Bhutan Waives SDF for MICE Events
Bhutan seeks to establish itself as a prime destination for MICE (Meetings, Incentives, Conferences, and Exhibitions) events in the region.
The Department of Tourism Bhutan (DoT) has made an important announcement by granting an immediate exemption from Sustainable Development Fees (SDF) for the purpose of supporting the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector.
This initiative has been implemented with the goal of amplifying the positive impact of the MICE market on Bhutan's overall tourism industry, with a particular focus on benefiting local businesses and event venues within the country. In the year 2019, a total of 904 MICE travelers, primarily originating from Japan, the United Kingdom, Germany, and India, made a substantial contribution to the local economy and the community.
Dorji Dhradhul, the Director General of DoT, has stressed the significance of the MICE market as a major source of revenue within the global tourism sector. Recognizing the substantial economic advantages it can bring to Bhutan, the decision to waive the daily sustainable development fee for MICE events is seen as an enticing incentive aimed at attracting a larger volume of group business events to Bhutan.
SDF waiver for MICE events in Bhutan
Initially, the Sustainable Development Fee waiver was exclusively applicable to government-organized events and meetings. However, this waiver has now been extended to encompass all tourism-related events organized by tour operators and hoteliers.
To qualify for this SDF waiver, events must have a minimum of fifteen participants including speakers, or hosts. Participants may benefit from the waiver for up to five nights per event, excluding travel days. It is important to note that this waiver is only applicable to participants themselves, and not to their dependents.
Procedure to apply for MICE SDF Waiver
Applicants interested in availing the MICE SDF waiver must submit their requests at least one month prior to the scheduled event, and they must also secure any necessary clearances or approvals in advance. Following the departure of the event's attendees, a comprehensive report that includes the outcomes of the event and relevant photographs must be submitted to the Department within a month.
For MICE participants who decide to extend their stay in Bhutan as tourists, they will be required to pay the applicable Sustainable Development Fees (SDF) for the additional days they spend in the country. This initiative is designed to encourage MICE travelers to explore Bhutan's tourism offerings beyond their business events, ultimately benefiting the country's tourism industry.
OVERVIEW OF HOSTING A MICE EVENT IN BHUTAN:
1. Organizers of MICE events can apply for an SDF waiver meeting the other requirements outlined in this document. 2. The minimum group size to qualify as a MICE event is fifteen participants. This includes speakers, panelists and other resources.
3. A maximum of 5 nights SDF waiver can be granted to all participants per event, including travel days. The idea is that the attendees will pay the SDF to extend their stay in Bhutan and enjoy the destination as a tourist.
4. The SDF waiver can be granted to only the participant; meaning that the partners, children and friends are not entitled to an SDF waiver. Proof of ID of the participants will be required at the time of application.
5. MICE events can be organized any time of the year.
6. All MICE events must be organized and/or hosted by a DoTr-certified Bhutanese Tour Operator or Bhutanese Hotel. 7. The event must be approved by the Ministry of Industry, Commerce and Employment and Department of Tourism will conduct spot checks to ensure the SDF waiver for MICE is used / applied as per the stated purpose.
8. A summary of the event including the outcomes and photographs must be submitted by the organizing partner to DoTr ASAP and (and within a maximum timeframe of one month) following the departure date of the guests, otherwise the full SDF of the participants will be levied on the organizing partner.
9. DoTr must be given access by the organizer anytime to monitor MICE events.
10. If an organizer is discovered to have strayed from the planned itinerary or misused the MICE waiver for other purposes, they will face penalties, which may include the revocation of their license, a suspension from opening another business for a period of 24 months, requirement to pay the full SDF for all participants, among other possible penalties.
11. Extensions on SDF waivers for MICE events are not possible.
12. To be eligible for the MICE SDF waiver, the meeting, conference, or exhibition aspect of the event should span at least two full days. These can be distributed over various days; for instance, events structured as half-day meetings coupled with half-day tourist activities are permissible, provided the total encompasses at least two full days of meetings or workshops.
13. Organizers are responsible for ensuring adequate health and safety protocols for all attendees and venues, including emergency preparedness. Organizers are responsible for ensuring that MICE events in Bhutan are conducted responsibly, safely and sustainably.
14. All existing tourism-related rules and regulations will still apply. For instance, a guide will be required to accompany the group.
15. The participants will be required to process for route permit wherever applicable.
DEFINITION:
A MICE group refers to a meeting, incentive group, conference or exhibition being organised in Bhutan, typically organised for professional, educational or business purposes.
EXCLUSIONS:
The following types of activities and categories will not be applicable for a tourism MICE SDF waiver (even if they include any kind of meeting in the itinerary):
a. Personal gatherings such as weddings, anniversaries, family reunions, and other celebrations
b. Any kind of music or cultural festival
c. Any kind of leisure tourist itinerary or programme
d. Any kind of adventure or sports tourism
e. Visits to explore historical sites, cultural landmarks, museums, and festivals that are not linked to a specific business or professional event
f. Trips focused on health, wellness, and medical treatments, including spa visits, yoga retreats, and medical tourism
g. Visits to religious sites for spiritual purposes or participating in religious ceremonies
h. Traveling with the primary purpose of volunteering for a charitable cause or community service project
i. Gatherings centred around hobbies or special interests such as bird watching, photography, cooking classes, or other clubs
j. Individual travel experiences focused on personal enrichment, exploration, or relaxation without a business or professional agenda
k. Educational trips and student exchange programmes
l. Incentive groups without any business or meeting component as part of the itinerary
How much is the Sustainable Development Fees (SDF) for Bhutan?
All tourists entering Bhutan are subjected to a Sustainable Development Fee (SDF) of USD 100 per night.
Children under 5 years old are exempt from the SDF, while those aged 5 to 12 years are required to pay USD 50 per night.
Regional tourists from India are required to apply for a permit and pay 1200 INR/night.
For more information about organising MICE events in Bhutan, check out www.micebhutan.com.
