Government support in Lao PDR

How effective is it?

Foreign exchange from tourism (over US$ 146 million in 2005) significantly benefits the national economy in the Lao People's Democratic Republic (Lao PDR). This money stimulates local production and consumption in many sectors, including transport, agriculture and education, but does it benefit poor people?

After several successful community-based projects, the government is prioritising tourism to fight poverty and stimulate further economic growth. The government's role in pro-poor tourism is to create and enforce agreements that outline the roles and responsibilities of poor communities and ensure that they receive a reasonable share of tourism earnings.

Strategies for pro-poor tourism

The government's recent National Tourism Strategy and Action Plan (2006 - 2015) and the National Ecotourism Strategy both emphasise pro-poor tourism, particularly products and services that benefit poor rural communities. For example, culture and nature-based tourism are often pro-poor: villagers work as guides and site managers and provide accommodation and transport. Poor people benefit directly by selling food and drinks, traditional handicrafts and other local products to tourists.

The government can further support pro-poor tourism by:

• Raising awareness among local decision-makers about the potential of tourism to alleviate poverty.
• Improving human resources by offering training course in languages, hospitality, site management and maintenance, and guiding.
• Mediating supply and employment contracts between poor people and large tourism enterprises.
• Investing in small-scale infrastructure, such as visitor information centres, community lodges, access roads, water systems and sanitation.
• Adapting regulations to enable poor people to provide tourism products and services: for example, recent legislation permits rural communities to set up small inbound tour agencies.
• Developing pro-poor tourism management and interpretation plans.

Local objections to tourism

Despite the potential and existing benefits, public support for pro-poor tourism is not always forthcoming. One controversial issue is large-scale tourism on ancestral lands. If poor people do not receive adequate compensation for the loss of their land and access to natural resources, tourism may actually increase poverty. The Lao PDR government has largely avoided this so far. However, the development of a large casino and resort on the Lao PDR-China border threatens this trend. This new type of tourism, which is mainly funded by foreign investment, has yet to prove it will reduce poverty. It therefore requires careful monitoring and strong regulation to ensure that local people benefit.

The government must also decide whether to allow natural resource extraction and industrial development in areas with high tourism potential. But with thoughtful land-use planning strategies and zoning plans, it is possible to attract socially responsible investment, industrialise the national economy and protect the natural and cultural resources that support pro-poor tourism.

Steven Schipani
LNTA-ADB Mekong Tourism Development Project, Lao National Tourism Administration, PO Box 3556, Lanexang Ave, Vientiane, Lao PDR
T +856 21 217 910
F +856 21 217 910
sschipa@hotmail.com

Thaviphet Oula
Department of Planning and Cooperation, Lao National Tourism Administration, PO Box 3556, Lanexang Ave, Vientiane, Lao PDR
T +856 21 217 910
F +856 21 217 910
thaviphet@yahoo.com

See also

www.ecotourismlaos.com

Lao PDR Biodiversity: Economic Assessment, IUCN: Vientiane, Lao PDR, by S. Bouttavong, L. Emerton, L. Kettavong, S. Manivong and S. Sivannavong, 2002 Ecotourism Laos

Annual Statistics Report, Vientiane: Lao PDR, Lao National Tourism Administration, 2005

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