Long known for its peaceful isolation, Bhutan is entering a new phase—one that merges its deep-rooted spiritual traditions with forward-looking economic development.
At the forefront of this transformation is the Gelephu Mindfulness City (GMC), a visionary urban development in southern Bhutan designed to draw high-quality foreign investment while staying true to the country’s Gross National Happiness philosophy.
GMC is envisioned as both an economic engine and a spiritual sanctuary. The city aims to blend Bhutanese cultural values with internationally recognized standards of governance, innovation, and transparency.
In June, Prime Minister Tshering Tobgay met with about 20 guests, including Singaporean media representatives, at his Thimphu office. Wearing the traditional gho, he announced that construction for a new international airport in Gelephu would begin in early July. The airport marks a major milestone in the US$100 billion GMC initiative, aimed at boosting connectivity and investor confidence while safeguarding Bhutan’s heritage and environment.
Located near the Indian border, the airport is set to become Bhutan’s second international entry point, complementing Paro International Airport. Designed by the Danish firm Bjarke Ingels Group, the 731,946-square-foot facility will accommodate up to 123 daily flights and 1.3 million passengers annually.
While modest compared to regional hubs, this project represents a significant step for Bhutan—a nation that limits annual tourist entries to 300,000. Paro, nestled among 5,000-meter peaks, requires expert piloting, with only around 50 pilots globally certified to land there manually.
The new Gelephu airport is expected to significantly improve access and signal Bhutan’s readiness to welcome global visitors, investors, and innovators.
Former CapitaLand CEO Liew Mun Leong took the helm of GMC in October 2024, steering its strategic development, infrastructure rollout, and international partnerships.
Prime Minister Tobgay described GMC as a unique special administrative zone—”a microstate three times the size of Singapore”—governed by its own regulatory framework.
A Gateway to Sustainable Growth
Spanning over 2,500 square kilometers, GMC is being developed in phases over 21 years, with a focus on future-ready sectors such as finance, green energy, education, healthcare, logistics, and spiritual wellness—all rooted in sustainability and quality of life.
To fund its early stages, the government introduced the Gelephu Mindfulness City Nation Building Bond (GNBB) in December 2024. By mid-2025, it had raised 3.3 billion ngultrum (approximately S$49.1 million), surpassing the original goal of 2 billion ngultrum.
Singapore has played a key advisory role in shaping GMC’s legal and institutional framework. Bhutan has adopted 18 Singaporean laws covering company formation, employment, and taxation.
“Singapore serves as a model for governance and long-term planning,” said Tobgay.
Tackling the Brain Drain
GMC also addresses Bhutan’s growing youth exodus. With youth unemployment at 19% in 2024, many young Bhutanese have left for overseas opportunities, particularly in Australia. Estimates suggest that 50,000 to 65,000 citizens have emigrated over the past eight years.
Tobgay acknowledged the need for global exposure but stressed the importance of returnees: “If they don’t come back, a small country like ours suffers.”
Despite high literacy and 12 years of free public education, Bhutan still faces a mismatch between graduate skills and available jobs. Tobgay, a Harvard alumnus, noted he too once struggled to find meaningful work upon returning.
The government hopes that GMC will create more quality, higher-paying jobs and encourage Bhutanese talent to stay or return home.
Bhutan’s traditional culture remains resilient. The gho and kira are still widely worn, and many citizens speak multiple languages. Tour guides like Dago Tshering, fluent in six languages, have chosen to stay in Bhutan despite overseas offers—valuing family and the simplicity of life.
Minister of Industry, Commerce and Employment Lyonpo Namgyal Dorji emphasized that foreign partnerships will be aligned with Bhutan’s values. “We don’t need foreign brands if local alternatives exist,” he said, citing the success of Mountain Cafe, which uses locally sourced coffee beans.
Focusing on Southeast Asia Tourism
While hydropower and agriculture remain Bhutan’s economic pillars, diversification is key to long-term sustainability. Tourism, which contributes around 10% of GDP, is being targeted for expansion to 15% by 2030.
Bhutan maintains its “low volume, high value” tourism model, focusing on curated experiences that emphasize wellness, culture, and natural beauty.
Home to over 2,000 temples and monasteries—including the iconic Tiger’s Nest—Bhutan is promoting lesser-known experiences: cycling through valleys, meeting farmers, local concerts, and destination weddings.
Although India currently accounts for 70% of visitors, Bhutan aims to rebalance the ratio to 50:50 by growing interest from Southeast Asian countries.
To support this, Bhutan reduced its sustainable development fee from US$200 to US$100 per person per night in September 2023. Tourist numbers have risen, with 145,065 visitors in 2024—up 40.7% from the previous year—but still short of the 150,000 target. The goal for 2025 and 2026 is to reach 300,000 annual visitors.
Rising Interest from Singapore
Singapore ranks as Bhutan’s third-largest tourist source, after India and China. In 2024, 3,200 Singaporeans visited—up from the usual 2,000 annually. As of June 2025, 1,200 had already arrived, indicating continued growth.
Chan Brothers Travel’s Executive Director, Chan Guat Cheng, highlighted Bhutan’s appeal for Singapore’s five million outbound travelers. With growing demand for nature, peace, and spirituality, Bhutan offers a unique experience.
On July 4, Chan Brothers Travel and Drukair signed a memorandum of understanding in Singapore to increase exclusive charter flights. The number of charters has jumped from six in 2024 to 30 scheduled for 2025 and 2026.
As the agency marks its 60th anniversary, it is launching a series of special Bhutan tours via chartered direct flights, aiming to deepen collaboration with Bhutan’s Department of Tourism.
