After closing its borders in March 2020 due to the COVID-19 pandemic, Bhutan reopened for tourists on September 23, 2022. However, the increased daily levy (Sustainable Development Fee) of $200 per adult per night( INR 1200 for Indians), up from $65, discouraged many international tourists from visiting this enchanting Himalayan Kingdom.
In a bid to encourage international tourists to visit and fully experience the wonders of the kingdom, Bhutan has announced an enticing travel incentive related to its Sustainable Development Fee (SDF). This new initiative aims to encourage longer stays, allowing guests to immerse themselves in the diverse offerings of this captivating nation.
Even though the rate of SDF remains same, but the travelers get additional complimentary days ( read levy free days) for the number days they they pay for! So this not only reduces the overall trip cost in addition, travelers get more time to explore the “Last Shangri-La” on earth!

What is the new SDF incentive policy?
Effective from June 1, 2023, bookings made under this scheme will be eligible for exclusive SDF incentives for US dollar-paying guests. These incentives are valid for stays in Bhutan between June 1, 2023, and December 31, 2024. Visitors can choose from the following options based on their planned itineraries:
- 4 + 4: Pay the SDF of USD 200 per night, per person, for four nights and receive an additional four nights without the daily levy.
- 7 + 7: Pay the SDF of USD 200 per night, per person, for seven nights and receive an extra seven nights without the daily levy.
- 12 + 18: Pay the SDF of USD 200 per night, per person, for twelve nights and enjoy up to eighteen additional nights without the daily levy.
Please Note: If travelers are visiting for less than 4 days or choose not to participate in this scheme, they have the option to pay the full SDF amount based on actuals.
The same long-stay SDF incentives apply to US dollar-paying children as well.
- Children under the age of 5 are exempt from the SDF.
- Children between the ages of 6 and 12 are charged a 50% concessionary rate.
- Children over the age of 12 are charged the full SDF rate.
Travelers can choose the option that best suits their needs and budget, utilizing calculators available on the Department of Immigration’s website for assistance.
Please Note: This scheme is not applicable to Indian tourists!

Exciting Reforms in Bhutan’s Accommodation Sector Coming Soon!
Bhutan’s tourism landscape is undergoing a significant transformation with the introduction of new reforms in the accommodation sector. These changes aim to enhance the visitor experience by expanding the range of stay options available to travelers with varying budgets. Here are the key highlights of the reforms:
- Expansion of Hotel Categories: The existing Tourist Accommodation and Standardization and Classification System, which currently includes 3-star, 4-star, and 5-star hotels, will be extended to encompass 1-star and 2-star categories. This expansion ensures a more comprehensive range of choices for tourists.
- Introduction of Blue Poppy Certification: Non-star hotels meeting the stringent criteria set by the Tourism Board of Bhutan will now be eligible for certification under the “Blue Poppy” rating system. Blue Poppy 1 signifies a qualified budget hotel with a 1-star rating, while Blue Poppy 2 designates a 2-star rating. This certification provides travelers with confidence in the quality and standards of these accommodations.
- Increased Opportunities for Non-Star Hotels: To address the scarcity of stay options, the authorities will allow more non-star hotels to apply for certification. This move not only expands the range of available accommodations but also fosters healthy competition and promotes improved service quality across the sector.
- Provisional Arrangements in Untapped Locations: In areas where certified tourist hotels with a 1-star rating or above are currently absent, existing hotels will be permitted to serve tourists on a time-bound provisional basis. However, these hotels must meet specific criteria established by the Department to ensure a certain level of comfort and amenities.
- Homestays as an Alternative: In addition to certified tourist hotels, travelers can also opt for homestays certified by the Department. This longstanding practice continues to provide visitors with a unique opportunity to experience the genuine warmth and hospitality of Bhutanese culture while immersing themselves in local life.
With these accommodation reforms, travelers now have a wider array of options that align with their budget and preferences. Whether choosing a star-rated hotel or experiencing the authenticity of a homestay, visitors can look forward to a memorable stay in Bhutan. These changes reflect the country’s commitment to fostering sustainable tourism while ensuring a remarkable and personalized experience for every guest.
Need a complete guide for planning your trip to Bhutan ? You can find it here!
You can also watch our Bhutan Travel Video Series here!

