Punakha is a scenic, warm valley in west-central Bhutan that once served as the country’s capital until 1955 and today functions as the administrative centre of Punakha District. Situated at about 1,200 metres above sea level at the confluence of the Pho Chhu and Mo Chhu rivers, the valley is best known for the majestic 17th-century Punakha Dzong, the second-oldest and second-largest dzong in the country, as well as Chimi Lhakhang, the revered fertility temple.

Key Attractions and Experiences

Beyond its iconic dzong, Punakha offers a rich mix of cultural and outdoor experiences. Highlights include one of Bhutan’s longest suspension bridges and the Khamsum Yulley Namgyal Chorten, a hilltop monument commanding sweeping views of the valley. Visitors can enjoy river rafting on the Pho Chhu and Mo Chhu, gentle treks through farmland and forests, visits to nunneries, and explorations of nearby traditional villages.

Punakha’s Role in Bhutan’s Tourism Landscape

Thanks to its rich cultural heritage, scenic landscapes, and warmer climate, Punakha is among Bhutan’s most visited districts after Paro and Thimphu. Located about two hours from the capital, it remains a vital historical and cultural hub and a popular low-altitude alternative to Thimphu, especially during winter months.

The Need for a Dedicated Craft Market

Despite being a major tourist destination, Punakha has so far lacked a designated craft market, limiting visitors’ access to locally made handicrafts. Apart from a small outlet along the route to Chimi Lhakhang in Barp Gewog (village block), there have been few spaces where artisans could showcase and sell their work. The planned establishment of a new craft market is expected to address this gap, promoting indigenous crafts for both international visitors and the domestic market.

Progress and Project Background

Construction of the Punakha craft market has now achieved more than 20 percent physical progress. The ground-breaking ceremony (Salang Tendrel) was held on 7 February last year in Khuruthang, Punakha, and was graced by the Minister for Industry, Commerce and Employment, Namgyal Dorji. The project is an initiative under the Economic Stimulus Programme, implemented by the Department of Media, Creative Industry and Intellectual Property under the Ministry of Industry, Commerce and Employment, in collaboration with the Punakha District Administration. The market is being built near the Khuruthang KaJa Throm.

Design, Vision, and Completion Timeline

The market will comprise 27 traditionally designed structures dedicated to selling locally produced handicrafts and is expected to be completed by June 2026. Designed with rammed-earth walls and intricately crafted wooden elements, the market reflects Bhutan’s architectural heritage while serving a practical economic purpose. Beyond its visual appeal, the project aims to support local artisans, reduce reliance on imported handicrafts, and promote homegrown products.

Supporting Artisans and Enhancing Visitor Experience

By creating a dedicated space for indigenous crafts, the new market seeks to position Punakha as a key destination for travellers and collectors in search of authentic Bhutanese craftsmanship, while preserving and celebrating the country’s cultural legacy. For visitors, it will offer convenient access to a wide range of handicrafts in a single location, removing the need to visit multiple scattered shops and making the exploration of Punakha’s artisanal heritage more seamless and enjoyable.

Economic Impact and Future Potential

Funded through the Economic Stimulus Programme with an estimated budget of Nu 48 million, the project is overseen by the Department of Media, Creative Industry and Intellectual Property. As one of Bhutan’s key tourist destinations, Punakha holds strong potential to further develop and capitalise on its local handicraft industry, creating meaningful connections between visitors and artisans through authentic, locally crafted products.