What is SDF and Why Government decided to increase it?


Bhutan charges a Sustainable Development Fee (SDF) for tourists visiting the country, which is set $200 USD per person Per Night.

This fee is not covers accommodation, meals, transportation, and a licensed tour guide. The SDF was implemented as a way to promote sustainable tourism and protect Bhutan's unique culture and environment. This fee is just for Government implementation. We can say it is a kind of tax to enter Bhutan. They were increased it because they want low volume of tourist but want to get high quality.

The SDF may seem high compared to other destinations, but it is important to consider that Bhutan is a small, landlocked country with limited infrastructure and resources. The SDF helps to fund government initiatives that support sustainable development, such as healthcare, education, and environmental conservation.

Additionally, the SDF is designed to limit the number of tourists visiting Bhutan, which helps to preserve the country's fragile culture and environment. This "high-value, low-impact" tourism model ensures that visitors to Bhutan are committed to responsible travel and are willing to pay a premium to experience the country's unique culture and natural beauty. 

The Sustainable Development Fee (SDF) in Bhutan is an important source of revenue for the government and provides several benefits for the country. Here are some benefits that the Bhutanese government receives from the paid SDF:

Conservation and Environmental Protection: A portion of the SDF is dedicated to conservation efforts, environmental protection, and the preservation of Bhutan's rich biodiversity. It supports initiatives such as the creation and maintenance of national parks, wildlife sanctuaries, and protected areas, ensuring the sustainable management of Bhutan's natural resources.

Infrastructure Development: The SDF contributes to the development of infrastructure in Bhutan. It helps in building and maintaining roads, bridges, trails, and other necessary facilities that facilitate tourism and enhance accessibility to various regions of the country.

Socio-economic Development: The revenue generated from the SDF is also utilized for socio-economic development projects in Bhutan. It can be invested in sectors such as healthcare, education, rural development, and poverty alleviation, contributing to the overall well-being and progress of the Bhutanese population.

Cultural Preservation: Bhutan is known for its unique cultural heritage and traditions. The SDF supports initiatives aimed at preserving and promoting Bhutanese culture, including the maintenance of historical sites, temples, monasteries, and the preservation of traditional arts, crafts, and festivals.

Tourism Management: The SDF plays a role in managing tourism in Bhutan. By regulating the number of tourists through a daily tariff, it helps in maintaining a sustainable tourism industry that focuses on quality over quantity. This ensures that the natural and cultural resources of Bhutan are preserved for future generations while providing an exclusive and authentic experience for visitors.

Overall, the paid SDF contributes to the sustainable development of Bhutan by supporting conservation efforts, infrastructure development, socio-economic initiatives, cultural preservation, and responsible tourism management. while the SDF may be higher than other destinations, it is an essential component of Bhutan's sustainable tourism model, which has helped the country to preserve its culture and environment while supporting the livelihoods of its people.



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Sundar Lamichhane was born in Gorkha district, Nepal. He is working as Nepal Head at Amen Bhutan Tours and Treks (P) Ltd. He has been completed his Bachelors level of science study from Kathmandu .He has been in this field since 7-8 years. He has ideas about online business as well as offline marketing technique.