Short answer
Bhutan charges a Sustainable Development Fee of USD 100 per person per night for most nationalities, reduced from USD 200 in September 2023. Indian, Bangladeshi and Maldivian nationals pay a concessional INR 1,200 — about USD 14 — per night. Nepali passport holders pay the USD 100 rate.
The SDF is Bhutan's tourism levy, funding healthcare, education and forest conservation, and it applies per night of stay rather than per trip. A 7-night Bhutan holiday therefore carries USD 700 per adult in SDF before a single hotel night is booked, which is why Bhutan costs several times what an equivalent week in Nepal does.
The concessional band covers Indian, Bangladeshi and Maldivian nationals only. Nepali travellers are frequently surprised by this, because Nepal and Bhutan are both SAARC members and the assumption of a regional rate is a natural one. It does not apply, and it is worth knowing before you build a budget.
Children under six are fully exempt and ages six to twelve pay half, which makes Bhutan meaningfully more affordable for families than the headline rate suggests. Day visits to Phuentsholing and its immediate border zone carry no SDF at all; travel beyond that requires the permit and the fee.
| Traveller | SDF per night | Notes |
|---|---|---|
| Most nationalities, including Nepali | USD 100 | Reduced from USD 200 in September 2023 |
| Indian, Bangladeshi, Maldivian adult | INR 1,200 (about USD 14) | Concessional regional rate |
| Child, 6–12 years | 50% of the applicable rate | Applies to both bands |
| Child under 6 | Nil | Fully exempt |
| Day visit to the Phuentsholing zone | Nil | No overnight stay beyond the border town |