Economic sustainability? Examining the linkages and leakages between agriculture and hotels in Bhutan

Abstract

Bhutan is known for its approach to high-value, low-volume tourism development. Bhutan has been cited as an example of a best case approach to sustainable tourism. However, like other landlocked countries, Bhutan relies heavily on imported goods from neighbouring countries such as India and Thailand, leading to significant economic leakages. This raises the question of how economically sustainable Bhutan's tourism is. This research employs a mixed microeconomic and macroeconomic analysis of linkages and leakages between different sectors in the Bhutanese tourism industry, in particular hotels and agriculture to ascertain the volume and value of these leakages.