Thimphu, Bhutan. Photo for representation.  iStock
Environment

Bhutan example: ‘Pay to protect’ psychology should shape tourism in the Himalayas

As mass tourism weighs on Joshimath, it is time for Himalayan policymakers to prioritise ecological foresight

Dica Acharya

  • Bhutan’s $100 tourism tax serves as an eco-friendly model contrasting with Joshimath's environmental challenges.

  • Bhutan's Sustainable Development Fee promotes responsible tourism, funding healthcare and forest conservation.

  • This is in contrast with Joshimath's unchecked tourism leading to ecological damage.

  • The approach highlights need for Himalayan countries to prioritise ecological foresight over mass tourism.

Hotels tore apart and roads cracked open when Joshimath started sinking in January 2023. In 1976, the Mishra Committee cautioned against the construction on old landslides debris but Uttarakhand received some 54 million visitors in 2022, pushing concrete jungles to suddenly mushroom up on ecological areas.

In my home 300 miles to the east in Bhutan, the story is different. Bhutan, the carbon-negative nation, charges a Sustainable Development Fee (SDF) of $100 per night per person, alongside high value-low volume tourism. Critics call it elitist. I refer to it as ecological foresight.

Psychology of "pay to protect"

The mantra of tourism in South Asia is very simple: More heads, more revenue. This book game violates one of the fundamental economic facts, that of the Tragedy of the Commons. Mountains, rivers and glaciers are overused and destroyed by having free access.

Bhutan reverses this logic. The $100 SDF is a behavioral filter that will only allow serious travelers to get in. It is not some tax, but rather psychological infrastructure. Behavioral economics demonstrates that people appreciate what they pay: A tourist who spends $100 / night will not litter garbage, and he / she requires practices that are friendly to the environment.

Real numbers, real impact

The SDF mechanism in Bhutan generated Nu 43.31 million in 2025 and funded the following: Free healthcare services and education for every Bhutanese; maintaining forest cover at 60 per cent (constitutional requirement); carbon offset projects that do not eliminate negative emissions.

This is in contrast to Joshimath where free tourism meant:
• Plastic debris chocking Rohtang Pass.
• Traffic smog in the valleys in Mussoorie.
• Drowning down hotels whose cleanup expenses are a liability to the taxpayer.

The Bhutan model internalises the externalities. Tourists pay ecological cost in the form of transparent fund, rather than environmental debt.

3 solutions for India

Bhutan demonstrates that Himalayan countries require tension rather than easing. India may not require $100 / night expenses because of its diverse socioeconomic backgrounds. But following interventions can be effective:
1. Back-end pricing of high-altitude zones: Cars have to pay the green tax to access Valley of Flowers, Kedarnath (similar to ultra low-emission zone in London). Revenue funds restoration.
2. Carrying capacity caps: Daily tourist numbers at delicate glaciers. Gates close in when limits met — non-negotiable.
3. Mandatory eco-insurance: There is a charge of $2 / night on the hotel bookings channeled to the Himalayan Restoration Fund. Automatic, transparent.

Mission LiFE meets reality

Mission LiFE (Lifestyle for Environment) by the Narendra Modi government requires behaviour change. However, it is behaviour that does not change with posters, but with choice architecture.

The default option of sustainable tourism was engineered by Bhutan. There should be no cost-saving in driving SUVs to Ladakh as compared to the trains. Visiting Valley of Flowers on the spot should not be simpler than making a reservation.

Final invoice

The fissures are not local, but Himalayan. We may argue about the charges of Bhutan when our common mountains are falling, or we may come to a cruel reality: These mountains are not eternity, but luxury.

Nature always sends the bill. The cost of the reconstruction of Joshimath is more expensive than the charge of $100 in Bhutan. It is not about whether Himalayan policymakers can afford to charge, but "Can we afford not to?".

Dica Acharya is a Bhutanese researcher pursuing MSc in Ecology and Environment Studies at Nalanda University, with a background in development economics from Royal Thimphu College, Thimphu. Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth,