Eastern Bhutan Circuit 1: Tourism Development Plan Mongar, Lhuentse, and Trashiyangtse DRAFT Beyond Green Travel LLC Table of Contents List of Abbreviations ................................................................................................................... 4 Executive Summary ..................................................................................................................... 5 I. Introduction ........................................................................................................................... 17 a. Bhutan in the Global Tourism Market ............................................................................. 17 b. Purpose and Scope of Work ............................................................................................. 20 c. Methodology .......................................................................................................................... 21 d. Market Analysis and Age Demographic ......................................................................... 23 e. Gender and Vulnerability ................................................................................................... 25 f. Strategy Overview ................................................................................................................ 27 II. Introduction to the Circuit 1 Eastern Dzongkhags of Mongar, Lhuentse, and Trashiyangtse ....................................................................................................................... 27 a. Introduction to the Provinces ........................................................................................... 28 Mongar ..................................................................................................................... 28 Lhuentse ................................................................................................................. 30 Trashiyangtse ........................................................................................................ 31 b. Additional Demographic Information on Eastern Provinces of Mongar, Lhuentse, and Trashiyangtse ........................................................................................... 33 c. Economic Participation and Employment Opportunities .......................................... 34 d. Tourism Visitation ................................................................................................................ 38 International visitation to Mongar, Lhuentse and Trashiyangtse ............ 39 Regional Tourist Visitation to Mongar, Lhuentse and Trashiyangtse .... 41 Current Available Accommodations in Circuit 1 .......................................... 42 e. Eastern Circuit 1 Products ................................................................................................ 43 f. Eastern Circuit 1 Market Value Chains ........................................................................... 46 g. Tourism Stakeholders in Circuit 1 ................................................................................... 47 III. Developing a Tourism Economy in Eastern Bhutan ................................................... 49 a. Circuit 1 SWOT Analysis .................................................................................................... 49 b. The Importance of Tourism Development in the East ................................................ 50 c. Current Tourism in the Circuit 1 Dzongkhags .............................................................. 51 d. Assessment of Challenges to Tourism Development ................................................ 53 Institutional Structure .......................................................................................... 53 Circuit 1 Tourism Development Plan, Draft Page | 1 August 2015 Overland Access ................................................................................................... 54 Access by Air Transport ..................................................................................... 56 Standard of Lodging and Accommodation.................................................... 57 e. Sustainable Tourism Development in Eastern Bhutan: Contextual Development and Differentiation ............................................................................................................... 62 Adventure Travel .................................................................................................. 63 Art and Spiritual Tourism ................................................................................... 64 f. Seeking a New Travel Demographic: Adventure Travelers ...................................... 66 g. Seeking a New Travel Demographic: Millennials ........................................................ 67 Characteristics of the Millennial Traveler ...................................................... 68 h. Liberalizing the Tariff Policy ............................................................................................. 71 i. Issues of Gender and Vulnerable Populations............................................................. 74 j. Other Barriers to Tourism in the Eastern Circuit ......................................................... 81 IV. Review of Circuit 2 Development Plan and Implementation Strategy ................... 82 a. Socio-Economic Profiling of the TPS Circuit ............................................................... 84 b. Destination Situational Analysis ...................................................................................... 85 c. Product Development Strategy ........................................................................................ 87 d. Tourism Marketing Framework ........................................................................................ 90 e. Organizational Framework ................................................................................................ 92 f. Tourism Investment Framework ...................................................................................... 93 g. Tourism Implementation Strategy ................................................................................... 95 h. Local Stakeholders Response to the Circuit 2 Report ............................................... 95 i. Strengths and Weaknesses of the Circuit 2 Tourism Development Plan ............. 97 V. Strategy: Recommendation for Tourism Development and Implementation Plan for Eastern Circuit I ............................................................................................................. 98 a. Overview ................................................................................................................................. 98 b. Infrastructure and Institutional Development ............................................................. 101 Institutional Capacity ......................................................................................... 101 Infrastructure Development: Transit to the East ........................................ 102 Home/Farmstays ................................................................................................. 103 c. Marketing Plan and Core Demographic ....................................................................... 104 Bhutan’s “Wild East” ......................................................................................... 104 Target the Adventure Travel Market .............................................................. 106 Target the Millennial Travel Market ................................................................ 107 Circuit 1 Tourism Development Plan, Draft Page | 2 August 2015 d. Training and Capacity Building ...................................................................................... 107 Hospitality Training ............................................................................................ 108 Guide and Activities Training .......................................................................... 109 Beautification ....................................................................................................... 110 e. Liberalizing the Tariff Policy ........................................................................................... 110 Scenario 1: Remove Tariff / Keep Royalty Fee in Eastern Bhutan ........ 111 Scenario 2: Reduce Tariff / Keep Royalty Fee in Eastern Bhutan ......... 112 Scenario 3: Tariff/Royalty stay the same .................................................... 112 The Thai Tariff Experiment ............................................................................... 113 The Chinese Tourist Market ............................................................................. 113 Regional Tourists ............................................................................................... 114 f. Priority Product Development Strategy for Circuit 1 ................................................ 115 Trashiyangtse Tourism Product Development Priorities......................... 116 Lhuentse Tourism Product Development Priorities .................................. 118 g. Addressing Gender/Vulnerability .................................................................................. 120 h. Access to financial resources ........................................................................................ 122 VI. Conclusion ........................................................................................................................... 123 VII. Implementation Plan ........................................................................................................