Sunday, April 9, 2023

Government Playing BHARAKUTI

A friend forwarded to me TheBhutanese’s front page news report of April 8, 2023 that read: “Govt allows around 1,600 more tourists at old SDF rate”. Since I am not on the Facebook, or any other social media sites, I do not know the full content of the report. But I fear that some may miscomprehend the issue. Thus I would like to make the following clarification so that the matter is not twisted out of context.


Venue       : ThePema by Realm, Motithang
Day               : Saturday
Date       : June 18, 2022
Occasion       : Informal briefing by the Hon’ble Prime Minister of Bhutan
Subject       : Government’s proposed changes in tourism policy of 2022
Attended by  ~ Hon’ble Prime Minister of Bhutan and select Members of the PMO;
~Director General of TCB and some Members of the TCB management;
~Two Members of the government’s Transformation Team;
~Dasho Kinley Dorji (Ace) past Secretary of MoIC; and
~Four Members of the non-traditional media - yours truly included.

His Excellency the Prime Minister honored me by inviting me to initiate the discussions.

I submitted that I speak on my own behalf and that of Bhutan Sustainable Tourism Society (BSTS) - of which I am a Member. I submitted as follows:

That the government has the right and the authority to introduce any and all changes as it sees fit;

That the tourism sector was not against the policy - but at the timing of its implementation;

That for a seamless migration from the old to new ways of doing things, the industry will require time - to understand and adapt;

I submitted that tourism business was not like running a grocery shop where you up the shutters and start selling your potatoes and onions;

That tourism business is conducted over days and weeks and months and even years. That introduction of new rules and regulations out of the blue would severely disrupt and lay asunder the tour operators’ ongoing negotiations with overseas agents and other prospects;

Lastly, I pleaded that even if the government is adamant about implementing the new rules with total disregard for the operational difficulties, the government should honor the commitments made by the tour operators - based on the rules and regulations that were in force - when the discussions were initiated. That reneging on the commitments halfway through the discussions would portray Bhutanese operators as unreliable and untrustworthy, with long-term implications to the industry;

I pleaded that if nothing, the government should honor all commitments made by the tour operators - before the new rules were sprung on them - whether or not the tour was confirmed, and whether or not payment received.

To this, the Hon’ble Prime Minister asked me:

“But Aue Yeshey, how can we verify that the business was in discussion?”

I said that it was simple - ask the tour operators to provide trails of their emails - validating that the business was in discussion before the introduction of the new rules.

Consequently the Hon’ble Prime Minister remarked thus:

“Aue Yeshey gii labmi lu denba du. DG Dhradhul, please sit with the tour operators and sort this out. If they can prove that it is a business-in-progress, we should not have any problems accepting them under the old SDF rate”.

POINT: If the Cabinet has recently allowed 1,600 tourists to come in under the old SDF, I would like to point out that the decision to do so was made by the head of the government on 18th June, 2022.

It should not be seen as an act of favoritism on the part of the DNT government. Or, as an act in deviation of the standing rules. What is to be seen is whether the tour operators - Amen and Rewa - were able to substantiate convincingly - if the tours were already in discussion before the new rules came into effect.

Let us not be petty. 1,600 tourists is a big number for a minuscule country like Bhutan - it means a lot to us, particularly when we have been reduced to clutching at straws.

Like a lady tour operator told me yesterday at the VAST over a cup of lemon-honey tea - courtesy of Azha Karm - that the government has been playing “bharakuti”. That does not mean we citizens have to – we have to keep our heads firmly screwed on over our shoulders.

3 comments:

  1. The TCB had specifically mentioned that applications will not be entertained past the 28 July 2022 deadline.
    It is baffling and beyond comprehension that applications were, and are still entertained well past the stipulated deadline oblivious to rest of the tour agents. These are double standards!

    Preferential treatment to some tour operators does not bode well for a harmonious travel fraternity. This is bound to spark disharmony, loss of confidence and disenchantment within our fledging travel industry.

    Tour agents who are the beneficiary of this exceptional treatment have the leverage to poach long trusted partners and associates of other agencies owing to the enticing rock-bottom prices they now offer. This is an unethical practice and creates double standards within a small travel and hospitality industry that is coming to grips with challenges, and an uncertain future.

    It is said that a number of tour agents have already lost their business, guests and contacts to those who benefited from this special treatment.

    Even in an event of policy changes in the future such as reduction of SDF or waivers provided from certain number of nights, these operators by then would have accumulated (poached) a good number of foreign agents, forged alliances and generated significant income for themselves with very minimal SDF contribution.

    The all inclusive trip prices they sell overseas does not even equate to the revised SDF. "Undercutting" made news several times, when TCB tourism "experts" mentioned this as one of the reasons why the SDF is undergoing revision, on national television.

    The prevailing trip prices sold by this privileged bunch are far below the earlier government mandated MDPR (minimum daily package rate)
    This tantamounts to undercutting which is and has always been illegal.

    Such unethical practices not only tarnish the brand of our country, breeds disharmony, creates rift between foreign associates and local agencies, lowers confidence but also causes a drastic reduction in revenue and foreign currency flow into our country. $200 - $65 = $135/night X 1600 Pax ( tourist numbers given this special access according to The Bhutanese Newspaper) = $216,000/Night X by number of nights is a huge loss of revenue for our country.

    This shocking and controversial news has dented the spirit of a mentally stricken travel industry, where loss of employment, uncertainties, loss of talent pool and struggle to make a living has become a norm. We hope the TCB can extend such preferential treatment to the rest of the tourism stakeholders, too, and help narrow this widening gap. The majority of the tour guides, drivers, trek staff, tour agents, tourism supply chain dependents and hospitality professionals are without work or if lucky barely have enough work to see the month through, and difficulty to make a living and support families is proving to be an uphill task nowadays in the face of skyrocketing inflation, and such biased treatment. We sincerely hope that the TCB can facilitate such revised SDF waivers to everyone rather than to just a privileged few. Not everyone wants to leave our beloved homeland behind and go to Australia, Canada, etc !!

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  2. Very sad state of affairs. Post Covid, mass hoped for the brighter days. Only two main sources of income for the mass. Tourism & Indian cross border trade.

    State bulldozed the tourism policy. Border gates deterred people of both sides to cross.

    End: mass had no income. Businesses shut. Buildings brought down. Hospitality became inhospitable!

    the talk of a sleepless mega city is a thin line of hope to revive economy & retain working age within the nation!

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  3. The exposé by the bhutanese newspaper has brought to light that the government is aiding and abetting undercutting, exercising favouritism and breaching official circulars. It is no wonder that people often remark that there are two laws in the country. How convenient to frame official notices and ultimately breach them at their own convenience. May the guardian deities spew wrath onto these hypocrites and corrupt.

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