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When representatives of the government led by the prime minister called upon a consultative meeting with the stakeholders of the tourism industry Wednesday, the Tourism Council of Bhutan (TCB) hall was a chock-a-block.
Tour operators and guide association members were happy, but not the hoteliers. They did not want 100% Foreign Direct Investments in hotels below five star rating.
One hotelier voiced that Bhutan has about six more four star hotels in the pipeline in addition to about the four hotels that are already operational.
“It proves that we Bhutanese have the capability. The arrival of FDI’s in four star hotels may pose a threat to the existing four star and below hotels,” said Ugyen, a hotelier.
However, the economic affairs minister, Lyonpo Khandu Wangchuk, informed the gathering that Bhutan, as a destination for high end tourists, is already facing shortage of good hotels and resorts.
In support of the statement that Bhutan needs more high-end hotels and resorts, the works and humans settlement minister, Lyonpo Yeshey Zimba, said that even if the government allows 100% FDI’s in four star hotels, Bhutanese counterparts could still play their part by way of partnerships and joint ventures.
“We live in a very competitive world and opening up to FDI is a matter of time,” he added that four star hotels cannot be left to a handful of Bhutanese investors and that more competition must be welcomed.
Meanwhile, the recommendation of the government with regards to FDI in the hotel sector is a full 100% for five star hotels and a 70% or less holding by a foreign company and 30% or more by a local partner for hotels and resorts that are four star or below.
The hoteliers repeated their appeal saying that Bhutan may not have the capacity for five star hotels but at least four-star and below hotels and resorts should be left to Bhutanese investors.
Meanwhile, Pema, a Bumthang hotelier, said that a rich tourist doesn’t look for modern amenities in a hotel or a resort.
“It is only the low-end tourists who look for television and phones,” he said.
POSTED BY PHURBA D DORJI (Business Bhutan)