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Rapa Quindlen
PUNTCHOLING – Bhutan travel agencies in Phuntsholing have been struggling since the outbreak of the pandemic, facing increasing competition from overseas tour operators offering tour packages to Bhutan at much lower prices, affecting their business and turnover.
For example, a travel agency in Jaigaon, India, offers a seven-night, eight-day package to Bhutan for 33,500 Ngultrum, including travel insurance. In comparison, local travel agencies charge about 35,500 Ngultrum for a similar package without insurance.
Despite an increase in the number of Indian tourists passing through Puentsholing, local travel agencies are experiencing a decline in business.
According to local travel agencies, the move hurts the interests of local travel agencies, although the government benefits through the Sustainable Development Fee (SDF).
“Overseas agents focus on volume, sending large numbers of tourists to hotels and offering the best prices to customers,” said a travel agent in Puentsholing. “Due to high domestic airfares, more tourists are choosing to travel via Bagdogra, which should boost our business.”
Bhutanese travel agents in Puentsholing also pointed out that the high cost of living and rental expenses in Bhutan make it difficult for them to offer tour packages competitively compared to overseas travel agents.
In addition, while local operators use three-star hotels, overseas agents usually choose economy or two-star accommodation, further reducing costs.
The government changed its tourism policy after the pandemic, allowing anyone to engage in tourism, but this has also dealt a heavy blow to licensed travel agencies, many of which have been forced to close. Currently, there are only about five travel agencies left in Puencuolin.
“Tourists can now apply for visas and permits online and arrange guides and vehicles upon arrival. Many overseas agents have their own transport and contract directly with Bhutanese guides,” said another operator.
According to travel agents, the issue of Bhutanese guides picking up tourists directly from Jaigaon without going through local travel agencies has been discussed in the meeting.
Local transportation costs are another challenge. While self-driving tourists can expect to pay 4,500 Ngultrum per car per night, overseas agents that provide self-drive transportation services often offer lower prices. This difference makes foreign packages more attractive.
Local agents are also struggling to cope with the impact of cheap packages on hotel prices in Puentsholing. To remain competitive, hotels are now offering discounts of Nu 100 to Nu 150 per room. “After the epidemic, many hotels survived by offering discounted prices,” said a local hotel owner. “Overseas agents often direct tourists to hotels in Jaigaon, affecting our business.”
While local agents attend travel fairs in India, they stress the need to collaborate with their international counterparts, with Bhutanese agents managing travel arrangements within the country.
Some overseas tour operators who have been promoting Bhutan since 2010 insist that their Bhutan tour packages are competitive with other destinations such as Sikkim and Nepal even with the SDF fee and they deny selling Bhutan at a low price.
Lohit Sharma, founder of Guwahati and Siliguri-based Let’s See Tours and Travels, said his company believed in quality tourism and always promoted high-quality tour packages. His company has sent more than 10,000 Indian tourists to Bhutan after the outbreak.
“We do not support the cheapest packages as this will not satisfy guests. We understand that cheap packages will also affect the sustainability of the hotel business,” he said.
Rohit Sharma said they support Bhutan’s strict tourism policy. “Before the epidemic, Bhutan was open to everyone. Now, Bhutan will attract more high-quality tourists,” he said.
He added that with the Sandru Dzongkal border gate open to international tourists, his agency will work on promoting Eastern Dzongkal in collaboration with Veena World.
However, he said there could be travel agencies offering cheap packages too. “We cannot blame them as it is their marketing strategy. There are many travel agencies in Jaigaon and it is difficult to identify which ones offer the lowest prices,” he said.
A travel agent in Jaigaon said all hotels offer the same rates, though local tour operators occasionally offer better deals. “Our main focus is to ensure that guests in Bhutan have a satisfying and comfortable experience. Lowering hotel rates means compromising on services,” he explained.
He said his travel agency had sent about 400 to 500 tourists to Bhutan during March, April and May. “We work with various partners and local collaborators to help international tourists,” he added.
Overseas travel agencies say Bhutan’s market appeal is growing and is expected to perform better in the coming years.
“Generally, we use digital marketing to attract Indian tourists and also participate in many travel fairs in major cities like Kolkata, Delhi, Mumbai, Ahmedabad to promote destinations like Bhutan, Nepal and the Northeast,” said a travel agent at RS Travels in Jaigaon.
Overseas travel agencies have suggested using Japan Self-Defense Forces funds to develop more tourist attractions and improve basic facilities such as building clean toilets on highways and tourist spots.
According to the Ministry of Tourism, the number of Indian tourists increased from 11,153 in 2022 to 72,659 in 2023 and remained high at 54,618 as of July 2024. Overall tourist numbers increased from 20,897 in 2022 to 103,066 in 2023, with 78,235 tourists in the first half of 2024.
Other major countries of visitors included Singapore, Germany, Vietnam, Thailand, the Republic of China, Canada, Italy, France and Indonesia.
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