Budgeting is a key part of planning any holiday, and if you're dreaming of exploring the Land of the Thunder Dragon, you're probably asking: How much does it cost to travel to Bhutan?
Bhutan is not a budget destination, and that’s entirely intentional. The country follows a “high value, low impact” tourism model to protect its culture and environment. So yes, visiting Bhutan is more expensive than many other places in Asia. But in return, you get a more meaningful, immersive, and sustainable travel experience. If you have any questions, please feel free to schedule a call with us. We will break down all the main costs: visas, daily fees, accommodation, food, guides, and more, so you can budget smartly and know exactly what to expect.
Pack horses on the Jomolhari trek, carrying supplies to set up camp in Bhutan’s high mountains.
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Bhutan’s 5% GST
Bhutan now applies a 5 per cent Goods and Services Tax (GST) on all tourism services, including hotels, guides, transport, and meals. The USD 100/night Sustainable Development Fee and USD 40 visa fee are not affected. The GST replaces the old 10 per cent sales tax on accommodation and food; the overall impact on your trip is not that much and is around 2–4 per cent per package, depending on your itinerary.
The real challenge isn’t the tax itself, it’s how it’s presented by tour operators. Some may include it in a lump-sum quote, leaving travellers unsure what they’re actually paying for. To avoid surprises, always request an itemised quote before paying any deposit. This ensures transparency and keeps your budget on track. The GST slightly adjusts every service inside your mandatory Bhutan tour package, but with a clear, itemised quote, it’s manageable and will let you focus on experiencing Bhutan’s culture, landscapes, and trekking adventures.
Bhutan is known for its magical landscapes.
Bhutan's Sustainable Development Fee (SDF)
Since opening its borders to tourism in 1974, Bhutan has followed a carefully crafted tourism policy designed to protect its unique culture and pristine environment.
Back in June 2022, Bhutan replaced its previous “Minimum Daily Tariff” with the Sustainable Development Fee (SDF), a daily charge that all tourists (except Indian nationals) must pay. This fee supports initiatives in conservation, education, and infrastructure.
The SDF is a per-person, per-night fee. Initially set at US$200, it was reduced in 2023 to US$100 for adults and US$50 for children aged six to 12 to encourage longer stays. This reduced rate is in effect until 31 August 2027.
The daily tourist fee levied by the Government of Bhutan no longer covers any of your accommodation, meals, transport, and so on. The daily visa fee is now purely a sustainable development fee.
Please note: While nationals from the South Asian Association for Regional Cooperation (SAARC) countries, namely India, Bangladesh, Nepal, Sri Lanka, Pakistan, Afghanistan, and the Maldives, are exempt from the SDF when visiting Bhutan for official or national business, this exemption doesn’t apply to tourism.
SAARC travellers visiting as tourists must pay the SDF on arrival at their port of entry. For Indian nationals, the Sustainable Development Fee (SDF) is set at 1,200 Bhutanese Ngultrum (around US$15) per person, per night—payable in either ngultrum or Indian rupees.
Learn more: Best time to visit Bhutan to enjoy good weather, pretty landscapes and cultural festivals
What this means for Bhutan travellers
Simply put, the Sustainable Development Fee helps keep Bhutan special. By making travel here more exclusive and costly, Bhutan discourages mass tourism, which can lead to overcrowding, environmental damage, and loss of cultural authenticity.
While Bhutan doesn’t impose a strict limit on visitor numbers, the SDF acts as a smart filter, ensuring tourism remains sustainable and that this majestic country stays one of the most culturally intact and environmentally pristine destinations in the world.
If you’re planning your trip to Bhutan, understanding the Sustainable Development Fee is important to preparing your budget and appreciating the thoughtful approach Bhutan takes to protect its heritage and environment.
Bhutan's high-value, low-impact tourism policy has helped the country retain its character and pristine environment.
Learn more: Bhutan’s best festivals
Bhutan visa
Almost all travellers need a visa to visit Bhutan, except those from India, Bangladesh, and the Maldives. The visa costs US$40 per person and is non-refundable.
Please note that you must secure a visa before entering Bhutan.
Visas must be arranged through a licensed Bhutanese tour operator or their international partner. While you can apply online, you still need to have your trip booked with a registered operator. This helps you get the most out of your daily SDF after all, you don’t want to waste those US$100 days stuck on logistics. Also, remember you’ll need to pay the SDF for every day of your stay at the time you apply for your visa. Many travellers feel safer working with a trusted agency like Follow Alice, especially when making large online payments.
Hidden away in Bhutan’s northeast, Lhuentse is a land of timeless traditions and breathtaking mountain scenery.
Learn more: 12 reasons why good tour guides are so important.
A tour guide in Bhutan
There’s been some confusion recently around whether tourists can travel independently in Bhutan without a guide. As of September 2023, the answer is no, a local tour guide is still mandatory for all foreign visitors. This requirement reflects Bhutan’s commitment to preserving its cultural integrity and ensuring visitors have meaningful, well-supported experiences. It also aligns with the country’s “high value, low impact” tourism model, which has helped make Bhutan one of the world’s most exclusive and environmentally conscious travel destinations.
A local tour guide is still compulsory on a Bhutan holiday
At Follow Alice, we believe strongly in using local guides. For one, it ensures that tourism directly creates jobs and supports local communities, a cornerstone of sustainable travel. Just as importantly, travelling with a guide brings many benefits to you as the visitor, such as:
- Keeping you safe.
- Helping you avoid cultural misunderstandings.
- A local companion whom you get to know well and share meaningful conversations with.
- Taking the stress out of logistics, from admin to navigation.
- Acting as your translator and helping you connect with other locals.
- Making sure you don’t miss hidden gems and lesser-known experiences.
Tour guide prices vary. If you travel with a tour operator, the tour guide's fee will be included in your package fee. So you likely won't know what precise sum goes to the local guide unless you ask for a price breakdown.
Note that the minimum monthly wage in Bhutan is just under 50 USD (or 3,750 Bhutanese ngultrum – BTN). The Bhutanese government is pretty good in terms of providing oversight to ensure employees of the tourism sector are being properly looked after. So you shouldn't come across any dodgy tour companies regarding the compensation of their guides. Schedule a call with our team, we would love to help you plan your trip to Bhutan.
Follow Alice's guide, Passang, from Bhutan, captured here while taking the group photo.
Learn more: Bhutan – not just a place, but a feeling
Accommodation in Bhutan
Accommodation is one of the biggest items in any holiday budget. So this is a figure you want to calculate as accurately as possible.
Example of a simple, 3-star hotel bedroom in Paro.
There are many three-, four- and five-star establishments in Bhutan, and prices can vary wildly from one to the next within the same rating. For instance:
- A standard double room in a three-star hotel in the city of Thimphu in November (peak season) can cost anywhere from around 40-80 USD (taxes and fees included).
- A standard double room in a four-star hotel at the same time of year generally costs anywhere from 90 to 250 USD (taxes and fees included).
- The cost of a five-star hotel in Bhutan can vary widely depending on location, season, and inclusions. It's best to do your research ahead of the trip.
Bhutan offers a wide range of accommodation options, varying in both style and price. Keep an eye out for special offers and discounts; they can make a huge difference to your stay.
The gorgeous entrance to Namgay Heritage Hotel in Thimphu.
Finally, if you head to less-visited parts of the country, like the east and south, you can expect cheaper accommodation there.
If you go on a multiday trek like the Laya trek or Jomolhari trek, your accommodation (tents) will be included in your trekking package fee (which will also likely include meals, a cook, a porter, and your trek guide).
Learn more: Bhutan's Laya trek route
Bhutan’s food and drinks
Here are the prices of some basic items and meals to help you plan your budget:
The restaurant at Terma Linca Resort & Spa in Thimphu.
Learn more: 3 traditional Bhutanese dishes everyone must try!
A vehicle and a driver in Bhutan
The best and easiest way to get around Bhutan outside of the cities and towns is by car. Bhutan has no trains. There are very few internal flights. And while public buses are available in certain districts, they're generally overcrowded and uncomfortable.
It used to be that a vehicle, petrol (fuel) and the services of a driver were part and parcel of the Bhutan daily visa. Now, however, hiring a car will be an added expense. And if you want a driver, that will be a further expense too.
While you can drive yourself in Bhutan (provided you have a valid driver's licence), there's a lot of value to hiring the services of a driver if you can. Most obviously, you can simply say where you'd like to go and be taken there, instead of trying to read a map or using your GPS (and then bickering over who is to blame when you end up in a cul-de-sac in a misty forest).
Learn more: 6 things to know before visiting Bhutan
Entrance fees to Bhutan's tourist spots
You can expect to pay an entrance fee to visit museums, monasteries, palaces, memorials and other such sites in Bhutan. If you wish to attend a Bhutanese tschechu (festival) – and if you're smart, you wish to indeed! You'll also need to pay an admission fee.
As of July 2022, most sacred sites now carry an entrance fee of between 1,000 BTN (~12.50 USD). These sacred sites include the country's many dzongs (fortress temples) as well as the famous Buddha Dordenma in Thimphu.
Taktsang (or Tiger's Nest Monastery) – Bhutan's most famous dzong is an exception to the rule, costing 2,000 BTN (~25 USD) per person.
Bhutan's iconic Tiger's Nest Monastery.
If you travel to Bhutan with a tour operator like Follow Alice, your guide will take care of entrance fees for you. It’s also important to note that on six auspicious days each year, many cultural and religious sites, including temples, dzongs, and monuments, are closed to foreign visitors and reserved exclusively for Bhutanese citizens.
These closures are tied to important national holidays and Buddhist festivals, which are determined by the lunar calendar. On these days, locals go to monasteries and temples to pray, celebrate, and take part in rituals, and the spaces are kept sacred for their use only. The dates change annually; it’s important to check with your tour operator in advance to see if your trip coincides with any of these closures. That way, you can plan your itinerary accordingly and avoid disappointment.
While it may sound like an inconvenience, many travellers find this aspect of Bhutan fascinating. It’s a reminder that in Bhutan, cultural traditions and spiritual life are prioritised and protected, and visitors are welcomed to experience the country in a way that respects those values.
Learn more: 15 incredible wild animals of Bhutan
Bhutan adventure activities
As our Bhutan itineraries show, this is a country built for adventure. You can set out on a multi-day trek through the Himalayas, or choose something shorter but just as exciting, like:
- White-water rafting (there are Class II to V rapids)
- Kayaking
- Cycling
- Mountain biking
- Hiking
- Hire a mountain bike for the day
- A rafting trip on the Mo, Po or Manas Rivers
Rafting on the Mo River in Punakha.
Learn more: Best time to visit Bhutan to enjoy good weather, pretty landscapes and cultural festivals
Travel insurance
With its stunning scenery and unique traditions, it’s easy to see why Bhutan is becoming a sought-after hotspot for travellers. But it’s important to understand how much a trip to Bhutan actually costs. Although travel insurance is no longer required for your visa, the Department of Tourism strongly recommends having it. It’s a sensible precaution to cover any unexpected emergencies during your trip. Make sure to arrange your travel insurance before you go.
Travel insurance is an absolute must whenever travelling outside your own country. If you travel with Follow Alice, it’s a compulsory purchase. Be sure to factor this important item into your Bhutan travel budget.
When taking out travel insurance, we advise choosing one that offers cover for all of the following:
- Delayed, cancelled or interrupted travel.
- Medical insurance.
- Lost or damaged luggage.
Here's a brief description of each item below:
Delayed, cancelled or interrupted travel
Delayed travel covers things outside of your control, like a traffic jam preventing you from reaching the airport on time, a mechanical issue with your plane, or severe weather preventing the plane from reaching its destination. Given that bad weather is a part of the Himalaya vibe, this is an important aspect to cover. Delayed travel also covers missed connections that are out of your control.
Trip cancellation covers having to abort your trip beforehand for reasons such as injury, illness, severe weather, a natural disaster or a terrorist attack at your destination.
Trip interruption covers the costs involved when you have to abort your trip post-departure, for any of the same reasons listed for trip cancellation. Both trip cancellation and trip interruption should also cover having to cancel or abort a trip as a consequence of illness or injury of a travel companion or family member.
Learn more: Bhutan's Laya trek route
Medical insurance
Regular medical aids don’t cover medical expenses incurred outside of your own country. This is why medical insurance is a critical component of any traveller’s insurance. Proper medical insurance covers medical emergencies as well as medical evacuation. This means that should you fall ill or be injured, your insurance will pay for all hospitalisation and doctor fees as well as all transportation to and from the hospital (including ambulance services) and to get you back home.
Learn more: Discover Bhutan
Lost or damaged luggage
The cover for lost or damaged luggage is important. Should your luggage go missing en route to Bhutan, you could use the insurance money to gather together what’s needed in Paro. You can then continue with your trip without having to wear the same smelly pair of socks every day.
Learn more: Bhutan – not just a place, but a feeling
Recommended cover
We recommend that you cover yourself to the tune of at least 200,000 USD for each of the above categories of insurance (save luggage).
Most of us at Follow Alice, as well as many of our clients, opt to buy travel insurance from World Nomads or Rise and Shield. They offer coverage for more than 150 adventure activities, including high-altitude trekking. We would, however, recommend that you also do your own research into finding a company that you feel offers comprehensive yet affordable insurance.
Whichever travel insurance you choose, we’ll require you to send us the details of your policy before you arrive in Bhutan.
Note that many credit cards offer free, automatic travel insurance when you book your flights with them, so do look into this. The cover usually isn’t enough on its own, but it’s a useful extra. Also, pay special attention to exactly what is and isn’t covered by your credit card. This is to ensure your independent traveller’s insurance covers all gaps and shortfalls.
Bhutan dzong with white flags.
Learn more: Bhutan's national animal, the takin, is the largest mammal you've never heard of
Tipping in Bhutan
Tipping isn’t compulsory in Bhutan, though it's appreciated. If you go with a tour guide and driver, please budget for tipping them at the end. If you're happy with the service received, then 10 USD per day for your tour guide is a good figure, and we recommend 6 USD per day for your driver.
If you go trekking in Bhutan, then tipping your support staff (like your guide, cook and porter/horseman) is also an appreciated gesture. Around 8 to 10 USD for your guide per day is a good rule of thumb if you decide to budget for tipping. Consider 5 to 8 USD per day for your other support staff.
Learn more: Highlights of Bhutan and 2-day Bumdra trek
Extra cash in Bhutan
Consider bringing along a little extra cash to buy souvenirs and other local items. The Bhutanese are renowned for their beautiful handwoven textiles, for instance, and you might wish to pad your luggage with a gorgeous silk wrap or stylish gho (long robe).
Bhutanese artisans create exquisite, high-quality handwoven textiles.
Bhutan's currency
The currency in Bhutan is the Bhutanese Ngultrum (BTN). It’s set to trade at the same value as the Indian rupee. As of mid‑2025, the exchange rate between the US Dollar and Bhutanese Ngultrum (BTN) is approximately 1 USD ≈ 86 BTN. Please note that this is subject to change, and we advise that you always check the latest currency rates. Should you want to draw cash while in Bhutan, you’ll find ATMs in all of the major towns.
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SIM cards and eSIM accounts
The cheapest way to stay connected in Bhutan is to buy a local SIM card or use a data package through an eSIM app. On arrival in Paro, you can purchase a short-validity tourist SIM for 200 BTN. You’ll need to fill in a form and have your passport photo copied, and your tour guide can assist if needed. Data packages start at just 150 BTN for 1 GB (less than 1 USD or 1 euro).
A slightly more expensive but convenient option is an eSIM, which you can buy before your trip without registering locally. Prices vary by provider; for example, with Airalo, 1 GB for a week costs around 9.50 USD.
Jigme Dorji National Park, Bhutan, is home to stunning landscapes and diverse wildlife.
Learn more: Bhutan travel guide – Top 12 places to visit in Bhutan
Ready to plan a Bhutan adventure?
Curious about Bhutan? Check out our suggested itinerary and discover the full range of Follow Alice trips. If anything sparks a question, just contact us. We’re always happy to help.
