THIMPU, March 22 : With rising cancellations and an ebb in future bookings, the Himalayan Kingdom of Bhutan’s tourism sector has experienced an unusual slowdown in the backdrop of the ongoing Middle East conflict, local media said.
The drop in tourism business has come at a time of the year when the industry generally sees a surge of visitors. Bhutan’s national newspaper Kuensel said tour operators have reported the cancellation of over 1,000 tourist bookings between February and May this year.
Some establishments have also received cancellations for the peak months of October and November, raising concerns about the long term impact on the industry in a country where tourism is one of the mainstays of the economy.
Amid rising global fuel prices linked to developments in the Middle East, Bhutan’s national air carrier Drukair has implemented a fuel surcharge on international bookings effective March 10. The airline stated that the surcharge is adjusted based on route and fluctuations in fuel prices, in line with standard practice.
According to Drukair officials, the surcharge on the Dubai route increased by six per cent from March 11, while flights to Gelephu saw an eight percent increase. From March 12, surcharges rose by six pe rcent for Bangkok routes, 88 percent for Singapore, and 19 per cent for Dhaka.
Officials said that, overall, most routes have experienced fuel surcharge increases ranging between five and nine per cent. The Singapore sector recorded the highest spike, rising by over 98 per cent, followed by Dhaka at nearly 20 per cent. “While a surcharge increase may slightly soften demand, it is unlikely to significantly disrupt peak-season arrivals,” an official said.. adding “Fuel surcharges are adjusted in line with changes in aviation turbine fuel prices.”
Despite this, tour operators warn that the already high cost of airfare to Bhutan could further rise, making the destination less competitive. “Airfares to Bhutan are already relatively expensive. The additional surcharge will further increase travel costs, especially during the peak season,” a tour operator said. “This may discourage new bookings, affect last-minute travel plans, and reduce Bhutan’s competitiveness compared to other destinations.”
Tour operators also highlighted that the Middle East conflict has had a broader impact on the tourism sector, including longer flight durations due to rerouting, higher operational costs, and schedule uncertainties. In some cases, there have also been flight cancellations. “These disruptions affect travel confidence and have negatively impacted tourist arrivals,” a tour operator said.
New bookings have slowed, and future demand remains uncertain due to reduced connectivity and ongoing travel disruptions. Industry stakeholders said that prolonged uncertainty could threaten the survival of businesses without adequate support measures, Kuensel reported. (UNI)
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