Three-Star Hotel owners say urgent interventions needed to pay loans and sustain

2026-03-30 - 13:11

Three-star hotel owners have called for urgent government intervention, warning that many establishments may not be able to sustain operations or repay loans without immediate support. The concerns were raised during a meeting held on Tuesday between three-star hotel owners, the vice president of the Hotel and Restaurant Association of Bhutan, and two board members. The group discussed ongoing challenges in the sector and has set a set of key requests to the government and the Department of Tourism. Among the major proposals was a request to reduce the Sustainable Development Fee for regional tourists by 50 percent to help increase tourist inflow and support struggling hotels. The group also called for a 50 percent reduction in monument fees for regional tourists, stating that lower costs would make Bhutan a more attractive and affordable destination. The hotel owners further proposed that all international and regional tourists should travel through licensed Bhutanese tour operators to ensure a fair distribution of business within the country. Highlighting financial difficulties, the hotels stated the need provide immediate support through access to Economic Stimulus Programme loans and the continuation of loan deferment schemes. They also recommended the introduction of a minimum rate for three star hotels, along with strict monitoring to prevent unhealthy price undercutting among hoteliers. The meeting also raised concerns about the lack of clarity in tourist distribution. While the Department of Tourism reports overall tourist arrivals, the group noted that there is no proper system to track where tourists are staying. They called for improved monitoring and tracking mechanisms. In addition, the hotel owners proposed the introduction of a hotel booking verification system. Under this system, tourists would be required to provide confirmed hotel booking vouchers and make advance payments before visa or permit issuance. The group said this would help ensure proper tax collection, secure payments for hotels before guest arrival, and provide clearer data on which hotel categories are benefiting. It would also assist banks in assessing the repayment capacity of hotel owners and enable the Department of Tourism to better track tourist distribution. The group requested the Department of Tourism to act as a bridge between the government and hoteliers, emphasizing the need for timely intervention. They said that without immediate action, many three star hotels could face loan defaults by next year, affecting the livelihood of thousands of Bhutanese who depend on the hospitality sector.