The government will keep the McKinsey and company’s projection of 250,000 tourists as an ‘aspiration’ but would focus on a lesser number of high-end tourists, Business Bhutan has learnt.
The media earlier reported that the Gross National Happiness Commission (GNHC) and McKinsey, an international consultancy firm, has projected an annual arrival of tourists in the next three to five years to 250,000. The reports created a lot of debates in the media, especially among tour operators on the practicability of the proposal.
But on the heels of the cabinet’s green signal to carry on with the McKinsey plans for the tourism sector, the government feels that it shouldn’t fuel public frenzy over the 250,000 figure.
“We are sticking to the 10th Plan proposal to bring in 100,000 high-end tourists,” said the GNHC secretary Karma Tshiteem.
Rather than the tourists arrival figures, the government would like to focus on the employment figure. “The main focus will be on 90,000 jobs,” said Karma Tshiteem on opportunities to be created once the McKinsey proposals are implemented.
On Monday, the cabinet, after meeting with McKinsey, the firm which the government employed for US$ 9.1m, decided to implement the ‘Accelerating Bhutan’s Economic Development’ project.
The plan is to create jobs in tourism; especially in areas like hospitality management, weaving, carving, and entertainment.
McKinsey, which would not only submit a report but also help implementing the project, has identified areas where Bhutan can accelerate tourism growth.
They found that local tour operators were tied up with small tour operators abroad. The consultancy firm will help local operators to tie up with big international tour operators.
But the GNHC secretary refuted media reports that Bhutan will adopt “marketing gimmicks” to entice tourists. “We are not looking for mass tourism, so we don’t need to adopt international market gimmicks,” he said.
McKinsey has also stressed domestic air service with airports at Yongphula, Bumthang and Gelephu. But Yongphula, since being in the east and by the virtue of already having an airstrip, will get priority.
When the media reported in July that the government is spending a huge fortune to invite a consultancy firm, there were lots of criticisms, especially in the public sphere and online forums. Some agencies felt they were not being consulted.
“We are optimistic about what the consultancy firm is doing. But what’s important is consulting with us,” said a representative of the Association of Bhutanese Tour Operators (ABTO).
But Kinley Wangdi of the Tourism Council of Bhutan said the agency was having serious meetings with the ABTO.
The McKinsey report also focuses on accelerating eco tourism, health tourism, and having Bhutan as a destination for international meetings and events.
The focus will be on easing ticketing and visa procedures and offering better hotel services. Refuting speculations that the 250,000 figure included tourists from the region, the government said it will focus on dollar-paying tourists.
After tourism, McKinsey will be focusing on other areas. Reforms in the health sector are already being looked at, the GNHC secretary said.
Though there has not been any solid proposals laid for other sectors like education and agriculture, McKinsey will finish the ground work within the next 20 months, according to the secretary.
The firm has also made presentations on opportunities in construction, and other sectors.
Since the tourism project has been approved by the cabinet, the consultancy firm will start implementing the plans with the Tourism Council of Bhutan.
The secretary also said the government will be looking at vocational education to create jobs.
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