june 2009 planned activities 2010 - 2011

Annual Report 2009
ASSOCIATION OF
BHUTANESE TOUR
OPERATORS
ANNUAL REPORT 2009
AUDITED REPORT JULY 2008 - JUNE 2009
PLANNED ACTIVITIES 2010 - 2011
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Annual Report 2009
Mission Statement
“To develop and promote the Bhutanese tourism
and travel industry with the highest standards of
service, ethics and professionalism in line with
the noble vision of Gross National Happiness.”
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Annual Report 2009
CONTENTS
Board of Directors
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Representation to Boards and Committees
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Working Groups
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Year in Review
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PART A: Activities, 2009-10
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1 Operational
1.1 Tourist Tariff
1.2 Survey of Merak and Sakten Trekking Route
1.3 Entry and Exit via Samdrup Jongkhar and Gelephu
1.4 Waiver of Import Duty on Tourist Buses
1.5 Visa Application issues
1.6 Coordination with Druk Air
1.7 Vehicle Movement during SAARC Summit
1.8 Visa online
1.9 Economic Development Policy-2010
1.10 Travel Fairs
1.11 ABTO website
1.12 Insurance Schemes
1.13 Registration under the Civil Society Organization Authority
1.14 Initiated Annual Moenlam
1.15 Earthquake Relief Fund
1.16 Negative List
1.17 Payment Refund to Affected Clients
1.18 Development of Research Unit
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2 Infrastructure
2.1 Trek Routes Assessments
2.2 Gangtey Alternative trek
2.3 Toilet at Gangtey Gonpa
2.4 Construction of Amenities at Punakha
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3 Publications
3.1 The Pilgrim: For the Spirited Traveler
3.2 Bhutan Travel Directory 2010
3.3 Pictorial Guide book on wild flowers of Bhutan
3.4 Adventure Tourism Guidelines
3.5 Digital Copy of Business Development Skills
3.6 Digital Copy of Marketing and Packaging
3.7 Handbook on Basic GNH principles
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Annual Report 2009
CONTENTS
4 Projects
4.1 Strengthening of Tour Operator Associations
4.2 Rural Adventure Tourism Enhancement
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5 Human Resource Development
5.1 Business Development Skills Training
5.2 GNH Awareness Workshop for Guides
5.3 Marketing and Packaging Training
5.4 Capacity building training for Secretariat staff
5.5 River Rafting Training
5.6 Japan Ecotourism Training
5.7 Short-term Training on Tourism Management
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6 Tourism Statistics
6.1 Arrival and Revenue Generated (2005-2009)
6.2 Activity Wise Arrival (2005-2009)
6.3 Nationality Wise Arrival for 2009
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7 Audited Report
7.1 Income and Expenditure Statement
7.2 Balance Sheet
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PART B: Planned Activities for 2010-11
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1. Operational
1.1 Trekking and Health Insurance with RICBL
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2. Publications
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3. Projects
3.1 Incorporating Socially Responsible Practices
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4. Sustainability of ABTO
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5. Work plan for 2010-11
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6. Organizational Chart
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Tentative Festival Dates For 2010
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Tentative Festival Dates For 2011
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Annual Report 2009
Board of Directors
Board of Directors
Board of Directors
Board of Directors
Chairman
Mr. Yeshey Norbu
Managing Director
Norbu Bhutan Travel
Vice Chairman
Board of Director
Board of Director
Board of Director
Mr. Rinzin Ongdra Wangchuk
Co-Partner
Mr. Karma Lotey
Managing Director
Mr. Kinley Gyeltshen
Co-Partner
Gangri Tours & Treks
Mr. Hishey Tshering
Managing Director
Bhutan Heritage & Birding Travels
Board of Director
Board of Director
Board of Director
Board of Director
Mr. Chencho Wangdi
Managing Director
Mr. Gembo Tshering
Managing Director
Mr. Namgay Tshering
Managing Director
Mr. Sonam D. Dorjee
Managing Director
Yu-Druk Tours & Trek
Exotic Destination
Yangphel Adventure Travels
Dragon Trekkers
Namgay Adventure Travel
Nirvana Expeditions
The Chairman and the Board of Directors has the pleasure in presenting the 10th Annual
Report of the Association. The report covers the Association’s major activities, audited
statement of financial performance and tourism statistical information for 2009.
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Annual Report 2009
Representation to Boards and Committees
A.Tourism Council of Bhutan
1. Mr. Yeshey Norbu as Council Member
10.Mr. Tokey Dorji, Happy Holidays
B.
12.Mr. Tashi Gyeltshen, Bhutan Menlha Adventure
11.Mr. Dorjee Wangchuk, Gangkar Adventures
Bhutan Chamber of Commerce and Industry
1. Mr. Yeshey Norbu as Executive Committee
Member
C.SAARC Tourism Council
1. Mr. Hishey Tshering as Member
B.
Hotel and Services
1. Mr. Chencho Wangdi, Chairman, Exotic
Destination
2. Mr. Karma Lotey as Member
2. Mr. Dipendra Giri, Zamling Tours
3. Mr. Namgay Tshering as Member
3. Mrs. Rinchyan Dolmma, Kinjore Tours
4. Mr. Ramesh Chettri, Padmasambhava
Tours
D.Tourism Development Fund Management Committee (TDFMC)
1. Mr. Yeshey Norbu as Member
5. Mr. Tshering P Dorji, Absolute Bhutan
Travel
2. Mr. Kinley Gyeltshen as Member
3. Mr. Chencho Wangdi as Member
4. Mr. Sonam Dorji as Member Secretary
E.
Clean Bhutan (Initiative under RSPN)
1. Mr. Sonam Dorji as Member
Working Groups
A.
Airline and Reservation
1. Mr. Karma Lotey, Chairman, Yangphel
Adventure
2. Mr. Karma T. Rinchen, A Middle Path to
Bhutan
3. Mr. Samdrup Wangchuk, Bhutan Free
Spirit
4. Mr. Leki Dorji, Passage to Himalayas
5. Ms. Karma Wangmo, Norda Expeditions
Human Resource Development
1. Mr. Kinley Gyeltshen, Chairman, Gangri
Tours
2. Mr. Karma T. Rinchen, A Middle Path to
Bhutan
3. Mr. Ratu, Yangphel Adventure
4. Ms. Lily Wangchuk, Absolute Bhutan Travel
5. Mr. Jigme Tshewang, Country Travels
6. Mr. Tshering Dhendup, All Bhutan Connection
D.Infrastructure and Product Development
1. Mr. Hishey Tshering, Chairman, Bhutan
Birding and Heritage
2. Mr. Tshewang Rinchen, Yangphel Adventure
6. Mr. Sangay Wangchuk, BTCL
3. Mr. Karma T Rinchen, A Middle Path to
Bhutan
7. Ms. Kinley Lemo Dorji, Bhutan Norphel
Tours & Treks
4. Mrs. Thinley Dem, Bara Lynka Tours and
treks
8. Mr. Yeshey Nidup, Zuki Tours & Treks
5. Mr. Pema Gyelpo, Bhutan Ancient Tours
and Treks
9. Ms. Sonam Choden, All Bhutan Connection
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C.
6. Ms. Lily Wangchuk, Absolute Bhutan Travel
Annual Report 2009
7. Mr. Anan Loza, Keys to Bhutan
5. Mr. Deepak Tamang, Raven Tours and Treks
8. Mr. Tashi Gyeltshen, Bhutan Menlha Adventure
6. Mr. Dendup Chophel, Phuensum Norgay
Tours & Treks
9. Mrs. Phub Zam, Yarkay Tours and Travels
7. Mr. Karma T Rinchen, A Middle path to
Bhutan
10.Mr. Nim Dorji, Snow lion Adventure
E.
Media Management
Year in Review
1. Mr. Sonam D. Dorjee, Chairman, Nirvana
Expeditions
The 2009 was a challenging year for the tourism industry as well as the nation as a whole. The tourism
industry was adversely impacted by the economic
crisis, the (H1N1) influenza pandemic, and natural
disasters which took the lives of innocent people
across the nation.
2. Mr. Sangay Wangchuk, Etho Metho
3. Mr. Dragyel Tenzin Dorjee, Bhutan Tsechu
Tours and Treks
4. Mr. Tshering P Dorji, Absolute Bhutan
Travel
5. Mrs. Dechen Ongmo, Mahakala Tours and
Treks
F.
Procedure Streamlining
1. Mr. Rinzin O. Wangchuk, Chairman, YuDruk Tours
2. Mr. Tshering Tashi, Jojos Adventure
3. Mr. Ugyen Youser, Yangphel Adventure
4. Mr. Karma T. Rinchen, A Middle Path to
Bhutan
5. Mr. Duptho, Shangrila Bhutan
6. Mr. Anan Loza, Keys to Bhutan
7. Mr. Tashi Gyeltshen, Bhutan Menlha Adventure
8. Mrs. Thinley Dem, Bara Lynka Tours and
Treks
9. Mrs. Phub Zam, Yarkay Tours and Travels
G. Waste Management
1. Mr. Namgay Tshering, Chairman, Namgay
Adventure
2. Mr. Gembo Tshering, Vice Chairman,
Dragon Trekkers
3. Mr. Sunil Kumar Sunar, Amankora Paro
4. Mr. Sonam Jatso, Insiders’ Bhutan
Overall, there was decline in tourist arrivals, and
the resulting decline in tourism revenue negatively
impacted tourism trends and the socio-economic
growth of the country.
However, these misfortunes should not overshadow
the significant contributions, achievements and accomplishments that have occurred within the sphere
of our own national policies and outreach operations.
The year set some important milestones, including the formulation of the Economic Development
Policy and finalization of the tourism tariff. Exemptions of sales taxes and customs duties on the import
of vehicles and equipment for tourism purposes, as
well as the increase in the tourism tariff to USD $250
per person per night are just a few of the significant
achievements of the past year.
For ABTO, development of a membership network,
effective dissemination of information, and soliciting feedback was always a concern. Introduction of
a monthly e-newsletter and new magazine, The Pilgrim have helped the Association to improve network and add value by diversifying communication
channels.
In addition to negotiations, the Association has spent
time on an organizational assessment to realize own
strengths and weaknesses focusing on primary roles
and responsibilities and sustainability. In order to
add value and improve the delivery of member services, the Association developed a discount insurance
scheme, improved its’ website and membership database system.
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Annual Report 2009
The Association exists because of the members;
therefore, your continued guidance, support and
contributions will always be of utmost importance
as the Association strives to bring positive changes
about in the tourism industry. Therefore, collaboration is essential in order to achieve the overall objective of high value and low volume policy in the tourism industry.
In brief, the Association would like to present synopsis of major activities, events and achievements of
the Association in the various categories mentioned
below.
PART A: Activities, 2009-10
1Operational
1.1 Tourist Tariff
The Executive Order # C-2/498, dated 13th November 2009 issued by the Government raised
many reservations and queries among the general
members. The main contentions were directives
number 5 on “re-allocation of Nu. 26 million from
TDF towards Destination Marketing budget” and 5
(f -i) on “Roll out of the integrated channel, price
and supply policy that liberalizes the minimum
package price and mandatory package via tour
operator requirement; yet ensuring royalty revenue to the government”
The Association sought views and comments from
the general members, which was further deliberated
during the several meetings for follow up.
ABTO Board Members with contribution from the
general members, prepared ABTO Position Note #
758 and submitted it to various levels for deliberation. As a result, town hall meeting was convened
with Hon’ble Lyonchhen and relevant dignitaries on
24th February 2010. The major outcome was the finalization of tourism tariff to USD 250/- per person
per night.
1.2
Survey of Merak and Sakten Trekking
Route
Opening of Merak and Sakten has been in the top list
of Association’s petition to the government for many
years. The government has finally approved opening of Merak and Sakten with effect from September
2010.
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1.3
Entry and Exit via Samdrup Jongkhar
and Gelephu
ABTO has also been petitioning to the government
to allow entry and exit for tourists via the border
towns of Samdrup Jongkhar. Finally, Samdrup Jongkhar and Gelephu have been approved during the
1st Tourism Council meeting held on 22nd January
2010. These two towns have also been declared as
royalty free zones both for entry and exit for transit
purposes only with effect from 1st May 2010.
1.4 Waiver of Import Duty on Tourist Buses
The Association has consistently followed up with
the government through various submissions on
the waiver of import duty and sales tax on import
of buses for tourists’ buses and equipments. Finally,
the Department of Revenue and Customs, Ministry
of Finance has approved exemption of customs duty
and sales taxes on import of buses by tour operators. Although, petitions have been made for the approval of vehicle on need basis, the government has
announced the import of one bus with minimum of
2,590 mm wheelbase in a period of five years only.
1.5 Visa Application issues
Realizing the negative implications of requirement
to submit passport size photograph when applying
tourist visas, the Association has raised the issue with
the Department of Immigration. Since there was very
poor response, the matter was further raised with the
Hon’ble Prime Minister during a business community
meeting. The Hon’ble Prime Minister had directed
the Tourism Council of Bhutan and Ministry of Home
& Cultural Affairs for immediate solution. ABTO is still
following up on the matter.
1.6 Coordination with Druk Air
Regular meetings between Druk Air management
and ABTO Board members and the Airline Subcommittee were held to address some of the pertinent
issues such as Druk Air schedules, ticketing and
reservations, token systems, customer services, surcharges and timely notification.
Druk Air has improved the existing system by moving to a new system with additional features such as
the ability to waitlist passengers, online viewing of
the available seats, transparency at the counters and
also introduced the Internet Booking Engine (IBE) for
effective service delivery. The feedback for the new
Annual Report 2009
system is being compiled by the Association for follow up and deliberation with Druk Air.
On the additional and split flights Druk Air has been
very cooperative and through our coordinated efforts,
around ten flights have been inserted based on the demand from tour operators. Further, off-season discount
was maintained by Druk Air upon ABTO’s request.
1.7
Vehicle Movement during SAARC Summit
As Bhutan hosted the 16th SAARC Summit in April
2010, ABTO mediated on the restrictions opposed
by the government on vehicular movement within
Thimphu city. As such, the movement of around 200
tourist vehicles was facilitated during SAARC Submit
period through collaboration and coordination between ABTO, RSTA and Traffic police.
1.10 Travel Fairs
In the last two and a half years ABTO in collaboration
with TCB coordinated travel fairs facilitating the participation of over 65 tour operators. The major travel
fairs included JATA, in Japan, ITB in Germany, WTM
in UK, and FITUR in Spain. Since January 2010, TCB
has taken over the responsibilities of facilitating and
coordinating all travel fairs.
As a member of UFTAA, ABTO had the privilege to
send five member tour operators to participate in
Further, ABTO was able to facilitate issuing of permits
to Indian tourists visiting Bhutan through licensed
tour operators during the SAARC Summit period.
1.8 Visa online
The Visa Online project initially initiated by ABTO is
now in the testing phase with TCB and the Department of Immigration.
The Visa Online Process was launched on 27th September 2009, coinciding with World Tourism Day. The
implementation of the online process is in full swing
and hopefully the system will be fully operational by
the end of 2010.
1.9 Economic Development Policy-2010
After a series of consultations with the general members on the draft economic policy, ABTO solicited
comments on tourism specific issues/clauses for submission to the government. Since ABTO was involved
in the draft policy consultation meetings, most views
submitted were reflected in the policy paper. Following the finalization of the Economic Development
Policy, the Ministry of Finance circulated the Fiscal
Incentive Rules and Regulations 2010 on 2nd April
2010, for all the incentives as prescribed in the policy
document. Under the sector specific tax incentives,
the tourism industry has the maximum number of
incentives including exemption of sales tax and customs duties on import of buses and adventure tourism equipments.
the International Tourism Exchange –BIT Milan, in
Italy (18th-21st February, 2010) with free of cost.
The fair introduced a new concept: BUY WORLD, a
global workshop - under the joint patronage of BIT
and United Federation of Travel Agents’ Associations
(UFTAA) where buyers and sellers worldwide has met
to do business. Out of the forty interested tour operators, five were selected on a lucky dip basis.
1.11 ABTO website
The Association redesigned its website through the
project on Strengthening Tour Operator Associations
in Bhutan and Costa Rica. The listing of tour operators’ company name is in the form alphabetical order arranged within English alphabet. The member
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Annual Report 2009
forum is being designed, which will display important information and downloads for members only.
The general information and synopsis of important
downloads and publications will be provided in the
home page for general viewers.
1.12 Insurance Schemes
ABTO has signed a Memorandum of Understanding
with the Bhutan Insurance Limited, to underwrite
motor insurance policies, fixed assets/ property insurance to ABTO and its members.
BIL provides the following discounts on insurance
premium for the properties of ABTO and its members
insured with BIL keeping in view the significant insurance business volume from ABTO.
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Motor vehicle fleet discount of 20% on own
damage premium subject to insurance of
more than 31 vehicles within a colander
year
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Insurance rates and coverage is applicable
for all types of motor vehicles except two
wheelers
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Fire insurance and allied perils policy premium discount of 5%
•
Umbrella discount for all other insurance
business: 3%
ABTO is further working with RICBL to offer trekking
and health Insurance; this will be an additional service to ABTO members.
1.13 Registration under the Civil Society
Organization Authority
ABTO applied for Civil Society Organization (CSO)
status as a mutual benefit organization with the Civil
Society Organization Authority. Once ABTO become
the member of the CSO Authority, it becomes convenient for the Association to represent tour operators at various levels both national and international
for the overall benefit of the tourism industry.
1.14 Initiated Annual Moenlam
On behalf of all tour operators, ABTO organized a
Moenlam ceremony on 10th March, 2010 to express our solidarity towards the victims of the recent
earthquake(s) in the east and also for the well being
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of all the people in the country. ABTO solicited voluntary contributions from the member tour operators
and was able to collect Nu. 50,000/-.
ABTO is planning to organize an annual ceremony in
future for the well being of the people and the nation.
1.15 Earthquake Relief Fund
In order to express the tourism industry’s solidarity
towards the victims of the 2009 earthquake(s) in the
east; the TDFMC on behalf of the industry had contributed Nu. 1.00 million towards the His Majesty’s
Kidu Fund from the TDF.
1.16 Negative List
The restrictions of tourists visitation are always our
concern. To simplify tourist visitation, the Association
has requested that the government to come up with
list of off-limits places and attractions so that the tour
operators do not promote these attractions. After a
series of consultative meetings with the Ministry
of Home and Cultural Affairs, the government has
finally confirmed the list of off-limits places and attraction that will be restricted for tourism purposes.
Accordingly, the Association has circulated to all tour
operators for reference.
1.17 Payment Refund to Affected Clients
As a result of the recent volcanic ash, thousand of
European flights have been cancellation thereby
compelled travelers either to discontinue or cancel
their travel. Such unforeseen situation was a serious
concern for the tour operators and affected clients.
As such, the Association on behalf of those tour operators and clients, requested concerned agencies
to reconsider necessary refund after verification. The
Druk Air and Tourism Council of Bhutan looked into
the matter and considered a waiver/refund to the affected clients.
1.18 Development of Research Unit
A research unit within the ABTO Secretariat is established to carry out internal research on tourism statistics and membership incentives. The research unit
will be further developed to improve membership
system for effective service delivery. A comprehensive membership system for ABTO will be designed
as per the requirements of member tour operators.
Annual Report 2009
2Infrastructure
2.1 Trek Routes Assessment
Due to a flash flood and consistent rainfall, most of
the bridges along the trek routes were either damaged or washed away. ABTO requested that the government to assess the trek route in consultation with
the relevant agencies. Accordingly, a team from TCB
was sent for an assessment and the consequences of
the damage were submitted along with estimations
for maintenance. Dhur Tsachu Trek was one of trek
routes severely damaged and an alternative route
from Dhur Tsachu down to Menchugang was identified to continue tourism activities.
2.2 Gangtey Alternative trek
In early 2009, ABTO proposed the development of an
alternative trek route in Gangtey because the existing trek route had been deteriorated by the logging
activities and road. A team from the TCB Secretariat
carried out a feasibility survey on the development of
an alternative trek route along the traditional route
starting at Phobjikha and exiting at Ninzegang Lhakhang. TCB has planned to build guest lodges along
the campsites.
2.3 Toilet at Gangtey Gonpa
Recognizing the historical importance of Gangtey
Goemba overlooking the Phobjikha Valley and the
habitat of the rare Black-necked cranes and being
aware of the sanitation and hygiene as always a
concern not only to the tourists but also for the local people, the urgent need to have a proper toilet
was considered. Accordingly, ABTO and TCB agreed
to support and provide the proposed budget for the
construction of toilets at the Goemba. A Memorandum of Understanding was subsequently signed
between TCB, ABTO and Gangtey Goemba to ensure
proper maintenance of the amenity and to establish
network between the tourism industry and the monastery for better coordination, management and
promotion of the cultural resource.
2.4 Construction of Amenities at Punakha
Through the Rural Adventure Enhancement and
Sustainable Community Development Project, the
basic amenities such as toilets, washroom, water
supply and waste disposal pits are developed in
Zomlingthang and Samdingkha in Punakha. The facilities will be used for rafting purposes, which will
be owned and managed by the local communities of
the said villages.
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Publications
3.1 The Pilgrim: For the Spirited Traveler
ABTO has revamped its previous edition of Discover
Bhutan magazine and henceforth the first travelogue
in Bhutan published by ABTO shall be titled as “The
Pilgrim: For the Spirited Traveler”.
The magazine will feature tourism related travelogue
with an added emphasis on culture, travel destinations, hot spots, and snippets. It should raise labels
and have a social-infotainment element to it too in
the form of human stories, features without straying
from the travel theme. Additional supplements in the
form of advertorials, infomercials and catalogues will
be a valued addition. The core focus of The Pilgrim
will be on the Bhutanese tourism sector and their
role and impact along with the socio-cultural and
economic make-up reflecting the ‘tourism-situation’
and ‘condition’ of the country. Stories will focus on
but not be limited to:
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The impact of global pop culture.
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Tourism hot spots and travel trends.
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Emerging potentials (opening up of new
sectors).
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Model/Inspirational stories related to or
influenced/affected by tourism
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Bridge the gap between tradition and modernity.
•
Issues reflecting the season and the potential therein.
•
Highlighting institutions/ organizations that
work with/ help/ aid/ promote/ benefit the
tourism sector.
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Annual Report 2009
•
National/Regional/District/Business/Personal profiles and personalities related to
Tours
tourism or-Cultural
model-stories
(success stories).
•
Government policies related to tourism,
-Weaver’s Tours with visits to weavcultural
andstay.
its preservation.
ers’heritage
homes and home
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-Bhutanplans
Personalized
with
Policies,
and Trips:
promotions
related to
negotiable itinerary design for your
tourism.personal experience.
•
-Treks
The magazine
will make use of Drukpa and
ABTO’s existing facilities.
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The environment.
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Art and craft.
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Culture.
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Conservation and preservation of the above
VOLUMe 1 ISSUE 1 june 2010
travel
Directory
2010
Nu.100
Tashi Tshering,
Blue Mountains Tours and Treks,
Changidaphu, Thimphu, Bhutan
Email : [email protected]
[email protected]
Website: www.cometobhutan.com
the
Bhutan
Bhutan
ContaCt aDDRESS:
travel Directory 2010
-Art of Bhutan Tour with artist guides.
pilgrim
AssociAtion of BhutAnese tour operAtors
www.abto.org.bt
For The Spirited Traveler
Cover.indd 1
7/22/2011 12:12:22 PM
3.3
Pictorial Guide book on wild flowers of
Bhutan
The pictorial guide book contains wild flowers of
Bhutan with brief descriptions as a reference for
the tour operators, guides and tourists for locating
the flowers. The information and photographs were
obtained by the Association through the project on
Strengthening Tour Operators Associations in Bhutan and Costa Rica. A digital copy of the information
is available in the book format, which will be uploaded in the websites (www.abto.org.bt and www.
bhutan-costarica.net) for information and reference.
Terrain
(Pull-Out)
the pilgrim tours
The first brochure in a series of
specially designed itineraries
Children of a
Lesser God
Telling
Talisman
APPROACHING
THE LOST HORIZON
“Burns
so good”
A Guide to Wild Flowers of Bhutan
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BUMTHANG
Botanical name: Arisaema concinnum Shott
Family: Araceae
Local name: Dho(Dzo)
Flowering season: May-June
Altitude ranges: 1700 - 2500m
Distribution: Thrumshingla, Wangthangla, Tang,
Ura, Gezamphok
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3.2 Bhutan Travel Directory 2010
The Bhutan Travel Directory 2010 is published and is
being distributed to the members, Missions and Embassies abroad. The publication is done on a self sustenance basis. This is an annual publication of ABTO,
which highlights about tourism in Bhutan along with
the contact details of the active members of the Association.
BUMTHANG
Botanical name: Arisaema
nepenthoides(Wallich)
Martius ex
A Guide
to Wild Flowers of Bhutan
Schott.jpg
Family: Araceae
Local name: Dho(Dzo)
Flowering season: May-June.
Altitude ranges: 2000 - 3300m
Distribution: Thrumshingla, Ura
Botanical name: Amaranthus lividus L
Family: Amaranthaceae
Local name: Ludey Jhar(Nep)
Flowering season: May – August
Altitude ranges: above 1200m
Distribution: Chumi, Tharpaling, Chokhortoe
Botanical name: Begonia picta Smith
Family: Begoniaceae
Flowering season: July – September
Altitude ranges: 600 – 2800m
Distribution: Yotongla, Chumey.
Botanical name: Hedera nepalensis K.Koch
Family: Araliaceae
Flowering season: September - October
Altitude ranges: 1800 - 3000m
Distribution: Tangsibi, Ura
Botanical name: Arisaema griffithii Schot
Family: Araceae
Local name: Dho(Dzo)
Flowering season: May-June.
Altitude ranges: 2400 - 3000m.
Distribution: Ura, Thrumshingla
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ASSOCIATION OF BHUTAN TOUR OPERATORS
Botanical name: Arisaema
jacquemontii Blume
Family: Araceae
Local name: Dho(Dzo)
Flowering season: June - August
Altitude ranges: 2400-4000m
Distribution: Yotongla, Chumey, Ura,
Thrumshingla
Botanical name: Impatiens edgeworthiiHook.f.
Family: Balsaminaceae
Flowering season: June – September.
Altitude ranges: 1500 – 2700m.
Distribution: Ura, Chumey
ASSOCIATION OF BHUTAN TOUR OPERATORS
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Annual Report 2009
3.4 Adventure Tourism Guidelines
Under the Programme for South South Cooperation
through the Rural Adventure Tourism Enhancement
and Sustainable Community Development project,
the Association has drafted the Adventure Tourism
guidelines (ATG) through the expertise from Costa
Rica. The finalized version of ATG will be provided
to the TCB Secretariat as a reference for the development of adventure tourism products in Bhutan. The
soft copy of ATG will be posted in the website, www.
abto.org.bt and www.bhutan-costarica.net for reference.
3.5
Digital Copy of Business Development
Skills
Under the Capacity Strengthening project, a five
days training was be given to Bhutanese tour operators on Business Development Skills to address the
needs of the tour operators to enable them to work
efficiently through improved service delivery, product differentiation and more socially, environmentally and economically responsible manner. A useful
and practical digital copy of the handbook on developing the basic skills of improving business is made
for the tour operators. Soft copy of the information
will be available in www.abto.org.bt or www.bhutancostarica.net. In addition to Business Development
Skills materials, there are other useful reports such as
organizational assessment report, structure of ABTO
report, revenue generation report etc, which are
done through the same project.
tour operators during the Marketing and Packaging
Training under the Capacity Strengthening project
funded by Programme for South-South Cooperation.
This training focused on how to strategically plan our
marketing activities, identify, analyse and segment
potential markets, conceive and build packages for
target markets, present these packages to the market with integrated communications, achieve market
access through a variety of distribution channels,
and use market research techniques to constantly
improve marketing performance.
Through this material, you will be able to grasp the
knowledge to start building your own marketing
plan specifically designed to meet the needs and
wants of the target market and raise the profile of
your business. Through this digital copy, ABTO intends to share the essential marketing and product
packaging advice that would of help to anyone overcome any marketing challenges, which will be available in www.abto.org.bt and www.bhutan-costarica.
net
3.7 Handbook on Basic GNH principles
Gross National Happiness (GNH), the development
philosophy of Bhutan, is gaining the attention of the
people worldwide. Each day, more tourists are keen
to be exposed to Gross National Happiness. As such,
ABTO conducted an intensive four days conference
on “Fundamentals of Gross National Happiness and
Spirituality in Bhutan” at the Institute of Management Studies on July 6, 2009 to 20 tour guides.
3.6
Digital Copy of Marketing and Packaging
Very helpful materials on marketing and packaging
training will also be available at the Association and
common website. The material is a collection and
compilation of all the useful information delivered to
The objective of the course was to impart participants with the fundamental information on GNH and
Spirituality in Bhutan to better inform their clients.
A handbook on the fundamentals of GNH and Spirituality is available in ABTO office.
13
Annual Report 2009
4
Projects
4.1 Strengthening of Tour Operator Associations in Bhutan and Costa Rica
This project aims to strengthen the capacity and
influence the tour operator associations and members in Bhutan and Costa Rica and to improve market linkages with the United States and Western
Europe in a sustainable way. These market linkages
will be improved by developing institutional linkages, destination marketing and by establishing a
social, environmental, and economic sustainable
base for the private sector with the following specific objectives:
•
•
Improve capacity and restructuring of the
tour operator associations (TOA), which can
support business development in a propoor sustainable manner in both Bhutan
and Costa Rica.
Increase knowledge on and access to the tourism markets of the United States and Western
Europe by developing sustainable market linkages between Bhutan and the target markets
and Costa Rica and the target markets.
Major outcome of the Project:
4.2 Rural Adventure Tourism Enhancement
Under the Programme for South South Cooperation
through funding from the Kingdom of the Netherlands, the bilateral project on Rural Adventure
Tourism Enhancement and Sustainable Community
Development in Bhutan and Costa Rica is being implemented by ABTO and Rios Tropicales in Bhutan
and Costa Rica respectively. The Project aims to support and introduce sustainable tourism product development and infrastructure through community
participation for income generation and develop
guidelines for effective management with the following objectives:
•
Develop river rafting and kayaking products
as well as other adventure activities, managed by tour operators with support from
implementing agencies.
•
Build capacity of tour operators and guides
and enhance the quality of service by providing modern equipment.
•
Provide awareness on waste and resource
management to the local communities, and
create positive image for visitors.
Major outcome of the project:
•
Build capacity of 37 tour operators on business development skills training
•
Developed adventure tourism guideline for
adventure tourism in Bhutan
•
Build capacity of 37 tour operators on marketing and packaging of tourism products
training
•
Build capacity of 16 guides on white water
rafting
•
Exposed and build capacity of 10 officials
from TCB and ABTO through reciprocity
visits and training
•
Developed capacity of 80 communities on
the waste management
•
Constructed toilets, washrooms and waste
disposals pit in Zomlingthang and Samdingkha in Punakha for tourism purposes, the
facilities will be owned and managed by the
local communities.
•
Exposed 5 officials from TCB and ABTO
through reciprocity visit
•
Purchased GPS and Satellite phones to be
used for tourism purposes for value addition
and sustainability.
•
Conducted organizational assessment of ABTO
•
Conducted desk research for ABTO on revenue generation and sustainability
•
Developed strategic plan and website
•
Equipped office with basic amenities
•
Set up WIFI network for sharing of information
Status:
•
14
Completed 95% of the project, one training
and designing and printing of publications
need to be done, which will be completed in
June 2010
Status:
•
Completed 98% of the project, publication
and account settlements underway.
Annual Report 2009
5
Human Resource Development
5.1 Business Development Skills Training
Under the “Strengthening Tour Operator Associations
in Bhutan and Costa Rica and Improving Market Linkages for Sustainable Tourism with the United States
and Western Europe” project under Programme for
South South Cooperation, a weeklong intensive
training on Business Development Skills was given
to 37 tour operators in July, 2009.
The training was a very successful one with overwhelming response from the participants. The training ensured full relevance to the Bhutanese context,
while drawing on regional and international examples, cases, etc. where this added genuine value for
effectiveness. The training emphasized pragmatic
approaches with effort taken to highlight skills and
information that are immediately applicable through
multiple sources and types (for example, real-life
practical examples, analogies, short videos and etc.).
Reference lessons learned and stressed on themes
from previous course sessions in order to reinforce
content and learning.
A special award was introduced to encourage meaning participation and interaction, which proved to be
effective for achieving the objectives of the training.
The details of the training materials will be available in the websites (www.bhutan-costarica.net and
www.abto.org.bt).
5.2 GNH Awareness Workshop for Guides
ABTO conducted an intensive four days conference
on “Fundamentals of Gross National Happiness and
Spirituality in Bhutan” at the Institute of Management Studies from the July 6, 2009 to 20 tour guides.
with the tourists, it was felt that they should know
the fundamentals of GNH. Failing to generate basic
discussions on GNH and Spirituality with the tourists
would mean marring the image of the travel agent
in particular and that of Bhutan in general. It has become critical that our tour guides and tour operators
are GNH educated so that the curiosity of the tourists
are satisfied and consequently they will visit Bhutan
again and again; each time with new clients for they
would market Bhutan by sharing their beautiful experiences in Bhutan.
The course on Gross National Happiness and Spirituality will not only help open the doors but invite and
excite individuals with stimulating concepts, practices and measurement of GNH.
5.3 Marketing and Packaging Training
With the increasing number of visitors every year and
also with their ever changing needs and demands, it
offers us an opportunity to reposition ourselves. As
such ABTO has embarked on delivering this important four days training under the “Capacity Strengthening of Tour Operator Associations in Bhutan and
Costa Rica” project funded by the Programme for
South-South Programme to 37 participants in March,
2010.
Despite unprecedented rates of economic growth,
tourism earning remains a major challenge for several countries of this region. For the tourists, visit to
Bhutan is simply “Value for Money” and quality as it
should be. Our brand name touches an emotional
chord with our policy: high value, low impact tourism. And for us it is a source of pride in an outstanding expanse of tourism in the region.
This training was focused on how to strategically
plan our marketing activities, identify, analyse and
The objective of the course was to endow participants with the fundamental information on GNH and
Spirituality in Bhutan to enable them to interact fruitfully with their clients.
GNH, the development philosophy of Bhutan, is
gaining the attention of the people worldwide. Each
day, more tourists are keen to be exposed to Gross
National Happiness.
In effect, since our tour guides and operators are
the first emissary of Bhutan who comes into contact
15
Annual Report 2009
segment potential markets, conceive and build
packages for our target markets, present these packages to the market with integrated communications,
achieve market access through a variety of distribution channels, and use market research techniques
to constantly improve marketing performance.
During the four days training, Mr. Benjamin Carey, a
tourism expert from the UK dispelled the marketing
myths and shared essential marketing and product
packaging advice through his expertise in the business. The participants were able to grasp the knowledge to start building their own marketing plan specifically designed to meet the needs and wants of the
target market and raise the profile of their business.
5.4
Capacity building training for Secretariat staff
Under the ‘Capacity Building’ project funded by
Programme for South-South Cooperation, 5 staff
of ABTO Secretariat received two weeks ex-country
trainings in various topic such as public relation, conflict resolution, complaint management, computerbased accounting, strategic financial and HR development and management, computer-based office
administration and inventory management.
5.5 River Rafting Training
Under the Programme for South-South Cooperation
through Sustainable Development Secretariat, Gross
National Happiness Commission (GNHC), the bilateral project proposal on “Rural Adventure Tourism
Enhancement and Sustainable Community Development in Bhutan and Costa Rica” is jointly being managed by ABTO and Rios Tropical. Under this project,
16 tour guides were trained in river rafting by two
rafting experts from Costa Rica and one from Bhutan.
16
Training Methods and Approaches;
•
Understanding the hydrology system of the
rivers
•
Rescue technique, safety kayaking and first
aid
•
Raft preparation and guiding along the rivers
•
Learning new swimming techniques in different river currents
•
Managing tourists on rafts and during emergencies
5.6 Japan Ecotourism Training
Under the Japan International Cooperation Agency
(JICA) funding, ABTO facilitated five member tour
operators who are involved in nature and adventure based tourism activities to participate in the 4
weeks “Training for Developing Ecotourism by Utilizing Natural Resources in Asian Countries” in Japan in
January-February, 2010.
The selection was carried out by the ABTO Human
Resource Committee comprising of ABTO Committee Members and officials from TCB Secretariat.
5.7
Short-term Training on Tourism Management
Under the TICA (Thailand International Cooperation
Agency) funding, Royal Government of Thailand,
ABTO received two slots for one month tourism management course in Phuket, Thailand through BCCI.
Two tour operators were accordingly nominated for
the training by the ABTO Human Resource Committee comprising of members from ABTO and TCB.
Annual Report 2009
1 Tourism Statistics
6Tourism Statistics
6.3
Nationality Wise Arrival for 2009
1.1.1 Arrival
Revenue
Generated
(2005-2009)
6.1 and
Arrival
and
Revenue
Generated (2005-
2009)
Year
Year
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009
Gross Earnings
in
Arrivals % Increased/ Gross Revenue
% Increased/
NATIONALITY
Arrivals
%
Increased
$US
in
millions
% Increased
decreased
(US$ in million) decreased
USA
47.32
18.546
48
1362613626
47.32
18.546
48
United
Kingdom
17342
27.27
23.919
28.97
17342 27.27
23.919
28.97
21094
21.64
29.846
24.78
Japanese
21094 21.64
29.846
24.78
31.01
38.829
15.23
2763627636
31.01
38.829
15.23
German
-15.03
31.874
-0.179
2348023480
-15.03
31.874
-0.179
Australian
Gross Earnings in USD in Millions
Gross Revenue (US$ in million)
45
40
35
30
25
20
10
5
0
2005
2006
2007
2008
2009
1.1.2 Activity
Arrival
(2005-2009)
6.2 Wise
Activity
Wise
Arrival (2005-2009)
Activity
Activity
Trekkers
Trekkers
Cultural
Cultural
Total
Trekker %Total
Cultural %
Trekker %
2005
2005
613613
13013
13013
13626
4.5
13626
95.5
Cultural %
4.5
95.5
2006
2006
2007
766
766
2008
2007
903903 4247
16576
16576
2019120191
23389
17342
4.4
17342
95.6
21094
210944.3 27636
95.7
4.4
4.3
15.4
95.6
95.7
86.6
2009
2008
4247863
23389
22617
27636
15.4
23480
86.6
3.68
96.32
25000
20000
15000
5000
0
2005
2006
2007
2008
2009
2009
Czech
77
1968
South Africa
32
3136
Slovenian
83
1587
Hungarian
49
970
Estonia
14
French
1189
Greek
107
Chinese
1143
Ukraine
28
Dutch
780
Indonesia
98
Canadian
556
Lithunian
4
Spanish
485
Sri Lanka
6
Italian
759
Argentina
59
708
Chili
8
Thai
975
Luxemburg
16
Swiss
543
Island
Austrian
420
Romania
19
Belgian
364
Venezuela
8
Brazilian
178
Latvian
3
Russian
2009
270
Lebanon
1
863
Polish
22619
Malaysian
23482
3.67
Finnish
96.32
184
Vietnam
25
367
UAE
1
161
Columbian
14
New Zealander
122
Kuwait
4
Swedish
88
Burmese
5
Korean
49
Jordan
Mexican
125
Cuba
Danish
153
Pakistan
5
Taiwanese
83
Iran
2
Norwegian
92
Yugoslavia
1
Irish
59
Egypt
18
Portoguese
Cultural
116
Mongolia
Turkish
51
Peru
6
Israeli
159
Bulgaria
12
Nepalese
41
Others
49
Philipino
59
Total Arrival
23480
Trekker
10000
NATIONALITY
4786
Gross Earnings in
$USSingaporean
in millions
15
2009
1.1.3 Nationality Wise Arrival for 2009
SL.#
1
NATIONALITY
USA
2009
4786
2
United Kingdom
1968
3
Japanese
3136
4
German
1587
5
Australian
970
6
French
1189
1143
7
Chinese
8
Dutch
780
9
Canadian
556
10
Spanish
485
11
Italian
759
12
Singaporean
708
13
Thai
975
17
Annual Report 2009
7
18
Audited Report
7.1 Income and Expenditure Statement
Annual Report 2009
7.2
Balance Sheet
19
Annual Report 2009
PART B: Planned Activities for 2010-11
1.Operational
1.1 Trekking and Health Insurance with
RICBL
ABTO is negotiating with the Royal Insurance Corporation Limited for developing trekking insurance policy,
which is designed to address the specific needs of the
foreigners and nationals. It is also designed to cater to
the requirement of the guides and other support staff
employed by the tour operators. In addition, ABTO is
looking for Health Insurance scheme for the members
availing quality medical treatment from India.
2.
Publications
The following publications will be issued in the upcoming days:
• The Pilgrim Magazine
•
Travel Directory 2011
•
Information brochure
•
Product catalogue
•
City Map
•
Newsletter
3.
Projects
3.1 Incorporating Socially Responsible
Practices
Global tourism and travel has changed in the past
decade to offer varied new options that help both
host-country nationals and visi¬tors alike. With a
change in the mind set of a growing group of consumers to benefit host countries’ locals and environs,
and at the same time wanting to better understand
the culture and realities of the places they visit, it is of
utmost importance for the travel professionals to incorporate Corporate Social Responsibility in our core
business through socially responsible practices.
Tourism in Bhutan has been known far and wide for
being ecologically, socially and culturally responsible and over the years, it has gained enormous
reputation having been associated with the unique
national development philosophy of Gross National
Happiness. To uphold this distinction and mantin our
sustainability is a concern for all tourism stakeholders in the country.
20
Under the Programme for Innovative Partnerships
for Development, Danida, ABTO, in its capacity as a
leading tourism stakeholder aspires to make positive contributions to minimize negative economic,
environmental, and social impacts through a well
defined code of conduct/ ethics for tourism and tour
operators in particular.
4.Sustainability of ABTO
Along with the submissions made against the liberalization of tariff by ABTO, we also made submission
on the continuation of TDF (ABTO’s Position Note #
758 dated 21st January on tariff liberalization/ TDF)
with equal ownership. The copy of the submissions
was also circulated to the members on 22nd January
2010.
However, TCB has carried out an independent review
on TDF and has proposed as follows: •
All tourism related associations to be funded
through TDF for certain period of time.
•
ABTO’s fund from TDF to be phased out in
another 5 years and has to sustain on its
own.
•
TDF to be managed by a committee comprising of all sector associations (TCB, ABTO,
Hotel, Guides, Handicrafts Associations)
under the TCB
With no matching fund coming forth from the government, unequal representation of ABTO in the TDFMC and release of Nu. 26 million as per the Executive Order to TCB as destination marketing budget
out of approximately Nu. 28 million in the TDF, it was
suggested that the TDF be done away with.
Further, ABTO’s reliance on TCB/ TDF for annual budget and other activities has implication on ABTO’s status to be an independent organization.
Hence, after due deliberations among the ABTO
Board Members, it was recommended that TDF collection till 30th June to be divided equally between
TCB and ABTO. Henceforth, to do away with the collection of USD 10 per tourist per visit and ABTO to
generate its own fund.
Annual Report 2009
Doing away with the collection of TDF and distribution of the amount collected will be further discussed
during the next TDFMC meeting, which would be
around mid June, the exact amount than will be informed to the members accordingly.
5.
In the meantime, Board members have instructed
the Secretariat to come up with proposals on revenue generation schemes to be presented for deliberation during the 10th AGM. Views and suggestions
from the members were sought.
Work plan for 2010-11
Activity
July
Aug
Sept
Oct
2010
Nov
Dec
Jan
Feb
Mar
Apr
May
June
2011
Operational
Trekking/Health Insurance with RICBL
Audit
Publication
The Pilgrim Magazine
Travel Directory 2011
Information brochure
Product catalogue
City Map
Newsletter
Project
Incorporating Socially Responsible
Practices in Tourism Activities
6.Organizational Chart
21
Annual Report 2009
TENTATIVE FESTIVAL DATES FOR 2010
FESTIVAL
Punakha Drubchen
PLACE
Punakha
DATES
Feb 18th – Feb
22nd
FESTIVAL
Tamshingphala
Choepa
PLACE
Bumthang
DATES
Sept 16th – Sept
18th
Punakha Tshechu
Punakha
Feb 23rd – Feb
25th
Thimphu Tshechu
Thimphu
Sept 17th – Sept
19th
Chorten Kora
Trashiyangtse
Feb 28th – Mar
15th
Tangbi Mani
Bumthang
Sept 22nd – Sept
24th
Gomkora
Trashigang
Mar 23rd – Mar
25th
Jambay Lhakhang
Drup
Bumthang
Oct 22nd – Oct
26th
Paro Tshechu
Paro
Mar 26th – Mar
30th
Prakhar Tshechu
Bumthang
Oct 23rd – Oct
25th
Chukha Tshechu
Chukha
Mar 28th – Mar
30th
Mongar Tshechu
Mongar
Nov 13th – Nov
16th
Ura Tshechu
Bumthang
April 24th – April
28th
Pemagatshel Tshechu Pemagatshel
Nov 13th - Nov
16th
Nimalung Tshechu
Bumthang
June 19th –June
21st
Trashigang Tshechu
Trashigang
Nov 14th – Nov
17th
Kurjey Tshechu
Bumthang
June 21st
Nalakhang Tshechu
Bumthang
Nov 21st – Nov
23rd
Thimphu Drubchen
Thimphu
Sept 12th – Sept
16th
Trongsa Tshechu
Trongsa
Dec 15th – Dec
17th
Wangdi Tshechu
Wangdue Phodrang Sept 15th – Sept
17th
Lhuntse Tshechu
Lhuntse
Dec 15th – Dec
17th
TENTATIVE FESTIVAL DATES FOR 2011
FESTIVAL
Place
DATES
FESTIVAL
Place
DATES
Punakha Drubchhen
Punakha
10 to 12 Feb
Tamshing Phala Chhoepa
Bumthang
6 to 8 Oct
Punakha Tshechu
Punakha
13 to 15 Feb
Thimphu Tshechu
Thimphu
6 to 8 Oct
Tharpaling Thongdrol
Bumthang
18 Feb
Gasa Tsechu
Gasa
6 to 8 Oct
Tangsibi Mani (Ura)
Bumthang
17 to 21 Feb
Thangbi Mani
Bumthang
10 to 12 Oct
Bulli Mani (Chummi)
Bumthang
19 to 21 Feb
Shingkhar Rabney
Bumthang
1 to 5 Nov
Chhorten Kora
Trashiyangtshe
18 Feb & 4 Mar
Jakar Tshechu
Bumthang
3 to 6 Nov
Gaden Chodpa (Ura)
Bumthang
2 to 4 Mar
Black Necked Crane Festival
Wangdue Phodrang
12 Nov
Gomphukora
Trashigang
13 to 15 Mar
Jambay Lhakhang Drup
Bumthang
10 to 14 Nov
Talo Tsechu
Punakha
13 to 15 Mar
Prakhar Duchhoed
Bumthang
11 to 13 Nov
Zhemgang Tshechu
Zhemgang
13 to 16 Mar
Sumdrang Kangsol
Bumthang
22 to 25 Nov
Paro Tshechu
Paro
15 to 19 Mar
Mongar Tshechu
Mongar
2 to 5 Dec
Chhukha Tshechu
Chhukha
17 to 19 Mar
Trashingang Tshechu
Trsashigang
2 to 5 Dec
Domkhar Tshechu
Bumthang
13 to 15 April
Tang Namkha Rabney
Bumthang
4 & 5 Dec
Ura Yakchoe
Bumthang
14 to 17 May
Singye Cham
Bumthang
10 Dec
Padsel-Ling Kuchod
Bumthang
22 & 23 May
Chojam Rabney
Bumthang
10 to 13 Dec
Nimalung Tshechu
Bumthang
8 to 10 July
Nalakhar Tshechu
Bumthang
10 to 12 Dec
Kurjey Tshechu
Bumthang
10 July
Pemagatshel Tshechu
Pemagatshel
2 to 4 Jan 2012
Gangtey Kurim
Wangdue Phodrang
29 July
Trongsa Tshechu
Trongsa
2 to 4 Jan, 2012
Thimphu Drubchen
Thimphu
1 to 5 Oct
Lhuentse Tshechu
Lhuentse
2 to 4 Jan, 2012
Wangdue Tshechu
Wangdue Phodrang
4 to 6 Oct
Nabji Lhakhang Drup
Trongsa
9 to 13 Jan 2012
Gangtey Tshechu
Wangdue Phodrang
4 to 6 Oct
Shingkhar Metochodpa
Bumthang
9 Jan 2012
22
Annual Report 2009
23