Gross National Happiness (GNH) in Bhutan’s GNH Tourism Model: An investigation using Grounded Theory Methodology Simon Teoh B. Tourism (Hons), Grad. Dip. Ed. (T/A), Grad. Cert. in B.Admin, Murdoch University This dissertation is presented for the degree of Doctor of Philosophy at Murdoch University October 2015 School of Arts Murdoch University, Perth, Western Australia Author’s Declaration I declare that this thesis is my own account of my research and contains as its main content work that has not previously been submitted for a degree at any tertiary education institution. ................................................................... Simon Teoh iii Abstract Gross National Happiness (GNH) is an aspirational development philosophy promoted by Bhutan’s 4th King. GNH attracted world attention at the United Nations (UN) when Happiness was declared the 9th Millennium Development Goal in 2012. This dissertation examines how GNH is manifest in tourism policy, planning and development in Bhutan. The study employs a constructivist grounded theory methodology (GTM). Data was collected through a number of qualitative methods, including fieldwork, participant observation, case studies, and semi- structured interviews with tourism stakeholders. The investigation follows the researcher’s journey, navigating through a romanticised notion of GNH, to experiencing the issues and challenges of the implementation of GNH policy in tourism in Bhutan. The GTM led the researcher to Foucault’s governmentality framework, which is used to examine the relationship between tourism development and GNH, in particular the changes in Bhutan’s tourism policy from high value, low volume to high value, low impact, between 2008 and 2012. The study uncovered a number of contradictions in the implementation of GNH; paradox through the change in tourism policy; tensions resulting from the Accelerate Bhutan’s Socio-economic Development (ABSD) Plan’s McKinsey Report; controversy around the Ura-Shinghkar Gold Course Development; and, the concerns of some tourism stakeholders about meeting the demands of increasing tourist numbers whilst maintaining GNH principles. The dissertation has found that the first term democratically elected Bhutanese government (2008 - 2013) prioritised economic benefits over its socio-cultural and environmental integrity through the ABSD Plan, and demonstrates the complexities involved in tourism policy, planning and development. The dissertation concludes that the ‘low impact’ tourism policy is unsustainable and proposes that reverting to ‘low volume’ is better aligned to the GNH value-led and slow- paced development philosophy. The study contributes an increased understanding of the complexities inherent in Bhutan aligning its tourism policy, planning and development with its GNH development philosophy. v Table of Contents Author’s Declaration iii Abstract v Table of Contents vii List of Tables xvii List of Figures xviii List of Text Boxes xxi Notes xxii Abbreviations xxiv Non-English Words xxvi Publications Associated With Dissertation xxviii Acknowledgements xxxi “Bhutan - Happiness is a Place” xxxv vii Chapter 1 : Shangri-La As Bhutan’s Gross National Happiness 1 1.1 Introduction 1 1.2 Bhutan’s Values 2 1.2.1 Buddhist Ethics 3 1.2.2 Buddhist Economics 5 1.2.3 GNH Influenced by Buddhism 6 1.2.4 Theravada and Mahayana Buddhism 7 1.3 A Brief History of Bhutan 8 1.4 The Concept of GNH 18 1.4.1 Happiness and Wellbeing as Shared Value in GNH 19 1.4.2 The GNH Index 19 1.5 Background to Study 21 1.6 Thesis Aim and Focus 24 1.7 Dissertation Overview 25 1.8 Conclusion 27 viii Chapter 2 : Grounded Theory Methodology 29 2.1 Introduction 29 2.2 The Methodological Journey 29 2.2.1 Qualitative Approach 32 2.2.2 Constructivist Paradigm 33 2.3 Grounded Theory Methodology (GTM) 33 2.4 Five Stages in GTM 36 2.4.1 Initial Data Collection 37 2.4.2 Coding 39 2.4.3 Memoing 40 2.4.4 Theoretical Sampling 41 2.4.5 Theoretical Saturation 42 2.5 Research Methods 42 2.5.1 Reciprocity 43 2.5.2 Fieldwork 46 2.5.3 Participant Observation and Engaged Listening 46 2.5.4 Document Analysis, Media and Social Media 49 2.5.5 Case Studies 50 2.5.6 Semi-structured Interviews 50 2.5.7 Data Analysis Using Nvivo 10 Program 51 2.6 Grounding the Theoretical Framework 53 2.7 Conclusion 54 ix Stage I : Before Visiting Bhutan 55 Chapter 3 : Romanticising Gross National Happiness 55 3.1 Introduction 55 Part I : Engaging With the Literature 56 3.2 The Problematic Nature of GDP 56 3.3 What is GNH? 58 3.3.1 An Enabling Environment for GNH 59 3.3.2 The GNH Index 60 3.3.3 The Weighting of Indicators 61 3.3.4 The GNH Policy Screening Exercise 62 3.4 The 2010 GNH Survey 65 Part II : The Research Journey Before Visiting Bhutan 68 3.5 The Bhutanese Cultural Event 68 3.6 Social Interactions With Bhutanese Students 71 3.7 Bhutan’s Challenges 75 3.8 Another Side of GNH: “An orphan of the 1990’s problem” 75 3.9 Conclusion 79 x Stage II : Preliminary Scoping Visit 81 Chapter 4 : GNH - The Realities in Bhutan 81 4.1 Introduction 81 Part I : Development Literature 82 4.2 Modernisation Theory 84 4.2.1 Bhutan’s Entry Into Modernisation 85 4.2.2 Human Development Index (HDI) 90 4.2.3 The Capabilities Approach to Development 92 Part II : Tourism Development in Bhutan 93 4.3 Tourism as a Catalyst for Development 93 4.3.1 Bhutan’s Tourism Development 94 4.3.2 Development Through Slow-paced and Value-led Tourism 96 4.3.3 The Tariff System 97 4.3.4 Tourism Royalty Fee 98 4.3.5 Route Restriction 99 4.4 Tourism Issues 101 4.4.1 Regional and Tariff Paying Tourists 102 4.4.2 Hotel Accommodation 103 4.4.3 Seasonality 104 4.4.4 Conclusion 105 Part III : My Tourism Experiences in Bhutan 105 4.5 Tourism Challenges 105 4.5.1 Thimphu 105 4.5.2 Takstang Monastery 112 4.5.3 Punakha Dzong 115 4.6 Conclusion 119 xi Stage III : The Workshop and its Aftermath for Me 121 Chapter 5 : Contradictions, Tensions and Controversy 121 5.1 Introduction 121 Part I : The Strategic Tourism Destination Development Plan Workshop 122 5.2 The Workshop 122 5.2.1 Tourism Consultants 122 5.2.2 Review of Tourism Policy Documents 124 5.2.3 The Tourism Council of Bhutan 126 5.2.4 Unease at the Tourism Stakeholders’ Meeting 129 5.2.5 Workshop Outcome 131 Part II : The Aftermath for Me 132 5.3 Contradictions: “Yet to walk the talk” in GNH 132 5.4 Tensions Generated by the Mckinsey Report 140 5.5 Controversy: The Ura-Shinghkar Golf Course Development 144 5.6 Theoretical Sensitivity 148 5.7 Grounding Interview Questions Through the GTM Process 149 5.8 Conclusion 154 xii Stage IV : The Interview Field Work 155 Chapter 6 : Cultural Events and Tourism Stakeholders’ Interviews 155 6.1 Introduction 155 Part I : Wedding, Tshechu and Funeral 156 6.2 Wedding, Tshechu and Funeral 156 6.2.1 The Wedding (Nyen gyi tendrel) 156 6.2.2 The Thimphu Tschechu 158 6.2.3 The Funeral (Mey yang) 162 Part II : The Tourism Stakeholders’ Interviews 164 6.3 Interview Procedure 164 6.4 Interview Respondent Demographics 165 6.4.1 Participant Age 165 6.4.2 Interview transcripts 167 Part III : Disjuncture 167 6.5 Tourism Stakeholders’ Interview Data 167 6.5.1 Happiness: “Happiness is only possible when happiness of others is ensured”. 168 6.5.2 GNH: “Theory is one thing and the practice is another thing”. 171 6.5.3 McKinsey: “We have become too ambitious, too greedy”. 176 6.5.4 Compromised Model: “You are paying for something which [is] under par”. 178 6.5.5 Ura-Shinghkar Golf Course: “It’s really not our tradition to play golf”. 180 6.6 Conclusion 186 xiii Stage V : Post Fieldwork - Analysis and Discussion 189 Chapter 7 : Governmentality in the GNH Tourism Model 189 7.1 Introduction 189 Part I : Foucault’s Governmentality 190 7.2 Governmentality 190 7.2.1 The art of government 192 7.2.2 The Conduct of Conduct of the Government 194 Part II : Governmentality in Bhutan 195 7.3 Governmentality in GNH 196 7.4 Governmentality in Tourism 198 7.4.1 Slow-paced and Value-led Tourism Development 200 7.4.2 The McKinsey Report: Promoting Rushed Growth 202 7.5 People power in the Ura-Shinghkar Golf Course Development (USGCD) 209 7.6 The politics in the Lhotshampa Refugee Issue 212 7.7 Conclusion 213 xiv Chapter 8 : Conclusion: “Oh! I miss those days” 215 8.1 Introduction 215 8.2 Manifestation of GNH 216 8.2.1 Coexistence of GNH and GDP 217 8.2.2 Bhutan’s Unresolved Issues 218 8.3 The Manifestation of GNH in Tourism 219 8.4 The Post-McKinsey Report GNH Tourism Model 221 8.5 Criteria for Grounded Theory Methodology 222 8.6 Limitations of This Study 223 8.7 Implication of Study on the Post 2015 New Development Paradigm 224 8.8 Recommendation for Further Study 224 8.9 Conclusion 227 xv References 229 Newspapers Reference List 254 Kuensel (Printed and Electronic) 254 Bhutan Observer 255 Business Bhutan 255 The Bhutanese 255 K2 Magazine 255 Appendix. Summary of Chapter-Specific Appendices (CD) 257 xvi List of Tables Table 1.1. The Bhutanese Kings. 11 Table 1.2. The Gross National Happiness Pillars. 20 Table 1.3. List of GNH’s 9 domains and 33 indicators. 20 Table 2.1. Coding in NVivo from interview transcript.