Tourism in Bhutan began in 1974, when the Government of Bhutan, in an effort to raise revenue and to promote Bhutanese unique culture and traditions to the outside world, opened its isolated country to foreigners. In 1974 a total of 287 tourists visited the Kingdom of Bhutan. The number of tourists visiting Bhutan increased to 2,850 in 1992, and rose dramatically to 7,158 in 1999. By the late 1980s tourism contributed over US$2 million in annual revenue.

Though open to foreigners, the Bhutanese government is acutely aware of the environmental impact tourists can have on Bhutan’s unique and virtually unspoiled landscape and culture. Accordingly, they have restricted the level of tourist activity from the start, preferring higher-quality tourism. Initially, this policy was known as “high value, low volume” tourism. It was renamed in 1999 as “high value, low impact”, “a subtle but significant shift” indicating that the government was prepared to welcome more tourists, although “cultural and environmental” values should be preserved. In 2005 a document called “Sustainable Tourism Development Strategy” “placed greater emphasis on increasing tourist numbers by using the country’s culture and environment to promote Bhutan as an exotic niche destination attractive to wealthy tourists”.