Bhutan Charms, but Shangri-La is no paradise

  • May 28, 2012
Bhutan Charms, but Shangri-La is no paradise
Premium-paying tourists have long eulogised Bhutan's unspoiled charms, its peace and its pristine environment, but the Himalayan kingdom, famed as the "last Shangri-La", and for using happiness to measure its success, is no idyll.

Its economy is struggling, with shantytowns emerging in urban centres, packs of wild dogs roaming freely, and beggars on street corners.

Bhutan, wedged between India and China, spends far more on imports than it earns, banks are cracking down on cheap credit after a recent debt-driven spending boom, and youth employment has surged to 9.2 percent as teenagers abandon farming for urban life.

The government is trying to cut the number of people living below the poverty line to 15 percent of the population from its current 23 percent, according to its own figures.

Encouraging more tourists would bring in cash, but the government will not abandon its longstanding policy of limiting visitor numbers by accepting only those who pay $250 a day in advance.

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PHOTO CREDIT: Reuters/Singye Wangchuk