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Above the paddies in the pretty town of Tashiyangtse, the eastern Institute of Zorig Chusum, the Thirteen Arts and Crafts, clings to the slopes among strands of marigolds. Down in the valley, the river tumbles and foams under the bridge but here only the flapping of prayer flags and tapping of chisels echoes in the meadow. Set up 10 years ago, the school trains close to 100 students who devote six years to the study of traditional skills.

From painting to gold and silver smithing or metal casting, weaving and embroidery, sculpting and carving, paper making, bamboo and leather work, masonry and carpentry, the trades have survived with little change since they were defined by the Shabdrung who unified the country in the early 17th century. The first Arts and Crafts School was founded soon afterwards but interest can be traced back to the 15th century saint Pema Lingpa, an accomplished painter and craftsman.

Today in a world driven by mass production and financial gain, Bhutan greets you like a breath of fresh air, a place of amazing crafts which delighted us the minute we landed among fairytale houses, temples swirling with colour and people in elegant national dress. In this deeply religious kingdom, creating beautiful things is an act of worship, whether it is a piece of cloth or a basket for daily use, or a magnificent temple painting earning merits for the artist and his patron. Look out for the student drawing from a holy book, the farmer braiding bamboo, the monk painting a mandala, the housewife weaving on her doorstep, and you will often find them in a meditative state, offering their time and effort in anonymous tasks.

In this fine expression of faith, painting plays a special role. Murals embellish every temple and shrine but act above all as teaching tools and aids to meditation, depicting the Wheel of Life and gurus and gods, according to rules prescribed in ancient texts. Artists are allowed variations only in minor details, with similar rules for the painting of statues and the lovely wall hangings known as thangkas. Large works are done on thin layers of cloth, affixed around the walls from floor to ceiling.

With so much colour spread on such a large scale, so many statues and carvings, stepping inside a temple feels almost like a dream but outside, the village houses have their own little gems, mythical creatures and lucky signs painted on the façades, carved verandas and window frames perfectly proportioned, decorative cornices, and wooden phalluses hanging from the roof to scare away evil. In private and religious buildings, Bhutan’s distinctive architecture reflects long-standing skills handed down through generations of masons, carpenters and artists.

We tiptoed around the school, whispering greetings to the teachers, watching the students engrossed in their work, barely aware of our presence. There were wood carvers and painters, sculptors and smiths and embroiderers stitching luminous floral designs and auspicious signs. Later the best may work on the stunning appliqué icons displayed on special occasions or the embroidered boots and garments worn at festival time. Among our favourite items were carved masks and wooden goblets in workshops smelling of pine, rhododendron and maple wood, the bamboo hats and lidded containers woven in red and green, the tiny clay images drying in the sun and silver crafted into amulets, betel nut boxes and brooches used to fasten the kira worn by women.

In the afternoon, we headed for the paper factory by the river where freshly made sheets dried in the sun and a new batch of daphne bark boiled in the cauldron, ready to be pulped in an ingenious home-made hand-propelled contraption. This was a small but flourishing business, employing just four men with little pressure on the land, for in Bhutan nature is generous but never abused. The paper came in two thicknesses, textured and crisp to the touch, with its own religious link as an essential item, with wood printing blocks, in the making of sacred books.

Much craft is produced for local consumption but any surplus usually finds its way to Thimphu, to be sold alongside products from the capital’s own Institute. Prices reflect the high quality of Bhutanese craft, whether you shop in the main emporium or a smaller concern such as Blue Poppy who supply gifts for official visits abroad. Their most illustrious client is the Queen Mother, a generous patron of the arts whose legacy is found right across the country.

‘It is an honour,’ says Ten Dorji, artist and promoter, ‘but a great responsibility too. Sometimes we provide sample designs or clients may bring their own ideas and we work around them.’

In Thimphu, the choice is huge though the town is best known for its gold and silver work. Other areas have their own specialities, bamboo in Khyeng, wooden bowls in Tashiyangtse, yak hair products in the north while the eastern and central valleys claim the best weavers in the land.

Weaving stands in a class of its own. Among the 13 trades, it is the only one clearly dominated by women and offers the most scope for creativity, with new colours and patterns, and the latest fashion, brilliantly incorporated in a vast range of traditional styles. Imported fabrics may creep into every day use but come weddings or festivals, wearing your own creation is a matter of family pride.

In Bhumtang, we marvelled at women weaving yathras from morning to night, a woollen cloth stitched into blankets, sweaters and scarves, but we found the most intricate fabric in the east where additional warps and wefts gave an impression of pure embroidery. Highly prized is the kushuthara, a kira woven in Lhuentse, with multicoloured silk on a white background, which can take up to a year to complete. It is little wonder fabric was once used to pay tax and still forms part of a family’s wealth.

From Chumey to Khaling and Radhi, the clicking of handlooms followed us every step of the way and at night, we dreamed of shimmering colours, the hallmark of this pristine and amazing land.

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