Saving industries

I applaud Lyonpo Khandu Wangchuk’s tour to Pasakha to assess the crisis gripping the steel factories. And factory owners welcomed his visit as signs of possible government support for an industry which is seriously affected by the global financial crisis.

The government should support the steel industry, but provided it is of strategic importance to our country. That is to say that the industry should be socially, politically or economically too important to our country to allow it to collapse. So if, due to a failure in the steel industry, many jobs for nationals would be lost, or national security or self sufficiency be compromised, or revenue would drop drastically, then, the government must intervene in full force. Otherwise, it should reconsider.

One strategically important industry that does need the government’s attention is tourism. Our tourism industry has endured the SARS epidemic, Asian financial crisis, avian flu outbreak, and other external shocks only to be seriously threatened now by the global financial crisis. And we cannot allow tourism to take a beating for three reasons: it generates jobs, it distributes money, and it generates foreign currency.

Tourism is a big employer. At last count there were 1,300 licensed guides. And this represents only a fraction of the jobs which are dependent on the tourism industry – thousands of cooks, waiters, housekeepers, drivers, craftsmen, retailers and entertainers depend, directly or indirectly, on tourism.

We all know that tourism is our country’s largest foreign currency earner. But we forget how effectively it circulates money through our economy. All the different types of workers I just mentioned, working in different parts of the country take home pay checks.

For example, consider this: Pem Tazi, about 43 years old, from Tshojo in Lunana, is a “yak contractor”; he organizes yaks for the famous Snowman Trek. This year, Yangphel used him on one trek – he worked 47 yaks for 14 trekkers for 14 days (Laya to Marothang) and charged Nu 500 per yak per day. So he recently collected almost Nu 330,000 for his services. He keeps 10% of this. The rest he divides among the other 18 yak owners. Yangphel also had to hire a similar number of horses and yaks for other segments of the same trek: Paro to Jangothang; Jangothang to Laya; and Marothang to Nikachu.

This is serious money circulating effectively through our economy. Strategically important stuff.

So our steel industries may or may not be strategically important, and the government may or may not help them. But tourism is strategically very important, and the government should address the possible impacts that the global financial crisis may soon have on this industry.


Facebook Comments:


  1. Bhutanese Blogger says


    there are more deserving industries which need to be developed rather than a few steel factories run ineptly.

  2. Bravo !!!! Absolutely essential to look into the welfare or rather concerns of the tourism industry which comprise of tour operators, hoteliers, employees of hotels, restaurant owners, tour leaders, tour guides, Druk Air, transport owners, handicrafts shop owners, trekking staff, trekking cooks, camp managers, horse contractors, yak contractors, textile weavers, some temples – you name it – it is a wide cross section when one says tourism industry. I wholeheartedly agree with this article (blog) and am quite sure that our government will definitely consider looking into this bleak scenario ASAP.

  3. hey,
    we have had one decade of lip service, now we have the GNH.
    we have been identified as the engine of growth, the potential generator of employment and earner of foreign exchange.

    the 10th 5th five year plan says the same,

    pray for change,
    if high value and small volume as a mantra the tourism industry would have achieved nirvina.

    to add insult to injury we got brunt out bureaucrats.

    I hope the new MP will do something other than admire their new pathang,

    a stich in time save nine!

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