Money & costs
Costs
Accommodation and food are both very economical in Tibet. The major expense – unless you have plenty of time and enjoy rough travelling – is getting around. If you really want to see a lot in a short space of time, you will probably have to consider hiring a vehicle and driver. Shared hired transport tends to work out at around US$30 per person per day. The per-person cost for a group of six travelling with stops from Lhasa to the Nepali border is around US$200.
Getting into Tibet is also relatively expensive. Train packages from Xining start at around US$170 (including permits), while the cheapest package by air costs around US$245 from Chengdu.
If you don’t hire transport (and it is still perfectly possible to see most of the places covered in this guide if you don’t), costs are very reasonable. If you are staying in Lhasa and visiting the surrounding sights you can do it comfortably on US$20 per day, staying in a dorm room or sharing a double. Outside the cities, daily costs drop drastically, especially if you’re hitching or hiking out to remote monasteries. Keep in mind that entry tickets can really add up: visit Lhasa’s main sights and you’ll end up shelling out around US$60 in entry fees.
At the other end of the scale there’s a lot more scope to go top end these days, at least in the cities. New five-star hotels, paved roads and a luxury train look set to take out much of the rigour of a visit to the Roof of the World.
Economy
China’s epic drive to develop its western hinterland has had a considerable impact on Tibet, and its economy is booming. Growth over the last six years has averaged an impressive 12%, trade is growing at 50% and GDP hit $3.7 billion in 2006. New businesses and hotels are popping up everywhere, spurred on by investment from China’s eastern provinces.
Not all Chinese are here to earn money, though. Wealthy urban Chinese tourists are flocking to Tibet in droves to spend it, and tourism is an increasingly important source of revenue. Tibet currently receives three million tourists in a year, a rate growing by an amazing 40% annually. This influx bring in US$300 million each year. More than 93% of tourists to Tibet are Chinese. Over 30, 000 tourists arrived at Lhasa airport during the May 1 national holiday.
The 2006 opening of the train line between Tibet and Qinghai Province has had a huge effect on both tourism and economic growth, cutting transport costs by US$23 million in the first year alone. The train also transported over 1.5 million additional people to Tibet during the same period
The Tibetan plateau has rich deposits of gold, zinc, chromium, silver, boron, uranium and other metals. The plateau is home to most of China’s huge copper reserves. A single mine in northern Tibet is said to hold over half the world’s total deposits of lithium. Chinese scientists announced the discovery of five billion tonnes of oil and gas in the Changtang region in 2001. Reports indicate mining now accounts for one-third of Tibet’s industrial output. Mining has long been traditionally inimical to Tibetans, who believe it disturbs the sacred essence of the soil. Many fear that the train will speed up mining. The Chinese name for Tibet, Xizang – the Western Treasure House – now has a ring of prophetic irony.
There is an increasing economic and social divide in Tibet. Per capita disposable income currently stands at over US$1000 in the towns and only $260 in the countryside.
Many Tibetans maintain that Chinese immigrants are the real winners in the race to get rich in Tibet, while China protests that it is simply developing and integrating one of its most backward provinces, at a large financial loss.
Money
For your trip to Tibet bring a mix of travellers cheques (say 60%), cash in US dollars (40%) and a credit card.
Atms
Several ATMs in Lhasa and Shigatse accept foreign cards. The Bank of China accepts Visa, MasterCard, Diners Club, American Express and Plus. The Agricultural Bank accepts Visa, Plus and Electron. Check before trying your card as many ATMs can only be used by domestic account holders.
The maximum amount you can withdraw per transaction is Y2000 with the Bank of China and Y1000 with the Agricultural Bank. Cards are occasionally eaten, so try to make your transaction during bank hours.
For those without an ATM card or credit card, a PIN-activated Visa TravelMoney card (US 1-877-394 2247) will give you access to predeposited cash through the ATM network.
Exchanging money
In Tibet, the only place to change foreign currency and travellers cheques is the Bank of China. Top-end hotels in Lhasa have exchange services but only for guests. Outside of Lhasa, the only other locations to change money are in Shigatse, Zhangmu, Purang (cash only) and Ali, and at the airport on arrival. If you are travelling upcountry, try to get your cash in small denominations: Y100 and Y50 bills are sometimes difficult to get rid of in rural Tibet.
The currencies of Australia, Canada, the US, the UK, Hong Kong, Japan, the euro zone and most of the rest of Western Europe are acceptable at the Lhasa Bank of China. The official rate is given at all banks and most hotels, so there is little need to shop around for the best deal. The standard commission is 0.75%.
The only place in Tibet to officially change RMB back into foreign currency is the central Lhasa branch of the Bank of China. You will need your original exchange receipts. You cannot change RMB into dollars at Gongkar airport.
Moneychangers at Zhangmu (by the Nepal border) will change yuan into Nepali rupees and vice versa. Yuan can also easily be reconverted in Hong Kong and, increasingly, in many Southeast Asian countries.
International transfers
Getting money sent to you in Lhasa is possible but it can be a drag. One option is by using the Bank of China’s central office in Lhasa. Money should be wired to the Bank of China, Tibet/Lhasa branch, 28 Linkuo Xilu, bank account No 90600668341, SWIFT code BKCHCNBJ900. Double-check wiring instructions with the bank beforehand.
The second option is via Western Union (www.westernunion.com), which can wire money via the Express Mail Service (EMS) at Lhasa’s main post office.
Taxes
Although big hotels may add a tax or ‘service charge’ of 10% to 15%, all other taxes are included in the price tag, including airline departure tax.
Travellers cheques
Besides the advantage of safety, travellers cheques are useful to carry in Tibet because the exchange rate is higher (by about 3%) than it is for cash. The Bank of China charges a 0.75% commission to cash travellers cheques. Cheques from the major companies such as Thomas Cook, Citibank, American Express and Bank of America are accepted.
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