Exploring Bhutan

Tobgay in conversation with Professor David Capie at a Foundation Asia After Five event in Wellington

In conversation with Professor David Capie, Tobgay provided insights into the Himalayan country of 800,000 - from how its government prioritizes gross national happiness over GDP, to the diplomatic tightrope it walks between its two large neighbours, China and India.   

Bhutan is the world's first carbon-negative country, with more than two-thirds of its land area covered in forest. Its highest mountain remains unclimbed, and last year fewer than 150,000 international visitors travelled to the country. New Zealand had 3.3 million visitors.  

Although many countries may see low tourist numbers as something to work on, Tobgay considers it a strength of Bhutan, highlighting how the industry focuses on hosting low-volume, but high-impact visitors. 

Less than 150,000 tourists visited Bhutan in 2024

“We don’t want to be overwhelmed by tourists... we have made it expensive to visit Bhutan,” Tobgay said. 

Each visitor must pay the government US$100 (NZ$172) per day during their visit to Bhutan, in addition to what they spend on accommodation, food and activities. 

But despite its untouched nature, there are big plans for innovation.  

Tobgay told the Asia After Five audience that since the 1960s, Bhutan began looking to the future – prioritizing education and building more schools. They switched to teaching in English to make it easier for the younger generations to work and study internationally. 

Now many students go overseas for scholarships, which Tobgay says, has both positives and negatives for Bhutan. 

Bhutan's iconic monastery Paro Taktsang, also known as Tigers Nest

While it’s difficult to pin down exact numbers, an estimated 65-75,00 Bhutanese live abroad, or about ten percent of the country’s population. According to the data from the Department of Economic and Social Affairs of the United Nations, the number of Bhutanese migrants in Australia alone more than doubled from 12,424 in 2020 to 25,363. The World Bank’s report Migration Dynamics in Bhutan: Recent Trends, Drivers and Implications found more than 40 percent of those living in Australia are students.  

Professor Capie asked how they then manage losing their “brightest minds” to Australia (particularly Perth) and other countries – a problem New Zealand also wrestles with.  

“Every person leaving Bhutan is a painful loss to Bhutan, so we had to rethink how we do things,” Tobgay replied.  

That’s where the idea for the ideal city, the Gelephu Mindfulness City came from, the ambassador explained. 

The Asia After Five event was a chance for audience members to hear firsthand about Bhutan and ask questions of the ambassador

First announced in December 2023 by the Bhutanese King, this special administrative region is planned to cover 2600 km2  - roughly 5 percent of Bhutan’s land mass – and to be powered by renewable energy.  

While some have questioned the financial feasibility of the city, Tobgay said it would be a global hub for Buddhism, aviation, and agricultural tech in the next 40 years.   

The Mindfulness City is planned near its Southern border with India, and in November India’s prime minister Narendra Modi conveyed full support for the proposal, announcing plans for an immigration check post near its border to facilitate easy movement to the city.  

While some have questioned the financial feasibility of the city, Tobgay says it would be a global hub in the next 40 years.  

 The Bhutanese government's has outlined its vision for the city, saying it will focus to focus on eight core industries; aviation and logistics, tourism, spiritual, health and wellness, education and knowledge, agri-tech and forestry, green energy and technologies, and finance and digital assets. 

Bhutan’s broader relationship with India was a prominent part of the Asia After Five discussion. It has held a free trade agreement with India since 1972, and it is their biggest trading partner.  

But Bhutan’s other neighbor is China, a geographic position that Professor Capie described as “an extraordinary place to find yourself”.  

'An extraordinary place to find yourself'; Bhutan is situated between India and China

As a small country bordered by the two most populous countries in the world, keeping on good terms with both requires delicate diplomacy, Tobgay said. He said Bhutan’s guiding principles are peace and friendship, and these principles guide their diplomacy. 

Tobgay provided first-hand insight into the “gross happiness index” - its famous 100-plus-question survey that gauges the happiness of the people. 

“It is the role of the government to create conditions that help its people achieve happiness,” Tobgay said.  

Environmental conservation, cultural preservation, good governance, and sustainable socio-economic development are what they focus on.   

Healthcare is also free.  

Tobgay said they have a “very advanced indigenous medical system” in Bhutan, but the government will also pay to send patients offshore to receive other forms of care.  

“We take it [healthcare] very seriously,” he said. 

David Capie asked Tobgay how the mountainous, forest-cloaked country was feeling the effects of climate change.  

Despite its carbon-negative status, Bhutan is not immune. 

Tobgay said the country’s melting glaciers have had “devastating impacts” by increasing the flow of water and damaging the hydropower systems that power 90 percent of the country.  

During the talk, Capie expressed surprise by the number of people who knew about Bhutan, but pressed Tobgay about when there will be formal diplomatic relations with New Zealand.  

Tobgay’s response was that it is the “right time” to begin having these discussions with the embassy opening in Canberra in 2021. 

Bhutan Ambassador to Australia Sonam Tobgay and Asia New Zealand Foundation chief executive Suzannah Jessep

The Foundation's Track II programme supports informal diplomacy with thinktanks in Asia on issues and challenges facing the region.