1
Foreign Direct Investment (FDI): An Observation about Tourism Sector of
Bhutan
Abstract
Dr. Pawan Kumar Sharma 1 , Umesh N. Jadhav 2 , Elangbam Haridev Singh 3 , Dr. Achintya
Mahapatra4
FDI has been an integral component of economic development strategy of many countries in post
globalization phase. It is essential for creating employment opportunity, increasing the standard
of life, technology advancement, and sustainability. The new world order due to convergence of
communication and technology has created a virtual borderless world. Every nation has to pay
heavy opportunity cost if left isolated. Bhutan is also in the process of opening up its economy,
in order to tap the opportunity of FDI. It is well known fact that Bhutan’s tourism industry is
very important as it employs maximum manpower, and second highest earner of foreign
exchange in Bhutan. This paper tries to determine the factors affecting FDI in Tourism sector,
evaluates the policies adopted to attract FDI, and examines the benefits of FDI in the growth of
Tourism sector.
Key words: Foreign Direct Investment (FDI), Tourism Industry, Bhutan, Globalization
1 Associate Professor, Delhi College of Arts and Commerce, University of Delhi, Presently on deputation under
Colombo Plan, MEA, Govt. of India to Royal University of Bhutan (GCBS) E. Mail: [email protected] 2 Sr. Lecturer, Royal University of Bhutan (GCBS)Gedu, Chukha, Bhutan, E. Mail: [email protected]
3 Lecturer, Royal University of Bhutan (GCBS)Gedu, Chukha, Bhutan, E. Mail: haridevelang @gmail.com 4 Sr. Lecturer, Royal University of Bhutan (GCBS)Gedu, Chukha, Bhutan, Cell No. 00975-17899191 E. Mail: [email protected]
2
Foreign Direct Investment (FDI) has become one of the salient features of economic growth of
countries. Some view it as an important factor of economic growth, employment generation,
expansion of import and export business and good price while others look upon it as a negative
growth for local merchants, profit distribution, investment ratios are not fixed, an economically
backward class person suffers from price rise, retailers face loss in business, and inflation may be
increased. More than ever, countries at all levels of development seek to leverage FDI. Bhutan
introduced FDI as developmental strategy in 2002 including in tourism. Bhutan is famous for its
natural beauty, rich wildlife and unique culture. The fourth King of Bhutan, Jigme Singye
Wangchuck, had advocated and implemented the policy of controlled development with
particular focus on the preservation of the environment and Bhutan’s unique culture. On 2 June
1974, for the first time international media were allowed to enter Bhutan, which marked
Bhutan’s debut appearance on the world stage to commemorate the coronation of fourth king of
Bhutan. Later that year, the first group of paying tourists arrived with 287 visitors which have
since increased up to 64,028 in 2011.
Tourism sector holds immense potential for Bhutanese economy. Tourism is no longer looking at
it as a leisure activity, but as a major source of employment. According to the Accelerated
Bhutan’s Socio-economic Development (ABSD) initiative, hospitality sector is a key area that
will boost economic growth and generate employment opportunities for the youth. It is estimated
that the industry employed around 17800-19600(direct and indirect) people in 2010. At present
313 tour operators and around 1266 tour guides are authorized by Tourism Council of Bhutan.
There are 128 hotels and resorts in Bhutan qualified to cater to tourists, with a total of 5,572 beds
between them.
Tourism is the second largest net earners of foreign exchange for the country and also one of the
sectors, which employs the largest number of manpower. Bhutan received 64,028 high end
visitors in 2011. It recorded highest number of visitor arrivals in the country with a growth of
56.65% over year 2010. Tourism receipts from international visitors (dollar paying) alone
generated USD$ 47.68 million as direct gross earnings, which is an increase of 32.52% over
2010. Of this 14.89 million was generated as direct revenue for the Government through the
royalty receipts. These earnings do not include revenue from other sectors like airline, handicraft,
3
and additional out-of-pocket spending. Moreover, this high-end arrival figure does not include
the 36,805 regional tourists and other category who travelled by land into Bhutan and visited
Thimphu and beyond. Of the 36,805, about 1,728 regional visitors stayed in tourist
accommodation facilities that are of three stars and above category.
In order to develop tourism in Bhutan in a systematic manner to harness it’s direct and
multiplier effects for employment and poverty eradication in an environmentally sustainable
manner the Royal Government of Bhutan formulated several policies to facilitate private
investments through public private partnership and focus on development of this sector including
FDI.
Salient Features of FDI for Tourism
In case of Five Star and above category hotels with minimum project cost of Nu. 200 million,
100% equity through FDI is allowed by Royal Government of Bhutan. In case of four star hotels
with minimum project cost of Nu. 25 million, only 75% equity are allowed by way of FDI.
(Bhutan, Foreign Direct Investment Policy 2010)
The Bhutan government provides various incentives to the FDI funded projects, the specific tax
incentives provided to tourism sector are: A 10-year income tax holiday is provided to newly-
established high-end hotels, a reinvestment allowance of 25% of total capital expenditure
incurred shall be provided for the up-gradation of the existing hotels, the Income Tax Act has
been amended to allow entertainment expenses up to 5% of the assessed net profit, Service Tax
is not levied based on rack rates of the hotels but on published or actual charged discounted room
rents, Tax on import of furniture and fixtures etc. for tourist-class hotels are exempted, Daily
tourist tariff/royalty has been waived for foreign participants in meetings, international
conventions and exhibitions (MICE). (Royal Government of Bhutan, 2010)
Objectives
a) To determine the factors affecting FDI in Tourism sector,
b) To evaluate the policies adopted to attract FDI,
c) To examine the benefits of FDI in the growth of Tourism sector.
4
Literature Review-
Krugman and Obstfeld’s study (as cited in, Don Anura Wickramasinghe, 2007) defines, foreign
direct investment as international capital flow from a firm in one country, which creates a
subsidiary of the parent company in other country or which allows the firm to obtain a
controlling interest in a foreign firm. FDI is distinguished from other forms of international
capital flows in that it goes beyond a transfer of resources; also it involves the acquisition of
control of assets in other country.
World Trade Organization’s study (as cited in, Don Anura Wickramasinghe, 2007), defines,
foreign direct investment as, when an investor based in one country (the home country) acquires
an asset in a country (the host country) with an intend to manage the assets. However, according
to the Organization for economic Cooperation and Development (OECD) definition in 1996,
mean that, foreign direct investment as reflecting the objective of obtaining a lasting interest by
a resident entity in one economy (direct investor) in an entity resident in an economy other than
that of the investor (direct investment enterprise). Foreign Direct Investment is the process of
investing in other country’s economy for long run with the purpose of acquiring the assets and
managing it as well as to transfer resources such as technology, human resources, skills etc...
In order to encourage foreign investors, the Royal government of Bhutan have framed various
policies including custom tariff schedule in 1996, Foreign Exchange Regulations in 1997
removing several restrictions on foreign exchange transactions and followed by FDI policy in
2002.
Pasang Dorji (2011) stated that, the 2002 Policy allows maximum of 70% foreign equity holding
of a FDI company. The revised policy is expected to look at the possibilities of allowing even
100% foreign equity holding like in the manufacture of some edible food products, electronic
equipment, and hydropower sectors. The first impact study of FDI on Bhutan’s economic growth
by the economic affairs ministry showed that the existing FDI Policy has failed to attract foreign
investors. Dambar S. Kharka, an economist, said Bhutan should be open to FDI. However, he
said some foreign investments come with other objectives than money including political
interest. “There should be a set priority and the negotiation should be within a sound strategic
framework.”
5
Two international resort chains have been approved and commenced its operations in 2004, with
the approval of the FDI policy in 2002. The first big investment of US$20 million came from
Bhutan Resorts Corporation Limited. It is a joint venture between the Bhutan Tourism
Corporation limited and the International Group of Amman Resorts. In the initial stage it focused
mainly where tourist visitors are frequent in the places like Paro and Thimphu then followed by
Gantey Gompa, Trongsa and Bumthang. Bhutan is said to be Aman’s 12th destination. Another
multi-million investment came from Bhutan Eco Ventures Limited, a joint venture between the
Bhutan International Company and M/S HPL leisure properties (West Asia) private limited of
Singapore. The FDI inflow from these two investments would be a total of Nu.219.10 million.
Many other projects have been proposed and the decisions are taken whether to accept or reject.
The study conducted by Ministry of Economic Affairs to assess the impact of FDI in Bhutan in
2008, it has found that the FDI policy framed by Royal Government in 2002 is not sound enough
to attract FDI in the country. Bhutan needs a properly reviewed FDI policy to gain from FDI and
should take full advantage of it, according to experts. Experts said that FDI widens opportunities
and could reduce the country’s heavy dependence on foreign aid. Foreign Direct Investment has
both positive as well as negative impact on the host country. Some of the positive impacts are:
Transfer of Technology, Development of human resource, Employment Opportunities, Helps in
generation of income. At the same time the host country should bear the following negative
impacts: Political Lobbying, Exploitation of Resources, Threaten Small Scale Industries,
Technology, Inability to see through any projects completely, Stakeholder management (times,
2010)
The Prime Minister, Lyonchhen Jigmi Y. Thinley, said that the Bhutanese economy cannot
mobilize the kind of money necessary to build 5-star hotels. Besides, reputed luxury hotels
brought in expertise, experience, and even their own clientele. High-end tourist destinations need
high end hotels, he said. (Kuensel. FDI for luxury hotels, (2010, Feb, 26). P.1) With the approval
of the FDI policy 2002, investment in the hospitality sector in Bhutan commenced with the first
investment made by International Group of Amman Resorts and followed by M/S HPL leisure
properties (West Asia) private limited of, Singapore, both in the form of joint venture.
6
As of today there are total of eight FDI funded resorts, out of which four are under operation and
rest four are under construction. They are clearly shown in the table given below:
SI. Project Name Foreign Investor Location Status
1 Bhutan Resorts
Pvt. Ltd (in six
locations)
Bhutan Hotels Limited, Aman
Resorts Groups (Virgin Islands)
Thimphu, Wangdi,
Paro, Trongsa,
Bumthang
Operating
2 Bhutan Eco
Ventures Pvt. Ltd.
( in two locations)
HPL Leisure Ventures Pvt. Ltd
(Singapore)
Paro and Punakha Operating
3 East West Co. Pvt
Ltd.
Mr. Rawleigh Hazen Ralls and Mr.
Stephen C. Sherrill, Mr. Gerard S.
J. Moffatt (USA & UK)
Punakha Under
construction
4 Havens Resorts
Pvt. Ltd
Voraphot Srimahachota (Thailand) Paro Operating
5 Nak-Sel Boutique
Hotel & Spa Pvt.
Ltd
PHM Foundation, USA Paro Operating
6. Himalayan Safaris
Lodges Private
Limited
Eastern Safaris Pvt. Ltd, Singapore Wangdi Under
construction
7 Bhutan Hotels
Private Limited
Eastport International Ltd., Samoa Thimphu Under
construction
8 Manidheepa-
Mohsin Hotels &
Resorts Pvt. Ltd
Dolphin Overseas Pvt. Ltd,
Singapore
Paro Under
construction
(Source:Survey)
Data Analysis and Interpretation
Table1. Reasons of FDI in Bhutan
Yes No
Unique culture 3 1
Good relation 0 4
Profit motive 0 4
Figure1: Reasons of FDI in Bhutan
The above figures show the reason for foreign
table1, out of three factors; our respondents think that Bhutanese unique culture is the most
important which tops in rating equal to 90% as compared with other factors like good relation
and the profit motive which is rated as least important factor.
Table
Effective laws of existing policy
Need to change existing policy
Benefits of existing policy
Govt. support
0
0.5
1
1.5
2
2.5
3
3.5
4
Unique culture Good relation
7
No
Figure1: Reasons of FDI in Bhutan(Source: Table 1)
The above figures show the reason for foreign investors investing in Bhutan and as listed in the
table1, out of three factors; our respondents think that Bhutanese unique culture is the most
important which tops in rating equal to 90% as compared with other factors like good relation
tive which is rated as least important factor.
Table 2. The perception on FDI Policy in Bhutan
Yes No
Effective laws of existing policy 3 1
Need to change existing policy 1 3
3 1
4 0
Good relation Profit motive
Yes
No
(Source: Table 1)
investors investing in Bhutan and as listed in the
table1, out of three factors; our respondents think that Bhutanese unique culture is the most
important which tops in rating equal to 90% as compared with other factors like good relation
(Figure No. 2: the perception of respondents on FDI policy in Bhutan Source: Table 2)
Figure 2 represent the perception of respondents on FDI policy in Bhutan where, 75%
existing FDI policy is effective and 25% feel that there is need to change
75% agree that existing FDI policy provides benefit to their business and 100% have confirmed
the support from government.
Table 3. Benefits of FDI to country, society, business and investor.
Infrastructure development
Employment opportunities
Profitability
Information technology
Improving employee training and Skills
Explore of Potential tourism
0
0.5
1
1.5
2
2.5
3
3.5
4
Effective laws
of existing
policy
Need to
change
existing policy
8
(Figure No. 2: the perception of respondents on FDI policy in Bhutan Source: Table 2)
Figure 2 represent the perception of respondents on FDI policy in Bhutan where, 75%
existing FDI policy is effective and 25% feel that there is need to change
that existing FDI policy provides benefit to their business and 100% have confirmed
the support from government.
3. Benefits of FDI to country, society, business and investor.
Yes No
3 1
4 0
3 1
1 3
Improving employee training and Skills 3 1
1 3
Need to
change
existing policy
Benefits of
existing policy
Govt. support
Yes
No
(Figure No. 2: the perception of respondents on FDI policy in Bhutan Source: Table 2)
Figure 2 represent the perception of respondents on FDI policy in Bhutan where, 75% say that
existing FDI policy is effective and 25% feel that there is need to change the existing policy.
that existing FDI policy provides benefit to their business and 100% have confirmed
Figure 3. Benefits of FDI to country, society, business and investor
Above table and figure shows the benefits
opportunity is the most important benefit followed by infrastructure development, improving
employee training and even profitability. However, informa
tourism rank as the least important benefits in the opinion of our respondents.
• Factor affecting FDI in Bhutan
Table 4. The market factors attract FDI in Bhutan.
Size of market
Market growth
Dissatisfaction with exiting
market
Desire to follow customer
Desire to follow competition
00.5
11.5
22.5
33.5
4
9
Figure 3. Benefits of FDI to country, society, business and investor (
Above table and figure shows the benefits of FDI. 100% respondents agree
opportunity is the most important benefit followed by infrastructure development, improving
employee training and even profitability. However, information technology and exploration of
tourism rank as the least important benefits in the opinion of our respondents.
Factor affecting FDI in Bhutan
4. The market factors attract FDI in Bhutan.
Most
Imp.
Least
Imp.
4 0
3 1
Dissatisfaction with exiting
0 4
3 1
0 4
Yes
No
(Source Table 3)
of FDI. 100% respondents agree that employment
opportunity is the most important benefit followed by infrastructure development, improving
tion technology and exploration of
tourism rank as the least important benefits in the opinion of our respondents.
Figure 4. The factors attract FDI in Bhutan.
The above figure shows the market
important with 100% response. The other factors like dissatisfaction with the existing market and
desire to follow competition ranked as the least important to our respondent. The respondents
also feel comfortable with the existing market conditions with less competition.
00.5
11.5
22.5
33.5
4S
ize
of
ma
rke
t
Ma
rke
t g
row
th
Dis
sati
sfa
ctio
n
Table 5. Showing the ratings of Cost factors
Availability of labor
Availability of R.M
Low cost of transportation
Availability of capital &
technology
Financial encouragement by
govt.
10
4. The factors attract FDI in Bhutan. Source Table 4)
e above figure shows the market factors where size of the market is ranked as the most
important with 100% response. The other factors like dissatisfaction with the existing market and
desire to follow competition ranked as the least important to our respondent. The respondents
l comfortable with the existing market conditions with less competition.
Dis
sati
sfa
ctio
n
wit
h e
xiti
ng
ma
rke
t
De
sire
to
fo
llo
w
cust
om
er
De
sire
to
fo
llo
w
com
pe
titi
on
Market Factors
Most Imp.
Least Imp.
5. Showing the ratings of Cost factors
Most Imp. Least Imp.
4 0
4 0
0 4
Availability of capital &
4 0
Financial encouragement by
0 4
Source Table 4)
factors where size of the market is ranked as the most
important with 100% response. The other factors like dissatisfaction with the existing market and
desire to follow competition ranked as the least important to our respondent. The respondents
l comfortable with the existing market conditions with less competition.
Figure No. 5 showing
The figure 5 shows the cost factors like availability of raw materials, labor, capital and
technology are very important. Factors like low cost of transportation and financial support from
the government are ranked as the least important since the cost of
direct impact on their business and, moreover, they do not get direct financial assistance from
the government in running their business.
Table 6. Political and Legal factors
Political stability
Country image
Terrorism
Racial & ethnic tension
Tax policies
00.5
11.5
22.5
33.5
4
11
showing the ratings of Cost factors Source Table No5)
The figure 5 shows the cost factors like availability of raw materials, labor, capital and
technology are very important. Factors like low cost of transportation and financial support from
the government are ranked as the least important since the cost of transportation doesnot have
direct impact on their business and, moreover, they do not get direct financial assistance from
the government in running their business.
6. Political and Legal factors
Most Imp. Least Imp.
4 0
4 0
3 1
0 4
1 3
Most Imp.
Least Imp.
the ratings of Cost factors Source Table No5)
The figure 5 shows the cost factors like availability of raw materials, labor, capital and
technology are very important. Factors like low cost of transportation and financial support from
transportation doesnot have
direct impact on their business and, moreover, they do not get direct financial assistance from
The Himalayan Kingdom of Bhutan has shown political stability a
became the most important reason for
with the good image of country to outside world. The terrorism factor is rated around 90% which
is not an issue in Bhutan. The racial and ethnic tension is not a big deal and also the tax policies
have less impact on FDI.
Table 7. Showing Social and Cultural factors
Familiarity with country
Unique culture and tradition
Language and Communication
Religion
Attitudes of the customer
Figure7. Showing Social and
0
0.5
1
1.5
2
2.5
3
3.5
4
Political
stability
Country
image
Terrorism
00.5
11.5
22.5
3
12
The Himalayan Kingdom of Bhutan has shown political stability and peace in the past, which
me the most important reason for foreign investors to invest in the tourism sector of Bhutan
with the good image of country to outside world. The terrorism factor is rated around 90% which
in Bhutan. The racial and ethnic tension is not a big deal and also the tax policies
7. Showing Social and Cultural factors
Most Imp. Least Imp.
2 2
3 1
Language and Communication 2 2
2 2
1 3
Figure7. Showing Social and Cultural factors
Terrorism Racial &
ethnic
tension
Tax
policies
Most Imp.
Least Imp.
Most Imp.
Least Imp.
nd peace in the past, which
to invest in the tourism sector of Bhutan
with the good image of country to outside world. The terrorism factor is rated around 90% which
in Bhutan. The racial and ethnic tension is not a big deal and also the tax policies
Bhutan is well known for its unique culture and tradition which is the most important factor for
investors whereas the other factors like familiarity with country, language and communication
and religion doesn’t have much impact on their
Table 8. Showing Geographical/Location factors
Climate condition
Terrain/ Topography
Access to physical
infrastructure
Figure
As it is shown in the figure 8, geographical factors such as climat
to physical infrastructure also play a vital role in attracting FDI in Bhutan. Amongst
factors, respondents’ rate climat
consideration with 90% agree
Furthermore, respondents think that access to physical infrastructure has lesser important.
0
0.5
1
1.5
2
2.5
3
Climate
condition
Terrain/
Topography
13
Bhutan is well known for its unique culture and tradition which is the most important factor for
investors whereas the other factors like familiarity with country, language and communication
and religion doesn’t have much impact on their business.
8. Showing Geographical/Location factors
Most Imp. Least Imp.
3 1
2 2
Access to physical
1 3
8. Showing Geographical/Locational factors
figure 8, geographical factors such as climatic condition, terrain and access
to physical infrastructure also play a vital role in attracting FDI in Bhutan. Amongst
rate climatic condition as the most important factor to be tak
consideration with 90% agreeing that, climatic condition is one of the most important factors.
Furthermore, respondents think that access to physical infrastructure has lesser important.
Terrain/
Topography
Access to
physical
infrastructure
Most Imp.
Least Imp.
Bhutan is well known for its unique culture and tradition which is the most important factor for
investors whereas the other factors like familiarity with country, language and communication
condition, terrain and access
to physical infrastructure also play a vital role in attracting FDI in Bhutan. Amongst these
condition as the most important factor to be taken into
that, climatic condition is one of the most important factors.
Furthermore, respondents think that access to physical infrastructure has lesser important.
14
Table 9. Showing the overall rating of factors determining FDI in Bhutan
Overall Ratings
Market Factors 2
Cost Factors 3
Political and legal Factors 4
Social and cultural Factors 5
Geographical/Location Factors 1
The pie chart shows the overall rating which reveals the most important and least important
factor affecting FDI in tourism sector of Bhutan. The Social and cultural condition of Bhutan is
the most attractive reason for investors to invest in tourism sector of country. The political
stability and legal enviornment of the country became the second most important reason for FDI
in tourism sector, followed by the market sitiuation. The respondents believe that geographical
location as the least important amongst the above stated factors as it doesn’t have much impact
on their investment.
Conclusion:
1. As per objectives of this study, first is to determine the factors affecting FDI in Bhutan.
(a) Some of the factors observed are market, cost, political and legal environment, socio-
cultural, geographical location plays vital role in FDI inflow in Bhutan. Peace and
political stability is the strength of Bhutan, but lack of infrastructure is a major reason for
poor performance in the investment under tourism sector. (b) Availability of labor and
Overall Ratings
Market Factors
Cost Factors
Political and legal Factors
Social and cultural Factors
15
raw materials become another important factor to attract FDI in tourism sector but large
investors which form the majority of world investment normally avoid investment in
LDCs where markets are typically small and operation cost is very heavy. The restrictive
FDI policy is found to be another reason for failing to attract FDI in the country. (c) The
unique culture and preserved social conditions are important factors to develop a new
tourist destination. To attract FDI, a cautious approach like capitalizing on external
economic conditions, economic reforms, and private sector development is necessary. (d)
Despite having land locked location and market constraints, Bhutan has made success in
attracting foreign investments in tourism sector due to its favorable climatic conditions,
terrain and topography.
2. Our second objective is whether the government is framing suitable FDI policy. Foreign
investment in Bhutan has been identified as an important source for economic growth and
has put in place measures such as full and majority ownership and tax exemptions.
However, The Companies Act 2001 of the Kingdom of Bhutan is not clear about
companies under FDI as far as the legislation goes and this has implications on land
ownership rights as well. To improve the investment climate, legal system has to be put
in proper place to assure the foreign investors. Moreover, there is an increasing need to
liberalize the restrictive FDI regime to attract more investors.
3. Third objective of our study is to examine the benefits of FDI in the growth of tourism
sector. It is observed that tourism sector has generated more employment opportunities.
According to the policy, foreign workers can be employed under new FDI enterprises but
only for the first five years of operation. After that the ratio of expatriates to Bhutanese
employees must be reduced to 1:5. In terms of mobility of foreigners, while visa is issued
for the whole country, different route permits are required to visit different places around
the country.
4. Finally, it can be concluded that Bhutan has not proved to be a viable destination for high
foreign investment, in general. Royal Monetary Authority’s economic indicators support
this view when it states that Bhutan has received the least net FDI among the SAARC
16
countries. In fact, net FDI receipts decreased from US$ 74 million during 2006-2007 to
US$ 16 million during 2010-2011. It is a landlocked least developed country with major
constraints like small market, location factor, poor infrastructure and transport
bottlenecks. The FDI policy discourages investment by creating several inoperable
incentives. The other constraints in the country are relatively high transportation cost,
high cost of labor, and the unavailability of skilled and unskilled labor to match the
market demand. The decrease in FDI inflow is also due to economic recession that has
hampered the global economy since 2008. Meanwhile, Bhutan has been able to attract
small firms to invest in the country, especially in the service sector.
5. For an economy that is capital starved, with the small market base, lack of human
resources and technology, FDI is a viable option. The gains are many. FDI will bring in
the much needed convertible foreign exchange capital into the economy, generate
employment opportunities, develop human resources, open up markets and offer a host of
other choices to the people, among others. The government can capitalize on FDI to
achieve the sustainable growth of the economy.
References
Batra G.S., Tourism in the 21st century, (1996) Anmol publications Pvt. Ltd.,.245 Pgs
Dorji P. (2010) “New policy to attract more foreign investors” Bhutan Times
http://www.bhutantimes.bt/index.php?option=com_content&task=view&id=1233&Itemid=
Dirk William Velde and Swapna Niar, (2005), Foreign Direct Investment, service trade
negotiations and development - The case of tourism in Caribbean, Overseas Development
Institute.
Druk Associates (2010). “Reforming Business Start-up Procedures of Bhutan: Inventory,
Analysis and Recommendations.”
Ministry of Economic Affairs(2010), Royal Government of Bhutan:“ Foreign Direct Investment (FDI)
Policy” date of access 12-8-2012
http://www.dit.gov.bt/sites/default/files/FDI%20POLICY%202010(new).pdf
Federation of Hotels & Restaurants Association of India ltd, www.fhrai.com,
Govt. to review FDI in Tourism Sector, News and Features, New Delhi, February 13, (2007),
www.sarkaritel.com
17
Investment opportunities in Tourism Sector, Government of India portal Investment Commission
http://www.investmentcommission.in/tourism.htm#v
Manpower recruitment in Hotel industry, A market plus report of Ministry of tourism,
Government of India.
http://tourismindia.com,
Meyer, D, Foreign Direct Investment in Tourism - The Development Dimension - Expert
Advisory Committee (2005-2006). Funded by United Nations Conference on Trade and
Development, Geneva, Switzerland.
Meyer, D. (2006) FDI in Tourism: The Development Dimension. Case Study Sri Lanka. Geneva:
National council of Bhutan (2010) Review of the Foreign Direct Investment Policy 2010 and
impact of Foreign Land Ownership Date of access 12-9-12
http://www.nationalcouncil.bt/wpcontent/uploads/2011/02/FDI_Review_2010.pdf
UNCTAD
OECD (2002). “Foreign direct investment for development.”
Royal Government of Bhutan. "Economic Development Policy of the Kingdom of Bhutan, 2010."
Royal Government of Bhutan. (2010). Royal Monetary Authority, RMA Monthly Statistical
Bulletin, December 2009
Usha C.V. Haley, (2001), Tourism and FDI in Vietnam, Haworth Press, pp 67-90
Web resources:
http://www.bhutanobserver.bt/fdi-ventures-approved/
http://www.bhutantimes.bt/index.php?option=com_content&task=view&id=1867&Itemid=85