Is there a 'minimum daily spend' in Bhutan, and does it vary on citizenship?

I went there solo for 5 days in 2007, as part of a backpacking trip, and it’s like this:

1. You contact a tour agent ("operator") and explain that you just want to see the sights for N days. (Many of their tourists hire porters for serious mountaineering.) You will be quoted the minimum rate of $200/day or whatever.

   If the rate is different or the reply isn’t prompt, try a different agent. His job is simple: hire the guide and driver, file the paperwork. In my case, the operator did not seem to own or "operate" anything, nor make concrete itinerary plans.

2. You wire the money to the agent up front. You’re not in the country yet!

3. You should be placed in contact with the actual guide. Now is the time to finalize the itinerary.

4. Buy the obligatory one ticket on Druk Air or Bhutan Airlines. If you like Bhutan, you’ll probably like the nearby parts of India, so it’s sort of pointless to fly both ways, unless perhaps you have very specific plans.

5. Go there and enjoy the trip. The quoted rate covers all travel expenses, lodging, and food.

   The only expense after the down payment is souvenirs, and anything you might do without the guide.

Unlike the rest of South Asia, there are no "tourist markets" for overpriced souvenirs. Actually, aside from one store in Thimpu, there was no souvenir shop at all. There was not one ATM in the country as of 2007.

Outside the (small) cities, the accommodations will be modest, because there are no hotels or proper restaurants. (There’s still plenty of hospitality, of course.) So, there’s no reason the rate would go up, unless you ask to spend the whole time in proper, urban hotels. But what tourist wants that?

I bought a small tapestry, some silver jewelry, and a few trinkets. The guide brought me to the market for the sake of getting any essentials I might need, not souvenirs. He was a little bemused about my excitement to buy random, ordinary things. (Bhutanese lawn darts!)

I bought a Gho before entering Bhutan, just across the Indian border. The guide said it was the better deal. At about US$70 (top of the line), that alone probably cost as much as everything else combined.

Once you’re there, you’ll see the reason for the policy. There are very few foreigners there, especially backpackers. The Bhutanese people are very curious and interested in other cultures, but they’re also vulnerable and impressionable. The government is rightly cautious and even suspicious.

For the price of a fancy hotel, you get the run of the country and you’ll never think about money once you’re there. Once you cough up the flat rate, it’s actually a backpacker’s paradise.

For starters it is not a “minimum spend”, rather it is the base rate per day for tours. It covers your government taxes, accommodation, three meals, guide services and transport. If you are doing some more specialized like white water rafting, climbing, etc there is a supplement. If you are wanting to stay in upscale hotels there is a supplement.

The only way to visit Bhutan is on a package organized through a Bhutanese tour company or through an international tour operator who has an agreement with a Bhutanese tour company. Independent travel is not allowed.

Bhutan, unlike Nepal who threw open their doors without controls, has been cautious in opening up to the world. They are controlling development to maintain thier identity and culture, They are using the higher fees we tourists pay to improve their country’s infrastructure. They are limiting the numbers who visit.

Tourism is one of Bhutan’s biggest foreign currency earners after electricity, one could almost call it their only other source of foreign currency.

While the costs can be high for budget travelers, I think Bhutan has done well with their approach. Having watched places like Kathmandu de-evolve due to over development and increasing numbers of tourists, I would hate to see the last Himalayan kingdom fall to the same mistakes.

Unless you’re an Indian, Bangladeshi or Maldivian citizen, you are unable to enter Bhutan without going through a Bhutanese tour agent – either directly or via a tour agent in your own country. You will not receive a visa otherwise.

These tour agents are the ones that effectively “ensure” that you will meet the minimum spend as per Bhutanese tourist rules.

Yes, seriously, although the US$65 “royalty” is actually included in the US$200 “daily package fee”. However, that’s the group rate (3 or more people), you get socked another $40/30 per person if you’re traveling solo/duo, and another $50/night/person if you’re visiting when it’s neither midwinter nor monsoon (March-May, Sep-Nov).

Bhutan explicitly wants cashed-up tourists and not penurious backpackers, so the rates are high. The only exceptions/discounts are:

• Citizens of India, Bangladesh and the Maldives, who don’t need visas
• Young children: no royalty under 5, 50% off under 12
• Students: 25% off

The alternative is to wrangle an invitation from a Bhutanese citizen or organization, but obviously this requires actually knowing someone, there’s no Russia-style invitation letter mill. Volunteering is one way in, but the competition’s pretty tough.