As part of this strategy, effective from June 20, 2022, Bhutan abolished the Minimum Daily Package Rate (MDPR) and raised the Sustainable Development Fee (SDF) from US$ 65 to US$200 per person per night which from June' 2023 got revised to US$ 100 per person per night . The SDF, collected by the national exchequer, supports Bhutan's development by funding various projects aimed at improving facilities, services, and infrastructure for both Bhutanese nationals and visitors.
The SDF is currently US$ 100 per person per night for all visitors except those from India, who presently pay INR 1200 per person per night. Children aged 6 to 12 receive a 50% discount, while those aged 5 and under are exempted. The SDF is payable for the duration of the traveler's stay in Bhutan.
The funds raised through the SDF are utilized for projects that promote Bhutan's economic, social, environmental, and cultural development. These include initiatives such as preserving cultural traditions, enhancing sustainability, upgrading infrastructure, and providing free healthcare and education. Bhutan, being vulnerable to climate change, also focuses on maintaining its status as one of the few carbon-negative countries in the world.
