Rs 40,000 & Counting: Can Sikkim’s Rs 50 Eco-Fee Save the Himalayas?

Sikkim, India’s first organic state, is testing a bold idea: charging tourists Rs 50 to help save its fragile Himalayan ecosystem. However, the early results are surprising, with only Rs 40,000 collected since March 2025, raising questions about whether this well-intentioned policy can truly protect one of the world’s most biodiverse regions.

The fee, part of the Tourism Sustainability Development (TSD) Fund, aims to fund infrastructure, waste management, and conservation in a state where tourism is both an economic lifeline and an environmental threat. With over 2.5 million annual visitors, Sikkim’s glaciers, forests, and rare wildlife, like the red panda and snow leopard, face growing pressure. Yet, just 28–30 hotels have actively collected the fee so far, revealing teething troubles in implementation.


How the Eco-Fee Works—And Why It’s Struggling

Under the Sikkim Registration of Tourist Trade Rules 2025, every tourist (except children under five and government officials) must pay Rs 50 at hotel check-in. The fee covers a 30-day stay; re-entry after this period requires an additional payment. Funds are allocated toward road repairs, cleanup drives, and eco-friendly infrastructure.

But the rollout has been rocky:

  • Bureaucratic Hurdles: Hotels complain of manual logbooks and weekly bank transfers, calling for digital solutions.

  • Low Awareness: Many tourists are unaware of the fee, as there is no standardized signage or online booking disclaimers.

  • Enforcement Gaps: Unlike Bhutan’s centralized $200/day fee, Sikkim relies on hotels to collect payments, leading to inconsistencies.

“This is just the beginning,” admits C.S. Rao, Additional Chief Secretary of Sikkim’s Tourism Department. “We’re streamlining the process after feedback from hoteliers”.


Stakeholder Standoff: Hotels vs. Conservation

A recent meeting with the Sikkim Hotels and Restaurants Association (SHRA) highlighted tensions. Hoteliers argue the fee adds administrative burdens and could deter budget travelers, especially when neighboring states like Darjeeling charge nothing. “We need simpler systems, like app-based payments,” one owner told officials.

The government is responding with fixes:

  • Tech Upgrades: Plans to integrate the fee with online travel agencies (OTAs) and airport kiosks.

  • Transparency Pledges: Promises to publicly report TSD Fund allocations to build trust.

  • Soft Incentives: Tourists may receive “eco-certificates” as proof of contribution.


The Bigger Picture: Can Rs 50 Save the Himalayas?

Sikkim’s challenges mirror a global dilemma: balancing tourism revenue with environmental costs. The state’s 8,586-meter-tall Khangchendzonga National Park, a UNESCO World Heritage Site, is already experiencing glacial melt and trail erosion. Experts warn that unchecked tourism could accelerate damage.

Yet, the fee’s potential is significant. If all 2.5 million tourists paid, Sikkim could generate Rs 12.5 crore annually, enough to fund:

  • Waste management in high-traffic areas like Gangtok and Lachung.

  • Trail restoration in Himalayan sanctuaries.

  • Solar-powered amenities for remote homestays.


Lessons from Global Success Stories

Sikkim isn’t alone in this fight. Bhutan’s “High-Value, Low-Impact” tourism model, funded by its $200/day fee, has preserved 60% forest cover while boosting local livelihoods. Closer home, Costa Rica’s eco-tax funded reforestation and now attracts 1.7 million nature lovers yearly.

But Sikkim’s approach is distinct: it targets mass tourism, not just luxury travelers. The question is whether Rs 50 less than the cost of a bottle of water in Gangtok can drive real change.


The Road Ahead: 5 Fixes for Success

  1. Go Digital: Link payments to IRCTC, flight bookings, or QR codes at entry points.

  2. Awareness Blitz: Social media campaigns (#MyRs50ForSikkim) and airport posters.

  3. Quick Wins: Fund visible projects (e.g., trail repairs) to show tourists their money at work.

  4. Expand Coverage: Include day-trippers, who currently skip the fee.

  5. Stakeholder Buy-In: Fast-track SHRA meetings to address concerns.


Conclusion: A Test Case for India

Sikkim’s Rs 40,000 start isn’t a failure, it’s a wake-up call. As climate change threatens the Himalayas, the state’s experiment could inspire other Indian destinations, from Ladakh to Kerala. “Tourism shouldn’t cost the earth,” says Rao. “But saving it might cost Rs 50”.

For tourists, the message is clear: Pay the fee proudly. For hotels and officials, the work has just begun.

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