The happiest country Bhutan: on the brink of 'collapse', is this real life?

Nestled between China and India, the world's two most populous countries, and nestled in the Himalayas, is Bhutan. Known as the Land of the Thunder Dragon, it is a Buddhist monarchy with a population of 700,000.

Most foreigners who have heard of Bhutan know two things: the country charges international visitors a $100-a-day sustainability fee (also known as a tourist tax) and it is the birthplace of the Gross National Happiness Index, a system that aims to care for the well-being of its people and the environment.

As this once-hidden kingdom gradually opens up to the world, that alone is making it a hot tourist destination, alongside its historic temples, secluded hiking routes and stunning views of the Himalayas.

But is it really happy here? And what does that mean for the people who live here? People here have different answers.

“The first thing (foreigners) talk about is the national happiness that we promote in Bhutan,” said KJ Temphel, founder of conservation group Green Bhutan. “I think certainly living in Bhutan, for me personally, it’s quite peaceful and I’m happy to be here.”

“I must say our people are really happy, but now, because of all the modern things and all the technology that has come in, somehow we are becoming more and more distant from each other and we tend to become more depressed and sad,” said Tandin Phubz, founder of the Facebook page Humans of Thimpu, which posts pictures and profiles of ordinary people in the capital in the style of the popular Humans of New York project.

"Bhutan is a Buddhist country. Spirituality and religion have a very strong impact," he added. "The problem is that with all these gadgets and televisions, (people) somehow get distracted from that. They tend to forget to pray in the morning and evening. They are on their phones, looking at TikTok, swiping up and down."

Modernity is a relative term in Bhutan. Locals will proudly tell you that Thimpu is the only capital in the world without traffic lights, and that the shops and restaurants are all locally owned and run. Bhutan is a rare destination in the world that doesn’t have many international brands. While there are a few – such as outposts of the luxury hotel chains Le Meridien and Aman – even the capital is largely devoid of corporate logos.

Businessman Chokey Wangmo says it's unlikely that corporations like McDonald's and Starbucks will come to Bhutan - not because of local policies or customs, but because it's not a profitable market for them.

“Our population is so small, we won’t even be able to recover the franchise fee in 10 years,” said Wangmo, who runs several businesses in the town of Gelephu in southern Bhutan, including a coffee shop. “Even if the entire population comes and has a cup of coffee every day, it will be very difficult for them to pay (the franchise fee).”

Wangmo is witness to Bhutan’s transformation firsthand. Gelephu, a town of about 10,000 people near the border with the Indian state of Darjeeling, was handpicked as the site for a new “Mindful City,” a project spearheaded by the country’s king, Gyalpo Jigme Khesar Namgyel Wangchuck.

It seems impossible to imagine Bhutan without its fifth king. Portraits of the king and his royal family – he, Queen Jetsun Pema and their three young children – are in almost every home and business in Bhutan, displayed the way other countries often display their national flags. Images of the king are ubiquitous in the country’s Buddhist temples.

Besides, Bhutanese who want to explore the wider world can't just pack their bags and go. Only three countries have diplomatic embassies in Thimphu, which means most international relations have to go through India. Bhutan's currency, the ngultrum, is pegged to the Indian rupee and most shops and businesses will accept both.

The Henley Passport Index ranks the Bhutanese passport as the 87th most powerful in the world, with holders able to enter 55 destinations without a visa – a list that does not include the United States, Australia or the European Union.

Bhutan’s only international airport, Paro International (PBH), is one of the most beautiful in the world – but also one of the most logistically challenging. Located in a valley between two mountains, only smaller aircraft can land and take off safely, so Paro only offers short-haul flights to nearby Bangkok, Dhaka, Kathmandu and New Delhi.