sonam Dorje said that tour operators are not adverse to change but first quality, standardization and professionalism in the industry should be addressed.

“Lets put our house in order first and have the system in place and then talk about the price,” Sonam Dorje said.

Some tour operators also said there are no basic infrastructure in place currently to maximize from the increase in arrivals if the tariff was removed. They also questioned how the reform would guarantee regional spread of tourism benefits and address the seasonality and occupancy issue for hotels.

The change in tariff, a tour operator said would be the beginning of an end. “It’s not right to malign tour operators when there is nothing wrong with the policy,” he said. “Brand Bhutan wasn’t created overnight, it was a deliberate approach to economic development. The brand is immeasurable.”

Referring to the occupancy issue and bad debts of hotels, another tour operator said that it was not the government’s job to bail out failed businesses. “The realty is that if the tariff system is removed, another 100 hotels will come up again and the same issues will exist.”

Council’s stand

EAC chairperson Pema Tenzin said the Council was looking at maximizing the policy by removing the fixed tariff.

On the accusation from tour operators that they were not consulted, Pema Tenzin said the committee has done enough consultation even before the 15th session.

He said all members sought views on the issue during their constituency visits besides consulting TCB, ABTO, HRAB and GAB, among others. “There were guides, foreigners, and people from non-tourism sectors who wrote to us,” he said.

The Council’s stand, he said is to stop mass tourism and encourage high-end tourists and address the existing issues in the industry.

“The royalty will serve as the pricing mechanism to avoid budget tourists,” he said, while emphasizing the need to manage regional tourists stating that Bhutan cannot have two standards for tourists.  “Let the market decide,” he said.

Pema Tenzin also said that TCB, as the apex body, instead of stamping visas and calculating the daily tariff, have a bigger mandate.

On the possibility of tax evasion and revenue leakages given the poor monitoring system in place currently, Pema Tenzin said the government must ensure an aggressive taxation system.

Meanwhile, Drukair’s CEO Tandi Wangchuk said that although it’s difficult to take a stand at the moment, an increase in passengers would mean additional business for the airlines.

“As a carrier, we will be happy with any policy that ensures increase in tourist arrivals and throughout the year,” he said.

TCB officials did not want to comment.

Source: Kuensel (Kinga Dema)

BHUTAN IN THE RISK OF LOOSING IT’S UNIQUE TOURISM POLICY

December 4, 2015
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DON’T KILL THE GOOSE THAT LAYS THE GOLDEN EGGS

This is in response to the National Council’s recent recommendation on the liberalization of the daily tourism tariff.

The fact that there has been a steady increase in the number of new tour operators over the years, from a mere single digit in the 1970’s to about 1,700 hundred tour operators today, shows the present tourism policy was never confined to a select few.

Four years ago, I along with my six friends was out of job and exploring business ideas. The tourism policy and regulations were so conducive and protective that we all went into the tourism business. Thanks to the “high value low impact policy” it not only benefited the country but us too, being new in the market with no capital and only with some researched data in hand. The tourism industry was never confined to few but was open for all interested and each had their share of the pie depending on their hard work and quality of services delivered.

Now, how certain are we and from which angle does one get the assurance that if the daily tourism tariff is liberalized, the number of tourists visiting Bhutan will fairly be distributed amongst all the 1,700 tour operators? If this is not a personal assumption then there must be a mathematical solution whereby the liberalization of the daily tariff will equate to fair distribution of tourist to all concerned parties.

And, even if this holistic fabulous approach succeeds, are we encouraging a healthy competition and creating a level playing field among the players in the market? Or will this make the well established few tour companies with their own fleet of cars and hotels all over the places take the edge over the middle and small/new tour companies by offering the lowest price to the tourists? With the price into play and a consumer’s basic instinct to go for the lowest price, will this not knock out the middle and small/new tour companies off the tourism industry for good?

The more danger also lies in the background, which is even bleaker. Let us not forget our country getting run down by mass tourism with negative impact on the environment and community. Let us also consider the frightening impact it will have on our fragile youth as a result of cheap tourism and influx of poor quality tourists. Can we afford to turn a blind eye on the negative impacts of this liberalization?

Similar concerns were shared by all of the people I met and they also voiced the same unease. While I appreciate the National Council’s Economic Affairs Committee and their initiative for equitable socio-economic development, such recommendations also makes me doubt a little on whether there are any vested interests based on the select people and those from the tourism industry who called and applauded the recommendations.

Let us not murder this highly prized tourism industry (even widely appreciated in the international market for its noble tourism policy) as a result of some good orators, just because they can make valid opinions to an apparently ‘doing very well, no change required’ situation. If we are to make any changes in the current policy, let us be practical and be fully convinced to apply for change in the larger interest of the country.

It is interesting to note that some of our learned and Honorable Members of the National Council are expecting to bear fruits after cutting down the tree from the roots. “When prices become competitive, tour operators will come up with many tourism products from various parts of the country, which would actually benefit areas not touched until now,” Zhemgang Councilor was quoted saying

If the prices were to play, I would rather focus on areas and products with less time and resources to bring down the cost. I would rather promote Thimphu and Paro only as there are many choices in hotels, especially regarding room rates, well developed infrastructure and avoid additional transportation cost. If I was to promote far flung areas like Lhuentshi and Zhemgang then the overall cost of the tour package will be high, whereas I can easily convince the tourists to spend their (already) limited time in Thimphu, Paro and the nearby regions.

Tourist actually come to experience the unique culture of Bhutan and I can easily promote remote villages of Thimphu, Paro, Haa, Punakha and Wangdue valleys as they also have a lot to offer in terms of traditional authentic Bhutan experience and its not as necessary to take them to the east or central parts of the country.

Having said that, until now, the price of the tour package (daily tariff) never interfered in the itineraries I designed for my guests. Depending on their time, my guests could visit all the places both near, far and remote, because I want my guests to experience and explore as many places as possible within their time frame since the prevailing daily tariff is more than enough to cover all of their expenses and more.

Now, if the liberalization of the daily tourism tariff comes through I may as well prepare myself for the oncoming war with other tour operators solely based on the prices.

However, on the other hand, if the liberalization does not come through and if we don’t need to compete with the prices, we can then think of competing in other ways.  One main focus can be in improving and diversification of various tourism products to attract and uphold Bhutan as a unique holiday destination.

I have been in the industry for the last four years. Since the daily tariff is fixed and regulated, my focus was on quality improvement and product diversification. Also since tourists are aware of this fixed daily tariff, there is no time lost in negotiating and haggling the costs! Instead we focus on creating a unique and quality experience worth the dollars.

I earnestly request all members of the Parliament to consider all concerns and the impact of such a recommendation, so that, such irreversible policy change will not kill the goose that lays the golden eggs.

Contributed by Sonam Dendup

MORE DOMESTIC ROUTES TO BE COVERED BY BOTH THE AIRLINES IN BHUTAN

December 1, 2015
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The government has informed Tashi Air subsidiary Bhutan Airlines to recommence domestic flights by April, next year.

The decision comes seven months after it decided that the private airline must recommence domestic operations. However, Tashi Air had re-appealed for a two-year deferment causing the decision to be discussed and alternatives explored until now.

It’s first appeal was made in October last year, when it was supposed to have initially resumed domestic operations.

Tashi Air, while committing to meeting its domestic obligations, had appealed on grounds that its international services were still in the red and that it would be operating two loss-making services simultaneously, risking its entire operations shutting down.

The government’s latest decision provides Tashi Air with five months to introduce domestic operations. In total, a year and six months has passed since Tashi Air’s first appeal.

The government has also instructed national airline Drukair to begin scheduled services to Gelephu domestic airport by December 17, this year.

In April, the government had also issued an ultimatum to Drukair to either operate to all domestic airports or bow out of the domestic market. Drukair currently operates only to Bumthang despite the Gelephu domestic airport being opened a few months back.

Drukair had also responded through the media then that it would continue to operate domestically and that Tashi Air should as well, on grounds that competition in the domestic sector would be as beneficial as it has been in the international sector.

The announcement came in spite of all parties concerned, Drukair, Tashi Air, and even the government, in agreement that the domestic sector was not large enough for two airlines.

The government with the Office of the Attorney General’s assistance explored an alternative solution of having only one airline operate domestically. However, a legal solution was not found bringing the issue back to square one, of having two airlines competing in a market not big enough even for one airline, according to some in the aviation industry.

Lyonpo DN Dhungyel explained that while the government explored the possibility of allowing only one airline it was ultimately decided that the initial agreement had to be adhered to. However, he said that the market is expanding. “The traffic is growing,” Lyonpo said. “Now as we see it, the traffic will definitely grow,” he added. “For two airlines, it will be quite competitive of course, we know that, but because we have to go as per the agreement, as per the RFP (request for proposals) floated in the beginning, we couldn’t really get a way in between.”

The Gelephu market remains unknown. Asked if the government has determined if there is demand for flights to Gelephu, Lyonpo DN Dhungyel said demand should not be a prerequisite for the introduction of air services. He pointed out that initially some scheduled flights may operate empty but that once people come to know of the Gelephu service, following advertising and announcements, demand will be generated.

But the minister also said that it is up to Drukair and the Bhutan Civil Aviation Authority to determine the schedule and frequency of flights to Gelephu. He said even one flight a week, as an intermediate stop on the Paro-Bumthang flight would be satisfactory. “We just want to give a schedule to the people, to the commuters, so that there could be passengers travelling,” he added.

The decision to operate to Gelephu has been left to Drukair which means the possibility of the airline choosing not to operate to the domestic airport does exist.

“We’re optimistic that Drukair will abide by our request and they’ll be starting by December 17,” Lyonpo DN Dhungyel said.

On what would happen if Drukair chose not to fly to Gelephu, the minister said he did not want to preempt any government decision. The minister replied similarly when asked what the government would do if Tashi Air appeals for another deferment.

The CEOs of both airlines did not comment as internal meetings to discuss the issue were yet to be held.

Meanwhile, the Bhutan Civil Aviation Authority director, Wangdi Gyaltshen, said that Gelephu airport has met all critical safety requirements in terms of infrastructure and is certified for scheduled flight operations. On what measures are in place given the airport’s proximity to the border and being located in a sensitive security area, the director said that an arrangement exists with the army to provide security. He pointed out that there are no security issues.

Tashi Air won the domestic air services contract in 2010. It was required to introduce domestic flights followed by international services that would subsidize its domestic operations. However, the government also chose to allow Drukair into the domestic market simultaneously after it was found that its articles of incorporation already permitted it to operate domestically.

In June 2012, Tashi Air was allowed to suspend its domestic operations only six months after introducing it following heavy losses. The agreement was for Tashi Air to resume domestic services one year after it introduced international services.

Source: Kuensel (Gyalsten K Dorji)

BHUTAN’S NATIONAL COUNCIL ON THE RECOMMENDATION TO LIBERALIZE THE DAILY TOURISM TARIFF

November 30, 2015
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The National Council  on 19th November sought more justifications on the recommendation to liberalize the daily tourism tariff from its Economic Affairs Committee before it endorses the report.

Some of the issues the house mulled over at length were whether Bhutan should drop the daily tourism tariff and leave it to the market forces and what could be the likely consequences of such a move.
The tariff remodelling recommendation is at the core of its Economic Affairs Committee’s yearlong tourism policy review report.
The committee had recommended keeping the royalty portion of the tariff and leaving the rest to be determined by the tour operators.
Trongsa Councillor Tharchen supporting the move said the fixed tariff until now had confined the business in the hands of a few.
He said if the country is to spread tourism benefits to other parts of the country and accomplish quality tourists with maximum revenue, liberalising is the way forward.
“Of the 1,700 tour operators, about 90 percent get only 30 percent of the tourist arrivals, while the rest goes to the top 10 operators,” he said.
He said even the Royal Monetary Authority had proposed to liberalise the tariff.
Despite the chairperson’s repeated calls for brevity and the session stretching beyond normal hours, the members pounded the committee with issues and concerns.
Eminent member Tashi Wangmo asked if it was necessary to liberalise the tariff.
“We should first explore administrative and management measures to solve the problems of undercutting,” she said.
She said one of the advantages of the fixed tariff was that the country could remain as a high-end tourist destination.
“If we leave the tariff determination to the market forces, the danger is that the sector could be solely driven by commercial interests and could encourage mass tourism,” she said.
Members also said that when the daily tariff becomes competitive, tour operators in desperation for business could further undercut.
“How can we ensure that the liberalisation of tariff would not benefit only the select few?” Bumthang Councillor Nima asked.
The committee’s chairperson and Chukha Councillor Pema Tenzin said tourism industry businessmen have been calling him saying they appreciate the committee’s recommendations and sharing their concerns.
“For the past 10 years they have been discussing this issue but nothing came out of it,” Pema Tenzin said.
Committee members said some vested interest groups prevented the proposed changes to the tariff until now.
“The fixed tariff really affects the service industry, which has been until now held at the mercy of the tour operators,” Dasho Tashi Wangyel said.
Committee members said the proposed pricing would not lead to mass tourism and poor quality of tourists.
“When prices become competitive, tour operators will come up with many tourism products from various parts of the country, which would actually benefit areas not touched until now,” Zhemgang Councillor Pema Dakpa said.
Deputy chairperson and Haa Councillor Tshering Dorji proposed increasing the royalty and doing away with peak and lean seasons rates as well.
Members said regional tourists should also be treated the same as international tourists.
“They have to be offered the same standard of services and care, for which a certain charge could be levied,” Bumthang Councillor Nima said. “At present, the tourists are processed in the same immigration office that deals with foreign labourers. This needs to change.”
Gasa Councillor Sangay Khandu proposed that regional tourists’ vehicles should also be levied green tax like the local ones.
Thimphu Councillor Nima Gyaltshen said unregulated regional tourist posed risk to the sustainability of the subsidised fuel.
Members said the regional tourists could not be blamed for the problems arising from lack of policy and proper mechanisms in the country.
“We need to urgently have a policy and other measures so that even our regional tourists can have an enjoyable experience and avert problems,” a member said.
The house will vote on the recommendations next week.

Source: Kuensel (Tshering Palden)

BHUTAN NEEDS A COMPREHENSIVE TOURISM POLICY

November 24, 2015
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After a one-year long review of the tourism industry, the National Council’s Economic Affairs Committee called for an urgent need of a comprehensive tourism policy and recommended a revision of the tourism tariff.

These were among the seven recommendations deliberated in the House yesterday.

“Considering the significance of the sector and the exponential rise in tourist arrivals, it has become imperative to have a comprehensive policy to guide the sector including unregulated regional tourists,” the committee’s chairperson Pema Tenzin said.

Without a policy, the Bhutan Tourism Rules, schedules of tariff for international tourists 1995 and the Trekking in Bhutan Rules and Regulations 1996 regulate the sector today.

The committee also recommended to enforce a proper pricing mechanism.

Dagana Councillor Sonam Dorji said the tariffs were revised in January 2012 from USD 200 to 250 for peak season and from USD 165 to 200 for lean seasons and a royalty of USD 65 to the government.

“Given the competitiveness of the sector, the existence of multiple players in a fixed tariff system has led to predatory pricing among operators,” he said. “Hence the issue of undercutting which could undermine the core value proposition of Bhutan’s tourism which is to ensure high value and low impact.”

“While retaining the royalty component, the government could drop the tariff itself to ensure that the tourism system maximizes benefits and opportunities and minimizes tourism leakages,” Sonam Dorji said.

Other members also said that the fixed tariff caused wrong marketing and awareness with the misunderstanding of all-inclusive nature of tariff.Since its inception in 1974, the country has followed a policy of ‘high value, low volume’ tourism, which kept it well regulated.

In 2009, the government announced the policy of ‘high value, low impact’ as part of its Accelerating Bhutan’s Socio-Economic Development initiative and set a target of 100,000 tourists a year by 2012 opening the country to regional tourists as well.

Until 2008, only 27,000 dollar paying tourists and 12,000 regional tourists visited the country. The number rose in 2014 to 133,480 tourists, the majority of which were regional tourists, 68,000. The government has pledged to increase tourist arrival to more than 200,000 by the end of this Plan.

The committee recommended focusing on quality and not just quantity.

“We must be mindful of the carrying capacity of our natural and cultural environment to deal with an influx of tourists that is about one third of our own population,” eminent member and a committee member Dasho Tashi Wangyel said.

He said the government should conduct a research to know the maximum carrying capacity of the tourism activities- both tangible and intangible.

A situational analysis found that benefits from tourism are not spread equally across the country. Although the government pledged to make 20 percent of tourists visit eastern dzongkhags, as of 2014 only 3.6 percent had arrived there.

The committee called the government to spread the benefits to these dzongkhags through more investment in infrastructure and transport sectors, strengthen coordination among agencies, involving local leaders in identifying local tourism products and diversify tourism products.

Pemagatshel Councillor Jigme Rinzin said for instance, Pemagatshel could offer trekking around the place with the route connecting historic places such as temples in the dzongkhag.

Samdrupjongkhar Councillor Jigme Wangchuk said the southern dzongkhags such as Sarpang, Samtse and Samdrupjongkhar should be opened for tourists.

“The security threats have ended in 2003, and these places have ready entry and exits points which would serve as an advantage,” he said.

Without a regulation, regional tourists the review report states were involved in unfortunate incidents including deaths, and other avoidable problems. The committee called for measures to improve travel and experience for regional tourists and avert problems.

The review also asked the government to develop tourism and hospitality professionals by providing more scholarships to fill the shortage of professionals in the industry such as professional guides and qualified employees.

It also found the need for the government to work on a system and procedures for taxation and reporting of earnings from the sector.

National Council will continue its deliberations on the industry today.

SOURCE: KUENSEL (Tshering Palden) 

BHUTAN’S ROYAL MANAS WILDLIFE SANCTUARY GETS MORE VISITORS

November 16, 2015
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The remote community of Pangbang in Zhemgang eyes big from tourism as the dungkhag sees an increasing number of tourists by the year since it opened its doors in 2011.

“Tourism could be huge for Panbang in the future,” said Dorji Yangkey, the proprietor of River Valley. Dorji Yangkey, who also runs Manas eco-lodge added that the number of tourist arrivals has been steadily rising since the eco-lodge was opened in 2012.

Panbang immigration officer in-charge, Karma Dhendup also said the number of casual visitors has risen steadily for the past few years. Between September and April, at least two vehicles of Indian tourists from various states visit Panbang every day.

“While the number of international tourist arrivals has been negligible, over 300-500 casual visitors have been visiting Panbang monthly especially in the winters,” Karma Dhendup said.

Casual tourists are allowed to only visit the town in the daytime and aren’t permitted to halt in Bhutan overnight.

“They can go to town till Panbang bridge but cannot go beyond because no tourist permit is issued from Panbang,” Karma Dhendup said, adding that entries are issued only from Gelephu.

Activities like wildlife safari, rafting, eco-trail, fly-fishing, elephant riding in the Manas park range, bird-watching and camping, among others are on offer in Panbang. The area’s rich biodiversity of flora and fauna, rivers and villages are also on offer. Cycling is to be introduced soon.

Although the River Guides of Panbang (RGP) just opened its office in September, last year, river expedition activities such as rafting fetched Nu 0.49 million in seven months of the tourist season, which ends in April.

This year tourist arrivals have just started and the RGP has already conducted 20 trips earning a revenue of Nu 80,000.

“We have already attended to 100-160 tourists,” RGP assistant operations officer, Sangay Penjor said, adding that it is likely to cater to more guests this year than in 2014.

Tourist arrivals begin by September end and conclude by April, every year.

Manas eco-lodge chairman, Dorji Nado said the number of tourist arrivals have been increasing since it was opened in 2013. This year the eco-lodge has already received around 50 guests compared to 30-35 each in 2013 and 2014.

“This year has been better than last year,” Dorji Nado said.

But casual visitors from India still make up the majority of the arrivals. Only a few international tourists have visited because Panbang is yet to gain popularity as a viable destination.

The lack of immigration office still hinders tourism growth in Panbang. Sangay Penjor said many tourists find it displeasing to return to India for the night since no halts are permitted in Bhutan.

“The tourists have to return to India for a night halt despite Panbang offering accommodation facilities,” Sangay Penjor said.

Dorji Yangkey said relevant agencies must explore avenues to allow night halts in Bhutan since most of the casual visitors wish to stay back. Moreover, business is also affected without halts for casual visitors.

“Even now most of the guests in the eco-lodge are foreign officials who come to Manas park for expeditions,” Dorji Yangkey said, adding the only way to promote tourism in Panbang is to open entry and exit points or at least allow halts to casual visitors from India.

RGP chief operation officer, Kinlay Dorji also requested to allow the casual visitors till Mangdechhu since guests prefer rafting in rapid rivers, which Drangmechhu lacks.

“Right now business is getting affected because casual visitors aren’t allowed beyond Drangmechhu bridge while Mangdechhu rafting starts from over 22km from the bridge,” Kinley Dorji said.

Source: Kuensel (Tempa Wangdi)

BHUTAN GETS IT’S NEW AIRPORT ARRIVAL TERMINAL

November 12, 2015
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The new arrival terminal at Paro international airport was inaugurated by HRH Gyaltshab Jigme Dorji Wangchuck on November 9.

The arrival terminal was completed seven months ahead of schedule to coincide with His Majesty the Fourth Druk Gyalpo’s 60th birth anniversary celebrations. HRH Gyaltshab Jigme Dorji Wangchuck was accompanied by Ashi Yeatso Lhamo.

The new terminal, funded by the Indian government at a little over Nu 342.1 million, is expected to more than double the handling capacity of Paro airport which currently experiences severe congestion when it comes to aircraft and vehicle parking, and passenger handling.

The passengers of up to four flights can now be handled simultaneously.

The terminal’s arrival hall is more than double the size of the existing one and up to 16 immigration counters can be set up. Three baggage conveyor belts will also be available.

Two sections of the terminal have semitransparent roofs so sunlight can be utilized and usage of electricity lowered.

The terminal is expected to be opened for operations by mid-December once the extended apron or parking area for aircraft is completed. The extension of the apron will increase Paro airport’s aircraft capacity from five to eight aircraft.

Department of Air Transport director, Karma Wangchuk, said that the aviation industry had progressed significantly since its “humble beginning” to today ensuring connectivity internationally as well as domestically. “For this, we thank His Majesty the Fourth Druk Gyalpo, Jigme Singye Wangchuck, as the aviation pioneer of Bhutan.”

The director also thanked Their Majesties the King and Queen, and the government for taking the aviation to “greater heights” with the introduction of helicopter services.

He also thanked the Indian government for its continued support in expanding Paro airport, the Air Force Element based at Paro airport, and DANTAK.

Information and communications minister, DN Dhungyel, pointed out in his address that the inauguration of the terminal was the best way to celebrate His Majesty the Fourth Druk Gyalpo’s 60th birth anniversary when it comes to the “vital” aviation industry.

The minister pointed out that the aviation industry has had a major impact on the socio-economic growth of Bhutan, its international relations, health and education, and governance, among others in the three decades since its establishment.

Lyonpo DN Dhungyel said that the aviation industry today directly employs 800 people, with many more indirectly employed in aviation related services. He also pointed out that there are today three domestic airports and 52 helicopter landing sites, and a fleet of six Bhutanese operated fixed-wing aircraft, and one recently acquired helicopter, with another scheduled to be delivered in June, next year.

He also pointed out that Paro airport handled more than 260,000 passengers and 4,500 international flights, last year. Additionally, 263 domestic flights flew 3,000 passengers.

“Given the dramatic expansion that has taken place over the past three decades, the existing (Aviation) Act is being discussed by the current session of Parliament,” he said.

Information and communications secretary, Dasho Kinley Dorji, also emphasized how far the aviation sector has come since the first commercial flight in 1983.

“Not long ago, this area where we are sitting, was paddy fields,” he said. He recalled passengers sitting in the “grass” waiting for the 18-seater twin propeller Dornier aircraft to arrive from Kolkata.

Dasho Kinley Dorji also said that at the time many questioned why anyone would want to fly to Kolkata. “Now trying to get a seat … especially during the peak season is a nightmare,” he said.

The secretary said that an equally dramatic growth of the aviation industry is expected in the future.

Other senior officials attending the event included the economic affairs minister, Norbu Wangchuk, works and human settlement minister, Dorji Choden, and Indian ambassador Gautam Bambawale.

Source:Kuensel (Gyalsten K Dorji)

BHUTAN LAUNCHES IT’S HELICOPTER SERVICE

November 9, 2015
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In the event of any emergencies requiring rotary air support, Bhutan’s first helicopter will be able to respond from today.

The services of the Royal Bhutan Helicopter Services (RBHS) was launched by Prime Minister Tshering Tobgay at the Lungtenphu helipad in Thimphu, yesterday.

The inauguration is a part of the 60th birth anniversary celebrations of His Majesty the Fourth Druk Gyalpo.

The primary role of the helicopter is to aid the public during emergencies.

The chairman of the helicopter board, Kinzang Wangdi, pointed out that the helicopter would respond to distress calls to airlift seriously or critically ill persons from very remote areas like, for instance, Lunana. “Where evacuation through horseback or even in a road condition, would mean a difference in the life and death of that person.”

Responding during disasters, like fires, floods, and earthquakes, is another primary mandate.

“All of us cringe at the memories of how we lost six young lives several years ago because we did not have the means to save them,” the chairman said, referring to the 2009 incident in which rescuers were not able to save six schoolboys trapped on a rock in the middle of a swollen Wangchhu. Rescue attempts had dragged on for thirteen hours.

“We also sadly remember how we lost one of our national heritages, the Wangduephodrang dzong, to the ravages of fire, as we looked on helplessly,” Kinzang Wangdi added. The dzong was razed by a fire in 2012.

“It is my honour to report here that the standard operation procedures to respond to medical evacuations and disaster calls have been drafted and approved by the board,” Kinzang Wangdi said.

The helicopter can be equipped with a sling capable of lifting 1,500kgs, that can be used to not only lift people but water as well for fire fighting duties.

Kinzang Wangdi pointed out that the helicopter will also be used to ferry government officials to oversee and monitor developmental activity. “We very well know how timely intervention or lack of it have played an integral part in the success of developmental activities,” he said.

The helicopter company will have to sustain itself from income generated from commercial services provided while not fulfilling its social mandate to the public.

“Therefore, when we’re not required to fulfil the socio-developmental mandate the Royal Bhutan Helicopter Services will also be opened to business,” Kinzang Wangdi said. He pointed out that the helicopter can be hired for private uses like transporting passengers, scenic flights for tourists, and transportation of cargo. He said that it is expected that the Bhutan Power Corporation and Bhutan Telecom may be the helicopter’s primary clients in transporting cargo. The two companies have hired helicopters from Nepal in the past to transport infrastructure to the northern parts of the country.

While the helicopter board has determined service rates, it is yet to be endorsed by the cabinet and therefore could not be revealed by the chairman, yesterday.

Prime Minister Tshering Tobgay pointed out the advantages of having rotary services in Bhutan as opposed to fixed-wing aircraft. He said that as a landlocked country, air services was very important and that as a result of the mountainous terrain, space was limited to build runways for fixed-wing aircraft.

There are an estimated 40 helipads in Bhutan compared to four airports.

The Prime Minister has already used the helicopter.

While the helicopter was undergoing a familiarization flight for its pilots to Lhuntse on November 2, Lyonchoen also hitched a ride. “I can testify to their experience and ability,” he said, referring to the pilots. “We went through all different types of flying terrain and flying conditions the other day, and I can say very simply, that our helicopter is in extremely good hands, extremely safe hands.”

The flight time to Lhuentse was around an hour. By vehicle, the trip to Lhuentse from Thimphu would have taken between two and two and half days, Lyonchoen said. He also pointed out that a vehicle would have to travel 489km to Lhuentse, but by helicopter this distance was reduced to 150km.

Lyonchoen also emphasized that he expected nothing less than the highest international standards when it comes to safety and comfort from the company.

Lyonchoen also pointed out that for self-sufficiency to be achieved, the fast services of the helicopter would be required in assessing economic development. This would also encourage foreign direct investment, he said.

It was also emphasized that the helicopter is public property and that for the company, profit must not become more important than its public mandate.

Royal Bhutan Helicopter Services (RBHS) CEO Chhewang Gyeltshen said that so far, proving flights had covered 15 dzongkhags. However, he pointed out that if a distress call was received today for either a forest fire or a medical evacuation, the helicopter would be able to respond.

RBHS has recruited one Airbus recommended pilot and one engineer. While a test pilot from Airbus and an Airbus engineer is currently here with the helicopter, they will be returning to Singapore shortly.

This may be an issue later on as the Bhutan Civil Aviation Authority (BCAA) has notified RBHS that for VVIP flights, two pilots will have to be on board as a precautionary requirement.

The Airbus H130 can be flown with only one pilot as long as long as the pilot’s certifications and medical clearances are up to date.

However, BCAA director, Wangdi Gyeltshen said that the authority is following international best practises. He said that the BCAA had required Tashi Air to follow the same requirement when it operated its Pilatus aircraft in Bhutan. He added that we shouldn’t be too confident and that time would allow the authority to examine the issue, and perhaps, review it later on.

Following the ceremony, the helicopter, which can seat up to seven passengers and one pilot, made two brief flights over Thimphu city carrying with it the Prime Minister, ministers, and other senior government officials.

Source: Kuensel (Gyalsten K Dorji)

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