For a country that’s long prioritised a balanced lifestyle and good governance over economic gain, Bhutan is doing something it’s never done before: embrace more independent, cost-conscious travellers in an urgent bid to revive its faltering economy. Tshering Tobgay, now prime minister, characterised Bhutan’s economy as “on the brink of collapse” in a November 2023 election manifesto for his People’s Democratic Party, citing an average economic growth rate of just 1.7% over five years.
As a result, Bhutan is seeing high levels of youth unemployment and dwindling foreign currency reserves. Tourism is seen as a major lever to pull. Bhutan welcomed 103,000 visitors in 2023, about two-thirds below its pre-pandemic record reached in 2019.
The new goal is to return as quickly as possible to just over 300,000 visitors annually, but with a more diverse consumer base. Bhutan would like to get at least half its visitors from non-Asian markets, specifically the US, Europe and Australia; Indian travelers accounted for more than 73% of total arrivals in the last full year before the 2020 Covid lockdowns. “We can grow in a manner that is balanced and true to the principles of gross national happiness,” said Togbay, when asked about proposed plans to turn the economy around.
Its GNH index measures the well-being of its residents—from living standards to health to cultural and environmental preservation. Since Bhutan started welcoming tourists in 1974, it has built its repu.
