Bhutan has begun allowing tourists to buy 20 grams of duty-free gold in a move apparently aimed at attracting highend Indians to the Himalayan country.

Officially, the Bhutan tourism department, in partnership with Bhutan Duty-Free (BDF), started making duty-free gold available to visitors to mark the birth anniversary of king Jigme Khesar Namgyel Wangchuck and Bhutanese New Year Losar in February. But multiple sources in the travel industry said the move was part of an attempt to shore up revenues from tourism, the highest foreign exchange earner for the country.

“From March 1, tourists fulfilling some basic criteria can buy 20 grams of gold from two duty-free shops — one in the capital Thimphu and the other at Phuentsholing,” said a source in Bhutan.

Phuentsholing is the biggest town in Bhutan and is located across the border from Jaigaon in Alipurduar district of Bengal.

Although the purchase of duty-free gold is allowed for all travellers from across the world, the move is aimed at attracting high-end Indian tourists.

Indians used to form a bulk of tourists visiting Bhutan. Around 19 lakh Indians used to visit the Himalayan country a year before Covid-19 and they accounted for 69 per cent of total tourists. However, after Bhutan introduced the sustainable development fee (SDF) of Rs 1,200 per Indian tourist per night after it opened the gates to outsiders in September 2022 following a 30-month-long Covid-induced isolation, the flow is now a trickle.

If we were getting 10 enquiries in a month for Bhutan earlier, it is none now,” said a travel agent based in Siliguri.

Ten grams of 24-carat gold cost around Rs 40,000 in Bhutan on Friday, while the rate was Rs 55,000 in Alipurduar.

According to the existing rules of the Central Board of Indirect Taxes and Customs, an Indian man can bring 20 grams of gold whose rate shouldn’t exceed Rs 50,000 tax-free to India from abroad. An Indian woman can bring 40 grams of gold not worth over Rs 1 lakh.

Many Indians are known to travel to Dubai to buy gold as the rate is relatively cheap there.

Some basic requirements have been laid down before tourists can buy gold from duty-free shops in Bhutan.

“Tourists have to pay the SDF and also produce a receipt that shows a minimum of one night is spent at a hotel certified by the department of tourism. Also, payments have to be made in US dollars,” said a source.

Visiting Bhutan in the post-Covid period has become a costly affair because of other conditions also.

“Apart from the SDF of Rs 1,200 a day, one has to compulsorily hire a Bhutanese guide who charges around Rs 2,000 per day,” said a travel agent in Jaigoan.

Moreover, taxi and hotel charges are also relatively high in Bhutan.

Suresh Thakuri, the chairperson of Jaigaon Tours and Travel, said enquiries from prospective tourists had increased by around 10 per cent following the introduction of the duty-free gold purchase in Bhutan.

“Enquiries have definitely increased. These are still early days and we need to see how big an attraction this offer would go on to be,” said Thakur.

Travel agents in India have said the fact that gold has to be bought in US dollars could be a small hindrance. “If Indian tourists are allowed to pay in Indian rupees, it would be hassle-free,” said a travel agent.

Sources in Bhutan, however, said the government perhaps wanted to ensure that only high-end tourists, even from India, visited their country.

Tourists from other countries need to pay an SDF of anything between $65 and $200.

Before September 2022, travelers from India, the Maldives and Bangladesh were allowed free entry to Bhutan.