Agency: Bhutan’s tourism policy, known internationally as the ‘High Value, Low Volume’ approach, traces its origins to the early 1970s under the guidance of His Majesty King Jigme Singye Wangchuck, the Fourth Druk Gyalpo. When Bhutan first opened its doors to visitors, His Majesty was at the helm of a young nation taking its first steps into modern development. At a time when many countries were promoting mass tourism for quick economic gains, Bhutan chose a different path, one that would define its reputation for decades.
Dorji Dhradhul, the former Director General of the Tourism Council of Bhutan, said, “Today it is often quoted, studied, and praised. But nearly five decades ago, it was simply a great act of creativity, an act of visionary leadership. At a time when the world equated tourism success with large numbers, His Majesty charted a path that placed dignity above demand, values above volume, and identity above income. It was a courageous divergence, and perhaps one of the most creative acts of statecraft of our era.”
The first National Tourism Office was established on 1st December 1971, marking the formal beginning of Bhutan’s tourism sector. The country received its first group of international tourists in October 1974, during the Coronation of the Fourth King. A total of 287 tourists visited that year. The nearly three-year interval between the creation of the tourism office and the arrival of the first tourists reflected Bhutan’s cautious preparation to ensure readiness in infrastructure, services, and cultural orientation before welcoming guests.
Under the guidance of His Majesty, the country adopted the ‘High Value, Low Volume’ approach to tourism. The policy aimed to regulate visitor numbers while ensuring that tourism would contribute to the preservation of Bhutan’s culture, environment, and national well-being. It sought to avoid the negative effects of mass tourism, such as environmental degradation and cultural erosion, which were already becoming visible in other parts of the world. The policy became one of the earliest examples of a national strategy linking tourism to long-term sustainability.
To implement this approach, Bhutan introduced a minimum daily tariff for international tourists. The tariff included a Royalty Fee, now known as the Sustainable Development Fee (SDF). The revenue collected through this system was directed toward national priorities such as free healthcare, education, cultural preservation, environmental conservation, and infrastructure. The SDF, which currently stands at USD 100 per person per night with a temporary discount until 2027, continues to serve as a key component of Bhutan’s tourism framework.
During the early years, tourism operations were managed by the Bhutan Tourism Corporation (BTC), a government enterprise responsible for arranging tours, accommodation, and transport. In 1991, the government privatized the sector to encourage private-sector participation and improve efficiency. Despite this transition, the guiding principle of ‘High Value, Low Volume’ has remained unchanged. Tourist arrivals grew steadily, from 287 in 1974 to around 2,850 in 1992 and over 7,000 by 1999, but Bhutan continued to prioritize quality and sustainability over volume.
The ‘High Value, Low Volume’ approach reflects the broader vision of His Majesty King Jigme Singye Wangchuck, whose leadership emphasized balanced progress and respect for the environment and culture. His Majesty’s foresight in defining tourism as a controlled and purposeful activity aligned with Bhutan’s philosophy of Gross National Happiness, ensuring that economic development would not come at the cost of cultural or ecological loss. The policy remains a central part of Bhutan’s development model, recognized globally as an example of sustainable tourism.
When Bhutan reopened its borders in September 2022 after more than two years of closure due to the COVID-19 pandemic, the government reaffirmed its commitment to this principle. The reopening mirrored the care with which tourism had begun in 1974, measured, deliberate, and guided by long-term vision rather than short-term gain.
Today, Bhutan’s approach to tourism continues to be studied and emulated worldwide. Several destinations, including New Zealand, Iceland, Japan, and Venice, have introduced visitor levies or sustainability-focused measures inspired by similar principles. Bhutan’s tourism model, founded under the leadership of His Majesty the Fourth Druk Gyalpo, stands as one of the country’s most enduring national strategies, linking responsible travel with cultural preservation and national welfare.
