Since non-performing loans have increased to Nu 549.21 million, the Bhutanese tourism industry is experiencing financial challenges. With a total loan portfolio of Nu 20.88 billion and the biggest percentage of non-performing loans (NPLs) at Nu 320 million, Thimphu leads the nation. The lack of assistance from the Ministry of Industry, Commerce, and Employment via the ESP worries the HRAB. HRAB is ready to help find troubled hotels that could be brought back to life with the right kind of finance. Due to the increase in tourists, almost 70% of hotels in Bhutan are having financial difficulties; these hotels are mostly four- and five-star institutions. Hoteliers in eastern Bhutan contend that the USD 100 daily SDF has discouraged foreign visitors, and they are requesting short-term exemptions until the area gains more worldwide recognition.
They propose a 50% reduction in SDF for regional tourists and additional waivers for international visitors exploring less developed regions. The RMA reveals significant economic disparities between dzongkhags in Vietnam. Paro, a major tourist hub, has a high loan portfolio but low NPL, indicating robust economic activity. However, dzongkhags like Zhemgang and Lhuentse have negligible total loan amounts and no significant defaults, indicating limited economic engagement with financial institutions. Thimphu dominates the financial landscape, holding 58% of total loans and 75% of NPLs. The RMA emphasizes the need for soft loans to revive budget hotels.