Bhutan, nestled in the eastern Himalayas, is renowned not only for its breathtaking landscapes but also for its unique development philosophy centered on Gross National Happiness (GNH). In an era dominated by Gross Domestic Product (GDP) as the primary indicator of a nation’s success, the concept of Gross National Happiness (GNH) offers a refreshing and holistic approach to development.
(Source: Photos from Unsplash by Nihar Modi; Jaanam Haleem; Getty Images)
Originating from Bhutan, GNH emphasizes the well-being of a nation’s citizens over mere economic output, presenting a framework that integrates economic, social, environmental, and cultural dimensions of progress. The term Gross National Happiness was coined in the 1970s by Bhutan’s fourth king, Jigme Singye Wangchuck. He stated, “Gross National Happiness is more important than Gross Domestic Product,” emphasizing a shift away from traditional development metrics (The Constitution of The Kingdom of Bhutan, n.d.).
Rooted in Bhutan’s Buddhist principles, GNH reflects the belief that true progress occurs when material and spiritual growth are balanced. Since its inception, the idea of GNH has significantly influenced Bhutan’s development policy. The Gross National Happiness Index was developed to serve as a measurement tool for policy making, creating incentives for government, NGOs, and businesses to increase societal well-being. The index includes traditional areas of socio-economic concern such as living standards, health, and education, as well as less traditional aspects like culture, community vitality, and psychological well-being. This holistic reflection captures the general well-being of the Bhutanese population rather than solely measuring subjective happiness (Bhutan's Gross National Happiness (GNH) Index, 2024).
The concept of GNH has evolved significantly since its inception. Initially focused on the four foundational pillars—sustainable and equitable socio-economic development, cultural preservation, environmental conservation, and good governance—GNH expanded to include nine domains. These Nine Domains—psychological well-being, health, education, time use, cultural diversity and resilience, good governance, community vitality, ecological diversity and resilience, and living standards—provide a more comprehensive framework for understanding and fostering well-being . Each domain represents components of well-being that contribute to fulfilling conditions of a "good life," as per the values laid down by GNH.
In 2008, GNH was formally adopted as a development indicator in Bhutan’s Constitution, further solidifying its role in guiding national policies. Bhutan’s leadership has consistently emphasized the integration of values like kindness, equality, and humanity into development, with the current King, Jigme Khesar Namgyel Wangchuck, describing GNH as "development with values" and a bridge between economic growth and these principles (Revkin, 2005).
Bhutan has developed a GNH Index to evaluate the happiness and well-being of its citizens. Unlike GDP, which is solely quantitative, the GNH Index incorporates both quantitative and qualitative data, drawing insights from surveys that gauge individuals’ subjective experiences alongside objective indicators. This approach allows policymakers to identify specific areas for improvement and craft targeted interventions.
Bhutan is unique in having a King who tirelessly works for the welfare of his people, earning their unwavering love and reverence. This mutual bond of respect and devotion is a cornerstone of the nation’s identity. In 2008, the King made the unprecedented decision to introduce democracy, despite the reservations of many citizens who preferred the stability of the monarchy. This selfless act demonstrated the King’s foresight and commitment to empowering his people with a governance system that would ensure their long-term prosperity (“Bhutan’s Road to Democracy”).
Bhutan's tourism strategy is anchored in the principles of Gross National Happiness (GNH), ensuring that the nation's cultural and environmental integrity is preserved. To achieve this, the King introduced a "high-value, low-volume" tourism policy that incorporates the Sustainable Development Fee (SDF) — a daily charge for tourists designed to contribute to national development. Since Bhutan welcomed its first visitors in 1974, tourism has played an instrumental role in the country's progress, with the SDF helping to regulate visitor numbers while channeling a significant portion of tourism revenue toward projects that benefit Bhutanese citizens (“Understanding Bhutan's Sustainability Development Fee”).
As of February 2025, international visitors to Bhutan are required to pay a Sustainable Development Fee (SDF) of US$100 per night. This discounted rate has been in effect since September 1, 2023, and will continue until August 31, 2027 (Cocks).
This policy ensures that tourism benefits Bhutan’s economy without compromising its pristine environment and cultural heritage (Tavassoli). Revenue from the SDF is channeled into initiatives that support enhancement of airports, construction of essential facilities like toilets, and strengthening administrative capacities, tourism infrastructure and other social development projects, further exemplifying the King’s dedication to holistic and sustainable progress for Bhutan and its people (“SDF – Sustainable Development Fees”). Despite being a developing country, the country provides free healthcare services, with the system covering almost 90% of the population within two hours of travel distance(“Health and Education In Bhutan”).
This reflects its strong commitment to public welfare and aligns with the nation's philosophy of Gross National Happiness, which prioritizes well-being over economic growth (Tenzin et al.).
(Source: Photos from Unsplash by Getty Images; bradford zak; Pema Gyamtsho; Aaron Santelices)
References
The 9 Domains of GNH. (n.d.). Gnhcenterbhutan. https://www.gnhcentrebhutan.org/the-9-domains-of-gnh/
Bhutan's Gross National Happiness (GNH) Index. (2024, August 23). OECD. Retrieved February 24, 2025, from https://www.oecd.org/en/publications/well-being-knowledge-exchange-platform-kep_93d45d63-en/bhutan-s-gross-national-happiness-gnh-index_ff75e0a9-en.html
Bhutan’s Road to Democracy. (2008, September 24). Nbcnews. https://www.cfr.org/interview/bhutans-road-democracy
Cocks, T. (2023, September 2). Bhutan cuts Sustainable Development Fee by 50 per cent. Business Traveller. https://www.businesstraveller.com/business-travel/2023/09/02/bhutan-cuts-sustainable-development-fee-by-50-per-cent/?utm_source=chatgpt.com
The Constitution of The Kingdom of Bhutan [The Royal Government of Bhutan]. (n.d.). Bhutan. Retrieved April 1, 2017, from https://web.archive.org/web/20170516192917/http://www.nationalcouncil.bt/assets/uploads/files/Constitution%20%20of%20Bhutan%20English.pdf
Health and Education In Bhutan. (n.d.). Visit Bhutan. https://www.visitbhutan.com/page.php?id=9&utm_source=chatgpt.com
Revkin, A. C. (2005, October 4). A New Measure of Well-Being From a Happy Little Kingdom (Published 2005). The New York Times. Retrieved February 24, 2025, from https://www.nytimes.com/2005/10/04/science/a-new-measure-of-wellbeingfrom-a-happy-little-kingdom.html
SDF – Sustainable Development Fees. (n.d.). Windhorsetours. https://www.windhorsetours.com/sikkim-darjeeling/travel-information/sdf-sustainable-development-fees/?utm_source=chatgpt.com
Tavassoli, N. (2023, December 11). Pricing solutions to Bhutan's sustainable tourism policy. London Business School. Retrieved February 20, 2025, from https://www.london.edu/think/pricing-solutions-to-bhutans-sustainable-tourism-policy?utm_source=chatgpt.com
Tenzin, K., Dorji, T., Dorji, G., & Prisno III, D. E. L. (2022). Health inequities in Bhutan's free healthcare system: a health policy dialogue summary. https://onlinelibrary.wiley.com/doi/full/10.1002/puh2.34?utm_source=chatgpt.com
Understanding Bhutan's Sustainability Development Fee. (n.d.). Selective Asia. Retrieved February 20, 2025, from https://www.selectiveasia.com/bhutan-holidays/sustainability-development-fee?utm_source=chatgpt.com