𝐑𝐞𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐁𝐡𝐮𝐭𝐚𝐧’𝐬 𝐓𝐨𝐮𝐫𝐢𝐬𝐦 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲

By Lhendup Wangmo

Jigme Tshering, owner of Park Hotel, a prominent three-star hotel in Phuentsholing, Chukha, recently shared his thoughts on the pandemic’s impact on Bhutan’s tourism sector and the strategic steps his hotel has implemented to adapt to the changing market landscape.

Jigme Tshering emphasized the importance of collaboration among stakeholders to achieve the Department of Tourism’s ambitious goal of welcoming 300,000 tourists. He highlighted the need to promote regional tourism in areas with lower footfall and suggested re-evaluating the Sustainable Development Fee (SDF) to support niche tourism areas like educational tourism and extended stays.

Reflecting on recent renovations at Park Hotel, Jigme Tshering explained that they were necessary to repair damages caused when the hotel served as a quarantine center during the pandemic. Additionally, these upgrades aim to improve the overall guest experience. Despite challenges, Jigme Tshering remains optimistic and is confident that with proper support and continued trends, the tourism industry will see even better results in the coming year.

Discussing the pandemic’s toll, Jigme Tshering recounted how border closures led to a shutdown of tourism-related businesses, including his own hotel. However, adapting to the post-pandemic landscape has allowed Park Hotel to implement new policies, standard operating procedures, and infrastructure upgrades. “During the pandemic, the tourism sector faced unprecedented challenges. However, we have adapted by implementing new strategies and targeting changing demographics,” Jigme Tshering said.

Park Hotel has seen consistent progress since 2022, with year-on-year improvements in bookings. Nevertheless, Jigme Tshering admitted that reaching pre-pandemic levels remains a challenge. Notably, many tourists now expect exceptional experiences, willing to spend more when hotels meet global industry standards. Online booking platforms are now vital, with many tourists preferring digital options. As a response, Park Hotel has partnered with local and international travel agents and strengthened its digital presence.

Employee retention also proved to be a significant challenge. Jigme Tshering shared that full salaries were maintained for staff for about nine months during the pandemic to lessen the financial burden on His Majesty’s Kidu. However, as resources dwindled, partial compensation was offered through services provided as a quarantine center. Despite challenges in recruitment, Park Hotel has prioritized retaining skilled staff.

Jigme Tshering said that tourists’ expectations have shifted. Today, guests focus more on the overall experience rather than just health or hygiene amenities. Furthermore, he highlighted the contribution of the SDF, which costs Nu. 1,200 or USD 100 per person per day, to Bhutan’s growing tourism revenue. To address these changing expectations, Park Hotel has upgraded its facilities to meet international standards and introduced new services, such as a travel desk assisting walk-in guests with transportation bookings and local sightseeing.

Optimistic about the future, Jigme Tshering credits initiatives such as the Gelephu Mindfulness City (GMC), government support, and Bhutan’s increasing presence in international travel publications for the positive outlook. Nonetheless, he acknowledged logistical challenges that still hinder smooth travel experiences for visitors.

Sangay Choephel, the general manager of Hotel Migmar in Thimphu, shared the challenges his hotel has faced since the pandemic. “Our hotel has been badly affected by the pandemic. Pre-pandemic, our occupancy would come around 40-50 percent annually, but now it barely reaches 30 percent,” he said. He attributed this decline to factors such as mandatory tour guides and the SDF’s impact on regional tourists.

To counteract these challenges, Hotel Migmar has focused on marketing efforts through online travel agencies (OTAs) and offering affordable packages to locals for weddings and conferences. Despite these initiatives, Sangay Choephel expressed concerns about low daily bookings, rising competition due to new hotels entering the market, and staff departures for other countries.

Despite these hurdles, Sangay Choephel remains optimistic about the future. “Being one of the old hotels in Thimphu, we have managed to maintain relationships with our old agents, ensuring guests receive the same excellent service we are known for, in contrast to newer hotels,” he said.

During the pandemic, Hotel Migmar contributed its services as a quarantine and isolation facility, enabling staff retention and continued payment of monthly salaries. Additionally, they offered their space for the Desuup Skilling Programme to support recovery efforts.

Looking forward, Sangay Choephel is hopeful for growth over the next 12-18 months. However, uncertainty remains, particularly following the government’s recent decision to halve its predicted number of incoming tourists for the coming year. To stay competitive, Hotel Migmar has undertaken renovations to keep up with the influx of newly built and technologically equipped hotels. Marketing strategies and increased use of OTA platforms will be key to boosting bookings and sustaining business recovery.

Both Park Hotel and Hotel Migmar are navigating the post-pandemic tourism landscape with strategic changes, focusing on digitalization, partnerships, and improved guest experiences. While challenges persist, these hotels remain hopeful that strategic collaborations and government support will ensure Bhutan’s tourism industry returns to growth.