Civil Society Grant Facility

Posted On: October 25th, 2019

Title of the project    Linking Rural Artisans & Handicrafts to Tourism markets (Promoting an Inclusive Tourism in Bhutan)

Location of the project   Thimphu, Tashiyangtse, Zhemgang, Lhuentse, Haa

Name of the applicants   Handicrafts Association of Bhutan (HAB)

Duration of the project    12 months

Total Cost of the project (in Nu/EURO)    Nu. 3,520,090.00

Objectives of the project
        PURPOSE – To increase income of rural handicraft producers, create jobs and livelihood opportunities.


  • To strengthen coordination and collaboration among the stakeholders, and
  • Enhance linkages of authentic Bhutanese handcrafts into tourism market.


  • Review existing policies and programs that impact handicraft development and promotion;
  • Facilitate closer interaction (exchange, coordination and cooperation) among key government agencies, CSOs, CBOs and private sector,
  • Streamline application of “Made in Bhutan” on authentic crafts,
  • Strengthen linkages among the key value chain actors (vertical handicrafts business linkages);
  • Develop and promote CBOs/producers groups and cooperatives/(horizontal handicraft business linkages);
  • Improve producer competitiveness in product designing and production capacity; and
  • Train producers on product costing, pricing and bookkeeping.

Target groups/ final beneficiaries  ABTO, HRAB, GAB, Bjoka Tsharog Group, crafts producers and marketing agencies.

Estimated results  (SHORT TERM)

  • R1:- improved coordination among the agencies and service delivery through policy intervention;
  • R2:- increased uptake of indigenous Bhutanese handicraft into tourism market through strengthened vertical & horizontal business linkages; and
  • R3:- improved productivity, diversity, and quality of authentic Bhutanese handicrafts through skills training & product development.


  • KPI1:- number of government and non-government agencies working in coordination to deliver services in the handicrafts sector(situational analysis of the craft sector will set the basis)
  • KPI2:- % reduced in application of “MADE IN BHUTAN” on imported crafts (situational analysis of the crafts sector will set the basis);
  • KPI3:- % of authentic Bhutanese crafts(Made in Bhutan) in tourism market and imported handicraft retailors shop( situational analysis of the crafts sector will set the basis); and
  • KPI4:- number of new designs and improved quality products available in the market (situational analysis of the crafts sector will set the basis).


  • LR1:- Facilitate promotion of brand Bhutan
  • LR2:- Strengthen overall handicrafts industry in the country;
  • LR3:- Enhanced income of authentic crafts producers and distributers; and
  • LR4:- Lead to formulation of specific policy for crafts sector in Bhutan

Main activities

  • Conduct detail study on policy & programs concerning handicrafts sectors.
  • Stakeholder consultation workshop on draft report by the consultation with the stakeholders
  • Formation of crafts sector coordination committee among the stakeholders
  • Organize dialog between concern authorities and handicraft shops and producers to trash out issues on certification on antic clearance and seal of origin.
  • Develop 5 years handicraft sector strategy document
  • Consultation, validation and finalization workshop on handicrafts sector strategy document.
  • Develop market Channel and linkages to tourism hotspot destinations for 5 authentic handicraft products out 13 arts and crafts.
  • Market channel and linkage development consultation, validation workshop among the key shareholders of 5 authentic handicraft products
  • Developing brand application guidelines and SOP for commonly used MADE IN BHUTAN
  • Consultation and validation workshop brand application and guidelines and SOP
  • Develop traceability and certification system for handicrafts both imported and authentically produced in Bhutan
  • Consultation and validation workshop on traceability and certification
  • Develop handicrafts producers, retailors and supplier’s data base.
  • Develop communication & promotion materials.
  • conduct buyer-seller meet and awareness program for tour guides on authentic crafts
  • Develop training curriculums for 2 selected authentic products out of 5 prioritized products.
  • Skills training on product innovation & designing for the selected products and curricula developed in 3 Dzongkhag