Bhutan, otherwise known as the mystical Land of the Thunder Dragon, is an intriguing nation where tourism plays an extremely vital role to economic and social development despite the low volume of visitors.

According to Tshering Tobgay, Bhutan’s prime minister, who held a dialogue with a group of Singapore journalists during a fam trip organised by Singapore-based travel agency Chan Brothers Travel, the nation’s tourism thrives on a disproportionately valuable brand identity, one that embodies happiness, the allure of Shangri-La, deep spirituality, and a commitment to being environmentally friendly and carbon negative.

This powerful image, intrinsically linked to its Gross National Happiness philosophy, is a cornerstone of Bhutan’s appeal and is further reinforced by its Tourism Master Plan 2025-2034, which prioritises regenerative tourism. This High Value, Low Volume strategy aims to balance economic development with environmental stewardship, ensuring that the benefits of tourism are broadly distributed while preserving the nation’s cultural identity.

Tourism currently contributes approximately 10 per cent to Bhutan’s GDP in 2025. The Tourism Master Plan aims to elevate this to 15 per cent by 2050.

“We want tourism to make Bhutan better – bettering locals’ lives and transforming the lives of (visitors). Tourism must regenerate, restore and revive places, communities and people. This is our goal,” said Damcho Rinzin, director for Bhutan’s Department of Tourism.

Within Asia-Pacific, Singapore is one of Bhutan’s top priority tourism source markets. Arrivals from Singapore grew by 61 per cent from 2,036 in 2023 to 3,277 in 2024, with 1,814 visitors recorded between January and June 2025.

“The projected number (of Singaporean travellers) for this year is 3,000. Singapore is currently the fourth biggest inbound market for Bhutan, just 1,000 travellers behind third-placed China,” Rinzin shared with TTG Asia.

Although the majority of Singaporean travellers are first-time visitors, the Department of Tourism is seeing a modest but steady interest from repeat travellers. Based on feedback from operators, such travellers are more likely to seek wellness retreats, spiritual experiences, or visit lesser-known regions such as central Bhutan.

Hilal Kolu, co-founder of Routes and Journeys, told TTG Asia: “The Singapore market was the first South-east Asian market to explore Bhutan. The first charter was in 2008, after (Hong Kong) actor Tony Leung got married in Bhutan.”

Routes and Journeys is a B2B travel company and DMC specialising in leisure tours. It builds accessibility through chartered flights, prominently offering direct services to Bhutan from places like Singapore, Kuala Lumpur, Hong Kong, and Vietnam. It currently has around 20 Bhutan products listed on the Chan Brothers Travel website.

Pema Tashi, co-founder of Routes and Journeys, is in the process of developing adventure travel-focused itineraries in Bhutan – such as hiking and mountain biking – for Chan Brothers.

“We recently launched itineraries in eastern Bhutan, as Paro and Thimphu are quite well known already. The eastern part of Bhutan is really authentic, beautiful, and is a must-visit. Hopefully, more Singaporeans will be back for a second visit,” he said.

To get there, travellers have to fly from Singapore to Paro, where a smaller chartered aircraft will take them to a domestic airport in eastern Bhutan.

Rinzin said 2026 arrival target is set at 300,000, with no more than 50 per cent from India, the Kingdom’s top market at the moment. Other source markets in Asia-Pacific include Thailand, Malaysia, Bangladesh, and China.

When asked about plans to expand destination marketing to other markets, Rinzin told TTG Asia that efforts are already underway in Australia.

Bhutan has seen steady growth from Australia, from 1,187 visitors in 2023 to 1,710 in 2024, and 1,123 arrivals recorded in 1H2025 alone. This reflects the “effectiveness of our engagement with Australian trade partners and media”.

Visitors to Bhutan have to commit to a daily Sustainable Development Fee (SDF) of US$100. When asked if this requirement made Bhutan too pricey for the average traveller, Rinzin said this fee was revised downwards from US$200 previously to make Bhutan more accessible.

He also stressed the importance of the SDF – it contributes significantly to national revenue and facilitates free healthcare and education for citizens.

He added that as the country is still developing, a lot of infrastructure is needed. Funding for critical development comes from the SDF.

An example of the SDF’s role in nation building is the development of Gelephu Mindfulness City (GMC), which helps to transform Bhutan’s economy, increase its level of participation in international markets, and generate opportunities for the next generation of Bhutanese.

GMC is a Special Administrative Region, “with its own government, legislature, judiciary, and its own rules and regulations”, Tobgay stated.

The construction of the new international airport at GMC is underway now.

When asked about developments in air access to Bhutan, Tobgay said air service agreements are being signed “with as many countries as possible”.

At present, only two airlines operate flights into Bhutan – Drukair and Bhutan Airlines.

He hopes that these agreements will translate into actual services eventually.

Further tourism development efforts include plans to promote Bhutan as a year-round destination, where Rinzin’s team is aiming to create a star attraction for each of Bhutan’s 20 districts.

As to whether the country will welcome more high profile concerts – such as that headlined by Ed Sheeran, who made history as the first international artiste to hold a concert in Bhutan in January 2025 – Rinzin said Bhutan is ready.

“People thought they could not have a concert in Bhutan, but it’s about building visibility and awareness,” he remarked.