Bhutan, which raised its daily tourism tax, labeled a 'development fee' to $200 a night a year ago when it reopened to tourism a year ago has now cut the fee in half starting tomorrow.
The fee, which was the world's steepest in a country with some of the steepest terrain, was designed to limit tourism to higher-spending classes of visitor, but it apparently shut the gate too tight for the country's economy, with tourism accounting for only 5% of revenue vs the desired 20%.
There are also discounts for visitors who stay longer, and those will apparently remain in place. The new rate is set to be in effect for four years. The country has seen 56,000 tourists so far this year, but 42,000 were from neighboring India and only had to pay a tax of about $15 per day.
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