Greed Clouds Your Judgment – Contain It! II

Some readers called up to request me to continue with the sequel to my last blog post on the Weigh Bridge debacle. So here goes.

In the late 1970s and early 1980s, Bhutan pushed hard to export our, what we called those days “Exportable Surpluses” - surplus home grown products/produces such as Gum Rosin, Gypsum, Fruit Juices, Apples, Oranges, Potatoes, Dolomite, Woven Textiles etc. What is heartwarming is that those days we exported raw lumber, including semi-processed wood products such as wood Shuttle Blocks and wooden Milled Rods, to far flung markets such as Bangladesh, India, Japan, Pakistan, Singapore, Sweden, Switzerland, the Middle East, and Thailand, to name a few. Sadly today even timber is imported into the country from producers as far away as Malaysia (Nu.3.0 billion worth during 2019), while claiming that we are a country with forest coverage ranging between 71 - 81%.

Bhutan’s highest value exports then was the Brown Jacket Cardamom. Even those early days the cardamom brought in $$ by the millions. But it was also the cause for my greatest angst! The reason was that we had to deal with the Food Corporation of Bhutan (FCB) because under the government’s support price system in place those days, FCB was mandated to purchase all the cardamom from the growers, meaning that they held the largest stock of cardamom in the country.

Brown Jacket Cardamom - highest foreign exchange earner for the country. At one point in history, Bhutan was erroneously ranked as the largest grower of this spice that did not feature in our cuisine.

In early 1980 my organization - Export Division - cut a deal with a re-exporter in Singapore for the export of a large cardamom consignment to Pakistan, to be transshipped through the port of Singapore. That was perhaps the biggest single export order Bhutan handled during those days - the Letter of Credit was in excess of US$ one million. As the head honcho of the export section of the Export Division, I began the process of gathering the export item.

My first stop was the FCB since they held the largest stock of cardamom.

Quite strangely the then Managing Director Mr. Hadi Ali refused to sell me the cardamoms - point blank - his excuse was that the FCB did not have any stock of cardamom. I countered that I was not asking him to commit any specific quantity - but that FCB commit to whatever stock they held with them so that the country might fulfill our large export commitment. He absolutely refused to budge.

In desperation, I called up the then Police Chief in Thimphu and requested him to allow two of my staff to bore through the cargo movement records maintained by them at the Phuentsholing main gate. He passed on the order that my staff should be allowed unrestricted access to the police records - in particular all of the FCB’s IN/OUT movement of cardamom consignment for the past one year. At the end of the laborious exercise, I ascertained that the FCB should have a physical stock of over 13 MT of cardamom in their central store in Phuentsholing. Through my friendship with an official of the FCB – Mr. R B Rai, I gained access into their store and quietly carried out a physical count of the bags of cardamom piled inside the FCB store.

At the end of the clandestine exercise lasting close to two weeks, I concluded that the stock in the FCB store amounted to only 9++ MT of cardamom, revealing a physical shortage of 3++ MT of cardamom, valued at over ngultrums half a million - a huge sum those days. Equipped with these facts and figures, I confronted the MD of the FCB and told him that it is not true that FCB did not have the stock – they had over 9MT. I said I want them all. He accused me of espionage - I said I don’t care. That FCB is a government institution and so is the Export Division. If the FCB was the arms, we were the legs - so it is import that each institution belonging to the same body should render support to one another, particularly during times of crisis. I reasoned that not being able to fulfill the export order is tantamount to a crisis for the Export Division, and a great loss of face for the country. I threatened that if I did not get the stock, I would report him to the Royal Audit, informing them of the shortage that remained a closely guarded secret.

Ultimately, after few more arm-twisting tactics, I got the entire stock of cardamom from the FCB and managed to fulfill our export order.  But it was in the process of all these covert activities that I stumbled onto the Weigh Bridge fiasco.

Those days the police constables were not adequately educated. Thus I was not sure that what they recorded in the registers maintained at the Phuentsholing Check Gate represented the true numbers - I was worried that they may have made mistakes in their recordings. Now since I was taking on the MD of the FCB, I could not risk a mistake. The only way I could verify was to cross check the records that should have been maintained at the Weigh Bridge Station that was installed by the Ministry of Finance. I headed for the Weigh Bride Station.

That is when I discovered the disaster of the Weigh Bridge. But in a way it was good because if I could not verify the records from the Station, no one else could. Thus it would be hard for any one to contest the veracity of my figures 😛

Those days we did not abandon ship – we stood our ground and fought our battles - without fear or favour.

Greed Clouds Your Judgment - Contain It!

Eight years shy of half a century back, a rule was passed by the Ministry of Finance that is symptomatic of how the Bhutanese mind works or, more accurately, does not work.

I do not know if this rule still exists but it did in the late 1970s/early 1980s. The rule was that trucks plying on the hilly roads of Bhutan cannot carry load of more than net weight of 5 MT, irrespective of the truck’s carrying capacity. Net weight is the weight derived after deducting the tare weight from the gross weight.

But there was a problem: how to find out if a truck’s load was within the permitted limit? The answer: Weigh Bridge. Weigh Bridges are designed to weigh fully laden trucks by placing the truck atop the mechanical contraptions.

How a Weigh Bride looks. These are installed and used in places where there is huge movement of cargo.

Given that there were not much traffic those days, the Ministry of Finance ordered and installed one single unit of the Weigh Bridge - in Phuentsholing, which even then was the commercial hub of Bhutan. The installation came into use and things began to work smoothly, until one day, a smart fellow in the Ministry of Finance decide that here was an opportunity to generate some additional revenue.

Consequently a rule was passed that required all trucks heading out of Phuentsholing into India, also to be weighed, and pay the weighing fee.

This is when the fun began - the smart aleck at the Ministry of Finance (I know the person but will not name him) forgot that the Weigh Bridge ordered by the Ministry of Finance was intended to weigh trucks carrying net weights not exceeding 5 MT. The reason being that trucks heading to Thimphu and the western regions in the north was not allowed to carry loads in excess of 5 MT. By contrast, the tare weight of the huge trucks, then known as “Punjab Body” trucks destined for India, weighed in excess of 7 MT.

Thus, on the first day the rule came into effect, the first Punjab Body truck destined for Hapur in India, fully laden with raw lumber blocks from the stock yards of the Export Division of the Ministry of Trade, Industry & Forests, positioned itself on the Weigh Bridge - with a combined gross weight in excess of 25 MT! The result was that the Weigh Bridge was crushed to the shape of a pancake - forever maimed and turned into a pile of scrap metal!

Now here it gets even more hilarious. Because the Weigh Bridge was smashed out of shape - no trucks could be weighed - but the truckers needed the wieghment slip to comply with the rules and to show to the police at the check gates. No problem - the person manning the Weigh Bridge station diligently wrote out hand-written weighment slips, with imaginary weights on them, and pocketed the fees - and no one was the wiser.

Moral behind the episode: Greed clouds your judgment - contain it!

The account of how I happened to stumble onto this peculiar occurrence is another interesting story to be told another day.

Spiting The Hand That Rocks The Cradle

I grit my teeth and stomp my feet, in despair and disgust, and swear that I shall never again write another article on Bhutan’s tourism industry. But yet again, and in spite of myself, and despite my abhorrence for the subject, here I am once again wasting my time, writing about tourism, that which I know would be nothing more than a cry in the wilderness. But I cannot help it - I would be failing in my citizen’s duty if I allow myself to remain unengaged, even as the accountants are taking over my world, and that of the rest of the Bhutanese. I still have hope that I may be able to awaken the conscience of some who care.

This time it is the announcement that the visiting donors, or their Bhutanese hosts have to pay the SDF of US$200.00 per donor per day. This is the classic mentality of an accountant at work - the breed who are incapable of looking beyond their noses!

Is this how a society supposedly bursting at the seams with culture and tradition, treat our donors who come to our country to fund millions worth of projects that otherwise remain out of the reach of the government?

This is utterly insane, in addition to being illegal! Lawyer Sonam Tshering, in his article “Penny wise, pound foolish” clarifies: “Article 14 (1) of the Constitution states that “taxes, fees and other forms of levies shall not be imposed or altered except by law.”

I agree that some may have abused the privilege in the past … but pray tell me, who hasn’t? It is in the Bhutanese culture of pride - to pay obeisance to those whom we call “Chiikha Choe Mii” - persons who can bend the rules and hoodwink the system, persons who can regularly bleed the country blind, and yet are able to walk tall and dispense morality to others. Please remember that there is no such thing as a foolproof system - it does not exist anywhere in the world. Even God has failed in His due diligence.

Please remember, the cause for the downfall of a meritorious system cannot be because of stray incidences of abuse. There will always be thugs in the world - what is important is how diligent are the custodians of the law.

What the government should try and do is plug the loopholes, and not put a blanket ban. Putting a blanket ban is the easy way out - it is devised by people who are unwilling to put in hard work - the lazy lot - they just put a ban in place and go to sleep!

Donors come, in most cases they are cajoled to come to Bhutan, to help us fund meaningful projects that the country needs. Do not forget that we need the donors, and not they us! Let us treat them with respect and not with spurn.

Let me give you the following example to prove how meaningful it is to have donors visit us, even at the cost of forsaking few thousand dollars of the precious SDF.

In 2017, the Rotary Club of Thimphu played host to an international Rotary Conference attended by 171 Rotarians and their spouses, from 9 countries. The event was held under the country's MICE rules. During the event, one Rotarian speaker from Malaysia - Rtn. K K Looi - spoke on a very interesting water filtration technology called SkyHydrant. I was thoroughly impressed by the technology. After the conference, in my capacity as the Club Secretary I pursued the matter with Rtn. K K Looi. He suggested that I write to Disaster Aid Australia (DAA) in Melbourne. I wrote to its then CEO - Mr. David Langworthy. Over time he agreed to support Bhutan with a total of 10 of these amazing filters.

The filters were very useful and suited to our type of geographical conditions, in addition to being simple to install and maintain. Thus, in one of our weekly meetings, I proposed to the Club Members that we invite the DAA’s CEO for a visit to Bhutan - so that he might inspect the installations of their donations, and see for himself how beneficial they were to the Bhutanese children.

The DAA CEO visited Bhutan - for a total of 5 nights, in 2018. That cost the RGoB a loss of SDF of US$ 65 x 4 = US$ 260.00. But at the end of the trip, the Minister for Education sought support for additional 60 filters. The CEO agreed without batting an eyelid - but to my consternation, the CEO doubled the asking number to 120! Thus began the saga of the project codenamed “BHUTAN2020”, launched in Toronto, Canada in 2018. Under this one million dollars project, Bhutan received 120 of these filters, installations of which were completed early this year. Even as I was exiting the Club, the DAA had agreed to renew the project for another three years.

Donors come to Bhutan to give - not to take. The above is not an isolated incidence - as at end of 2021, the Rotary Club of Thimphu has done over 150 million worth of projects - in diverse areas such as health, education, agriculture etc. - spanning the whole length and breadth of the country - all with donor money. All of the NGOs in Bhutan depend on donor money to fund meaningful projects for the people of Bhutan. To victimize all of these NGOs because some of them had misused the privilege is not right.

Donors need to come to Bhutan to plan and inspect projects - to satisfy themselves that their money is being well spent. Trust me, they are not the ones with the begging bowl.

In a situation where the global tourism market has been greatly impacted by the COVID-19 pandemic, it is my belief that Bhutan can do well to promote ourselves as a destination for MICE events. I truly believe in it and that is why I even proposed to the CEO of BTCL a few years back to consider setting up a world-class conference facility on their property in Olathang, Paro. When I got to hear and see the Royal Textile Academy’s architectural drawings of their planned world-class conference facility in Thimphu - I gave them a Thumbs Up and encouraged them to follow through their plan in real earnest. Sadly I was recently told that the government had not approved their proposal. That is so unfortunate and a tremendous loss to the nation and the people of Bhutan, in particular to the bleeding tourism sector.

FOR THOSE WHO HAVE DIFFICULTY IN UNDERSTANDING:
The R C Thimphu’s International Rotary Conference saw participation from 9 countries and 171 Rotarians and their spouses, not counting the Bhutanese Members.

The SDF foregone by the Government was: US$ 65.00 x 171 x 4 nights = US$ 44,460.00.

The total direct $$ collection the country received was: US$ 388,400.00 – not counting the indirect spending by the visitors on shopping, tips and meals in restaurants, and other additional costs they had to pay for their stay beyond the conference period.

What Bhutan seems to lack is competent financial experts on the helm of things - we have dire need for them. What we have are accountants whose only focus is on the cost, and not the benefit. The government has to come to grips with the fact that what it collects directly is pittance, compared to the overall benefit that the country and the people of Bhutan derive from any enterprise of commerce.

A Little Known History

Enough is enough - I am giving it a break for a while. No more cries in the wilderness, no more wails of futility. I am changing track. I cannot handle the present because it is a whirlpool. The future is steeped in uncertainty - I am not even sure that I will arrive there because I am not sure that I will survive the present. That leaves me with the past - a period in which I am a child, one in which I have lived, rejoiced, pooh-poohed the idea of leaving for Australia, played tootsie and survived long enough to arrive at the present - a present that is the continuation of the past and the reason for the future. No period in the journey of a nation is antithetical to another. The past, present and future are indivisible - each existing in relation to the other two. 

Lest the present and the future generations of Bhutanese forget the legacy of the past, I would like to present to you a piece of little-known history of Bhutan’s survival as a proud, independent nation. As I wrote in my blog titled “The People’s Pandemic”, this country did not survive by accident.

On 1st of August 1955, in a letter marked “TOP SECRET”, the External Affairs Ministry of the Government of India was made aware of a report that Bhutan intended to print its own postage stamps. In addition, Bhutan hoped to join the Universal Postal Union (UPU).

India was aware that this two-pronged approach was intended to assert Bhutan’s independence. While India was aware of the implications this strategy would have on the long-term relations between Bhutan and India, there was no legitimate grounds on which India could object. Thus India decided that it would help Bhutan in the Himalayan kingdom’s endeavors. Ultimately, Bhutan did print our postage stamps - in 1962. Consequently, it became a member of the UPU in 1969 - Bhutan’s second membership to an international body, the first being the Colombo Plan in 1962, to be followed by membership to the United Nations (UN) in 1971. Today Bhutan’s diplomatic and bilateral/multilateral relations number over a hundred.

From a gingerly taken step in 1949, we have come a long way in our journey of asserting our independence.

The ruse: Set of four fiscals that launched Bhutan's relentless drive towards asserting itself as an independent nation.

Historical records show that Bhutan embarked on making a different statement of independence also in 1949, when we are supposed to have issued our first printed adhesive stamps - called the Revenue Stamps. It is a mystery why a fiscal stamp was issued instead of a postage stamp. The mystery deepens even further upon discovering that the fiscals were authorized to be used as postage stamps on 17th September, 1955 under the authority of the Third King. What’s funny is that we did not even have a postal service in 1955 - we had postal runners! So why the need for postage stamps? Apparently, because Bhutanese officials put out the idea that the country could make lots of money selling its handsome stamps to international collectors. Yet even that explanation does not make sense, since Bhutan’s fiscals were not accepted as postage stamps good for use in international mailing.

From all this, it now becomes clear that the move to issue our own stamps was not intended as an initiative to launch a formal postal service or to make money selling the stamps to international collectors, but as a signal that we were beginning to assert ourselves as an independent nation, with an independent postal system. Unfortunately, it would take years to establish a true postal system.

The next phase of the journey was precisely just that: to create a postal system with postage stamps internationally recognized as belonging to a sovereign nation. To this end, Burt Kerr Todd, an American trailblazer, was enlisted to help Bhutan gain membership to the UPU. Bhutan soon learned that the membership had to be sponsored by a member state, not private individuals or institutions. Additionally, UPU rules required that the stamps carry the monetary value of an independent country, and that the postage stamps and a postal service already be in existence.

Bhutan systematically began fulfilling these provisions. Our first postage stamp was released in 1962. That same year, Bhutan’s first post office was set up in Phuentsholing. The next step was to seek admission as a member of the UPU. Here Indian help was sought. With the help of the giants of the era - Triloki N. Kaul (Tikki Kaul) of India’s MEA and diplomat Apa Pant, two of Bhutan’s staunchest friends - Bhutan finally gained UPU membership in 1969.

In the shaping of the independent nation state of Bhutan, many have contributed - foremost, His Majesty the Second Druk Gyalpo, His Majesty the Third Druk Gyalpo, Her Majesty the Royal Grand Mother Ashi Kesang Choden Wangchuck, His Majesty the Fourth Druk Gyalpo, Sir Basil John Gould, CMG, CIE, a British-India Political Officer, late Prime Minister Jigme Palden Dorji, American Burt Kerr Todd, India’s Tikki Kaul and Apa Pant, and Dr. K. Ramamurti, Bhutan’s first postal advisor.

Bhutan needs to honor all of these transformers. But in an age that seems indifferent to the past, careless about the present, and myopic about the future, I do not know how.

PS:

Sir Basil John Gould (he was the British Political Officer for Bhutan, Sikkim and Tibet based in Gangtok, Sikkim from 1935 to 1945) finds mention because it was supposedly him who first proposed the idea of stamps.

Burt Kerr Todd is credited with making the Bhutanese postage stamps famous and much sought after among the international stamp collectors.

........ With most information sourced from Leo Van der Velden and Aranya Dutta Choudhury.

The Incredible Snowman Race

I did not believe that this could be done - until it was announced. The trek takes anywhere from 25 to 28 days at a normal pace – to attempt to do it in five days and actually accomplish it, is nothing short of a superhuman fit. I wait to see who and, how many, will remain standing at the end of the race period - 17th October, 2022 which is today.

There is nothing not to admire about these racers - they are attempting to achieve something God never intended should be a normal human activity. Having myself plodded through all the regions that the racers will pass through during the race, I pay obeisance to these super athletes for their superhuman capacity and endurance.

To me it is of no consequence who wins the race - but that they have the level of fitness, tenacity, determination and the will power to successfully complete the race. I do not believe that the Snowman Race trail is the world’s toughest on its own merit - but for the fact that the distance is being conquered in the time frame of five days. That is the incredible thing!

A reputed international magazine contacted me - wanting to know if I would be interested to cover the race on their behalf. I said, YES!!! YES!!! YES!!. I told them that I already have all the passive footages they will need - from my treks into the alpine wilderness traversing the entire length of the race trail. The only thing is that I will need minimum of two helicopter rides – one to the top of Keche-La in Lunana areas, and another to the top of Jueley-La in Dhur areas, so that I am able to capture the racers on the go. The scene I would have been able to capture from the Jueley-La top as the racers snake up from Jueley Tsho to the top of the Pass, and then descend down to Animo Tsho would have been breathtaking. Racers racing upto the Kechey-La as they pass the lake on their right and then plunge down the Pass, would show some stunning scenes!

For whatever reason the magazine decided not to go through with the plan - my loss 😓

Lake below Kechey-La Pass

Tarigung with the twin Tari Tsho in the foreground

Lunaps engaged in a game of archery, with Gungchen Singye in the background

Day break at Animo Tsho below Jueley-La

Something puzzles me: the fact that close to 50% of the international racers - no question they have got to be among the world’s most competent extreme altitude racers - had to withdraw on grounds of HAPE (High Altitude Pulmonary Edema). Thank God there has been no fatalities so far. Didn’t the racers acquaint themselves with the altitudinal variations of the race trail? That is the first thing they should have found out. They obviously did not.

They could have caused the country serious loss of face.

An Uncommon Girl in Kheng Khomshar

In a dimly lit room, deep inside rural Kheng, in a village called Khomshar, Chimi Wangmo sits cross-legged facing me. I can feel that there is a sense of unease about her - not quite sure that she would be upto the difficult questions I am likely to pop at her. When the questions began flowing, however, she relaxed and began to answer me with the clarity and deftness of an accomplished presenter - as if she had prepared for this day, all her life.

It is neither a paradox, nor the choice is difficult. Quite simply, it is a matter of lack of leadership.

Over the next 20 minutes or so, it was I the city slicker, and not the country bumpkin barely 28 years old and a drop-out at class XII, who was overcome with a sense of wonderment and admiration.

Me : “So Chimi, how old are you?”.

CW : “I am 28 years old”.

Me : “Upto what class did you study?”

CW : “Class XII”.

Me : “So, what are your thoughts on going to college and getting a degree?”

CW : “I do not wish to pursue any further studies”.

Me : “WHAT??  Why not?

CW : “I do not see any benefit in it”

Me : “Why not?”

CW : “I do not believe that a college degree offers any guarantee, decent or otherwise, of a job in Thimphu. The matter is made worst by the fact that I have to compete with people with wider social network and stronger personal connections.

I do not believe anyone would stop to consider a Khengpa girl from an obscure village called Khomshar, located in some wilderness in remote Kheng. I need to be realistic.

Me : “You present a rather bleak picture - not to say that I disagree with you entirely. If you do not see employment in Thimphu as a way out for you, have you considered an alternative to landing a job in Thimphu?”

CW : “Yes”.

Me : “What is that?”

CW : “Farming and farm work”.

Me : “Really? That is rather an uncommon choice - few, if any, would consider it. I am intrigued - please elaborate on your thoughts”.

CW : It is simple really. Early in life I came to the conclusion that Thimphu does not offer any guarantee of a job. Although the job selection process is said to be merit based, the reality is that it is the well-heeled and the well-connected who will walk over persons of my humble background - my superior talents, my academic excellence or my willingness to work hard will find little value in a job market that is already over crowded. And I cannot, or will not, hope to change a system that has already set deep roots into the cultural fabric of Bhutanese society - as it has, elsewhere in the world.

This makes me sound like I am defeated by the system – I am not. In fact such a system compels me to be more resilient. Choosing farming and farm work over white or blue collar job as a preferred choice of livelihood has sound thinking behind it - it is backed by sound reasoning and mathematics.

Should I decide to get a college education and a degree to go with it, my parents would end up spending few hundred thousand Ngultrums, which would put them in dire financial straits. They do not need that.

After college if, with any luck I am able to land a job in Thimphu, I will most provably be paid a salary of Nu.15,000.00 to Nu.20,00.00 a month - a sum barely enough to sustain myself, let alone support my family. On the other hand, if I take up farming and farm work, I can earn many times more than that amount.

Thus, working on my ancestral farm not only assures me a superior income compared to a job, I also contribute to enhancing the collective family income. Additionally, I am also able to ease the lives of my aging parents who need me in their lives - now more than ever. I am also able to help my school going younger brother to get a proper education - if not he would have to be taken out of school, to help out the parents.

At a different level, I serve a national objective - that of helping the nation restock the rural villages with young, able hands - more than enough are being lost to the lure of $$ to Australia, USA, Canada etc. There is no doubt that the lure of the $$ is a powerful force that few can resist - but one has to decide how much is one’s need, and what portion of that need is comprised of one’s wants. The final question one has to ask truthfully, in my opinion, is:

Is livelihood more important than life?”

Indeed!: Is livelihood more important than life? Does livelihood hold any meaning if there is no life? Are we seeing the loss of Bhutanese tradition, in pursuit of borrowed cultures? Are the Bhutanese youth chasing a mirage while gold mines are sitting in their villages, waiting to be exploited?

Is the government’s focus on centers of floating population the wrong place to focus on? Are rural areas better points of focus? Is there a need to shift focus - to halt outmigration of youth; to assure food self-sufficiency, to prevent Goongtongs, to prevent demographic imbalance, etc.?

I think there is a powerful message in the thoughts of the simple village girl in remote Khomshar.

A Necessary Diversion

After months of futile attempts at sounding knowledgeable and informed about what ticks Bhutan's tourism, I allowed myself the rare opportunity of a diversion - I made a trip to Chhukha Dzongkhag - to scan the areas for birds for an upcoming book.

Historically Chhukha Dzongkhag ranks among the most relevant. It was the most important trade route to, and out of, the Indian plains in the South. Majority of the Western visitors and missions, other than Ashley Eden's mission in 1864, entered Bhutan through present day Chhukha Dzongkhag.

Written records confirm that a village - although in my view wrongly named - has the distinction of being the first village in unified Bhutan to receive potato seed for plantation.

Zhabdung Ngawang Namgyel also received his first silver and gold coins in Chhukha Dzongkhag, although of foreign coinage, in and around 1619AD which he melted down to build a silver reliquary in Chari Monastery, to house the ashes of his deceased father.

The following are some of the images I captured during my three days trip to the Dzongkhag, and areas in the periphery.

ENJOY!

A unique geological formation at a place called Lama Lamani under Dagana Dzongkhag bordering Jemichu in Chhukha Dzongkhag

One of Bhutan's rarest birds and a lifer for me - The Beautiful Nuthatch (Sitta formosa)

Grey-chinned Minivet (Female) (Pericrocotus solaris) - also a lifer for me

Grey-chinned Minivet (Male) (Pericrocotus solaris) - my third lifer in a single day. With such abundance of sightings, Chhukha is all set to be elected the new birding capital of the world!

True Friends Stand By Us

The razzmatazz of the birth of a new child - that of Bhutan’s tourism - is now, hopefully, behind us. Although seemingly unconcerned, many of us private citizens have been more engaged than most of the drummers and honkers that make up the transformation brigade. All across the country - Paro, Phuentsholing, Samdrup Jongkhar, Gelephu, Samtse etc. colorful flags have been unfurled, dancing girls and hooded monks did their thing - the change makers stooped low to welcome the pleasantly surprised visitors who came with the old “Faith” in mind but hopefully will go back home with a new “Belief”.

It is now time to move on; we will need to put to rest our individual differences - the child is now out of the womb and in the open. It is now everyone’s duty to care for and nurture the infant. Whether Apsara-like or grotesque and deformed, it is our child - we will have to take charge of it until it is firmly on its feet. From here on forward, it should not be about not being our fault - but about how we might collectively contribute to correcting the course.

But for me the silver lining at the end of all the razzle-dazzle and show of brilliance and incomparability, has been the demure event that took place in Jaigaon across the border in India, on 24th September, 2022. The Indian business community across the border celebrated Bhutan’s opening of tourism - with their own brand of celebrations. This was a touching moment - a re-enforcement, if any were needed, of their trust and faith in Bhutan, their joy in our small successes, and their commitment to walk the distance with us - through thick and thin. Proof that they will forgive us our minor quirks, as we are wont to do theirs.

Expression of happiness and joy.

India has supported Bhutan in every sphere of our nation building - from our first Five Year Plan to the present. To this day they remain firmly behind us, pandering to our every whim and fancy. The friendship and generosity the Indian people offer us is unparalleled.

At the end - we matter to them because they matter to us. There is mutual benefit to harmonious coexistence. In their progress is our progress - we succeed because they do. This has been the guiding principal on which is founded our close to three-fourth century of nurturing each other - we will continue to do so for many eons to come. After all, we are common in our shared culture and religion.

One thing is a matter of great regret - Bhutan could never draw in the Indian tourists of standing. The Indian middle class is hundred times richer than any chilips. The Indians have billions in black money that they do not know where to spend. The policy hawks will do well to divert their attention from chilips to attract the rich Indians who number in the hundreds of millions. Economically, it makes sense to target the closest markets - India and China - to give us the numbers that we seek, despite our smarting.

In this direction, the TCB has failed miserably. The tour operators too failed to grasp the potential that exists in the vast Indian market - our most favored nation and supporter.

BHUTAN is OPEN

Today is 23rd September - a day traditionally celebrated by the Bhutanese as the Blessed Rainy Day, or THRUE BAP as it is called in Bhutanese - a day that marks the end of the monsoon season. On this day, people take bath outside so that the blessed rain that is believed to fall from the heavens will wash away all their past and ongoing sins and diseases.

I looked in all directions - East, West, South and North - there was no hint of any rain - whether blessed or otherwise - atleast not in Thimphu where I am domiciled. Thus the dwellers of Thimphu will likely have to live with their sins and diseases - for the next one year.

Bhutan's brand new tagline "Believe". The old "Happiness is a Place" has been booted out.

But for many Bhutanese, this day holds greater meaning than the washing of sins - it is TODAY that the country throws OPEN its borders for tourism - since 5th March, 2020 when the first case of COVID-19 was detected and our first 21 days lockdown that was announced on 11th August, 2020.

This is a most happy day indeed! I offer my greetings and good wishes to all the tourism stakeholders within the country, as well as those outside. The wait has been long and painful - but it is now over and we are all poised for better times and brighter future, splendored with opportunities.

I hope that many of the tour operators who have been forced to close down their offices due to the pandemic, would now be encouraged to reopen their establishments, for business as usual.

It is also hoped that many of the hotels that have had to relieve their many staff will now be encouraged to reemploy their workers, emboldened by the promise the new tourism policy holds for the industry.

I hope that many of the tour guides who have had to go back to their roots and take up farming and other vocations, will now find encouragement in the new way of doing things, and retake-up their jobs in which they have been skilled.

I hope that the mule owners will be encouraged to buy back their mules that they were forced to sell off during the pandemic - with the hope that the opening of tourism will translate into business as usual, their traditional business that they had to give up for the past close to three years.

I hope that the rural farmers and weavers will see greater opportunities in their chosen craft; I wish and hope that the reopening of tourism will usher in an era of vigorous production and commerce for the group of people who are at the lowest rung of the Bhutanese social ladder.

I hope too, that the phallus carver would once again be able to station himself in the lanes and by-lanes of Thimphu’s vegetable market - to sheepishly peddle his handiwork to the passersby giggling past him.

Most importantly, I hope that the country will see millions upon hundred of millions of $$ in remittances that we so desperately need.

Lest history is wrongly recorded: Although tourism is supposed to have been disallowed, the truth is that tourists have been entering Bhutan - in dribs and drabs.

The People's Pandemic

A battle like no other, and Bhutan came out smelling like the roses.

A book will soon be available to the Bhutanese people that will describe in detail how the battle was won, who were the strategists behind the scene and who were the foot soldiers.

The look and feel of the Book

An excerpt from the book: The People's Pandemic

The book provides undeniable proof that we live in a land that hasn't survived by accident.

Tourism Industry: Are We Prepared For The Transformation?

I have been bewildered for the past many months - what am I missing? What am I unable to see? Have I gone well and truly senile? Have I lost my most rudimentary mathematics skill? What is so complicated about Bhutan's new Tourism Act of 2022?

I decided to devote two evenings to sit down and do my numbers - because in these perilous times, numbers matter. And, for the purpose of simplicity, I wanted to keep it simple.

UNDER THE MDPR REGIME

Under the tried and tested way of doing things that came to be known as the Minimum Daily Package Rate (MDPR) - a business philosophy that guided Bhutan’s tourism policy and a business model that ruled the roost for close to half a century, the numbers tell the story:

The implementation of the Minimum Daily Package Rate (MDPR) helped propel tourism to the top as the largest employer and highest foreign exchange earner in the country - with benefits accrued to the broad spectrum of Bhutanese society. Any and all Bhutanese who dared to hope and dream had a ready launch pad to act as a springboard to catapult them to heights unimagined in the wildest of their dreams.

As opposed to the above, a new business concept has been introduced - retrospectively effective from 20th June, 2022 - in which the SDF has been increased to US$200.00 - from the earlier US$65.00. With this new kid in town, the concept of the venerable MDPR was unceremoniously put to pasture and relegated to history. The new way of doing business will begin with the opening of tourism as of September 23, 2022, the numbers are likely to pan out as follows:

In place of the MDPR, the new tourism Act of 2022 calls for the collection of SDF at US$200.00 - but everything else remains mute. As the rough projections above show, the SDF may have seen triple fold increase - but the inflow of $$ and tax collection is seen to fall dramatically.

I have said these many times before - but I will say them again:

Under the MDPR regime, 100% of the “designated” tour payments were mandatory to be paid in advance. Tourism business was wholly owned and run by the Bhutanese, although few stray cases of fronting - both minor and major, were reported. Notwithstanding the incessant charge that there is undercutting in the industry, I know of no one who got away without paying the “designated” amount of MDPR, well almost.

Under the MDPR regime, it was impossible for tour operators to conceal business turnover given that TCB had all the records of business conducted by each of the country's tour operators, resulting in 100% collection of tax, as owed. By extension, hoteliers' true size of business were open to scrutiny by the tax department. With MDPR in place the TCB had the moral and administrative authority to administer ethical business practices among the tour operators. The tourism players were happy since what was on the table was more than adequate to keep every one happy and bouncy. No doubt there were some bad apples - that is because the authorities did not have the wherewithal to discipline the rogues.

Under the MDPR regime, it was all about protecting the brand Bhutan. Ofcourse some did not adhere - that is because those people in authority did not have the guts to do what they were expected to do.

Sadly, it is made to appear that the new policy’s focus is only on the collection of SDF, and everything else is subservient to the realization of this goal. To be fair, that is not really true - we know that the government has the industry’s long-term sustainability in mind. It is for this reason that the industry IS NOT in opposition of the new policy - but the manner in which it is implemented. Unfortunately, despite every body’s untiring efforts, the TCB and the industry players are dangerously inching towards a space in which, at best, they can co-exist as uneasy bedfellows, and not committed partners to a common cause.

The new rules and regulations practically shunt out the Bhutanese tour operators and go all out to encourage outside tour companies, tour agents and tourists, to conduct business directly with the government and the wannabes in the country. It is simply insane to think that a tourist who is willing to pay US$200.00 as SDF would be willing to position himself/herself at the EXIT gate and flag down taxis and go hunting for hotels and guides upon arrival in the country. But the larger worry is that this amateurish attempt is bound to cause massive fall in tax collection and inflow of foreign exchange - because they are required to bring in only the SDF of US$200.00 - which is, coincidentally, shy of US$50.00 compared to the MDPR of US$250.00. Here is a strange situation: the SDF has been jacked up threefold to US$200.00 - from US$65.00. I would have thought that a comparable increase in the inflow of foreign exchange would have been expected. It does not look like it - mathematics show that there is actually a dip of inflow of foreign currency, by as much as 12%. Even worst, tax collection is seen to drop by as much as 60%. To be fair it will not be so much - but since the income from other sectors - other than airlines and handicraft sectors - is rendered impossible to be recorded accurately, it is not possible to determine the size of their business, and thus, tax leviable on them.

Under the SDF only regime, even tour operators and hoteliers will fall under the grey area - unregulated business.

It will encourage under-declaration both by tour operators as well as the hoteliers. There are possibilities that tour operators might use the foreign agents and even individual tourists to conceal turnover, thereby escape paying the government's just dues. Even hoteliers are bound to take this route. The “SDF only” dictate opens up avenues for the immoral and the wayward to play hanky-panky.

Talking of hoteliers, their plight is even more precarious. I had submitted to the Hon’ble Prime Minister during his informal press briefing that a much bigger problem would confront the hotel industry. That they built the hotels based on a conducive policy that was in place and that when that policy is altered, the onus must rest with the government to bail them out of the sticky situation that they have been put into. The RGoB, whether past or present, needs to work at rescuing them from out of the quagmire.

I get the feeling that pegging the SDF to a suitably enhanced MDPR, and going ahead with business as usual seems to be the most workable method of doing business – particularly when conditions are in a confused state and are not very easeful. We are just a little over ten days away from Zero Hour and the Department of Immigration who is supposed take over the issue of Visa and collection of the SDF - remains unengaged and very, very quite.

It is my hope that the government would reassess the situation that is currently prevailing, and consider deferring the implementation of the new Act – until we are ready to take on the transformation initiative in the spirit and with the sure-footedness that such an upheaval warrants.

It is sufficiently clear that WE ARE SIMPLY NOT READY!

Tourism Rules and Regulation of Bhutan 2022 – V: Happy Convergence

There is a kahawat (saying) in India: Bhagwan ke ghar mey dhair hai, aandhair nahi. Roughly it means: In the house of God there may be delay but not darkness.

It appears that the TCBS’ Council Meeting yesterday to which were invited the tourism industry’s key players, went pretty well. That is nice - as I said in my earlier posts, tourism is a common cause, at the core of which is the need for convergence of views. Everyone has to understand that the tourism industry is bound to suffer - as in everything else - should we go with the belief that each element that go to make the sum total, can act in isolation of the other. Such an approach is bound to fail.

Happy Convergence

Since the early 1980s I have been propagating the idea that a good and progressive law, or rule or regulation is one that aspires to FACILITATE and not CONTROL. Unfortunately it seems like it is still about control, and not of liberalization and facilitation. History has proven time and again that control breeds renegades, and throttles entrepreneurial spirit.

Coming back to the Tourism Rules and Regulation 2022, I am given to understand that following changes have been accepted during the consultative meeting with the TCBS and the industry representatives which consisted of every sector head of the tourism.

Not Carved In Stone: It was clearly pronounced by the TCBS Chair as well as the Director General of the TCBS that the Tourism Rules and Regulation 2022 is subject to change and amendment, should the need arise.

Tour Operators Now Designated as a point through which to received SDF: In the earlier proposal prepared by the TCBS, nowhere was there a mention of tour operator being a point through which SDF may be received. The need for the role of the tour operators was ignored. The revised rules and regulations now designate tour operators as well – as a point through which tour payments may be received.

Reinstating Various Discounts: It has been agreed that the TCBS will pursue the matter with the Ministry of Finance on the issue relating to a number of discounts that were in place as per Tourism Rules and Regulations 2017 – atleast for tours confirmed before 20th June, 2022.

Tour Operators Can Represent Tourists/Tour Groups for Visa Application: It has further been agreed, which was earlier missing, that tour operators could also apply for Visa and Permits – on behalf of the tourist or a tour group.

Negative List: It appears that a NEGATIVE LIST – places that are out of bounds for visitation by tourists, has been finalized. TCBS will circulate the list soon.

Age Limit On Tourist Vehicles: The earlier requirement of an age limit on vehicles conveying tourists has now been done away with.

Cancellation Policy: Cancellation policy is also agreed to be governed by that which is agreed between the service provider and the tourists/tour groups.

Force Majeure Clause: It is agreed to be governed by the principals on the grounds of which this clause is accepted internationally.

Trekking Permit: Accepted to be routed through a tour operator - status quo.

Business Bond: There appears to be difference of opinion - on the need for this. What the TCBS does not consider is that few, if at all, has the liquidity to fulfill this requirement - given that business has been at a stand still for nearly three years. It is hoped that the Cabinet would reconsider this issue favourably - atleast for few years, until the industry gets back on its feet.

Further Discussion: It has been pointed out that the agreed changes in the proposed Tourism Rules and Regulations 2022 will be further discussed with the Steering and Advisory Committee, before it is submitted to the Cabinet for approval. From where I stand, this is fair - I do not believe that there would be opposition from any quarters - on a paper endorsed by the whole of the industry stalwarts, including the Council Members of the regulatory authority.

Tourism Rules and Regulations of Bhutan 2022 IV

Bhutan’s star-crossed romance with hydropower is now as good as over. Its appeal as a technology of choice has lost its sheen across the world - a number of other less costly and less harmful technologies have taken center stage. Hydropower is now viewed as costlier and more environmentally destructive way of producing energy. It is now old hat. It is for this reason the Bhutan has rightly halted further hydropower development – until all the hydropower projects currently under construction is completed and brought on stream. Our lone egg basket - India - has seen quantum jump is energy production. They are now energy surplus. For the past many years, India’s investment in hydropower has been next to nothing - they are focusing on more efficient and less destructive technologies.

The Land of Happiness is now a place of confounding confusion

With hydropower having made to eat humble pie, what are Bhutan’s options? There are a few that we can bank on:

     ~  Forestry

     ~  Mining

     ~  Agriculture

     ~  Tourism

Harvesting of forest produce: According to figures released by the government, harvesting of our rotting forests is said to present phenomenal potential - far in excess of hydropower. Forestry analyst Dr. Phuntsho Namgyel has been going hoarse making the point that we are destroying our forest stand due to rotting and mismanagement, and that we should harvest what is going to waste and ruining our ecology. But either the figures put out by the government are whole lot of hogwash or, Dr. Phuntsho Namgyel has the wrong color of skin.

Mining: To be sure we are doing pretty OK with mining and export of minerals, including boulders. But this is a high volume low value commodity and it can only do so much.

Agriculture: Less said the better about this sector’s utter failure, recorded over many decades. The agriculture production has seen unfailing decline over the years. Even while boasting of phenomenal altitudinal range and soil types, we are unable to produce enough to feed ourselves – let alone for the export market.

Tourism: This should now qualify as the shining star of the day. In terms of real net gain and employment generation, tourism has always been at the top. It holds top slot for foreign exchange earning as well. Few understand the real cost behind hydropower projects – not even when faced with the reality that imported energy – such as LPG gas and kerosene as a source of energy - are cheaper than our own electricity which we are told we produce in abundance. Few know that what we earn from export of electricity is more or less spent on import of fossil fuel.

Tourism has thus far been the only business in Bhutan where there is 100% collection of tax - without the possibility of concealment. There is perhaps no other business that generates tax at multiple levels: SDF from tourists at the first instance, followed by tax from tour operators, from hotel owners, handicraft business establishments, transport companies, guides etc. etc. - from one and the same tourist group.

Bhutan’s tourism industry stakeholders have been unrelenting in their pursuit for a workable and conducive atmosphere in which to do business. Recently, the sector heads of tourism had a meeting with the Tourism Council of Bhutan - to try and humanize the rules and regulations that are being proposed for adoption. We are not certain if the industry managed to make a dent into the rigid thinking of the TCB. Today - 8th September, 2022, the sector heads are once again participating in the meeting of the Council Members of the TCBS. We expect that the sector heads will not fail to impress upon the TCB Council why it is important to operate in an atmosphere of cooperation and congeniality. If they fail to do so, we will all fail.

The proposed rules and regulations, once discussed at the Board Meeting today, is due to be submitted to the Cabinet Members - on September 10, 2022. The industry remains hopeful that the rules and regulations will be rationalized at that stage.

My exit line: There seems to be a notion afloat that increasing the SDF from US$65.00 to US$200.00 will mean a triple jump in the inflow of $$. The reality will be that even if the number of arrivals exceed that of the pre-COVID era, the inflow of $$ will be far less than that which could have been generated under a MDPR regime.