Agency: A major measure that the Tourism Industry was looking forward to was the reintroduction of duration discounts.
Their hopes were up, especially after the Ministry of Industry Commerce and Employment (MoICE) asked the Bhutan Innovation Lab (BIL) office under the Prime Minister’s Office (PMO) to study the issue of duration discount, group discount and other tourism related issues.
BIL took its time doing an extensive survey and submitted its report to MoICE, and the MoICE in turn was looking at the report and discussing it.
In the earlier system, after the 9th night, tourists got a 50 percent SDF discount, and after the 15th night it was a 100 percent SDF discount. This encouraged longer stays by tourists.
In the older system, there was a group discount which meant that if there is a pac of 10 tourists then one of them or the tour leader would get a 50 percent discount on SDF by the old TCB, airfare by Druk Air and even hotels.
The talk until recently was that MoICE did not want to just bring back the old duration discounts, but do it more scientifically, and if necessary, even give it for shorter number of nights.
A source had earlier said the aim is to shorten the duration discounts. Thus means the 50 percent discount after the 9th night maybe reduced by one to two days and the days would also be reduced for the 100 percent discount. Smaller group sizes were also being considered for group discount.
However, in what will be a major disappointment for the Tourism Industry a reliable source told this paper that the MoICE has shelved any plans for duration discount for now.
There is a feeling that tourist numbers are already increasing without any duration discount, and the focus should be more in other measures.
For example, the Economic Stimulus Program (ESP) steering committee has approved that hotels are eligible for the concessional Reinvigoration Fund Loans (RGF). The Cabinet is likely to approve it next.
RGF offers two modalities for support: an interest subsidy on an existing loan of 4 percent for three years or an additional subsidized loan at 4 percent for three years.