21 February 2026

Is Bhutan Still Expensive? Understanding the New SDF, Real Costs & How to Plan Your Trip (2026 Guide)

For years, Bhutan carried a reputation — “the most expensive destination in the world.”

And honestly, it wasn’t entirely wrong.

There was a time when every tourist (except our friends from India) had to pay a fixed US$250 per person per day. That package covered your hotel, guide, car, meals and a US$60 Sustainable Development Fee (SDF) built into it.

Simple. Predictable. And yes — expensive.

But Bhutan has changed.

And if you are planning your trip now, you deserve to understand how.






The Big Shift After 2022

When Bhutan reopened in 2022 after the pandemic, the Government scrapped the all-inclusive package system.

Instead:

  • The Sustainable Development Fee (SDF) was raised from US$60 to US$200 per day.

  • Hotels, guides, transport and meals were no longer bundled.

  • The market was allowed to decide the cost of services.

The intention was clear — fewer tourists, higher value, stronger sustainability.

But the sudden jump created resistance from the tourism industry and confusion among travellers.

So Bhutan adjusted.

Today, the SDF stands at US$100 per person per day.

And that changes everything.


What This Means for You as a Traveller

You now have flexibility.

You can:

  • Book your own hotel.

  • Hire your own guide.

  • Arrange your own transport.

  • Choose your dining experiences.

The rigid package model is gone.

Bhutan is no longer “one price fits all.”

Your trip can now be:

  • Luxury and indulgent.

  • Comfortable and mid-range.

  • Or thoughtfully budgeted (within Bhutan’s standards).

The SDF remains mandatory — it supports free healthcare, education, infrastructure and environmental conservation — but your experience beyond that is now customizable.


Special Note for Indian Travellers

Travellers from India pay a much lower SDF — currently Nu. 1200 per day (approximately the same in INR).

This makes Bhutan one of the most accessible international destinations for Indian visitors.


So… Is Bhutan Still Expensive?

It depends on how you design your trip.

Let’s be honest.

Bhutan will never be a backpacker’s $20-a-day destination. That is not our model.

But it is no longer the rigid US$250-per-day country it once was.

Now, you decide your comfort level.

And that is a major shift.


Should You Book Independently or Through a Travel Agent?

Technically, you can arrange everything yourself.

But here is my honest advice.

Let a local travel agent handle your logistics.

Not because you cannot do it.
But because Bhutan runs on relationships.

A good local agent:

  • Knows which hotel suits your personality, not just your budget.

  • Knows which guide fits your interest — culture, photography, trekking, spirituality.

  • Knows road conditions, festival dates, quiet valleys.

  • Fixes problems before you even know they exist.

And here is something I have observed quietly over the years.

My Little Secret About Choosing a Tour Operator

Go with a small travel company.

The big ones are excellent — but they are handling hundreds of guests.

You may become one more booking number.

A small company?
You become their guest.

They give you attention.
They customise.
They care deeply because your experience is their reputation.

In Bhutan, reputation is everything.


How to Choose the Right Travel Partner

An official list of certified tour operators is available online.

Once you shortlist a few:

  • Speak to them.

  • Share your interests.

  • Ask how they would design your trip.

  • Notice how quickly and thoughtfully they respond.

A good agent will not sell you a package.

They will design a journey.


Bhutan has always been about balance — between tradition and progress, protection and openness.

Our tourism model is evolving the same way.

And if you understand how it works, you will realise something important:

Bhutan is not expensive.

It is intentional.

And intentional travel is always worth it.


If you are considering visiting Bhutan and want guidance on designing a meaningful journey — whether cultural, spiritual, adventurous or slow — write to me travel@passudiary.com

After all, Passu Diary has always been about stories.

Now, perhaps it is time to help you live one.