Do tourism taxes actually deter travelers? DW 03/10/2025
Briefly

Despite having the highest tourist tax globally, Bhutan continues to attract visitors who value sustainable tourism. Tourists pay a $100 daily fee, which contributes to significant improvements in healthcare, education, and local businesses. In 2023, the country generated $26 million from this fee while only receiving 103,000 tourists, primarily from India. Locals appreciate the tax as it supports their community, contrasting with places like Mallorca, which struggle with mass tourism issues. In Bhutan, the aim is to promote a more responsible and eco-friendly tourism experience.
"The people there want slow tourism, not cheap tourism," says Meier, who works for the travel company Bhutan Travel based in Moosburg, Bavaria. "When tourists see the positive effect that the tax has there, they are happy to pay it," she says of her customers.
Authorities reported that just 103,000 tourists visited the country in 2023. The majority of those tourists were from India, the only country where travelers pay a lower daily tax to visit.
Bhutan's tourism authority says this revenue goes directly towards helping the country's approximately 800,000 citizens. Authorities put tourists' money towards healthcare, education, improving infrastructure, while also strengthening initiatives that support the environment and help local businesses.
The country reported earning $26 million in revenue in 2023 from the fee. However, this high tourism tax acts also as a deterrent to visitors.
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