Bhutan Economy

Bhutan's economy, one of the smallest and least developed in the world, is based on agriculture and forestry, which provide the main means of subsistence for more than 60% of the population.. Agriculture consists largely of subsistence crops and livestock. Its currency is the ngultrum, divided into 100 chetrum and convertible in official banks. There are several banks with branches throughout the country and the network of ATMs is increasingly extensive, being widely available in the main cities.

The rugged mountains dominate the terrain, and make the construction of roads and other infrastructure a difficult and expensive task. The economy is closely aligned with India through strong trade and dependence, monetary ties and financial assistance.

Electricity exports to India have spurred Bhutan's economic growth, although GDP fell in 2008 following an economic downturn in India, its dominant export market. New hydroelectricity projects will be the driving force capable of creating jobs and sustaining the country's growth in the coming years. There is no railway line in the entire country, so the means to quickly travel to the most important cities is using the services of local flights in small planes.

High-level education, as well as social and environmental programs are under development with the support of multilateral development organizations. Each economic program takes into account the government's desire to protect the country's environment and its cultural traditions. For example, the government, in its cautious expansion of the tourism sector, encourages the visit of tourists with greater social and environmental awareness, also offering them a quality service that includes accommodation in hotels of at least three stars, and the services of a professional guide, in addition to other services. Detailed controls and uncertain policies in areas such as industrial, trade, labor and financial licenses continue to hinder foreign investment. Television arrived in this country in 2000.

The entry of foreign visitors began in the 1970s. Since then, tourism has become an important pillar of the economy. The model developed by the government is 'high value, low impact'. This model refers to the high quality of services offered to visitors, while minimizing the negative impact on the environment. Thus, all tourists must visit the country by contracting the trip with a tour operator, and the price of the trip includes all meals, accommodation in at least three-star hotels, the services of a professional guide accredited by the Tourism Council, and transportation within the country with your own driver.