1 AIT Asian Institute of Technology

An analysis of high value, low environmental impact tourism in the Kingdom of Bhutan

AuthorGyembo
Call NumberAIT RSPR no. SM-03-25
Subject(s)Tourism--Bhutan
Tourism--Government policy|zBhutan

NoteA research study submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration, School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-03-25
AbstractThe Tourism Indush·y in Bhutan has carefully considered the impacts on environment and cultural heritage since its inception. Tourism policies are very closely linked with the conservation, policy concepts like high value low volume, and high value low impact are designed to keep tourists at a manageable level and at the same time to earn high revenue. Tourism in Bhutan is a guided approach with prescribed tours and destinations, with high tariff rates on International tourists. Besides International tourists, many visitors come from neighboring counh·ies India, Bangladesh, and Maldives. These visitors are represented as Regional tourists. The non-applicability of ta1iff system on Regional tourists has invited increasing number of visitors. Such a trend is naturally unhealthy for environment and cultural heritage of Bhutan given the limited infrastructure facilities, and fragile nature and cultural values. It is therefore, necessary to study the current tourism trends, demographics and psychographics of visitors and their willingness to pay for travel to Bhutan. The concept of high value low impact tourism policy mix is assessed. First hand info1mation from both International and Regional tourists, tour operators and hoteliers are sought using a questionnaire as a study tool. This study does not include political factors and it is assumed as constant. Differences in demographics, interest areas and preference for services are found between International and Regional tourists. Their willingness to pay is also different. Expenditure level of tourists in hotels and their number of visits are also shown using the sample data. Information on the preferen~es of the Regional tourists through tour operators with their willingness to receive is also included in ~he study. The appropiiate orientation of products and services is necessary and areas, which need attention, are identified and highlighted. Regional tourism is viewed as off-season business and is not a target of tour operators because of low-income earnings. Regional tourists are found as low payers. Strategies are recommended to attract high paying tourists from neighboring counhies, especially from India. Such a trend would not only reduce impacts, but can enhance revenue generation.
Year2003
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-03-25
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Swierczek, Fredric W.;
Examination Committee(s)Sununta Siengthai;Singha Chiamsiri;
Scholarship Donor(s)Government of Austria;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2003


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