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Pilot Study for Project Formation for Luang Prabang Tourism Sector Development Project in Lao PDR Interim Report

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CHAPTER 1

Introduction 1.1 Study Background The tourism sector in Lao PDR has seen a fairly considerable growth over the period since the early 1990s with one major contributing factor being a designation of Luang Prabang as UNESCO World Heritage site in 1995. As a result, the sector has become a top foreign exchange earning sector in Lao PDR, and is given a high priority in the country’s national development policies and plans. Nonetheless, the inbound tourism of Lao PDR is not considered to have grown to a satisfactory degree, compared with that of neighboring countries1, and the country is now in the process of developing its tourism infrastructure in both ‘soft and hard’ areas. According to the Draft National Tourism Development Strategy 2005 to 2015 (an English version that has become a basis for the ongoing preparation of an official strategy by the Government of Lao PDR), the objectives of tourism development in Lao PDR include: product diversification based on Lao’s unique cultural and natural attractions; enhancing service quality, education and training; and spreading the benefits from tourism to remote and minority communities, among others. Luang Prabang, positioned as a transportation hub in the Northern Region of Lao PDR that suffers from the country’s highest poverty ratio (compared with the Central and Southern Regions), is expected to grow as a development core or a gateway in the Region. Foreign visitor arrivals in Luang Prabang have increased steadily since its designation as UNESCO World Heritage site, from 20,000 in 1995 to 106,000 in 2004. However, Luang Prabang has been faced with various bottlenecks that would hinder continued and sustainable tourism growth, including a lack of awareness as tourist destination in the international market, inconvenience and limited capacity of transport access to the area, heavy reliance of its tourism on a narrow strip of the World Heritage site and a need for product diversification to relax this reliance, a need for adequate environmental management to address several issues in the town such as potential increase in disorderly development, increasing demand for solid waste disposal and traffic congestion, and so on. These issues need to be addressed adequately in order to achieve continued and sustainable tourism growth in Luang Prabang, thereby contributing to the development in the Northern Region as well as in the country. Subsequently, Japan Bank for International Cooperation (JBIC), an executing agency for Japan’s Official Development Assistance (ODA) loans, initiated the Pilot Study for Project Formation for Luang Prabang Tourism Sector Development Project in Lao PDR (the Study). This study seeks to identify promising sub-projects and programs that will contribute to sustainable tourism development in Luang Prabang and to formulate a project that will be a potential candidate for future JBIC lending. Accordingly, JBIC commissioned the Study to a

1 Foreign visitor arrivals to Lao PDR were 895,000 in 2004 while those to neighboring countries in 2004 were as follows: 11.3 million for Thailand, 2.9 million for Viet Nam, and 1.06 million for Cambodia. As of 1995, Lao PDR had attracted more foreign visitors than Cambodia (220,000 in 1995), but the position of the two countries reversed as of 2004. In addition, for Lao PDR the arrivals with border passes accounted for more than a half of the total arrivals as of 2004, although foreign visitors entering Lao PDR with passports increased significantly in 2005 as described later in this report.


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team formed by PADECO Co., Ltd. of Japan (the Study Team). 1.2 Study Objectives Under the aforementioned background, the objective of the Study is to formulate a project as a potential candidate for future JBIC lending that will contribute to tourism sector development and cultural and historical heritage conservation in Luang Prabang, in order to achieve sustainable tourism development and continued increase in international tourists in the area, thereby contributing to enhancing foreign exchange earnings of Lao PDR as well as to social and economic development in the country. 1.3 Study Tasks The Study Team carried out the Study, according to the tasks indicated in Table 1-1, which were specified in the Terms of Reference approved by JBIC.

Table 1-1 Study Tasks from the Terms of Reference (TOR) Task Description of Task

1. Review of the necessity of tourism sector development in Lao PDR and Luang Prabang:

1-1 Review the priority of tourism development in Luang Prabang in the national development policies and plans

1-2 Review tourism demand for Lao PDR and Luang Prabang, and revise them where needed

1-3 Review existing plans, and identify major issues as well as development and conservation needs with respect to tourism sector development in Luang Prabang

1-4 Review current measures and plans for tourism promotion, and identify major issues (including carrying out tour operators interview surveys in neighboring countries and in Japan)

2. Identification of the socio-economic structure and tourism-related stakeholders in

the Project area: 2-1 Review socio-economic conditions and structure in the area, including existing

linkages between tourism and other industries in the area, mechanism with which tourism development can potentially benefit local communities, and potential to strengthen such inter-industry linkages and undertaking to benefit local communities

2-2 Review undertakings and capacity of concerned organizations of Lao PDR, other donors (e.g., UNDP, UNESCO, ADB, JICA, the Thai government, universities) and concerned NGOs, and examine collaboration measures with these entities during project implementation

3. Formation of sub-projects/programs which have high degree of necessity: 3-1 Propose promotion measures (including suggestions to increase the demand) to

enhance the effect of the Project 3-2 Establish needs-based criteria for selecting sub-projects and programs to be included in

the Project based on the tasks above 3-3 Prepare a detailed plan for these sub-projects/programs, including cost estimate for

implementation and for operation and management/ maintenance (O&M), project implementation/O&M scheme, project implementation schedule, economic evaluation of the Project, and setting of performance indicators of the Project)


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Task Description of Task 3-4 In light of the JBIC Environmental Guidelines, investigate necessary procedures in Lao

PDR with respect to consideration of environmental and social impacts of the Project, and examine mitigation measures for potential impacts (including conservation measures for landscape and cultural heritage, and consideration toward the poor)

3-5 Assist the Government of Lao PDR and other stakeholders (such as other donors, concerned entities in Luang Prabang, and concerned residents) to build consensus toward the Government’s requesting Japan’s ODA loan for implementation of the Project

1.4 Study Phasing and Reporting The Study officially started in mid-April 2006, and an Inception Report was presented to JBIC and concerned entities in Lao PDR in late April 2006. The Study Team composed of six international consultants with local consultants in Lao PDR then conducted the first phase of field activities in Luang Prabang and Vientiane from late April to late May 2006. The international team consisted of the following members: Tourism and Regional Development Specialist (Team Leader); Tourism and Regional Planner; Cultural Heritage Conservation Specialist; Tourism Promotion and Marketing / Human Resource Development Specialist; Infrastructure Planner; and Environmental Management and Social Consideration Specialist During this period, the Study Team carried out field surveys on major and potential tourist sites as well as on major transport links between these sites, and held meetings with key local officials in the concerned ministries, Luang Prabang Province and its departments, etc. as well as with people in the tourism industry and major donor agencies providing tourism-related assistance in Lao PDR. This Interim Report will be submitted to concerned entities in Lao PDR at the end of June 2006. The second phase of field trips will be conducted in July-August 2006 to discuss the interim results of the Study and to conduct detailed planning of promising sub-projects and programs that are expected to be part of the project to be eventually formulated in the Study. The Draft Final Report that will incorporate overall study results will be prepared by early September 2006, which will then be presented to concerned entities in Lao PDR as well as to JBIC in September 2006. The results of the discussion will be incorporated into the Final Report, due for submission in October 2006.


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CHAPTER 2

Lao PDR Tourism Today Lao PDR is endowed with unique cultural, natural and historical tourism resources that have potential to offer quality experience to visitors from across the world. Major attractions include:2 the national capital of Vientiane located on the Mekong River, offering well-known Buddhist monasteries and monuments; Luang Prabang, an ancient capital situated between the Mekong and Nam Khan rivers, listed as a UNESCO World Heritage site; Champassak that has rich history as well as Wat Phu, a temple complex recently designated as a UNESCO World Heritage site, which is considered to be one of the finest Angkor-inspired edifices outside Cambodia; the Plain of Jars in Xieng-Khouang with hundreds of giant, mysterious stone jars of various dimensions; and abundant nature and minority people in the mountainous north the Mekong River and its tributaries are running through, offering rich experience of eco- and cultural tourism. This chapter reviews government policies on tourism development and tourism demand in Lao PDR and in Luang Prabang, the target area of this Study, as well as provides major issues in the tourism sector in Lao PDR. 2.1 Government Policies and Strategies on Tourism Development The tourism sector has become a top foreign exchange earning sector in Lao PDR, with its revenue amounting to US$ 146.7 million in 2005, followed by exports of minerals (US$ 128.3 million), garments (US$ 107.5 million), electricity (US$ 94.6 million) and wood products (US$ 74.0 million). Table 2-1 shows revenues from tourism and major exports in 2002-2005.

Table 2-1 Revenues from Tourism and Major Exports for Lao PDR, 2002-2005.

2002 2003 2004 2005 Product $ Million Share $ Million Share $ Million Share $ Million Share

Tourism 113.4 25.4% 87.3 19.9% 118.9 24.1% 146.7 24.4% Garments 99.9 22.4% 87.1 19.8% 99.1 20.1% 107.5 17.9% Electricity 92.7 20.8% 97.3 22.1% 86.2 17.5% 94.6 15.7% Wood Products 77.8 17.5% 69.9 15.9% 72.4 14.7% 74.0 12.3% Coffee 9.8 2.2% 10.9 2.5% 13.0 2.6% 9.5 1.6% Agricultural Products 25.6 5.7% 11.1 2.5% 20.5 4.2% 26.6 4.4% Minerals 3.9 0.9% 46.5 10.6% 67.4 13.7% 128.3 21.3% Handicrafts 2.7 0.6% 12.4 2.8% 1.9 0.4% 2.7 0.4% Other Industries 19.9 4.5% 17.1 3.9% 13.4 2.7% 11.9 2.0% Total 445.7 100% 439.6 100% 492.8 100% 601.8 100% Source: LNTA, 2005 Statistical Report on Tourism in Laos. Note: Totals and shares were calculated by the Study Team based on the revenues by product available in this statistical report. As such, the tourism sector in Lao PDR has been given high priority in the country’s national development policies and plans including the National Socio Economic Development Plan (NSEDP) and the National Growth and Poverty Eradication Strategy (NGPES) as detailed below. 2 The description on these major tourism resources is based partly on Mintel, “Lao People’s Democratic Republic – Travel and Tourism Intelligence,” May 2005.


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2.1.1 National Socio Economic Development Plan (NSEDP) As of the time of writing this Interim Report, the Sixth National Socio Economic Development Plan (NSEDP) for 2006-2010 has been under preparation in Lao PDR, expected to be finalized in June-July 2006. The draft of the sixth NSEDP issued in January 2006 summarizes the growth of the tourism sector that was achieved in the fifth NSEDP period (2001-2005), pointing out that the strong growth experienced in recent years was supported by the Government’s increasingly open tourism policy, which upholds tourism as one of the eight focal economic sectors to be development in the fifth five-year plan (see section 2.3 of this report for tourism demand in recent years). Specifically, it indicates the following: (i) Lao PDR has established tourism relationships with many countries around the world with a focus on ASEAN members and countries in the Mekong Sub-Region; (ii) entry visa requirements were lifted for tourists from several countries in the region by the end of 2005; (iii) thirteen land border crossing points were upgraded into international border crossing points to welcome tourists, and facilities provided for the issuance of visas on arrival; and (iv) participation in different events was ensured to attract tourists from different markets, and a multitude of events relating to domestic and international tourism were organized in Lao PDR. The January 2006 draft of the sixth NSEDP indicates the following plans for the tourism sector in 2006-2010: Research and amend policies to facilitate the growth of the tourism sector, diversifying

funding sources, especially mobilizing private and foreign investment; Research and develop laws/decrees on tourism as a base to complete the Law on tourism; Implement effective measures to raise the quality of tourism services in response to

increasing needs of both foreign and domestic tourists; Improve tourism infrastructure including communications (transport) and information

systems, electricity, water supply, hotels and guesthouses to provide better services to tourists;

Enhance the competitiveness of tourism products for export; Cooperate with the mass media in order to advertise and access different types of tourists,

and organize an international trade fair in coordination with the airlines, trade, information and cultural agencies to promote tourist sites in the country;

Continue to develop ecological, cultural and historical sites and attract investment in tourist

sites; Pay full attention to human resources development in the tourism sector, including

establishing a tourism department in the Lao National University in order to develop highly qualified tourist officers, encouraging the private sector to participate in tourism training activities, and coordinating with various partners in Asia to provide relevant training on tourism;


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Further enhance the roles of the Lao National Tourism Administration at all levels; and Establish a National Tourism Council under the chairmanship of the Deputy Prime Minister,

with the involvement of representatives from relevant line ministries, central authorities and leaders of key provinces where important tourist sites are located.

2.1.2 National Growth and Poverty Eradication Strategy (NGPES) The National Growth and Poverty Eradication Strategy (NGPES) of Lao PDR that was approved by the National Assembly in February 2004 provides, with a dual objective of enhancing growth and development, and reducing poverty, the strategic framework under which all of the Government’s future growth and poverty eradication programs are to be developed and implemented. The medium-term operational framework of NGPES comprises four main sectors, various supporting sectors, several cross-sector priorities as well as specific national programs addressing poverty eradication, specifically as follows: The four main sectors are agriculture/forestry, education, health, and infrastructure,

especially rural roads. Tourism is selected as one of the supporting sectors (or potential growth sectors) that also

include energy and rural electrification, agro-forestry, mining and construction materials industries. In particular, market linkages and trade facilitation is an essential factor for the expansion of key sectors such as agriculture, industry and tourism. For tourism to benefit poor people, priority investments should be directed especially toward eco-tourism and encouragement of handicraft production.

Cross-sector priorities encompass environment, gender, information and culture, population

and social security. An all-cross-cutting issue is capacity building. Three poverty-related national programs include: the National Drug Control program, the

UXO Decontamination program, and the National Action Plan for HIV/AIDS/STD. All sectors refer, one way or another, to i) macro-economic requirements to improve their role and mandate, ii) private sector/market orientation/trade facilitation to enhance efficiency, iii) capacity building priorities, iv) environmental concerns, v) gender equality, vi) governance and institutional strengthening, and vii) coordination among sectors and agencies to achieve higher synergy. 2.1.3 National Tourism Development Strategy The Government of Lao PDR is currently in the process of developing a National Tourism Development Strategy for 2006-2015. As of May 2006, a draft strategy has been prepared partly based on the Draft National Tourism Development Strategy for Lao PDR that was drafted with fund provided through the ADB-financed Mekong Tourism Development Project (MTDP) currently undertaken in Lao PDR as well as in Vietnam and Cambodia. This draft National Tourism Development Strategy for 2006-2015 (prepared in the Lao language) is now awaiting government’s official approval, which expectedly is to be given in June-July 2006.


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2.2 Priority of Luang Prabang Tourism Development Luang Prabang, the ancient capital of the Lam Xang Kindgom, was listed as a World Heritage site by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in 1995. Due to its extreme importance as a major tourist attraction in Lao PDR, tourism development in Luang Prabang has been given high priority in the national-level development strategies and plans including NSEDP (and (draft) National Tourism Development Strategy). 2.2.1 National Socio Economic Development Plan (NSEDP) The January 2006 draft of the sixth NSEDP indicates national plans for regional development by region. The development strategies and targets for the Northern Region that are related to the tourism development in Luang Prabang are as follows, clearly indicating its priority in the national development plan: Invest and develop high quality services in Luang Prabang, Luang Namtha and

Xiengkhouang, with priority to be given to telecommunications and financial, commercial and tourism services, and encourage information dissemination on tourism, culture and health (as well as other services such as agro-forestry technical services) in the villages;

Create economic and service centers in Luang Prabang, which combine the development of

tourism sites, eco-tourism and culture; Diversify tours to border area economic zones and cross-border tourism, integrating Lao

tourism into the Mekong sub-region tours; Encourage all provinces in the region to put forward eco-tourism and culture/history-based

tourism; Support investment in tourism infrastructure, promote the economic sectors to invest in

eco-tourism, and develop traditional products such as handicrafts and weaving with local raw materials;

Rehabilitate the Luang Prabang airport to reach a sub-regional level to expand flights to all

GMS countries, Hong Kong and Singapore;3 Construct the Suphanouvone University in Luang Prabang that is expected to offer technical

and managerial training in such areas as agro-forestry processing and tourism; and Attract a total number of 700,000 to 800,000 tourists to the Northern Provinces, receiving a

total income of US$ 20-25 million, with a target of the tourism sector growth set at 5.5% per year.

2.2.2 National Tourism Development Strategy As mentioned earlier, the draft National Tourism Development Strategy for 2006-2015 has been prepared by the Government of Lao PDR (in the Lao language), currently awaiting government’s official approval. The Study Team will follow up its approval process and plans to review the contents of the strategy once it is finalized. 3 See section 3.5 of this report for the current plan regarding the Luang Prabang airport.


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2.3 Tourism Demand 2.3.1 International Tourism (1) Overall Trend As shown in Figure 2-1, foreign visitor arrivals to Lao PDR have increased significantly since the beginning of 1990s, from 37,800 in 1991 to 1,095,000 in 2005, the first hit to the one-million line for tourism of Lao PDR. The average growth rate in 1991-2005 was 27.2% per year, and the rate from 1995 (in which Laung Prabang was designated as the first UNESCO World Heritage site in Lao PDR) to 2005 was 10.5% per year. While a stagnant trend continued after 2000, particularly in 2003 in which uncertainties due to Severe Acute Respiratory Syndrome (SARS) virus and international terrorism apparently caused the arrivals to decline, a significant recovery occurred in 2004 with 895,000 arrivals, up from 636,000 in 2003.

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200,000

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Source: LNTA, 2005 Statistical Report on Tourism in Laos Figure 2-1 Foreign Visitor Arrivals to Lao PDR in 1991-2005

Table 2-2 indicates the number of foreign visitor arrivals by source region since 1991 along with the data of average length of stay estimated by LNTA based on statistical surveys conducted periodically. Note that ‘Regional Tourists’ are defined by LNTA as those from neighboring countries that share borders with Lao PDR including Thailand, People’s Republic of China (PRC), Myanmar, Vietnam and Cambodia; they include those entering Lao PDR with valid border passes or passports. ‘International Tourists’ are those entering Lao PDR with a valid passport and visa other than ‘Regional Tourists’. Key points are as follows: A significant number of visitors to Lao PDR are coming from Asia and Pacific, accounting

for 78-82% of total foreign visitor arrivals since 2000 (though the proportion is down from that in 1990s). It should be noted that these visitors include those from neighboring countries entering Lao PDR with border passes, as shown later.

The proportion of European visitors to Lao PDR has increased in recent years compared

with that in 1990s, accounting for 12-15% of total foreign visitor arrivals since 2000. Those from the Americas, mostly from the USA and Canada, account for 5-6% of total arrivals since 2000.


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The estimated average length of stay for ‘International Tourists’ has increased in recent

years, up from 3.5-5.5 in 1990s to 6.0-8.0 in 2001-05, while that for ‘Regional Tourists’ has been much shorter mainly because ‘Regional Tourists’ include a large number of visitors from neighboring countries with border passes who are allowed to stay in Lao PDR only for a couple of days.

Table 2-2 Number of Foreign Visitor Arrivals by Region and Length of Stay, 1991-2005

Number of Foreign Visitor Arrivals Average Length of

Stay (days) Year Asia & Pacific

Europe The Americas

Africa & Middle East

Total Int’l Tourists

Regional Tourists

1991 33,937 2,214 822 640 37,613 NA NA 1992 81,022 4,496 2,009 44 87,571 NA NA 1993 94,836 5,986 2,061 63 102,946 3.5 NA 1994 136,114 8,019 1,837 185 146,155 5.1 NA 1995 314,470 20,635 11,019 336 346,460 4.3 NA 1996 357,692 30,582 14,102 624 403,000 4.8 1.8 1997 403,781 38,583 18,213 2,623 463,200 5.0 3.0 1998 421,196 52,076 25,326 1,602 500,200 5.0 2.4 1999 510,703 68,564 31,780 3,231 614,278 5.5 2.4 2000 604,254 86,462 42,111 4,381 737,208 5.5 2.4 2001 553,249 80,736 34,370 5,468 673,823 8.0 2.4 2002 579,031 101,924 46,704 8,003 735,662 6.5 2.1 2003 498,185 93,960 39,453 4,763 636,361 6.0 2.0 2004 730,107 112,092 47,153 5,454 894,806 6.5 2.0 2005 899,273 131,326 60,061 4,655 1,095,315 7.0 2.0

Source: LNTA, 2005 Statistical Report on Tourism in Laos Importantly, those entering Lao PDR with border passes account for a significant portion of total visitor arrivals. The essence of issuing a border pass is to grant greater freedom of border crossing to those residing in border areas while imposing a reasonable level of restrictions on their rights in terms of the duration of stay and the areas where they can visit.4 Table 2-3 shows the number of visitors with border passes (those from Thailand, Vietnam and PRC), compared with those entering with passports. Main points are as follows: Those entering Lao PDR with border passes accounted for more than a half of total visitor

arrivals in 2001-2004. Most of these arrivals with border passes are of Thai nationals, although Vietnamese border pass holders entering Lao PDR have increased significantly over the past few years.

Those entering Lao PDR with passports have drastically increased in 2005 by 57.3% from

2004. As described later, this is largely due to a dramatic increase in Thai visitors (with passports) while many other nationals also contributed to this surge. On the other hand, total arrivals with border passes were stagnant in 2005.

4 In case of border crossing between Lao PDR and Thailand, for example, border passes may be issued by relevant authorities to nationals permanently residing in the border areas. A border pass is valid for one year, and the border pass holders may stay no longer than three days and two nights in the territory of the other country. Also, the areas border pass holders are allowed to visit are restricted to border areas designated for respective border crossing point.


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As a result, visitor arrivals with passports have exceeded those with border passes in 2005,

even by a substantial margin. This can be regarded as a sign of Lao tourism entering a new era, suggesting its high potential for further growth in the coming years.

Table 2-3 Foreign Visitors to Lao PDR with Border Passes and Passports, 2001-2005

Visitors with Border Passes Visitors with Passports

Year Thailand Vietnam PRC Total % of Total Arrivals

Total % of Total Arrivals

2001 314,349 25,440 33,137 372,926 55.3% 300,897 44.7% 2002 341,396 22,409 13,405 341,396 51.3% 358,452 48.7% 2003 324,657 12,329 9,457 346,443 54.4% 289,918 45.6% 2004 413,975 58,404 14,640 487,019 54.4% 407,787 45.6% 2005 374,644 74,282 18,775 467,701 42.7% 627,614 57.3%

04/01 Growth 31.7% 129.6% -55.8% 30.6% - 35.5% - 05/04 Growth -9.5% 27.2% 28.2% -4.0% - 53.9% - Source: LNTA, 2002 & 2005 Statistical Report on Tourism in Laos (2) Arrivals by Market Table 2-4 shows top ten countries for Lao tourism in 2002-2005 in terms of the number of visitors entering Lao PDR with passports. Note that these arrival figures do not include those entering the country with border passes (those from Thailand, Vietnam and PRC). More detailed arrival data by market are provided in Appendix A. Key points include the following: Top ten markets for Lao tourism have been relatively stable in recent years, with Thailand

and Vietnam being the top two even without considering border pass holders from these countries visiting Lao PDR (except in 2003 in which SARS apparently caused a substantial drop of Vietnamese visitors as well as Thais).

One significant event over this period is a dramatic increase in Thai visitors in 2005,

indicating that great interest of Thais in visiting Lao PDR is being manifested. The majority of Thai visitors (including the border pass holders) are entering Lao PDR through the Friendship Bridge linking Vientiane in Lao PDR and Nongkhai in Thailand as shown in Table 2-5.

On the other hand, most of the Vietnamese visitors are coming through the checkpoints

bordering Vietnam as indicated by a high percentage of Vietnamese visitors entering Lao PDR at ‘Others’ in the table.

Following these two countries are mostly major tourist generating markets in Europe and

North America (plus Australia). Japan is the only Asian country among these top ten markets (except neighboring countries). The position of PRC is getting higher although they are still largely coming through Boten in Luang Namtha Province bordering with Yunnan Province.


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Table 2-4 Top Ten Markets for Lao Tourism, 2002-2005

2002 2003 2004 2005 1 Thailand 81,370 22.7% 1 Thailand 53,091 18.3% 1 Thailand 75,702 18.6% 1 Thailand 228,545 36.4% 2 Vietnam 48,592 13.6% 2 USA 30,133 10.4% 2 Vietnam 72,412 17.8% 2 Vietnam 90,869 14.5% 3 USA 35,734 10.0% 3 Vietnam 29,265 10.1% 3 USA 37,181 9.1% 3 USA 47,427 7.6% 4 France 26,748 7.5% 4 France 23,958 8.3% 4 France 27,806 6.8% 4 France 35,371 5.6% 5 UK 21,749 6.1% 5 UK 22,541 7.8% 5 UK 27,402 6.7% 5 UK 29,977 4.8% 6 Japan 19,801 5.5% 6 Japan 17,766 6.1% 6 Japan 20,319 5.0% 6 Japan 22,601 3.6% 7 Germany 12,777 3.6% 7 Germany 12,146 4.2% 7 PRC 18,379 4.5% 7 PRC 20,435 3.3% 8 Australia 12,611 3.5% 8 PRC 11,775 4.1% 8 Australia 15,149 3.7% 8 Australia 20,323 3.2% 9 Canada 9,060 2.5% 9 Australia 11,697 4.0% 9 Germany 14,009 3.4% 9 Germany 16,752 2.7%

10 PRC 8,319 2.3% 10 Canada 8,006 2.8% 10 Canada 9,048 2.2% 10 Canada 11,447 1.8% Sub-Total 276,761 77.2% Sub-Total 220,378 76.0% Sub-Total 317,407 77.8% Sub-Total 523,747 83.5%

Grand Total 358,452 100% Grand Total 289,918 100% Grand Total 407,787 100% Grand Total 627,614 100% Note: These figures are the numbers of visitors entering Lao PDR with passports and their shares in total. Source: LNTA, 2002 & 2005 Statistical Report on Tourism in Laos As shown in Table 2-5, the visitors from these non-neighboring countries are widely

distributed across ports of entry. For Europeans (from France, UK and Germany), those coming through the Friendship Bridge (i.e., by land) are more than those arriving at Vientiane International Airport. In addition, many of the European visitors are arriving at Houei Xay (from northern Thailand) from which they can enjoy Mekong cruise down to Luang Prabang. Although more visitors arrive at Vientiane International Airport than at the Friendship Bridge for Japan, USA and Australia, they are not necessarily dominant.

These arrival trends by port of entry are consistent with the result of the market survey

conducted in this Study (described later), indicating that a variety of visitors are visiting Lao PDR from non-neighboring countries in terms of age group, tour patterns and expenditures. For example, a number of backpackers or FITs (Free, Independent Tourists) are visiting Lao

PDR, typically traveling by land, while there are also many package tourists coming by air,

who are widely distributed across different age groups.

Table 2-5 Arrivals from Top Ten Markets by Port of Entry in 2005

Country Friendship Bridge

VTE Airport

LPB Airport Houei Xay Boten Others Total

Thailand 404,759 6,629 8,152 19,384 712 163,553 603,189 Vietnam 32,889 6,661 28 330 6 125,237 165,151 USA 14,510 20,846 4,584 3,538 232 3,717 47,427 France 12,835 8,755 3,166 4,930 178 5,507 35,371 UK 9,040 5,562 3,383 7,610 272 4,110 29,977 Japan 7,910 8,527 1,614 1,201 310 3,039 22,601 PRC 3,684 8,205 93 206 26,222 800 39,210 Australia 6,023 7,471 1,365 2,938 118 2,408 20,323 Germany 5,173 3,615 2,730 2,766 156 2,312 16,752 Canada 3,222 3,236 1,081 2,196 84 1,628 11,447


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Share by Port of Entry for Arrivals from Each Country

Country Friendship Bridge

VTE Airport

LPB Airport Houei Xay Boten Others Total

Thailand 67% 1% 1% 3% 0% 27% 100% Vietnam 20% 4% 0% 0% 0% 76% 100% USA 31% 44% 10% 7% 0% 8% 100% France 36% 25% 9% 14% 1% 16% 100% UK 30% 19% 11% 25% 1% 14% 100% Japan 35% 38% 7% 5% 1% 13% 100% PRC 9% 21% 0% 1% 67% 2% 100% Australia 30% 37% 7% 14% 1% 12% 100% Germany 31% 22% 16% 17% 1% 14% 100% Canada 28% 28% 9% 19% 1% 14% 100% Note: These figures are for total arrivals including visitors entering Lao PDR with passports and border passes. VTE and LPB represent Vientiane and Luang Prabang respectively. Houei Xay is located in Bokeo Province in the northwest of Lao PDR, linking with Chiang Khong in Thailand. Cruse ships are operated between Houei Xay and Luang Prabang on Mekong River. Boten is located in Luang Namtha Province, bordering with Yunnan Province of PRC. Most of ‘Others’ are located in Central and Southern Regions, linking with Vietnam and Thailand as well as with Cambodia. Source: LNTA, 2005 Statistical Report on Tourism in Laos (3) Main Interests of Foreign Visitors In Lao PDR, an international visitors survey has been conducted every year at Vientiane International Airport and Friendship Bridge to obtain information on the profile of foreign tourists including the areas of their main interests. Figure 2-2 provides the result of the main interests of those surveyed in 2002-2005, showing average percentages of those interested in these tourism resources and/or activities over the four-year period. Key points are as follows: Culture and nature are the two major resources of Lao PDR attracting foreign visitors,

followed by temple and monuments. In addition to these, about 30% of the surveyed visitors answered that they were interested

in minority people, food and Lao PDR as new destination. Obviously, major selling points of Lao PDR are culture, nature and history, while minority

people and food can also be an important, attractive feature of Lao PDR if properly promoted.

Shopping opportunities in Lao PDR are considered not very attractive to foreign visitors.

There should be much room for improvement in this aspect.


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0 10 20 30 40 50 60 70 80

Other

New destination

Shopping

Food

Minority people

Culture

Temple & monuments

Nature

% of Total Surveyed Visitors

Source: LNTA, 2005 Statistical Report on Tourism in Laos. Note: Averages were taken from the data in 2002-2005.

Figure 2-2 Main Interests of Foreign Visitors to Lao PDR (4) Seasonality Seasonality is one of the important issues in Lao tourism. In Lao PDR, the dry season (October-April) is considered a high season for tourism while the rainy season (May-September) is regarded as low season. Figure 2-3 shows foreign visitor arrivals in 2005 by month (January-December), including (i) total arrivals, (ii) arrivals from ASEAN countries, (iii) arrivals from non-ASEAN countries in Asia and Pacific (excluding PRC), and (iv) arrivals from Europe, the Americas and others. Total arrivals and those from ASEAN countries include visitors with passports and border passes as readily available arrival data by month do not permit their distinction. Key points are as follows: Although the arrivals from ASEAN countries include border pass holders that may not be

strongly influenced by seasonal difference, some seasonality is still observed.5 There is clear and strong seasonality for the visitors from Europe, the Americas and others,

with their arrivals being particularly low in May-July and September. Likewise, arrivals from non-ASEAN Asia and Pacific are relatively lower in May-October

except in August. It is considered extremely important to take measures to promote tourism in Lao PDR in the

May-September period, thereby creating more jobs in tourism-related fields during the rainy season as well as bringing additional foreign exchange for the country.

5 Note that the trend of the arrivals from ASEAN countries by month in 2004 is somewhat different from that in 2005, with the arrivals in January and February being not so low, unlike those in 2005. On the other hand, June through September were relatively lower months for arrivals from ASEAN countries in 2004 as in the case of the arrivals from non-neighboring countries.


14

Total Arrivals

0

20,000

40,000

60,000

80,000

100,000

120,000

1 2 3 4 5 6 7 8 9 10 11 12

ASEAN

010,00020,00030,00040,00050,00060,00070,00080,00090,000

1 2 3 4 5 6 7 8 9 10 11 12

Non-ASEAN Asia & Pacific

01,0002,0003,0004,0005,0006,0007,0008,000

1 2 3 4 5 6 7 8 9 10 11 12

Europe, Americas & Others

0

5,000

10,000

15,000

20,000

25,000

1 2 3 4 5 6 7 8 9 10 11 12

Note: These figures by month include those entering Lao PDR with passports and border passes that are readily available. Note also that Non-ASEAN Asia & Pacific excludes arrivals from PRC in order to eliminate the influence of the arrival trend of border pass holders. Source: LNTA, 2005 Statistical Report on Tourism in Laos.

Figure 2-3 Foreign Visitor Arrivals to Lao PDR by Month in 2005 2.3.2 Regional Tourism for the Target Area (1) Foreign Visitor Arrivals to Luang Prabang Foreign visitor arrivals to Luang Prabang Province have increased rapidly in recent years as shown in Figure 2-4, from 51,200 in 2001 to 133,600 in 2005, at an average annual growth rate of 27% per year in 2001-2005. This rate of growth for Luang Prabang is significantly higher than that for Lao PDR as a whole.6 Foreign visitors to Luang Prabang grew robustly even in 2003 in which total visitor arrivals to Lao PDR dropped considerably. No question that Luang Prabang is one of the main engines of tourism growth in Lao PDR.

6 Note that total foreign visitor arrivals to Lao PDR including border pass holders grew at an annual average rate of 12.9% in 2001-2005, and those with passports at 20.2% per year in the same period.


15

105,513

65,872

51,207

133,569

99,150

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2001 2002 2003 2004 2005

Fore

ign

Vis

itor A

rriva

ls

Source: LNTA, 2005 Statistical Report on Tourism in Laos. Figure 2-4 Foreign Visitor Arrivals to Luang Prabang

Province in 2001-2005 Table 2-6 shows foreign visitor arrivals to Luang Prabang by source region in 2004-2005, compared with those for Lao PDR as a whole (visitors with passports). European tourists account for a significant portion of foreign visitors to Luang Prabang, which is much higher than their proportion in total arrivals to Lao PDR. On the other hand, the visitors from ASEAN countries show an opposite trend, although their share in arrivals to Luang Prabang increased substantially in 2005 due mainly to a significant rise of Thai tourists to Luang Prabang while increases in tourists from Malaysia, Vietnam and Singapore also contributed partly to this hike of ASEAN tourists to Luang Prabang. Appendix A provides detailed data of arrivals to Luang Prabang by nationality.

Table 2-6 Foreign Visitor Arrivals to Luang Prabang Province and Lao PDR by Source Region in 2004-2005

ASEAN Non-ASEAN

Asia & Pacific Europe Americas Africa &

Middle East Total

Luang Prabang 2004 10.6% 19.7% 51.8% 11.0% 7.0% 100% 2005 19.8% 14.1% 46.9% 13.3% 5.9% 100%

Lao PDR 2004 40.8% 18.8% 27.5% 11.6% 1.3% 100% 2005 55.0% 13.8% 20.9% 9.6% 0.7% 100%

Note: Arrivals to Lao PDR are those entering the country with passports. Source: LNTA, 2005 Statistical Report on Tourism in Laos. (2) Arrivals of Lao Nationals to Luang Prabang LNTA started to publish visitor arrivals of Lao nationals to Luang Prabang Province (in addition to foreign visitor arrivals) in its 2005 Statistical Report on Tourism in Laos. In fact, Luang Prabang attracts a significant number of Lao visitors as well. It is reported that the arrivals of Lao nationals were 128,381 in 2005. Adding it to the foreign visitors, total visitor arrivals to Luang Prabang Province in 2005 were 261,950. (3) Results of Tourist Survey conducted in Luang Prabang Luang Prabang Provincial Tourism Office (LNTA’s branch in Luang Prabang) conducted a


16

tourist questionnaire survey in 2002. The results of the 2002 survey are summarized in a report titled “Luang Prabang community-based sustainable tourism programme – Programme document for Phase 1” prepared by SNV (Netherlands Development Organization) that has long been assisting in capacity building for Luang Prabang PTO. Key results of the 2002 survey are as follows: A total of 500 questionnaires were distributed to hotels and to the guesthouses that were

randomly selected, of which 168 questionnaires were filled out. Although the majority of the respondents were younger than 30 years old (51% of the

respondents), there were a reasonably large number of the middle-aged and the elderly, with those older than 40 years of age accounting for 26% of the respondents.

The average length of stay in Luang Prabang of the respondents was slightly less than 4

nights, with the majority staying for 2-3 nights. Top reasons for visiting Luang Prabang and Lao PDR include: (i) culture (71%), (ii)

people€31s way of living (60%), (iii) temples (55%), and (iv) nature (52%). The respondents generally are satisfied with accommodation and food, while their level of

satisfaction is not high (or at average) for information, entertainment and souvenirs. They showed interest in other activities than the major sites such as the World Heritage site

and Kuang Si Waterfall. Those activities include trekking (to remote villages), knowing more about traditional way of living, rafting, and meditation, followed by caving, elephant riding, and mountain biking.

The individual travelers stayed, on average, 4.3 days in Luang Prabang and spent about

US$20.6 per person per day. Tourists traveling in groups and in couples stayed shorter, but spent more, about $35.3 per person per day.

2.3.3 Tour Patterns The Study Team surveyed the tours to Lao PDR offered in selected markets in Asia and Pacific Region, conducting (partly on a sub-contract basis) interviews with travel agencies in those markets. The objective of the survey was to understand the trend of the tours to Lao PDR currently offered in these markets, and to identify their views on major issues and problems of Lao tourism, its potential, and recommended measures to be taken by Lao PDR for destination development. The countries/cities selected for the market survey include: Japan/Tokyo, Thailand/Bangkok, the People’s Republic of China (PRC)/Kunming, Vietnam/Hanoi, and Australia/Sydney. As indicated earlier, Thailand is by far the biggest market for Lao PDR in terms of the number of arrivals, followed by Vietnam. Japan and Australia currently are the two major markets for Lao PDR in Asia and Pacific Region, outside of the neighboring countries. Kunming was included as it might potentially be an emerging market for Lao tourism. (1) Overall Itinerary Typical tour patterns obtained from the survey are summarized as follows (with details provided


17

in Appendix A): Japan: The most popular group tours for the Japanese market are six-day tours, visiting two major

cities of Lao PDR, Vientiane and Luang Prabang, with two nights in Luang Prabang. The next most popular tours are eight- to ten-day tours, visiting major tourist destinations in

Lao PDR including Vientiane, Luang Prabang (2 nights), Xieng Kouang and Pakse. For FIT tourists, five- or six-day tours seem to be the mainstream. In both cases, the average

length of stay in Luang Prabang is less than two nights. (Note that the tour patterns for other surveyed countries are currently under study.) (2) Transport Routes to Luang Prabang According to the surveyed travel agencies as well as the travel industry in Lao PDR, there are three routes to Luang Prabang with the following characteristics: By Air Routes: Bangkok/Chiang Mai/Hanoi – Luang Prabang Market: Almost all Japanese tours, most American tours, many

European tours, some tours from neighboring countries.

By Boat Routes: Houei Xay – Luang Prabang Market: Many European tours, some American tours, some Thai

tours.

By Coach (Land) Routes: Route 13: Vientiane – Luang Prabang Market: Many tours from neighboring countries, backpackers. These are essentially consistent with the arrival trend by port of entry described earlier. (3) Itineraries in Luang Prabang For Japanese tours, typical itinerary in Luang Prabang is a € 3 0two nights, three days’ program, typically including visits to: (a) the World Heritage site, (b) Pak Ou Cave, (c) Khouang Si Waterfall, and (d) some traditional villages near these tourist sites (see section 3.1 for major tourism resources in Luang Prabang). It is generally considered that a program with three nights in Luang Prabang would hardly be marketable, although this view is due partly to a lack of information on Lao tourism available to the travel industry in Japan. They admit that the information on tourism resources and products in Luang Prabang is absolutely lacking. (Note that typical itineraries for other surveyed countries are currently under study.) Other source of information on the offerings in Luang Prabang is tour packages sold by local tour operators. Table 2-7 shows the major tour programs available in Luang Prabang.


18

Table 2-7 Major Tour Programs Sold in Luang Prabang

Day Tour Type Typical Tour Program Price Range (US $)

World Heritage Site Tour

Visit main highlights of heritage sights – e.g. Wat Xieng Thong, Vixoun, Vat May, Phousy hill, Ban Phanom and former king’s palace, by car, tuku tuku or bicycle.

Visit major heritage sights of Luang Prabang and one or two traditional villages – e.g. Ban Phanom (Thai-Lu Handcraft)

M:20/30$ S:40/60$

Pak Ou Cave Tour

Visit Pak Ou Cave and one or two traditional villages – e.g. Ban Xang Hai (sticky rice wine distillation) by traditional boat, tuku tuku or car.

M:25/50$ S:50/80$

Khouangxi Waterfall Tour

Visit Kouangxi waterfall and one or two traditional villages

M:30/50$ S:60/80$

Half day Tour

Cooking Class

Visit local fresh food market by tuk tuk with the chief (Cooking teacher). Cooking lesson for local dinner + tasting.

M:20/40$ S:30/60$

World Heritage Site Tour

Visit major heritage site – e.g. Vat Visoune, Vat Aham, Phousi Hill, Vat Mai, National Museum (former Royal Palace), Vat Sene , Vat Xiengthong

Visit major heritage sights and one or two traditional villages – e.g. Ban Phanom (Thai-Lu Handcraft)

M:40/60$ S:60/100$

Pak Ou Cave Tour

Visit Pak Ou Cave and traditional villages – e.g. Ban Xang Khong (weaving and blacksmith village), Ban Xang Hai (sticky rice wine distillation) including traditional boat tour of Mekong river and lunch at a local restaurant of Pak Ou village (opposite of Pak Ou Cave), Tham Ting, Tham Phoum, Ban Xieng Mene, Wat Long Khoune, etc.

M:30/60$ S:80/120$

Khouangxi Waterfall Tour

Visit Kouangxi waterfall by car or Tuku-Tuku and traditional villages - e.g. Ban Thinkeo (H’Mong village), Ban Xom or Ban Ou (Lao Loum village), Ban Thapene village (Khmou village) and Ban Phanom (weaving village) including picnic lunch near by the water fall or at a local restaurant.

M:30/50$ S:60/100$

Full day Tour

Soft Adventure Tour

Trekking-e.g. Kuang Xi Waterfall Day-Trek Rafting-e.g. Xaisomboun Special Zone Kayaking-e.g. Nam Ou River, Nam Kham River, Nam Pa River,

Nam Xeuang River Biking-e.g. Tad Se waterfall, Nam Pa, Ban Xieng Lom Climbing-e.g.Gecko Mountain Elephant Riding

-

Soft Adventure

Tour

Trekking - e.g. Kuang Xi Waterfall, Pak Ou District-trek Rafting - e.g. Xaisomboun Special Zone Kayaking - e.g. Nam Ou River, Nam Xeuang & Nam Kham

River, Nam Xeuang River Climbing - Gecko Mountain * Combination tour of Trekking, Rafting, Kayaking, Biking is

provided

- Over-night (more than one day)

Soft adventure & village home stay

Eco Tour – Muang Ngoi Gao & Nong Khiaw (village visiting & soft adventure experience tour)

* Each travel agent has their own tour program and activity area for this kind of tour.

-

Source: JBIC Study Team


19

The most popular tours sold over the counter are half-day or full-day tours to Pak Ou Cave and Khouangxi Waterfalls. They are the major tourist sites in Luang Prabang outside of the World Heritage site. Visits to villages are also included in some programs, which can be featured more if the quality of the visits is improved. Although it is still a niche product, the combination of soft adventure tours (trekking) and village home stays in Luang Prabang has been offered in recent years especially targeting the European market. (4) Major Issues on Itineraries Major issues pointed out by the travel agencies interviewed include the following: Lack of magnetic image in Lao tourism. In Lao PDR, physically magnificent tourist sites

such as Ankor Wat in Cambodia are lacking, making it difficult for them to convey the image of Lao tourism to the market. At the same time, Lao PDR does have sources that can be marketable if they are well promoted and improved in quality, including Laung Prabang, the Mekong, local lives, villages and culture with relaxing atmosphere, and ethnic minorities. This view is consistent with the main interests of foreign visitors obtained from the tourist interview surveys as described earlier, as well as with the willingness of visitors to Luang Prabang to experience

Difficulty to offer variations in tour programs for Lao PDR as a whole and for Luang

Prabang. For travel agencies, it is currently difficult to differentiate their products from those offered by others mainly due to the following:

- Limited information on tourism resources and products in Lao PDR that can be used

for development of tour programs. - Lack of support of the Lao side for travel agencies in the surveyed market to develop

new or attractive tour programs and to promote them to the market. (It should be noted that the travel industry in such market as Japan is so competitive that they generally do not have much incentive to develop new tour programs entirely at their own cost, especially for new or low-demand destinations as it involves a lot of uncertainties.)

Difficulty to develop efficient tour programs because of inconvenience or poor condition of

transport, especially as follows:

- Poor condition of domestic/international flights such as shortage of flight service to Luang Prabang, inconvenient flight connections, and many flight delays with Lao Airlines.

- Bad road conditions with rain, hindering access even to major tourist sites including those in Luang Prabang during rainy season.

2.3.4 Demand Projection LNTA publishes its projection of foreign visitor arrivals to Lao PDR. The figure below shows the latest projection published in 2005 Statistical Report on Tourism in Laos, projecting that the tourist arrivals will reach 2,000,000 in 2010, growing at an average annual rate of 12.8% per year in 2005-2010.


20

894,806

1,095,315

673,823

735,662737,208

636,361

2,000,000

1,840,000

1,260,0001,400,000

1,606,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

No. of

Tourist

s

Source: LNTA

Figure 2-5 Projection of Foreign Visitor Arrivals to Lao PDR by LNTA, 2006-2010.

The Department of Civil Aviation has forecasts of air traffic, both domestic and international, for all of the airports in Lao PDR. The forecasts for the Luang Prabang Airport made as of 2003 are shown in Table 2-8, providing the forecasts in 2013 for three scenarios (based on the 2002 traffic) as well as the actual traffic in 2001-2005. For High scenario, it is assumed that international traffic will grow at an average rate of 13.0% per year, and domestic traffic at 8.4% per year in 2002-2013. Interestingly, the actual international passengers in 2005 already exceeded the 2013 forecast for Middle scenario. One of the reasons would be that Bangkok Airways started to operate flights between Bangkok and Luang Prabang in 2001.

Table 2-8 Annual Air Traffic Statistics and Forecasts for Luang Prabang Airport

Year International Domestic Traffic Passenger Traffic Passenger Actual Annual Air Traffic 2001 308 8,368 2,213 89,328 2002 763 21,422 1,947 79,233 2003 1,545 35,895 1,465 82,983 2004 1,642 55,891 1,617 89,430 2005 1,527 70,207 1,999 100,860 Forecast in 2013 for Three Scenarios High 1,926 76,818 2,184 193,290 Middle 1,568 67,160 1,820 155.956 Low 1,272 46,712 1,456 125,307 Source: Department of Civil Aviation

In its report issued presumably in 2002,7 SNV, Netherlands Development Organization, which has long assisted Luang Prabang Tourism Office as well as the tourism sector of Lao PDR, forecasted tourist arrivals to Luang Prabang from 2001 to 2005 as shown in the table below. In the maximum scenario, it is assumed that foreign visitors will grow at an average rate of 20%

7 SNV, Luang Prabang Community-Based Sustainable Tourism Programme, Programme Document for Phase 1.


21

per year, and Lao visitors at 30% per year in 2001-2005. As described earlier, actual foreign visitor arrivals in LPB were 134,000 in 2005, which is very close to the forecast in the maximum scenario. For Lao visitors, on the other hand, it seems apparent that the number of Lao visitors in 2001, which was the basis for this forecast, was significantly underestimated, considering that the estimated number of Lao visitors to Luang Prabang was 128,000 in 2005, in which LNTA published this estimate in its Statistical Report on Tourism in Laos for the first time.

Table 2-9 Forecast of Tourist Arrivals to Luang Prabang in 2001-2005

Minimum scenario Maximum scenario Year Foreigners Lao Foreigners Lao

2001 65,000 15,000 65,000 15,000 2002 71,500 16,500 78,000 19,500 2003 78,000 18,150 93,600 25,350 2004 84,200 19,950 112,300 32,950 2005 90,000 21,950 135,000 42,800

Source: SNV, Luang Prabang Community-Based Sustainable Tourism Programme In summary, these existing projections suggest that tourism in Lao PDR and in Luang Prabang has good potential for further growth, and a fairly rapid increase in visitor arrivals is likely to continue in the years to come, though the extent of the increase would depend partly on the efforts to be exerted by Lao PDR for destination development. 2.4 Tourism-Related Institutional Issues 2.4.1 Legal Framework and Administration (1) Lao National Tourism Administration Lao National Tourism Administration (LNTA) is a governmental agency attached to the Prime Minister’s Office, and is responsible primarily for preparing draft laws, regulations and rules on the management of tourism and tourism industry, preparing guidelines, strategies and plans on the development of tourism and tourism industry, promoting tourism and tourism industry as targeted in the National Socio-Economic Development Plan, and administering, managing and monitoring the activities of tourism industry according to the relevant policies, laws and regulations. LNTA consists of Departments of Planning and Cooperation, Tourism and Hotel Management, Tourism Marketing and Promotion, and Administration as well as Tourism Training Center, and has branch offices (provincial tourism offices) in every province of the country. Figure 2-6 shows the organization of LNTA.


22

Source: LNTA

Figure 2-6 Organization Chart of LNTA Major issues regarding the overall operation of LNTA include the following:

(Note: The Study Team plans to review the issues raised in the National Tourism Development Strategy for 2006-2015 once it receives official approval from the government.)

Shortage of staff and their capacity: Currently the headquarters of LNTA have only some 70

staff including permanent and temporary personnel, covering the operations of all of the above-mentioned departments including running of Tourism Training Center as well as communication and coordination with the provincial tourism offices.

Serious lack of fund:8 LNTA receives most of its funding from the Tourism Promotion

Fund that is raised with contributions from travel agencies through a levy of 5% sales tax on their income. However, the fund is used mostly for meeting LNTA’s administration costs, providing very little, if any, for its promotion and marketing activities. Absolute lack of fund for LNTA’s promotion and marketing is pointed out later in this chapter. It is considered that the lack of fund for LNTA’s activities is a critical issue for the development of Lao tourism that must be addressed as high priority.

8 The information described here is based on the Draft National Tourism Development Strategy for 2005-2015 prepared in 2004 with fund provided through the ADB-financed Mekong Tourism Development Project

Vice Prime Minister

Minister to the Prime Minister’s office,

Chairman of LNTA

Vice Chairman of LNTA Vice Chairman of LNTA

Tourism Marketing and Promotion

Department

Planning and Cooperation Department

General Administration

Tourism and Hotel Management Department

Tourism Training Center

Phongsaly Provincial Tourism Office

Xieng Khouang Provincial Tourism Office

Khammouane Provincial Tourism Office

Luang Namtha Provincial Tourism Office

Sayabouly Provincial Tourism Office

Savnnkhet Provincial Tourism Office

Vientiane Provincial Tourism Office

Bolikhamxay Provincial Tourism Office

Champasack Provincial Tourism Office

Xaysomboun Special Zone Tourism Office

Sekong Provincial Tourism Office

Attapeu Provincial Tourism Office

Bokeo Provincial Tourism Office

Oudoumxay Provincial Tourism Office

Luang Prbang Provincial Tourism Office

Houaphanh Provincial Tourism Office

Vientiane Capital Tourism Office

Salavanh Provincial Tourism Office


23

(2) Tourism Law and Regulation In April 2006, the Tourism Law, the first tourism legislation in Lao PDR, was passed. This is a major step toward implementing focused, more consistent tourism development and promotion across the country as well as toward improving the quality of the tourism industry and other tourism-related services. In drafting the law, LNTA examined tourism legislation in other countries, particularly those in ASEAN countries, in order to identify a framework that would be useful for Lao PDR. One major issue related to the Tourism Law is a need for operationalizing the law by developing related decrees and regulations. Currently, LNTA is considering developing several regulations including those for hotels (together with hotel classification system), travel agencies and tour operators, tour guides, guesthouses, transport services, and tourist sites. The regulation for hotels has been examined as part of the ADB-financed Mekong Tourism Development Project, although examination of other regulations is yet to be started. LNTA is seriously in need of assistance in the development of these regulations that would probably start with carrying out a survey and investigation of relevant regulations in other countries. In connection with tourism-related regulations, one imminent issue is on promotion, and granting permission, of tourism-related investment, especially in hotel development. For example, LNTA has limited capacity in judging what types of hotels should be developed in what areas, and to what extent. This issue needs to be addressed urgently as Lao tourism is now growing rapidly, requiring new investment in tourist facilities as well as in other tourist services and related infrastructure. 2.4.2 Tourism Industry The tourism industry is now in the process of development in Lao PDR in response to the rapid growth of tourism demand. Trade associations have been established recently, including the Lao Association of Travel Agencies (LATA) and the Lao Hotel and Restaurant Association (LHRA). It is important to take concrete steps to consolidate cooperative ties between the tourism industry and the public sector. (1) Lao Association of Travel Agencies (LATA) LATA was established in 2004, initiated by major travel agencies in Lao PDR, with intent to develop tourism industry in Lao PDR. As of May 2006, 36 out of 65 travel companies registered at LNTA belonged to LATA. The major task of LATA is to activate tourism business of travel agencies in Lao PRD, and as such it is expected to take an important role of leading travel industry of Lao PDR. However, it lacks relevant expertise and capacity, and still is at the stage of developing a strategy for financial management, promotion and marketing as well as an implementation action plan with the assistance of experts dispatched by SNV. According to the management of LATA and of leading Lao travel agencies, LATA and its members are faced with major challenges, specifically as follows: Shortage of skilled human resources with good knowledge in the following areas:

- Tourism business management (e.g. marketing analysis, strategy making, implementation of business activity in the international market)

- Office operation work (e.g. computer skills, basic office work skills, communication


24

skill with overseas clients in English) - Customer service (e.g. counter service, telephone service, internet service)

Insufficient support from LNTA provided for the members in conducting tourism marketing

and promotion activities. - Image building and positioning of Lao tourism in international market by LNTA are

very weak. - Basic marketing and promotion materials prepared by LNTA are not enough both in

quantity and quality. It is absolutely necessary to produce essential tourist brochures, maps, visual posters, promotional CD/DVD, travel planner kit for overseas travel agents etc.

- Marketing and promotion channel of LNTA is very limited. Currently it doesn’t have any official branches overseas, and the use of websites including its maintenance and collaboration with tourism industry is still poor.

- More frequent and high quality HRD training by LNTA is required. Specially needed is quality training for tourist guides that should be provided not only in Vientiane but also in Luang Prabang province.9

Basic conditions that would permit the industry to conduct aggressive tourism marketing

and promotion have not been met in Lao PRD, specifically as follows: - Shortage of tourist guides (especially French, Germany, Italian, Spanish and Japanese.

In future, maybe Korean and Chinese will be needed.) - Shortage of accommodation capacity in high season, especially in Luang Prabang. - Shortage of flight capacity and poor flight connection between key tourist destinations

(i.e., Vientiane, Luang Prabang, and Pakse). - Lack of well-developed tourism resources and products that would allow extending

the length of stay, or would make tourists spend more at tourist sites. At present, it is still difficult, though legally permitted, to establish and operate

foreign-owned travel agencies in Lao PDR, forcing foreign investors to contract with local licensed travel agents at extra cost.

(2) Lao Hotel and Restaurant Association (LHRA) LHRA was officially established in 2004 under the Lao National Chamber of Commerce and Industry, with the aim of developing the hotel industry to contribute to the development of the tourism and service sector in Lao PDR. As is the case with LATA, it is at its embryonic stage, still finding it difficult to provide services that can meet its members’ needs. Current conditions and major issues regarding hotels, guesthouses and restaurants in Lao PDR are summarized as follows: i) Hotels and Guesthouses As mentioned earlier, classification system for accommodations is now being developed in Lao PDR. Currently, however, there are only two categories for accommodations, “Hotel” and 9 Compared with other Asian countries, the cost of tour guides is very high in Lao PDR, for example, Thailand: US$20-30/day in general cases, while Lao PDR: US$25-30/day for English, US$30-50/day for French and German, US$50-75 for Japanese and Italian. On top of that, because there are only a few National licensed guides in Luang Prabang, it is usually necessary to take guides from Vientiane and have to pay extra for airfares and daily allowances.


25

“Guesthouse”. The capacity of accommodations in Lao PDR has increased rapidly in recent years as shown in Table 2-10. In terms of capacity additions, the increase in Vientiane Municipality, Vientiane Province and Champassak Province is particularly pronounced, followed by that in Luang Prabang Province. In terms of growth rate, the increase in Luang Prabang Province is far below the national average during this period. In fact, hotel development in the urban area of Luang Prabang is becoming increasingly difficult due to lack of available land as well as to strict building regulation. On the other hand, hotel construction outside of the urban area requires infrastructure development that can hardly be afforded by the government due to budgetary constraint.

Table 2-10 Number of Accommodations and Rooms in Lao PDR, 2001-2005

Growth 2001

2002

2003

2004

2005 2001-2005 2004-2005

Lao PDR 571 560 887 957 1,088 +90.5% +13.7% (8,797) (8,625) (12,289) (13,666) (15,828) (+79.9%) (+15.8%)

119 113 163 194 224 +88.2% +15.5% Vientiane Municipality (2,782) (2,739) (3,412) (4,004) (4,891) (+75.8%) (+22.2%)

53 52 86 99 115 +117.0% +16.2% Vientiane Province (899) (900) (1,732) (1,657) (1,807) (+101.0%) (+9.1%)

116 116 137 120 163 +40.5% +35.8% Luang Prabang Province (1,173) (1,275) (1,414) (1,410) (1,722) (+46.8%) (+22.1%)

65 65 106 110 126 +93.8% +14.5%

Champassak Province (889) (925) (1,298) (1,364) (1,616) (+81.8%) (+18.5%)

Source: LNTA, 2004 and 2005 Statistical Report on Tourism in Laos. Note: Upper figures are number of accommodations, while lower figures in parentheses are number of rooms One important issue for the hotel industry is low occupancy during low season. According to the managers of several hotels in Laung Prabang, the average occupancy in high season is generally between 75% and 85% while that in low season ranges in 20%-35%. The lowest months are May, June and September. There has been some increase in customers in July and August, visiting Lao PDR during summer holidays. Seasonality of tourism demand tends to affect foreign-owned hotels (and restaurants) more strongly as they maintain operations during low season, requiring larger fixed costs than, for example, local inexpensive guesthouses where many of the staffs are employed on a part-time basis. Moreover, the shortage of manpower during high season is a serious issue especially in Luang Prabang. For many hotels in Luang Prabang, it is hard to cut the number of staff even in low season in order to keep good staff in high season. Currently, they can afford this practice as the average salary of local staff is low, but the shortage of manpower would be a big problem as demand for service staff and their salary become higher. It is extremely important to address this seasonality issue with joint efforts by the private and public sectors. Some of the hotels consider capturing more of the FIT market during low season,


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for example, through direct marketing with internet/e-mail. Such undertaking by the private sector is important, but the public sector should also recognize the importance of addressing this issue, which can potentially bring significant amount of benefit to the country and its tourist destinations including Luang Prabang. ii) Restaurants Table 2-11 shows the number of restaurants in Lao PDR and in selected provinces. As of 2005, 630 restaurants were registered at LNTA. In 2004, the number of restaurants decreased in major tourist areas including Vientiane Municipality, Luang Prabang Province and Champassak Province, which was caused apparently by the SARS epidemic in Asia that took place in 2003 and the threat of international terrorism. In 2005, however, the number increased substantially reflecting the rapid growth of arrivals. The increase was particularly pronounced in Luang Prabang Provicne, which lead to a serious shortage of manpower in the services sector during high season.

Table 2-11 Number of Restaurants in Lao PDR, 2003-2005

Growth Area 2003 2004 2005 2003-2004 2004-2005

Lao PDR 589 511 630 - 13.2% 28.3% - Vientiane Municipality 85 61 67 - 28.2% 9.8% - Luang Prabang Province 65 32 102 - 50.8% 218.8%

- Champassak Province 12 11 15 - 8.3% 36.4%

Source: LNTA ”2004 and 2005 Statistical Report on Tourism in Laos” Seasonality of tourism demand and shortage of service staff (especially quality staff) are two important issues also for restaurants in Luang Prabang. It is in fact not easy to find female service staff, especially waitresses, due to the local custom and tradition. In addition, those educated in Vientiane where most educational facilities are concentrated are hardly coming to Luang Prabang unless they are originally from Luang Prabang. It is still a remote area for those even from the Central Region. Also family ties in Laos are strong, making it very rare for young people to decide to move to Luang Prabang for their work. Therefore, it is considered that opportunities for tourist service training need to be provided in Luang Prabang. 2.4.3 Human Resource Development (HRD) (1) Current Condition of Tourism-Related HRD in Lao PDR According to concerned people in the tourism sector, the overall supply of quality manpower in the sector is still very small, unable to keep pace with the rapid growth of Lao tourism in recent years. One result is an increase in the headhunting competition within the tourism industry that is taking place particularly in Vientiane and Luang Prabang. In addition, provision of quality service is a prerequisite for attracting middle to high-end market, which is a desirable approach for achieving sustainable tourism development in Lao PDR. Given these current situations, both LNTA and the private sector indicate that HRD for tourism sector is one of the top-priority issues that should be addressed immediately. However, the current condition of tourism-related HRD is not favorable. In Lao PDR, it is still premature to leave tourism-related HRD to the private sector, which is a general practice in


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advanced countries. Even in Vientiane, for example, there are still only a few small-sized private institutions organizing language courses or basic training for tourism-related services. At this development stage, it is essential for the public sector to provide training opportunities for meeting the demand of the travel industry and the tourism market. Current situation and major issues regarding HRD in Lao tourism are summarized as follows: i) National Level National University of Laos In 2005, the National University of Laos established the Department of Tourism and Hotel Management under the Faculty of Social Sciences in collaboration with Rikkyo University in Japan. This new department consists of two courses - tourism course and hotel management course, with 200 and 100 students respectively in the first year following its establishment. These courses are intended to provide management education for developing future tourism leaders in both public and private sectors. At this initial stage, however, there are many issues to be resolved, including a lack of budget, qualified teaching staffs, teaching materials, teaching equipment, etc. Tourism and Hospitality Training Center (THTC) Tourism-related technical training has been provided by Tourism and Hospitality Training Center (THTC) of LNTA, which was reorganized in 2004 from its predecessor unit called Tourism and Training Division of LNTA. The training programs currently offered by THTC are shown in Table 2-12.

Table 2-12 Training Programs Offered by Tourism and Hospitality Training Center (THTC) of LNTA

Course Contents / Characteristics

Tour Guide Training Course

- 45-day training course for developing national- and provincial-level tour guides. - The national-level training course is held once a year in Vientiane. (It is planned to

offer two training courses in 2006) Provincial training course is a non-regular course, held depending on the budget.

- Course includes classroom lecture and field study and experiments. - Trainers are from THTC, LNTA, Lao National University and tourism industry. - Participation fee: 50 US$ each, including field study and textbook fee. - Until now, 820 trainees from tour operators have participated in this course

Hotel, Guesthouse and Restaurant Training Course

- 8-day basic skill training course for hotel, guesthouse and restaurant services, including front office operation, housekeeping, food and beverage service and professional cookery.

- Trainers from THTC, LNTA and tourism industry (especially from hotels) - Until now, about 3,450 trainees from concerned industries have been trained. - Participation fee: depends on the course program.

Other tourism training with assistance of international donors/NGOs

* Child Wise Tourism Training and workshop (by Child Wise), * Japanese Tourism Market and Japanese Language Course for beginners (By ASEAN Japan Center (AJC)), * Tourism development training course and workshop (By EC-ASEAN), * Tourism Marketing and IT application in the tourism business (ACMECS), * Hotel, Guesthouse and Restaurant Service Training (SNV)

Source: THTC


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The tourism industry strongly demands that THTC should play a bigger role in developing human resources (practitioners) for the tourism sector across the country. However, only several staffs are assigned to this center, and most of the staffs are lacking in high-level teaching skills that can meet the training needs in the current tourism sector of Lao PDR. In fact, there is a large gap between supply and demand for tourism-related training due to lack of budget, manpower, qualified staff, quality curriculum, training equipments, facilities and materials, and so on. First of all, training of trainers is absolutely necessary to produce quality trainers. Training equipment and facilities should also be improved. For example, there is only one computer without internet connection in the THTC office, and their current training facility is only one simple classroom located on the ground floor of LNTA building, with capacity of around 80 seats. In order to meet the demand for training needs, THTC is searching international assistance to newly develop their training facility and to improve their own capacity for providing quality training. LNTA is now attempting to apply for assistance from Belgium to establish a new vocational training facility in Vientiane, although the result is still uncertain. In relation to tourism-related training and HRD, the following assistances have been provided: ADB-funded Mekong Tourism Development Project (MTDP). Tourism-related trainings

and workshops have been organized as part of MTDP, focusing mainly on developing Pro-Poor Community Based Tourism (Eco Tourism development).

At the request of LNTA, SNV (Netherlands Development Organization) have been

providing assistance in capacity building of LNTA and the tourism industry. Currently, four SNV consultants are working at LNTA in Vientiane, and two at Luang Prabang Provincial Tourism Office.

While these assistances are considered of value, there still is a significant need for training and capacity building for the private sector (tourism industry) and for LNTA. ii) Luang Prabang Province LNTA-Luang Prabang Provincial Tourism Office (PTO) In Luang Prabang PTO, there is no department or section specifically responsible for HRD. HRD programs are operated by staff from administration section and business management and license section. Because of the lack of budget and manpower, limited amount of training and seminars are conducted. However, the demand for tourism-related training is growing due to the rapid growth in Luang Prabang tourism. In response, Luang Prabang PTO started to organize provincial tour guide course in 2004 in cooperation with LNTA-THTC, and 146 provincial guides were trained as of May 2006 (See Appendix B for details of the guide training conducted in Luang Prabang.) LNTA and Luang Prabang PTO have proposed establishing a tourism training center which is to cover the Northern Region. Another proposal made by them is to start “mobile training course” that can be offered to those unable to attend training program held at cities. In both proposals, it is important to cooperate with Suphanuvong University that is currently under construction with assistance from South Korea as well as with other related agencies and stakeholders.


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Training Center and Ethnic Group School under the Ministry of Education10 These schools are located at Ban Suane Luang, about 15 km to the south from the center of Luang Prabang. Under the jurisdiction of the Ministry of Education, the Ethnic Group School offers high school-level education, followed by vocational training provided by the Training Center, both for ethnic minorities in northern Lao PDR including Luang Prabang province. All of the students stay at the accommodations provided near the schools. The Training Center, established in 1996, offers basic training for cooking, restaurant services, furniture making, dressmaking, agricultural technique, constriction technique, and so on. In 2002, part of the classroom buildings and training rooms were re-constructed with support from GTZ of Germany. However, the accommodations for students are in very poor condition, requiring renovation or improvement. In addition, the demand for vocational training for minority groups is high, and the Provincial Department of Education is strongly willing to improve these schools. The Lao Woman’s Union (LWU) – Luang Prabang The Lao Woman’s Union is a national-wide organization, with about 800,000 women being its members. The activities of LWU include: capacity building and institutional strengthening of LWU; promoting the advancement of, and protecting, the legitimate rights and benefits of women and children; and promoting women’s participation in economic development and poverty alleviation. While they have a limited number of staff in the province and district offices, one advantage is that they have representation at all villages in the country. At its Luang Prabang office, several training courses are offered including classes for sewing, beauty care, massage, etc. With the assistance of two SNV consultants, they are now considering operating other types of training for generating income for women through tourism-related activities, including: i) mobile training for cooking, weaving and massage in villages, and ii) cooking training for women engaged in tourist services (e.g. women selling their food on the street and their own food shops). To put these ideas into practice, at least procurement of teaching equipment and training of trainers are needed. (2) Summary of Major Issues on HRD Major issues on tourism-related HRD in Lao PDR include the following: Training of trainers for guide and hotel training courses offered at THTC is urgently needed

to respond to the demand from the market for improving service quality, which is an imminent issue in the Lao tourism industry.

At the same time, training facility of THTC at least in Vientiane should be upgraded, and

basic training equipment should be provided (e.g., PCs, LCD projector, photocopy machine, digital camera) to make the center capable of offering quality training.

The training curriculum at THTC, which is too basic at present, should be upgraded in order

to meet the requirement of the international tourism market. Improvement should be made in training of LNTA staff, managers and supervisors in the tourism industry, and service staff at hotels, restaurants, travel agencies and souvenir / handicraft shops.

Given the budgetary constraint and the current lack of human resources at LNTA / PTOs to 10 In Luang Prabang province, there is another school of the same kind located in Nam Bak district, about 130 km to the north from the center of Luang Prabang.


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operate training facilities in regional cities, it will be effective to collaborate with existing educational institutions for offering tourism-related training. At the same time, mobile training should be provided to a greater extent as a means of providing training for those in remote areas who can hardly come and take training in cities.

2.5 Major Issues on Tourism Development and Promotion 2.5.1 Tourism Development Major issues on tourism development that have been identified by the Team in the course of the Study include the following:11 Need to develop a tourism development plan. Even Luang Prabang Province that has been

attracting a number of visitors lacks a concrete tourism development plan. Although the province has prepared and approved a tourism development strategy, it is not considered to be specific enough to mobilize resources toward implementing the development.

Need to strengthen the capacity of provincial tourism offices (PTOs). Tourism development

is a multi-sectoral undertaking, requiring coordination and cooperation among concerned agencies and departments. It is also essential to collaborate with the private sector for carrying out the development to meet the market demand. Line agencies at the central level as well as their departments in provinces have their own mandates and responsibilities, and thus can hardly become an entity to undertake active inter-agency or inter-departmental coordination for tourism development. LNTA and its branches in provinces (PTOs) should play this coordinating role under the guidance of the Prime Minister’s Office at the central level and of the governor and vice governors at the provincial level. Currently, however, PTOs suffer from server shortage of staff and capacity, unable to play this role in an effective manner.

Lack of fund for tourism development. A lack of fund is indeed a critical constraint in

pursing tourism development as well as development in other areas. In Luang Prabang, for example, there are a variety of development needs (as described later in this report) that have been identified by concerned departments of the province, but due to absolute lack of fund, the province has not been able to meet the needs. One major issue regarding the ADB-financed Mekong Tourism Development Project is also the difficulty of the Government of Lao PDR to meet the requirements of counterpart fund that must be provided by the Government to match the loan coming from ADB for project implementation. The Lao government is now considering instituting a Tourism Development Fund although specifics of the fund including its funding source, collection, use, administration and operation need to be worked out and consensus to be reached among concerned agencies and stakeholders.

2.5.2 Promotion and Marketing (1) Current Situation In 2004, the Tourism Marketing and Promotion Department (TMPD) was established to strengthen LNTA's role in promoting Lao tourism in the international market. Figure 2-7 shows 11 In order to identify major issues in this regard, the Study Team plans to review, once it is finalized, the National Tourism Development Strategy for 2006-2015 that is currently in the form of a draft awaiting government’s official approval.


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the structure of TMPD. It can be said that TMPD consists of minimum structure and staff size. LTNA doesn’t have any official branches overseas. In Tokyo, there is a self-motivated honorary office that however doesn’t receive any budgetary or personal support from the Lao government. Considering that only ten staffs are assigned to TMPD for promoting Lao PDR to the world, there does not seem to be many choices at present. In addition, although most of the TMPD staffs have taken post-graduate level of education, their knowledge, skills and experience in international marketing and promotion seem to be insufficient. Currently, tourism professionals dispatched by SNV are assisting LNTA, with one of them working on strengthening the capacity in marketing and promotion and developing a cooperative framework between the private and public sectors in collaboration with TMPD. However, there still seem to be a number of areas in marketing and promotion where capacity strengthening is needed. Moreover, the critical issue is a lack of budget for marketing and promotion, which should be addressed with utmost efforts; otherwise, any plans considered effective will simply be unimplemented. With the passage of the Tourism Law, the establishment of a National Tourism Marketing and Promotion Board (TMPB) has been officially approved, which is to consist of members from the public and private sectors. Discussion is now undergoing among LNTA and stakeholders regarding various issues such as its composition, responsibilities and functions.

Source: LNTA

Figure 2-7 Structure of Tourism Marketing and Promotion Department in LNTA According to TMPD, the information on the budget and expenditures for marketing and promotion is not well tracked. At present, a survey is conducted on the budget of TMPD in the past few years with the assistance of SNV. Table 2-13 shows the budget proposal by TMPD for year 2005/06 with the total amount of US$434,996.8, although the actual amount allocated would probably be substantially lower. Due to the budgetary constraint, TMPD has not been able to actively undertake marketing and promotion. Major activities conducted by TMPD in year 2004/05 are as follows: Development of marketing and promotion strategy Training program for TMPD staff

- Internal training program for English skill, report writing, tourism marketing, etc. - Training program overseas: cooperation programs (Laos-Singapore and Lao-India),

internet training course, Mekong sub-regional training course at Khon Khen in

Acting Director General

(1)

Marketing Manager

(1)

Promotion Manager

(1)

Trade Fair/Exhibition (1)

PR (1)

Marketing Research (1)

Event Promotion (1)

Publicity (1)

Internet (1) Assistant (1)

<Division> <Section>


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Thailand Meeting with tourism private sector Promotion activity

- Website development of LNTA (www.tourismlaos.gov.la) - Tourism fair in Luang Prabang/Vientiane - Advertising activity by national radio / national television

Production of promotion material: “Heritage document” second edition printing, postcard of tourism sites, tourist guidebooks.

Promotional campaign: Visit Asia campaign Participation in tourism trade fairs/exhibitions: ATSAS Holiday (Singapore), Asian Fashion

and Goods Fair (Hanoi), Chinese – Asian Fashion and Goods Fair (Nan Ming), Economic Strategy Cooperation Fair of 4 countries (Lao PDR, Vietnam, Myanmar, Thailand), ECS Trade Fair (Myanmar), TRAVEX and ATF 2005 Fair (Malaysia), ITB (Germany), Cooperation Trade Fair of 3 countries (Lao PDR, Vietnam, Thailand: Hanoi), World Trade Fair (Aichi, Japan), Tourism Fair – TTM (Bangkok)

Road shows/event participation: Indian caravan in Vientiane. Water festival in Myanmar Preparation of establishing LNTA overseas branches (research) Re-opening of the information center in Vientiane

Table 2-13 TMPD Budget Proposal for Fiscal 2005/06

Item Total Amount Kip (US$) Contents 1 Printing of Promotion

Material 562,968,000 (56,296.8$) Desk/wall calendar, postcard, map,

brochure, poster (4 type), T-shirt, etc. 2 Internet and Website 54,920,000 ( 5,492.0$) Website address fee, internet rental

fee, website fee. 3 Equipment for

Publication 262,300,000 (26,230.0$) Digital camera and video, PC, LCD,

overhead projector, etc. 4 Equipment for

Promotion Activity 248,040,000 (24,804.0$) Motorcycle,

5 Advertisement 55,000,000 ( 5,500.0$) Publication by Radio/TV. 6 Data Collection 28,740,000 ( 2,874.0$) Travel expense, daily allowance. 7 Participate in Tourism

Exhibition 2,616,000,000 (261,600.0$) 21 travel and trade fairs/exhibitions

8 Traditional Festival Promotion

135,000,000 (13,500.0$) 5 traditional festivals promotion.

9 Marketing Analysis 110,000,000 (11,000.0$) Satisfaction analysis, tourism service-level analysis

10 FAM Trip for Travel Agent/Media

277,000,000 (27,700.0$) Twice/year

Total 4,349,968,000 (434,996.8US$)

Source: LNTA-TMPD (2) Marketing Strategy TMPD has recently prepared “Tourism Market Strategy in 2006-2020”, which specifies target markets as well as activity plans as shown in the tables below.


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Table 2-14 Future Target Markets for LNTA

Quantity market Quality market Developing market

Medium term (2006 – 2010)

Thailand France, England, Germany, U.S.A, Canada, Japan, Australia.

Korea, China, Taiwan Singapore, Malaysia, Holland, Sweden, Switzerland, Italy, Holland, New Zealand.

Long term (2010 – 2020)

Thailand Vietnam China.

France, England, Germany, West- North Europe, America, Japan, South Korea, Taiwan, Malaysia, Singapore, Australia, New Zealand.

Asian countries, Russia, India.

Source: LNTA – PMTD Thailand is considered to be among the most important markets in the short to medium term, which is plausible looking at its current position in total tourist arrivals as well as the recent surge of Thai visitors as shown earlier. TMPD is also putting great importance on developing “quality market” including France, UK, Germany, North America, Japan and Australia. This also is consistent with the recent trend of top ten markets in terms of tourist arrivals. (3) Summary of Major Issues Based on interviews with the tourism industry in Lao PDR and the market survey (5 countries) conducted in the Study as mentioned earlier, major issues on marketing and promotion activities for Lao tourism are summarized as follows (see also Appendix B for more details): Macro-level issues: Lack of image of Lao PDR as tourist destination in the international market, Need for developing attractive tourism products in order to extend the length of stay, which

applies also to Luang Prabang. Issues on marketing and promotional measures: No system in place at LNTA for collecting updated tourism information, Internet and website are underutilized for tourism marketing at LNTA, Lack of essential marketing and promotion materials, including tourist brochures, maps,

visual material such as posters, CD-ROM and DVD, and attractive photos that can be used for promotional activities,

Shortage of office equipment for conducting basic marketing and promotion activities at LNTA, including internet connection, quality PCs, digital camera, and other basic office equipment,

Lack of close cooperation for marketing and promotion activities among stakeholders including LNTA, airlines, travel agencies, hotels, restaurants, etc.

Major bottlenecks: Absolute lack of budget and manpower at LNTA even for implementing basic marketing

and promotion activities, Lack of relevant knowledge and skills in LNTA and the tourism industry, including: i)

specialized knowledge and skills for planning and implementing tourism marketing and promotion activities, ii) qualified teaching skills on international marketing and promotion activities, and iii) basic office skills, such as PC and internet operation, website development, use of foreign languages, etc.


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Table 2-15 LNTA Strategy and Marketing Activity Plan for Medium/Long-Term Markets

Target Term

Medium-term tourism marketing and promotion activity (2006-2009)

Long term tourism marketing and promotion

activity (2010-2020) Overall Strategy

1) Keep attracting tourists from neighboring countries, especially from Thailand 2) Try to study and develop quality markets (because they are the main markets

for future Lao tourism)

1) After basic tourism development is finished in Lao PDR, develop Chinese and Indian markets.

< Neighboring countries: Thailand, China > Participate in tourism fair in Thailand, China, Singapore, and other Asian

countries. Cooperate with other travel agencies, hotels and restaurants to arrange FAM

trip for key travel agents. Work closely with airline companies Support Singapore and Malaysia re-operate direct flight to Vientiane again. Keep good cooperation with other nation’s Tourism Authority in GMS,

ASEAN to advertise Lao tourism, develop website and organize Caravan tours etc.

Work together with Lao embassies located in target countries to promote Laos tourism.

<European: France, UK, Germany> Participate in tourism fair such as ITB in Germany, SMT in France, WTM in

England. Cooperate with Lao embassy of those countries to select representative for

LNTA, to get information of major tour agencies in those countries. Promote to have direct flight from France/ charter flight from EU to Laos. Contact with newspaper agencies to make advertisement of Lao tourism. Cooperate with other tourism related industry, hotels and restaurants for

arranging FAM trip for main travel agencies in target countries.

Activity Plan

<North American Countries: USA, Canada> Attract Lao-Americans by doing activities or promoting traditional festival

such as: That Luang Festival, Lao New year in April, Boat racing, Hmong new year.

Cooperate with Lao embassy in those countries to select Lao representative for LNTA and to get information about major travel agencies.

Participate in North American Tourism fair (ASTA).

<Southeast Asia : Japan, Korea, Taiwan, Australia, NZ> Work together with travel agencies, hotels and restaurants to study about

Japanese, Korean, Taiwanese markets. Make a request for support from ASEAN-Japan Center for tourist guidebook

publishing. Promote tourists visiting Thailand and Cambodia to extend their visit to Lao

PDR. Cooperate with Taiwanese Airlines (EVA) to fly directly to Vientiane / to

make tourism advertisement. Promote charter flight from Korea and Japan to Vientiane until creating direct

flight. Participate in tourism fair in Japan (JATA) and Australia (ATX)

Continuously arrange tourism advertisement

Keep organizing marketing campaign, especially for the main tourist markets.

Support activities and traditional festivals to use in tourism.

Extend marketing cooperation with external government or private sectors, especially in the target markets.

Source: LNTA – PMTD


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CHAPTER 3

Target Area This chapter reviews existing situations and major issues on tourism sector development in Luang Prabang Province, the target area of this study. Following a brief review of major tourism resources and socio-economic conditions in Luang Prabang Province, the chapter summarizes existing undertakings and plans related to tourism, and then identifies major issues and needs in the important aspects of tourism sector development in Luang Prabang. 3.1 Tourism Resources Luang Prabang, an ancient capital located in northern Lao PDR, has become well-known as the World Heritage town with rich concentration of Buddhist temples as well as other historic buildings and monuments such as the Royal Palace currently used as a museum, Mount Phou Si and colonial-style buildings. At the same time, Luang Prabang is endowed with abundant nature due to its location in a mountainous area, providing rivers, streams, forests and beautiful sceneries. The most important natural resource as tourist attraction is Mekong River and its tributaries including Nam Khan, Nam Ou, Nam Soung, and Nam Xi. Luang Prabang town is situated between the Mekong and Nam Khan rivers. There are several beautiful waterfalls along these tributaries. Overall, the natural and scenic value in and around Luang Prabang is judged very high. Another important tourism resource in Luang Prabang is local culture, tradition and lives that are partly based on the diversity of ethnic minorities residing in the area, which offer great potential of cultural and village-based tourism. The Mekong and its tributaries, combined with various local villages, provide rich opportunities of boat trips visiting villages and nature attractions among the rivers as well as of soft adventure tourism, although these opportunities are apparently underutilized at present. Around Luang Prabang town, the following sites are of note (see also the figure below for their locations):12 Kuang Si Waterfall: This waterfall with dramatic lime deposits is a tourist site visited by

most visitors to Luang Prabang. It is located 35km to the south from Luang Prabang town, and is reached most often by road. Currently, the access road to the waterfall is improved as part of the ADB-financed Mekong Tourism Development Project (MTDP). There is another route to the waterfall by land, with travel to Ban Long Lao (with highland Lao group culture), followed by a walk through the water catchment to the falls. It is also accessible by boat on the Mekong.

Tham Ting or Pak Ou Cave: This cave, located 25km north from Luang Prabang town by

the Mekong, is a grotto with hundreds of devotional Buddha image inside it. There are several nearby villages tourists can visit, as well as a magnificent cliff-like mountain on the other side of the Mekong. Ban Pak Ou, a village facing the cave across the Mekong, is

12 The information on major tourism resources provided here is based partly on the tourism sites, attractions, and products in Luang Prabang described in SNV, “Explorative study on the potential for ecotourism development in Luang Prabang province,” issued in October 2001.


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Luang Prabang Heritage Area

Ban Xang Kong & Ban Xiang Leck

Ban Phanom

Tat Sae WaterfallBan En

Ban Xiang Ngeun

Ban LonglaoKuang SiWaterfall

Ban Xanghai

Ban Pak Ou

Pak Ou Cave

Ban Chan

Cultural / Village ResourceNatural ResourceHistorical Resource Gateway Village

Mekon

g Rive

r

Nam Khan

Nam Ou

Nam Soung

accessible by road, although the access road along the Mekong can hardly be used during rainy season.

Tat Sae Waterfall: It is a stepped waterfall with lime deposits 15km east from Luang

Prabang town, which can be visited by car together with a short boat trip from nearby villages. While the waterfall becomes dried up during dry season, it offers a grand view with abundant water resources during rainy season, which is often used for promotional photos for Luang Prabang tourism.

Nearby villages (village: “Ban” in Lao): There are several villages near Luang Prabang

town with special features that have been attracting tourists, including Ban Phanom, Ban Xang Kong, and Ban Xieng Leck that are well-known for local weaving and handicrafts, and Ban Chan that is producing local pottery. Ban Xanghai, though still not well-known to tourists, conserves its traditional culture relatively well, with potential to regenerate ancient kiln and distillation of rice whisky. There are other villages that are easily accessible and have potential to attract visitors through conservation, improvement and information provision.

Figure 3-1 Locations of Major Tourism Resources in Luang Prabang In addition to the above-mentioned resources, there are many other resources, some of which would have good potential to attract international tourists. The Study Team reviewed the Luang Prabang tourism development master plan prepared in 1997 with assistance from the Tourism Authority of Thailand (available only in Thai language), even though this plan is seldom referred to by concerned agencies in Lao PDR and Luang Prabang. This master plan report provides fairly comprehensive assessment of tourism resources in Luang Prabang, and its result is presented in Appendix C with minor revisions made by the Study Team based on field surveys of many of these resources conducted by the team. Figures 3-2 and 3-3 provide more comprehensive view of tourism resources in Luang Prabang.


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平田さん作成のリソースマップの No. 1（横長の方）を挿入図のタイトルは、下記のように変える。 Figure 3-2 Tourism Resources in and around Luang Prabang World Heritage Site


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平田さん作成のリソースマップの No. 2 を挿入図のタイトルは、下記のように変える。 Figure 3-3 Tourism Resources in Luang Prabang Province


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3.2 Socio-Economic Structure 3.2.1 Socio-Demographic Features (1) Socio-demographic features of Luang Prabang Province in the national context According to the national census of 2005, Luang Prabang Province has a population of 405,949 with the number of households being 69,802. The population of Luang Prabang is the largest among the 7 provinces in Northern Region, and is ranked 5th among the nation’s 17 provinces and Vientiane Municipality. Table 3-1 illustrates socio-demographic indicators for Luang Prabang Province, compared with the national average and those for urban and rural areas. All of these data were taken from “Lao Expenditure and Consumption Survey 2002/2003” (LECS 3) issued by the National Statistical Center in March 2004, which provides recent statistics on households in Lao PDR. Luang Prabang Province is characterized in terms of socio-demographic features as follows: Number of Households and Household Size

- In terms of the number of households, Luang Prabang Province accounts for 23% of total households in the Northern Region and 7% of the country’s total.

- The average household size in Luang Probang Province is 6.3 persons per family, slightly higher than the national average (6.1 persons per family).

Distribution of Households in Urban and Rural Areas

- The extent of urbanization in Luang Prabang Province is lower than the national average, with 20% of households residing in urban areas, compared with 28% for the whole country. This apparently reflects the geographic condition of the province, which is located in a mountainous area.

- Among the households residing in rural areas, the proportion of those without access to roads in Luang Prabang Province is nearly 30%, which is higher than the national average, indicating that rural road access in the province is generally in a poor state.

Access to Safe Water and Sanitation

- Only 42% of the population in Luang Prabang Province have access to safe water, which is substantially lower than the national average (50%).

- The proportion of those without toilet in the province is as high as 60%, which is substantially higher than the national average.

- These figures indicate the backward state of the province in providing basic health and sanitation infrastructure.

Access to Health Services in Villages

- In villages of Luang Prabang Province, the proportion of those living within 10km from the nearest health care center is 63%, which is significantly lower than the national average (79%). This situation should be partly due to the lack of rural access road in the province.

Educational Services

- In the province, villages with own primary school account for 78% of all villages, which is comparable with the national average of 80%.


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Table 3-1 Main Socio-Demographic Features of Luang Prabang Province

Compared with Northern Region and Lao PDR

1. Number of Households and Household Size Number of Households

2002/2003 Household Size

Luang Prabang 61,000 6.3 Northern Region 266,000 6.2 Lao PDR 867,000 6.1

Urban 240,000 5.8 Rural 627,000 6.2

2. Distribution of Households in the Urban and Rural Areas No. of Households in Rural Area in 000 (% in rural total)

No. of Households in Urban Area in 000

(% in total) With Access to Roads Without Access to Roads Luang Prabang 12 (20%) 34 (71%) 14 (29%) Northern Region 47 (18%) 152 (69%) 67 (31%) Lao PDR 240 (28%) 470 (75%) 157 (25%) 3. Access to Safe Water and Sanitation

% of Population with safe water in the village

% of Population without Toilet

Luang Prabang 42% 60% Northern Region 37% 47% Lao PDR 50% 49%

Urban 82% 15% Rural with road 47% 54%

Rural without road 24% 83% 4. Access to Health Services in Villages % of People by Distance to the Nearest Health Center Less than 10km 11-30km More than 31km Luang Prabang 63% 33% 4% Northern Region 66% 24% 10% Lao PDR 78% 17% 5%

Urban 100% 0% 0% Rural with road 76% 21% 3%

Rural without road 56% 27% 16% 5. Educational Services % of Village that has its

own primary school % of Village that has its

own lower secondary school

Luang Prabang 78% 4% Northern Region 81% 7% Lao PDR 79% 8% Urban 80% 19%

Rural with road 81% 11% Rural without road 76% 0%

6. Net School Enrollment of Children of Age 6-10 by Sex Children of Age 6-10 Girls Boys Total Luang Prabang 66% 73% 69% Northern Region 61% 67% 64% Lao PDR 70% 73% 72% Urban 91% 88% 89%

Rural with road 72% 75% 74% Rural without road 50% 56% 53%

Source: National Statistical Center, “Lao Expenditure and Consumption Survey 2002/2003” (LECS 3), March 2004.


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Net School Enrollment of Children of Age 6-10 by Sex - In Luang Prabang Province, net school enrollment of children aged 6-10 is 69% of all

eligible children, which is comparable to the national average of 72%. - However, gender gap in the province in this aspect is more conspicuous than that for

the whole country. (2) Incidence of Poverty in Northern Region According to the National Growth and Poverty Eradication Strategy (NGPES) of Lao PDR, the head count index of national poverty was 38.6% in 1997/98, compared with 45.0% in 1992/93. The Northern Region, comprising the provinces of Luang Prabang, Phongsaly, Luang Namtha, Oudomxay, Bokeo, Houa Phanh and Xaygnaboury, had the highest incidence of poverty (52.5% in 1997/98) among the three regions in the country.13 Some 830,000 people in the Northern Region are below the poverty line, accounting for about 45% of the total number of the poor in Lao PDR. There were considerable variations in the rate of progress in poverty reduction. The Northern Region not only is the poorest region, but also it has experienced the slowest rate of reduction in poverty. (3) Socio-Demographic Features of Luang Prabang Province Luang Prabang Province has 11 administrative districts with 855 villages. 14 Various socio-economic statistics of the province are found in “Main Activities and Implementation Plan”, Department of Planning and Investment, Luang Prabang Province, 2006, including the following: Main socio-

demographic features: - Number of households: 69,802 - Total population: 405,949 persons - Population density: 24 persons per sq. km - Ethnic composition: Lao Loum - 36.5%, Lao Theung - 46.5%

and Lao Souang - 17%

Number of households engaged in major cultivation types:

- Rice cultivation: 10,172 households - Mixed with paddy field and shifting cultivation: 4,739

households - Other occupation 11.873 households

Types of land use in the province:

- Productive land: 77,000 ha - Rain-fed paddy field: 12,105 ha, irrigated paddy field: 1,512ha - Shifting cultivation field: 21,160 ha - Agriculture plantation: 24,336 ha - Other land use 19,399 ha (including 4,800 ha of housing area)

(4) Incidence of Poverty in Luang Prabang Province According to NGPES, 72 districts in the entire country have been identified as poor, of which 47 districts have been identified for priority intervention during 2003-2005. 13 The incidence of poverty in the Central and Southern Regions in 1997/98 was 34.9% and 38.4 respectively. 14 The number of the villages is based on “Main Activities and Implementation Plan”, Department of Planning and Investment, Luang Prabang Province, 2006.


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Five criteria employed to identify “Poor Districts” in NGPES are as follow:

- Districts where over 51% of the villages are poor. - Districts where over 40% of the villages do not have local or nearby schools. - Districts where over 40% of the villages do not have a dispensary or pharmacy. - Districts where over 60% of the villages without an access road. - Districts where over 40% of the villages do not have safe water.

Using the above criteria, four districts out of 11 districts in Luang Prabang Province have been identified as poor that requires priority investment during 2003-2005. These include Districts of Phonxay, Viengkham, Phoukhoune, and Pak xeng. 3.2.2 Main Economic Activities The gross regional domestic product (GRDP) of Luang Prabang Province15 was Kip 1,643 Billion in Fiscal 2004/2005, composed of the following:

- Agriculture and forestry: Kip 789 Billion (48%) - Industry / handicraft: Kip 279 Billion (17%) - Services: Kip 575 Billion (35%);

(1) Overview of Industries in Luang Prabang Province In Luang Prabang Province, there are no activities by heavy manufacturing industries. The industries in the province are mostly small-scale, with the majority based on business run by households as described below. In terms of the number of registered business enterprises, service and commercial (sales and wholesale) business accounts for the majority, while manufacturing (lumbering, food manufacturing, paper manufacturing and so on) and agro-based businesses are less. Regarding agriculture and forestry that produces 48% of the provincial GRDP, major crops cultivated include: rice, fruit, beans, and cash crops. In addition, Luang Prabang Province produces a large amount of lumber, which is used for the production of wood chips, fuel wood, furniture and handicraft. (2) Economic Activities by Households In Lao PDR, economic activities conducted by households tend to account for a considerable portion in the entire economy due partly to relatively less formal employment prevailing in the country and also to a lack or absence of large-scale enterprises in remote areas in the country including the Northern Region. As such, households have been playing a major role in the economic sector, generating a substantial amount of value added in the economy. “Lao Expenditure and Consumption Survey 2002/2003” (LECS 3) issued by the National Statistical Center in March 2004 provides recent statistics on economic activities by households. Based on LECS 3, economic indicators by households of Luang Prabang Province are compared with the national average and those for urban and rural areas in Table 3-2. Main points are as follows: 15 Source: “Main Activities and Implementation Plan ”, Department of Planning and Investment, Luang Prabang Province, 2006.


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Percentage of population working at age above 10 - There seems to be no substantial difference in terms of the proportion of working

household members (at the age above 10) among Luang Prabang Province, the Northern Region and the national average.

Table 3-2 Main Economic Activities by Households in Luang Prabang Province Compared with Northern Region and Lao PDR

1. Percentage of population working at age above 10 Female Male Total Luang Prabang 78% 82% 80% Northern Region 82% 84% 83% Lao PDR 81% 83% 82% Urban 73% 76% 75%

Rural with road 83% 86% 85% Rural without road 86% 87% 87%

2. Main economic activities of population working at age above 10 (Percentage of total hours worked during the last 7 days)

Self-employed

Paid Employment Non-farm Activities Own Operated Farm Total

Luang Prabang 5% 12% 84% 100% Northern Region 3% 13% 84% 100% Lao PDR 6% 24% 71% 100% Urban 17% 49% 34% 100%

Rural with road 3% 16% 81% 100% Rural without road 1% 11% 88% 100%

3. Percentage of time spent for income generation by household members at age above 10 (for Lao PDR) Types of Activity Hours per Day Percent Share Work as employed 0.5 11% Own business work 0.7 14% Agricultural work 2.4 49% Collecting firewood/fetching water 0.3 7% Hunting/fishing 0.5 11% Construction 0.1 1% Handicraft 0.3 7%

Total hours spent by household members 4.8 100% 4. Business by household % of Household with Business Operation

(Including unregistered business) Lao PDR 46%

Urban 68% Rural 38%

Northern Region 46% Source: National Statistical Center, “Lao Expenditure and Consumption Survey 2002/2003” (LECS 3), March 2004. Main economic activities of population working at age above 10

- In Luang Prabang Province, household members are engaged in: i) self-employed, own farming (83%), ii) self-employed, other than own farming (12%), and iii) employed by others (5%).

- This work pattern is similar to the national average of those in rural area with road access.

Percentage of time spent for income generation by household members at age above 10

- The national average shows that aggregate household labor is spent for own farming


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(49%), own business (14%), employment (11%), hunting and fishing (11%), handicraft making (7%) and others (8%).

Business by Household

- Besides own farming work, 46% of all households in Lao PDR are engaged in household business including trade, production and other services.

3.2.3 Role of Tourism Sector Development for Poverty Alleviation According to the industrial composition of the provincial GRDP indicated earlier, the services sector including tourism and other sub-sectors accounts for more than a third of the economy of Luang Prabang Province, which apparently reflects the benefit of tourism that has grown rapidly over the past decade in Luang Prabang. At the same time, Luang Prabang Province is below the national average in terms of various kinds of socio-economic indicators as shown previously, and it can reasonably be judged that overall the province is poorer in socio-economic terms than the average level of the country. From the viewpoint of poverty alleviation, it is desirable that the growth framework proposed by NGPES will be followed, i.e., the main sectors including agriculture/forestry, education, health and infrastructure, especially rural roads, should grow in synergy with the supporting sectors that include rural electrification, tourism, industry and trade. In addition, cross-sector priorities should be placed on environmental management, gender equality and capacity building. NGPES also mentions that for tourism to benefit poor people, priority investments should be directed especially toward eco-tourism and encouragement of handicraft production. This basic framework would also be effective, at least to some extent, for Luang Prabang Province that has an advantage of possessing a strong engine for growth, which is tourism. On the other hand, it would be a challenge to address the poverty issue by utilizing tourism in the four districts with higher incidence of poverty among the 11 districts of the province, including Phonsay, Viengkham, Phounkhoune, and Pak Xeng as they are located in the east of the province, not very close to tourism resources that have potential to attract tourists. It is considered that a desirable tourism development approach for poverty alleviation in Luang Prabang would be as follows: Improvement of access roads will be an important element for tourism development in

Luang Prabang, linking the urban center with tourist sites and targeted villages in remote areas. This is seriously needed for Luang Prabang, and will not only contribute to diversifying tourism products and to reducing concentration of tourists in the town, but it will also enable villagers to access market, basic health and educational services, thereby enhancing their standard of living. It is considered that access road improvement will greatly facilitate distribution of benefits to people in rural areas as tourism grows at a rapid pace in Luang Prabang.

In Luang Prabang Province there are a number of rural villages that are unique and have

potential to conserve their unique culture and improve or develop artisan skills in a way attractive to tourists. In fact, the existence of various ethnic minorities residing in the province is a strongpoint of Luang Prabang Province from the perspective of tourism. Potential areas for conservation, improvement and/or development include handicraft, weaving of ornamental clothes with silk or cotton fabrics, costumes with unique ethnicity,


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wood carving, unique village landscape, architecture, Buddhist monasteries, and lifestyle. Many villages are also located at attractive nature-based tourist sites. It is important that community people themselves will be able to conserve and improve the attractions they possess, including cultural, historical, ethnic / traditional and scenic attractions. This way, more of the potential benefits of tourism development will go directly to rural communities.

3.3 Existing Tourism-Related Undertakings This section reviews past and current undertakings related to tourism development in Luang Prabang as well as implantation capacity of related agencies. Several donor agencies have been assisting tourism-related undertakings in Luang Prabang including UNESCO, ADB, AFD (French Agency for Development), and SNV (Netherlands Development Organization). The areas for their assistances extend from conservation and improvement of the World Heritage site, development of urban and transport infrastructure and community-based tourism development, to capacity building in various fields and conservation of intangible cultural heritage. Major projects implemented in recent years are described below, with additional information provided in Appendix D. 3.3.1 Donor-Assisted Projects (1) Mekong Tourism Development Project (MTDP) This ADB-financed project aims at tourism development in Cambodia, Lao PDR and Vietnam. The project is currently in progress and expected to be completed by 2007. The components of the project related to tourism development in Luang Prabang include the following: i) Access Road to Kuang Si Waterfall This component improves access to Kuang Si waterfall. Although the waterfall is one of the major tourist destinations in this area, the access road has been graveled, giving some difficulty with driving during rainy season in which the waterfall offers the best view to tourists. According to ADB, the length of the road section is around 24km with the estimated cost being US$ 1,355,646. ii) Community Based Tourism in Muang Ngoy area MTDP assists community-based tourism development in Muang Ngoy area, including improvement of boat landing facilities in Nong Khiaw and Muang Ngoy Nua (Old Muang Ngoy) such as stairs, waiting spaces, and toilets. They are also constructing graveled pavement and drainage on a main road in Muang Ngoy Nua. iii) Human Resource Development Program MTDP is assisting HRD programs with the concept of 1) preparing and implementing national tourism HRD plan, 2) capacity building of middle-level public officials, 3) training of trainers in hospitality skills in vocational institution, and 4) upgrading the management and teaching capacities of academic institutions with tourism program. iv) Marketing and Product Development Programs MTDP is assisting tourism marketing as part of “GMS- Marketing and Products Development Program”. Several joint marketing and promotion activities among the GMS countries is implementing under the strategy of “Promoting the sub-regions as a single destination” and “Developing a sub-regional marketing institution”.


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v) Pro-Poor Community-Based Tourism (CBT) MTDP is also providing several training programs for developing Pro-Poor Community-Based Tourism in Lao PDR. In Luang Prabang province, training programs for tourism sector have already been given and some future training such as training of heritage guides in Luang Prabang and hospitality management training in target villages has been planed. Assistance to tourism promotion and marketing activities is also included in the GMS Pro-Poor Community Based Tourism Component. The current and future assistance programs related to promotion and marketing are reportedly as follows: Past Programs

- Production of promotion materials for CBT programs (e.g. map and brochures of national and project area, promotion CD and VIDEO for CBT projects and GMS project,)

- Advertising of CBT products and activity in local magazine (4 times) - Support of opening LNTA-GMS Tourist Information Center - Study on handicraft production and marketing

Current and Future Programs

- Updating and maintenance of “Ecotourism Laos” website - Advertising of new CBT products & website in 4 travel magazines - Production of promotion materials for CBT programs (e.g. Do’s and Don’t cartoon

posters / Lao national map & information brochure / maps & brochures of CBT project sites / Guidebooks)

- Development of display place on tourism (e.g. Hmon Handicrafts, culture and events of Luang Prabang)

- Exhibition activity (e.g. CBT products and handicraft exhibit in Nakhom Panhom) - Filed survey for developing CBT tour with private sector (e.g Xieng Ngeum CBT tour

with Tiger Trails Tour Co.) (2) Luang Prabang Community-Based Sustainable Tourism Programme SNV (Netherlands Development Organization) is assisting capacity building of the Luang Prabang Provincial Tourism Office as well as LNTA. Two advisors have worked with the PTO of Luang Prabang since January 2004, providing support for tourism planning, surveys, product development, staff training, organizational development, team building, and upgrading of information services. So far they have assisted, or are assisting, the following activities in the Luang Prabang Provincial Tourism Office: Selection of two ecotourism products for development under the ADB-financed MTDP; Baseline data collection carried out in villages for the above products; Organizational analysis exercise carried out with the entire staff of the Provincial Tourism

Office (PTO); Opening of a new Tourist Information Centre; Production of an Official Tourist Map of Luang Prabang. (3) Luang Prabang Urban Development Program (PAU-LP) The PAU-LP was financed by the AFD (French Agency for Development) and implemented by MDP. The program was implemented in 1999-2002 with an amount of 1,800,000 Euro.


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The project included the following components: To establish and implement a heritage master plan (PSMV) to protect and develop the site,

in order to control the city’s future development; To study and settle the standards of both heritage restoration and infrastructure development

through implementation of pilot operations (training work sites and demonstrative work sites). The demonstrative work sites established that infrastructure could be improved without spoiling the site’s heritage atmosphere. One cannot expect to protect a site without the active collaboration of its inhabitants; and

To involve the population in the conservation process. To explore this possibility special

intervention funds were created, allowing compensation to the population in return for the respect of the strict regulations protecting the town’s heritage. These intervention funds and the demonstration work sites fostered the production of baked clay materials in Luang Prabang.

(4) Luang Prabang Heritage Protection Area Program (PASS-LP) As the next project of PAU-LP, PASS-LP, financed by the AFD, has been launched in June 2001 and will be implemented until the end of 2006 for the amount of 5,500,000 Euro by the AFD. Implementation agencies are MDP and UDAA. This project’s goal was to implement the development policy already established through the groundwork of PAU-LP and to set out the principles of the territorial development in the heritage site. This program raises four main components: Small infrastructure development in three villages neighbour of the heritage area Rehabilitation and improvement of buildings open to the public such as city markets and

other remarkable sites Integrated improvement of the drainage and sanitation, of the electricity and public lighting

networks and of the road, alley and traffic system to enhance a link between the different neighbourhoods

Study on territorial development More detailed description of these components is provided in Appendix D. (5) Nam Khan Eco-Valley Project The Development of Nam Khan Eco-valley project, financed by French “Région Centre” and UNESCO, is implemented by MDP and UDAA since 2006 to 2008. The project stresses resource preservation and enhancement, while creating socioeconomic development opportunities for local communities. The key objective is to reconcile the need for sustainable preservation of cultural and bio diversity with community development and poverty alleviation. The Project includes the following four components: Definition and implementation of the Nam Khan valley resource management plan; Protection and environmental development of the aquatic and terrestrial river-side;


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Supporting income-generating activities; and Training, Communication, environment awareness. More detailed description of these components is provided in Appendix D. (6) National Luang Prabang University The Government of South Korea is assisting the establishment of National Luang Prabang University to be located in the north of Luang Prabang town. The university is currently under construction, and is expected to open in 2008. (7) Northern Area Rural Power Distribution Project EDL (Lao Electricity Company) are now implementing the following components in Luang Prabang Province under the project funded by ADB in cooperation with the Nordic countries: Extension of the transmission line from Luang Prabang to Pakmong, Udomxai and Luang

Namtha, and distribution lines from the Luang Prabang municipality to Kouan Si, Pak Xeng and Phonxai by 2008.

Construction of new substations in the north and south of Luang Prabang district. (8) Secondary Towns Urban Development Project This project, funded by ADB, aimed at urban development in the four largest secondary towns in the country, Luang Prabang, Pakse, Savannakhet, and Thakhek, including physical infrastructure work, community participation, and institutional development. The project was implemented from 1997 to 2005. Major components conducted in Luang Prabang are as follows: Urban Development Administration Agency (UDAA) with operation and maintenance

responsibilities for urban infrastructure and services was newly established and trained. Infrastructure of sanitary landfill sites including access roads, retention ponds, clay lining

and drainage systems, and fencing were constructed and various types of equipment and facilities for solid waste management were provided.

Bridge, paved roads, drainage, and riverbank were constructed. Lined or piped drains were constructed for sanitary improvement. Community Awareness and Education Program (CAEP) was designed to promote

community awareness, participation, and education on the benefits of good health and hygiene, as well as to facilitate beneficiary involvement.

More detailed description of these components is provided in Appendix D. 3.3.2 Other Projects (1) Improvement of Luang Prabang Airport


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In 1990s, improvement was made at the airport of Luang Prabang with assistance from the Government of Thailand, including runway extension and improvement of the terminal building. An additional facility for shops and restaurants was also built on the opposite side of the terminal building across the rotary, reportedly with private sector investment. Recently, the Department of Civil Aviation (DCA) has installed automatic navigation system for the airport, enabling safe landing and takeoff without visual flight operation. It also contributes to reducing flight delays, which is one of the major issues on air transport in Lao PDR. After a trial period, it will be put in operation, expectedly within 2006. (2) Introduction of New Aircrafts and New Routes of Lao Airlines In response to a serious need for increasing the capacity of air transport in Lao PDR, Lao Airlines has recently purchased two new turbo-prop aircrafts (MD-60) with seat capacity of 56 passengers from PRC that are equipped with Canadian-made engine. They are expected to start servicing in October 2006, and as of May 2006, Lao pilots were being trained in PRC for operation of this type of aircrafts. At the same time, they plan to introduce new routes including Luang Prabang-Pakse and Pakse-Bangkok, among others. (3) Scholarship Tourism Training by International Donors LNTA has received scholarship training on tourism from neighboring countries including Thailand and Singapore based on cooperation agreement with these countries, sending their staffs for OJT training in these countries for 1 to 3 weeks. In addition, they occasionally receive scholarships from EU, Japan, Thailand, New Zealand, etc. to study tourism overseas. (4) Website Development by Luang Prabang Heritage Office Luang Prabang Heritage Office is now developing a website introducing heritage in Luang Prabang with assistance from Tokyo Institute of Technology of Japan. The main concept of this website is to provide information on the World Heritage site, while they also plan to include basic tourist information about Luang Prabang. 3.3.3 Implementation Capacity (1) Luang Prabang Provincial Government The organization of Luang Prabang Provincial Government is shown in Figure 3-4. The departments expected to play a major role in tourism development in Luang Prabang are positioned under the vice governor responsible for ‘economic departments’. The departments related most closely to tourism development include: Luang Prabang Provincial Tourism Office (PTO), which is also a provincial branch of Lao National Tourism Administration (LNTA); the Department of Communication, Transport, Post and Construction (DCTPC), which is also under the Ministry of Communication, Transport, Post and Construction (MCTPC); Luang Prabang Heritage Office or Maison du Patrimoine (MDP); Luang Prabang Urban Development Administration Authority (UDAA), which is currently positioned under Luang Prabang District although the management of UDAA also reports directly to the governor and the vice governor; and the Department of Information and Culture (DIC) under the Ministry of Information and Culture (MIC). Other related departments include: the Department of Planning and Investment (DPI); the Department of Agriculture and Forestry


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(DAF) under the Ministry of Agriculture and Forestry (MAF); the Department of Industry and Handicraft (DIH) under the Ministry of Industry and Handicraft (MIH); and Science, Technology and Environment Office under Science, Technology and Environment Agency (STEA). Notes *1: Lao Front for National Construction *2: GPAR stands for Governance and Public Administration Reform Project. *3: Organizationally, UDAA (Urban Development Administration Authority) of Luang Prabang Province currently is placed under Luang Prabang District, while the management of UDAA reports also to the Governor / Vice Governor directly.

Figure 3-4 Organization of Luang Prabang Provincial Government A brief introduction of the major departments closely related to tourism development and their implementation capacities are described below. (2) LNTA and Luang Prabang PTO As described in section 2.4, LNTA suffers from shortage of both human and financial resources, and its strengthening is highly necessary for effective implementation of the activities under its responsibility.

Provincial Governor

Vice Governor Vice Governor Vice Governor

Party & Personnel Sector

Departments (Economic)

11 Districts

Finance

Banks

Commerce

Planning &

Investment

CTPC

Agriculture &

Forestry

Industry &

Handicraft

Tourism

Luang Prabang

*3

Chomphet

Departments (Law, Socio-Cultural)

Nan

Xiang Ngeun

Nambak

Ngoy

Pak Beng

Phon Xai

Provincial Assembly

Court

Justice

Judge Office

Education

Information &

Culture

Health

Cabinet

Personnel

Monitoring & Evaluation

Training & Information

Lao Front *1

Youth Union

Trade Union

Women’s Union

Foreign Affairs Heritage

Office

Science, Technology

& Environment

Phou Khoun

Viang Kham

Pak Ou

Sports

Drug Control

Red Cross

Social Welfare

GPAR *2

Veteran

School of Politics &

Administratio


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Director

Deputy Deputy

Administration Office

(12 staffs)

Housing & Urban

Cadastral Plan Office

(5 staffs)

Road & Bridge Office

(18 staffs)

Transport Office

(5 staffs)

Vehicle Regulation

Unit (5 staffs)

Chomphet Nan Xiang Ngeun Phou Khoun

Nambak Ngoy Pak Beng Phon Xai Viang Kham Pak Ou

11 District CTPC Offices

Luang Prabang

As for project implementation, LNTA is now working on managing, and coordinating for, the ADB-financed MTDP, with the Project Coordination Unit (PCU) established within LNTA. Although LNTA is lacking in human resources to work on the project, its implementation is said to be going relatively well (except for the difficulty to secure the budget for the counterpart fund necessary for the project) due to the assistance from the consultants working on the project. As mentioned earlier in Chapter 2, strengthening the capacity of Luang Prabang PTO that seriously lacks the budget and manpower is also an important issue. Tourism development is a multi-sectoral undertaking, requiring coordination and cooperation among concerned agencies and departments. It is also essential to collaborate with the private sector for carrying out the development to meet the market demand. Line agencies at the central level as well as their departments in provinces have their own mandates and responsibilities, and thus can hardly become an entity to undertake active inter-agency or inter-departmental coordination for tourism development. LNTA and its branches in provinces (PTOs) should play this coordinating role under the guidance of the Prime Minister’s Office at the central level and of the governor and vice governors at the provincial level. Currently, however, PTOs suffer from server shortage of staff and capacity, unable to play this role in an effective manner. (3) Department of Communication, Transport, Post and Construction (DCTPC) The responsibilities of DCTPC related to tourism development range widely from transport infrastructure development and maintenance to implementation of transport-related regulations and urban planning in the provinces. The organization of Luang Prabang DCTPC is shown in Figure 3-5. Obviously, DCTPC has the most substantial manpower among all of the departments in Luang Prabang, and has experiences in a number of infrastructure development projects including those related to tourism development.

Figure 3-5 Organization of Luang Prabang DCTPC


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(4) Luang Prabang Heritage Office (Maison du Patrimoine (MDP)) In accordance with the terms of the convention signed with UNESCO, the Lao authorities decided to establish an organization to be in charge of the protection and the improvement of Luang Prabang World Heritage site. Accordinly, Luang Prabang Heritage Office (the Maison du Patrimoine: MDP) was founded with the help of the city of Chinon in France, within the framework of a joint decentralized cooperation program signed by both towns. MDP began its activities, as a project body, thanks to multiple financial backing especially from UNESCO, the French Ministry of Foreign Affairs, the European Union and the French Région Centre. In 1999 the program was extended due to the support of two main donors: the European Union and the French Agency for Development (AFD), and the Lao authorities decided to upgrade MDP as an official body in 2002. Since 2002 several new projects have been or are still implemented by MDP: a second project funded by the French Agency for Development (AFD), and two Asia-Urbs projects financed by the European Union, one funded by French “Région Centre” and the other by UNESCO. Implementation Capacity of Heritage Office or MDP This office has been experienced in implementing various kinds of projects, with different scales, and has been set up to create a synergy between different stakeholders. In addition, MDP is working in close collaboration with UNESCO, and could legitimately intervene in the Luang Prabang protected area, SCOT area and in Nam Khan basin (UNESCO Eco-valley). Implementation of a project by MDP may also contribute to capacity building. In many cases, local people trained during project implementation stayed in MDP or at least in Luang Prabang. When MDP implements a new project, it can be a new occasion to upgrade the level of relevant human resources. It may be a viable option to put MDP as an implementing body especially for projects related to infrastructure development in the World Heritage site or conservation of cultural heritage and its use for tourism development in and around Luang Prabang town. It is however judged necessary to receive foreign technical support in order for MDP to successfully implement such projects, as has been the case in the past. (5) Urban Development Administration Authority (UDAA) Urban Development Administration Authority is an official body that has been founded in accordance with the terms of the loan agreement between Asian Development Bank (ADB) and the Lao Government for a Project of road and drainage infrastructures improvement in secondary towns in Lao PDR and in Vientiane. Lao authorities intend UDAA to be the municipality of the secondary towns. In the urban part of the secondary town’s districts, the responsibility for construction, transportation and urban management that used to be assumed by DCTPC has been officially transferred to UDAA. The staffs of UDAA are now partly composed of former DCTPC officials. Implementation Capacity of Luang Prabang UDAA The Luang Prabang part of ADB-financed Secondary Town Project was officially implemented by Luang Prabang UDAA, but the project was actually implemented by Vientiane UDAA staff with support of foreign experts. It is considered that the capacity of human resources at Luang


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Prabang UDAA is still weak, although it is extremely important for sustainable conservation and development of Luang Prabang to improve its capacity through project implementation with a capacity building component. (6) Department of Information and Culture (DIC) The Department of Information and Culture of Luang Prabang Province has been involved in the implementation of several projects in recent years. The most important one was “Cultural survival and revival in Buddhist Sangha” with UNESCO Bangkok. The Quiet in the Land Luang Prabang is also implemented under the Provincial Department of Information and Culture. Implementation Capacity of Information and Culture provincial department It is considered that implementation capacity of Luang Prabang DIC is still weak, and implementing projects under the supervision of DIC including those concerning intangible cultural conservation would require strong external support. For sustainable conservation and development of Luang Prabang, it is important to improve the level of the department’s human resources through project implementation having a capacity building component.


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3.4 Existing Plans The Study Team identified various existing plans that may partly become the basis for a project to be eventually proposed in the Study. Major ones are described below. 3.4.1 Provincial Tourism Development Strategy Luang Prabang Provincial Government approved a provincial tourism development strategy in 2002, which consists of 7 basic strategies summarized as follows (for more details, see an English translation of the strategy provided in Appendix E): Strategy I – Develop Luang Prabang as a Cultural, Natural and Historical Sites, including

establishment of culture protection law, restoration of heritages, improvement of quality of tourism resources, development of nature tourism, and support of minority villages.

Strategy II – Promote Luang Prabang as Linked Land and Holiday Town, including

improvement of tourist services at hotels, guesthouses and restaurants, tourism development in rural villages, international/regional road development, and promotion of international travel routes.

Strategy III – Make Luang Prabang as a Tourism Centre, including promotion of

commercial activities, international conferences, sports, and infrastructure development. Strategy IV – Promote Long-Term Agriculture and Forestry Development to Support

Tourism, including implementing promotion activities for nature conservation as well as for agriculture and agro tourism/eco-tourism.

Strategy V – Make Luang Prabang as a Peaceful, Convenient, Clean and Beautiful Town,

including development of urban infrastructure, facilities and regulation for conservation of cultural heritage.

Strategy VI – Promote Education in Private and Public Sectors, including promotion of

education for young people and improvement of health conditions through construction of schools/colleges and hospitals.

Strategy VII – Improvement of Financial Condition in Luang Prabang, aiming to promote

investment in Luang Prabang through advertisement and promotional activities. As shown in Appendix E, the strategy also provides specific measures for implementing these strategies. These measures were taken into account in formulating the development packages proposed in the chapter that follows. 3.4.2 Related Development Plans (1) The Scheme for Territorial Coherence (SCOT) Through the preservation and enhancement of its outstanding heritage value, Luang Prabang has become, over the years, the center of tourism and economic development. The challenge for the city today is to achieve a balanced and sustainable development. To meet this necessity, MDP laid out the outline of Luang Prabang development through the


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Housing Rettlement New Economic Activities Area Paddy Fields Tourist and Cultural Activities Area Centre of Tourist Development Proposed Port- Existing Road Proposed Road Proposed Bridge

Scheme for Territorial Coherence (SCOT) study. Local Authorities approved the broad lines of the SCOT on January 11, 2005, followed by a decision of the governor made in March 2005 on urban development plan based on SCOT. Relevant materials are provided in Appendix E. SCOT proposed the strategy, priorities and territorial development guidelines with regard to the city’s identity and of its cultural landscape resulting from significant interactions between Lao people and the natural environment (peri-urban agricultural areas: paddy field, riverside vegetable garden) as well as the guidelines of the Heritage Safeguarding and Enhancement Plan (PSMV). This urban development tool addresses the following paradox: How can heritage managers balance the need to preserve the city’s unique cultural ambiance and traditional way of life under the increasing pressures of a tourist economy threatening that way of life? SCOT extends beyond the historic city limits and its immediate surroundings. The zone targeted by SCOT includes a town extension area which covers a 375 km2 area (15-kilometer wide and 25-kilometer long). The study also targets major tourist sites that are located within a one hour distance from Luang Prabang town and are likely to be eligible for heritage, environmental or cultural development activities. Based on the outcomes of the study and as compared with other similar South-East Asian cities (Siem Reap in Cambodia and Chiang Mai in Thailand), population growth was projected to reach 5 %, which is equivalent to the 2002-2003 rates. According to these figures, Luang Prabang’s total population would reach 90,000 inhabitants by 2013, compared with 55,000 in 2003. The number of the expected foreign tourist arrivals is estimated at 200,000 per year by 2013. Source: SCOT

Figure 3-6 Land Use Plan and Infrastructure Development Plan Proposed by SCOT


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Source: SCOT

Figure 3-7 Tourism Center Development Plan Proposed by SCOT This forecast could only be realized through carefully implementing a policy to develop tourism and economic activities gradually, involving Lao authorities to carry out and oversee the migration policy and conservation programs, as well as to control tourism in some way. As mentioned above, based on SCOT strategy, the Governor made a decision on urban development plan in March 2005 as shown in the following figure and Appendix E. One of the basic concepts of the strategy is to extend the urban area to the surrounding areas of Luang Prabang town. It includes the following measures: Construction of bypass of National Road 13 Extension of the airport and construction of a new terminal building Construction of the new Kok Chong cargo port and improvement of the Xieng Keo cargo

port. Preservation of the natural resources such as: Phu Pung hill, PhuSuang hill and Phu nang

hill to Moung Kham village Construction of a new Mekong bridge between Ban Soun in Luang Prabang district and

Moung Kham in Chomphet district. Conservation of rice field in the Southwestern area of Luang Prabang district.

1 - Pak Ou 2 - Pak Xuang 3 - Xieng Lome 4 - Xieng Ngeun 5 - Pak Lung / Saluan 6 - Houey Si


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Road Improvement Road Construction Rice Field Protected Area Nature Conservation Area

Figure 3-8 Luang Prabang Urban Development Plan Approved by the Governor (2) Luang Prabang Urban Comprehensive Development Program (PADU-LP) PADU-LP is a continuous project of PAU-LP and PASS-LP described in the section 3.3.1, and implemented by MDP and UDAA. The implementation of PADU-LP to be financed by AFD will probably be launched in 2007 for an amount of roughly 6,000,000 Euro, for a total period of 3 years. The target of this project will be to improve institutional issues and complete the restoration program of heritage buildings and to finish improving infrastructure in the historical part of the city. More specifically, this program is expected to address the following subjects: i) Institutional Support To provide institutional support for local official bodies involved in conservation and

development process (MDP, UDAA, etc.). To provide capacity building through administrative and technical assistance, and training. To improve communication about heritage conservation and urban development, and

evaluation of the knowledge accumulated during the first and the second projects. ii) Infrastructure and Restoration Work To complete the restoration of heritage buildings (navigation pavilion, Luang Prabang

School, religious buildings, etc.) and organize training in these activities. To complete the development of some alleys chosen following symbolic and historic criteria

or because of their strategic location. The project may include improvement of drainage and sanitation in the World Heritage protected area.

iii) Capacity Building Project At the moment, AFD is planning to have capacity building project in Lao PDR. However, it is still developing stage and the details would be found in fall 2006.


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(3) Infrastructure Development Plans There are several plans related to infrastructure development in Luang Prabang Province, including: Luang Prabang urban development plan As mentioned earlier, Luang Prabang urban development plan was approved by the governor in March 2005 based on SCOT, which covers land use plan, road and urban infrastructure development, and nature/landscape conservation. 5-year investment plan for 2006-2010 Based on the plans of each provincial department, the Department of Planning and Investment of Luang Prabang Province prepared a 5-year investment plan for 2006-2010, including all fields of public sectors such as tourism, infrastructure and industry. DCTPC Infrastructure development plan DCTPC has prepared a long-term infrastructure development plan for 2006-2020 and 5-year investment plan of road network for 2006-2010. Urban infrastructure improvement plan prepared by UDAA UDAA has prepared a plan for urban infrastructure development such as roads, ports, and parks. English translations of these plans are provided in Appendix E. Based on these plans as well as interviews with concerned departments, the Study Team identified major infrastructure development projects that are yet to be implemented mainly due to lack of fund. These projects are described below, with their locations illustrated in Figure 3-9.

Figure 3-9 Major Existing Infrastructure Development Plan in Luang Prabang

Luang Prabang

Tat Sae Waterfall

Ban LonglaoKuang SiWaterfall

Ban Xanghai

Ban Pak Ou

Pak Ou Cave

Rural Road Improvement

Nam Soung

Nam

Kha

n

Mekong River

Port Improvement

Major Tourism Attraction

Ban Phanom

Xiang Keo Port Improvement

Khokjong Port Improvement

Mekong Bridge and N.R.4B

N.R.13 Bypass

Ring Road

Small Roads ImprovementBoat Landing ImprovementInstallation of Streetlights

Water Supply Extension

National Road Improvement


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i) Road Network National Road Improvement The construction of a new Mekong bridge in Luang Prabang has been proposed, which is to cross the river near Ban Donmai and Ban Muangkham located in the north of Luang Prabang town. The bridge aims to promote development on the right bank of the Mekong (in Chomphet district) as well as to reduce the development pressure in the World Heritage area. Also the bridge is to connect with a planned National Road 4B leading to Hongsa and to the border of northern Thailand. Improving the road from Muang Ngoy in the north of Luang Prabang province to the Vietnamese border is also a priority for establishing an international route linking Luang Prabang with the neighboring country. In addition, the urban development plan approved in March 2005 includes construction of a bypass road of National Road 13 between Ban Kokngiou and Ban Sensoul for keeping away bypassing traffic from Luang Prabang town. The length of the bypass is around 14km including a bridge over Nam Khan River. On the other hand, UDAA has a plan to construct a ring road in eastern Luang Prabang town including a second Nam Khan bridge16. Both roads aim to reduce traffic volume, especially heavy vehicles, in the town center and to promote development in the suburbs. Rural Access Road Improvement The 5-year investment plan and the infrastructure development plan prepared by DCTPC include plans to upgrade pavement of rural access roads. Most access roads to villages in rural areas (except national roads providing access in rural areas) are still dirt or graveled roads. These plans include upgrading to asphalt pavement of the access road to villages along Nam Khan River such as Ban Phanom and Ban Xianglome, and the road to Ban Longlao. There are also plans to upgrade a dirt or trekking road to graveled road where ordinary vehicles can pass. Urban Road Improvement DCTPC and UDAA have plans to pave some urban roads inside of Luang Prabang town and its vicinity areas, including the access road to Ban Phonsaal and Ban Xangkong in the northeast of Luang Prabang town, and the road from Phou Sie Market to Stadium in the southwest of Luang Prabang town. The ring road planned by UDAA as described above can also be regarded as an urban road. MDP has proposed construction of two pedestrian bridges over Nam Khan River for access between the World Heritage site and the areas on the other side of Nam Khan. ii) Transport Facilities Luang Prabang Airport The Civil Aviation Master Plan prepared in 2003 with technical assistance from ADB proposed measures for Luang Prabang Airport to ensure safety of aircraft operation and to support the growth in traffic demand. It includes extension of runway, expansion of taxiway, apron, passenger terminal building and cargo building, and upgrading of a fire fighting and rescue station. In addition, SCOT proposed options for the airport improvement including: (i) change in the direction of the runway to prevent aircrafts from flying right above the center of Luang Prabang town, and (ii) relocation of the airport to outer area. Port 16 Note that currently there is only one bridge crossing Nam Khan (which is on National Road 13), linking Luang Prabang town with the other side of the river including Luang Prabang airport.


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There are several types of existing ports/boat landings along the Mekong, Nam Khan, and Nam Ou including cargo ports, small boat and tourist boat landings. There are plans to improve these existing ports and boat landings proposed by DCTPC and UDAA. UDAA also proposes to operate a shuttle boat for tourists connecting between several boat landings along the World Heritage site. In addition, DCTPC has a plan to improve the Xiang Keo cargo port and construction of a new cargo port at Khokjong in the north of Luang Prabang district. Bus Station/Parking DCTPC and UDAA have a plan to improve bus terminals in Luang Prabang town and public parkings for tuk-tuk or mini ban in several villages. Street Light Streetlights are not installed even on some important road sections in Luang Prabang town. UDAA has a plan to install streetlights on major road sections including National Road 13 and the road to the airport. iii) Water Supply According to concerned officials of Luang Prabang province, water demand has steadily increased, almost reaching the supply capacity at present. The Department of Water Supply has a plan to increase the capacity of the water pumping and treatment facilities located along Nam Khan River in order to meet the water demand. They also have a plan to extend its water supply system to the area of Ban Phonexai where Souphanouvong University is now under construction. The length of the extension is to be about 5km. In addition, ADB plans to fund a project called “The Northern and Central Regions Water Supply and Sanitation Sector Project€35, which is designed to improve the quality of life of residents in 12 small towns in the Northern and Central Regions of Lao PDR and to enhance the roles of small towns as market, services, and manufacturing centers supporting the rural hinterlands. Out of 18 candidate target towns, the following four towns are located in Luang Prabang Province: Nan, Muang Ngoi, Viengkham, and Xamtay. iv) Electricity EDL has plans to improve power supply system as follows: Electricity Transmission and Distribution Project Phase III including extension to Muang

Ngoi. This is expected to be funded by ADB. Additional transmission line from the Nam Ngum Dam for enhancing the stability of power

supply, New hydroelectric power plant with a dam on Nam Khan River at Xiang Nguen, and Expanding the capacity of the hydroelectric power plant at the Namdom dam from 1MW to

3MW. (4) Capacity building and training of stakeholders related to tourism management

and development Luang Prabang Heritage Office has a plan to provide training courses on Luang Prabang heritage and eco-tourism for tourist guides. Also they intend to develop research and training programs regarding heritage conservation and environmental management in partnership with educational institutions such as Souphanouvong University now under construction in Luang Prabang and Tokyo Institute of Technology that has assisted part of the activities of the Heritage Office.


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(5) Preservation and Sustainable Management of Hydro Systems in South-East Asia Tropical Urban Areas

This EU-assisted project provides guidelines and methodologies to improve identification, preservation and stabilization of hydro systems in South East Asia urban areas, thereby promoting alternative models of sustainable urban development balancing environment preservation and local development. Luang Prabang is included in one of the target cities, with the focus mainly on urban wetlands. More details of this program are provided in Appendix D. 3.5 Major Issues and Needs 3.5.1 Introduction As described in section 3.3, various projects and programs have been undertaken in Luang Prabang, focusing partly on conservation and improvement of the World Heritage site. Some undertakings have been ongoing for tourism development outside of the World Heritage site, although they are still in a limited scale. Major efforts need to be exerted for achieving sustainable tourism development in Luang Prabang. In fact, there are a number of important tourism-related projects that are yet to be implemented in Luang Prabang, as described in section 3.4. This section summarizes major issues and needs related to tourism development and heritage conservation in Luang Prabang based on the existing plans, interviews and discussions conducted with concerned agencies and departments in Luang Prabang, and field surveys carried out at a number of major and potential tourist sites in and around Luang Prabang town. Tourism-related major issues and needs in Laung Prabang can be broadly categorized into those under the following headings: (i) need for product diversification, (ii) quality of tourism resources, (iii) transport access, (iv) urban infrastructure development, (v) conservation needs, (vi) environmental management, and (vii) potential to benefit communities. Each of these is detailed below. Other important issues such as those on marketing and promotion and on human resource development are described in Chapter 2. 3.5.2 Need for Product Diversification (1) Excess Concentration of Tourism in World Heritage Area There is no doubt that the most important tourism resource in Luang Prabang is cultural and historical heritage within the World Heritage site, located mostly in a narrow strip of the town center. All kinds of tourism-related activities and investments have been concentrated in this small area, including guesthouses, restaurants, souvenir shops, travel agencies and Internet cafés, resulting in overcrowding with a significant number of tourists. Without taking effective countermeasures, the concentration of tourism in the town center would further progress as tourists increase. Consequently, the culture, traditional townscape and lifestyle inside the town would be further transformed, potentially leading to degradation of the overall quality of Luang Prabang tourism. Apparently, the value of the heritage in Luang Prabang has already started to be threatened. As degradation of the heritage value and the overall quality of tourism progresses, Luang Prabang would potentially become a cheap destination, i.e., a destination that would for the


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most part attract low-spending tourists. Obviously, this would worsen the situation. If low-spending tourists continue to increase rapidly, further and faster concentration of tourists in the core area would result, partly because low-spending tourists tend to move less and stay longer in the city center, as well as these tourists tend to stay at inexpensive guesthouses, many of which are located in the core area. This would lead to further degradation of the quality of Luang Prabang tourism. The Study Team strongly believes that Luang Prabang should not become a cheap destination, but should continue to attract higher-spending tourists or upmarket. Considering that visitor arrivals to Luang Prabang are increasing rapidly as shown in the previous chapter, Lao authorities should take appropriate measures as soon as possible in order to curb the tendency of excess concentration of tourism in the town center. An effective approach to address this issue is product diversification. Other measures are described in sections 3.5.5 and 3.5.6 in the context of reducing development pressures in the central area and of readjusting the balance between urban and rural populations. (2) Need for Geographical Diversification of Tourism Products Geographical diversification of tourism products directly contributes to relaxing the concentration of tourism in the World Heritage site, offering attractive tourist sites outside of the town center. It will also contribute to extending the length of stay in Luang Prabang, leading to increasing revenue from tourism. Currently, many tourists do visit some of the tourist sites outside of Luang Prabang town including Kuang Si Waterfall and Pak Ou Cave. However, the attractiveness of these sites apparently is not high enough at present, requiring improvement to be made at both sites as well as along the route to these sites in order to upgrade them to be a “must-see” tourist attraction. For example, Kuang Si Waterfall currently lacks additional features other than the waterfall itself, but the area is in fact a good site for trekking, and the improvement in this aspect will add value to the waterfall. The trip to Pak Ou Cave can also be more attractive not only by improving the site itself but also through conservation and development of the cultural and historical heritage that exists along the route to the cave. There are other tourism resources with good potential in Luang Prabang that can attract a number of tourists with improvement. These resources include the following: Area along Nam Khan River The area along Nam Khan River located to the east of Luang Prabang town has several tourist attractions including Nam Khan, Tat Sae Waterfall, a quality resort, elephant ride, local villages and some trekking routes. The area has a potential to become a nature-based tourist area. Mekong Area The Mekong that is a resource well-known to the world can be featured more, combined with the development of village tourism along the Mekong and its tributaries (as described in the sub-section that follows), emphasizing that the lives in the villages in the area are deeply rooted in the Mekong. Muang Ngoi Muang Ngoi is a relatively new tourism destination located 150km north of Luang Prabang town, which is beginning to become popular among backpackers. At present, there are about ten guesthouses, all of which are for low-spending tourists. There is also a village called Ban Nong


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Kieaw, which has developed as a gateway village to Muang Ngoi. Major tourism resources in the area include nature landscape and ethnic villages. In addition, improvement of transport access is essential for geographical diversification of tourism products in Luang Prabang. Major issues and needs regarding transport access are described later in section 3.5.4. 3.5.3 Quality of Tourism Resources As mentioned above, Laung Prabang should not become a cheap destination, but should attract higher-spending tourists or upmarket for achieving sustainable tourism development. For this, quality improvement as well as product diversification is absolutely necessary. (1) Need for Improvement in World Heritage Area Although several donor-assisted projects have been undertaken targeting the World Heritage site, the area still requires improvement in various aspects. Major issues and needs from the perspective of tourism development are described below. Major conservation needs in the World Heritage area are described in section 3.5.6. At present, interpretation of the World Heritage site is absolutely lacking, and people can

hardly understand the value of the cultural and historical heritage of Luang Prabang without a guidebook or information provided elsewhere. A new tourist site or facility that can provide information and exhibition of the World Heritage should be developed together with tourist information and communications facilities and a meeting hall for communities. This will not only benefit tourists, but also will help local people to understand their heritage well and have incentive to conserve it.

At the same time, interpretation of individual tourist sites is also lacking even at the sites

visited by most visitors such as Phousi temple. There is no place that can suitably be used for training and educational programs including

language courses, handicraft production, cooking and tourism-related businesses. LNTA has suggested building such a facility in the central area.

Traffic congestion has become a major issue in the World Heritage area, disturbing

comfortable walk of tourists on the street as well as degrading the landscape in the area. As detailed later in section 3.5.5, adequate parking facilities should be provided for reducing parking on streets, and strict traffic regulation should be implemented, taking into account the traffic safety and comfort for tourists.

For comfortable walking in the area, more shade trees, plantings, rest areas with benches are

necessary. As many tourists are renting bicycles, bicycle parking is also needed especially in Khen Kong (river front), Sisavangvong, and Sakkarip. Upgrading of public facilities including streetlights and trash bins are necessary. In addition, more tourist information on streets should be provided such as orientation maps and signboards. The designs of these facilities should be examined carefully for harmonizing with the landscape of the heritage site.

There is no suitable open space for meeting or resting at the riverfront, which should be

developed because such space together with tourist information will be a starting point of


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walking tour or bicycle tours in the World Heritage area. (2) Need for Improvement of Tourism Resources in Surrounding Areas Generally, the condition of tourism resources in the surrounding areas is relatively poor. Some of the major needs were described in section 3.5.2 in the context of product diversification. In addition, major conservation needs outside of the World Heritage site are described later in section 3.5.6. Other major needs regarding tourism resources in the surrounding areas particularly from the perspective of tourism development include the following: i) Improvement of Existing Tourism Resources Improvement of existing tourism resources is urgently needed. Interpretation for tourists is seriously lacking at major tourist sites in surrounding areas as in the case of the World Heritage site. Most temples also do not provide enough information. Currently, it is difficult for tourists to understand the value of these resources. Maintenance and rehabilitation of tourism resources is also essential. ii) Promotion of Village Tourism with Featuring the Mekong As many villages around Luang Prabang town have a potential to become tourism resources, it is important to develop village tourism as one of the major attractions, thereby improving the overall quality of Luang Prabang tourism. In particular, the focus should be placed on cultural attractions in each village as well as the Mekong (and its tributaries) along which most of the villages in the area are located. The following villages were identified as candidates for village tourism development: Luang Prabang central area: Ban Phan Luang, Vicinities of Luang Prabang town: Ban Phonxai, Ban Chang Lek, Ban Phanom, Ban Don

Hathian, Luang Prabang South: Ban Long Lao, Mekong Area: Ban Chan, Ban Na Khan, Ban Na Khan, Ban Sing Luang Prabang North: Ban Rong Lan, Ban Chang Hai, Ban Lue, Ban Pak Ou, Ban NaPho-

Sob Chaek, Luang Prabang East: Ban Donmo The target for the improvement of these villages should include: boat landings, landscape, roads, planting, information provision, toilet, stairs, and drainages as well as the conservation measures described in section 3.5.6. Specific designs of these measures should be based on discussion with villagers. In addition, it is extremely important to consider the issue of slash and burn, which not only causes serious problems on the environment but also adversely affects tourism as it degrades natural scenery. Slash and burn results mainly from a lack of flat cultivable land. There are cases where the issue has been well addressed. In Doe Tong, Thailand, for example, the government conducted countermeasures against slash and burn and has succeeded in conservation of the forest, which then has become a popular tourism destination. This case will be referred to in planning specific sub-projects during this study. 3.5.4 Transport Access (1) International Access to/from Luang Prabang


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i) Air Transport Currently, air transport is a dominant mode used by international tourists visiting Luang Prabang. As shown in the table below, there are direct international flights between Luang Prabang and Bangkok and Chiang Mai, Thailand, and seasonal flights to and from Siem Reap, Cambodia, while the majority of the tourists using air transport are coming from Vientiane with domestic flights operated by Lao Airlines. The table also shows the international flights from Vientiane. As mentioned in section 2.3.3, one of the major issues on itineraries of tours to Lao PDR is a shortage of flight service to Luang Prabang especially during high season, and frequent delays and cancellations of domestic flights. These problems are caused mainly by a lack of aircrafts owned by Lao Airlines that are available for domestic flights. To address this issue, the Government of Lao PDR has purchased two new aircrafts as mentioned in section 3.3, which is expected to improve the situation.

Table 3-3 Departing International Flights from Luang Prabang and Vientiane LPB VTE Company Destination Frequency Company Destination Frequency Lao Airlines Chiang Mai 3 flights a week Lao Airlines Bangkok Daily Bangkok Airways Bangkok

Daily, 2 flights a day in weekend

Chiang Mai 3 flights a week

SiermReap Airways Siem Reap Seasonal

Hanoi Daily

Phnom Pehn Daily Siem Reap 4 flights a week Kunming 2 flights a week Thai Airways Bangkok Daily Vietnam Airlines Hanoi Daily Ho Chi Minh Daily

China Eastern

Airlines Kunming 3 flights a week Note: These flights are as of May 2006. Source: JBIC Study Team

Another major issue is the capacity of Luang Prabang Airport, which needs to be expanded according to concerned officials of the Department of Civil Aviation and Lao Airlines, although a detailed study is needed for developing specific plans. No feasibility study (F/S) has been conducted for improvement or expansion of Luang Prabang airport as of May 2006. According to the Department of Civil Aviation, however, funding from the United States Trade and Development Agency (USTDA) for conducting an F/S has been more or less secured, and a study to determine the scope of work for the F/S has been carried out by a Singaporean engineering firm. It is necessary to wait for the completion of the F/S before making any judgment on the future improvement or expansion of the airport. ii) Road Transport International routes linked with Luang Prabang by land are shown in the figure below. The most heavily utilized route is the one from Thailand through the Friendship Bridge in Vientiane. As described in section 2.3, a number of tourists, not only Thai visitors but also Europeans, are coming to Lao PDR through the Friendship Bridge, and many of them should be going to Luang Prabang by land, with tourist bus or public bus. It takes 9 to 10 hours from Vientiane to Luang Prabang by land via National Road (N.R.) 13.


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Improvement of the route from Nong Khiaw to Vietnam border connecting to Dien Bien Phu, a popular tourism destination in the Northern Vietnam, is one of the priority projects for national road improvement in Luang Prabang Province as described in section 3.3. There is also a plan to construct N.R. 4B from Luang Prabang to Hongsa and to the border of northern Thailand including a new Mekong Bridge in Luang Prabang. The roads from Luang Prabang to Sinyaburi (N.R. 4) and from Udomxai to Tay Trang (Vietnam Border) (N.R. 2) are existing roads. In addition, construction of N.R 4A from Sinyaburi to Hongsa that in effect will link Luang Prabang with Hongsa is considered an important project. While these projects are considered important for developing national road network, and they may contribute to tourism development in the Northern Region including Luang Prabang, some of them including the new Mekong Bridge are apparently a long-term measure, and viable, short- to medium term alternatives should be considered where possible (e.g., ferry service as an alternative to the new Mekong Bridge in Luang Prabang).

Figure 3-10 Existing and Planed International Roads connecting to Luang Prabang iii) Water Transport As mentioned in section 2.3, traveling on the Mekong to Luang Prabang from Huay Xai is very popular especially among European tourists. Currently, one company operates a cruse between them, most tourists use ordinary slow boats, which takes two days from Huay Xai to Luang Prabang. Mekong cruise has good tourism potential as it features the river that is widely known to the world. (2) Transport Access to Tourism Resources in Luang Prabang Major tourism resources in the World Heritage area are within walking distance and can be easily accessed. However, access roads to many of the major resources outside of the World

LPB

Vietnam

China

Thailand

Vientiane

Nong KhaiFriendship Bridge

Dien Bien Phu

To Hanoi

Boten

Huay Xai

Chiang Khong

Vang Vieng

Sainyaburi

Hongsa

Udomxai

Luang Nam Tha

LPB Province Phonsavan

Muang Ngoi

Tay Trang

N.R.1

N.R.13

N.R.2

N.R.4

N.R.4A（Planned)

N.R.4B(Planned)


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Heritage site are not paved, requiring improvement to make them in good condition even during rainy season. Also most of the access roads to villages with tourism potential around Luang Prabang town are in poor condition. The table and figure below illustrate the condition of access roads to major tourism resources. It is essential to improve these access roads for promoting tourism outside of the World Heritage area as well as for promoting tourism in rainy season. Some of these important roads are not passable or are difficult to pass during rainy season.

Table 3-4 Transport Access to Major Tourism Resources Outside of Luang Prabang Town

Tourism Recourses Distance from LPB

Access Mode Remarks

Ban Pak Ou Cave and Ban Sang Hai

20-25km Boat or Vehicle and Boat

Access road from N.R 13 to Pak Ou is not paved.

Kuang Si Waterfall 20km Vehicle or Boat and Vehicle

Access road from LPB is not paved. ADB is assisting improvement.

Tat Sae Waterfall 10km Vehicle and Boat Access road from N.R 13 to En (transfer point to boat) is not paved.

Ban Donmo 15km Vehicle Access road from N.R 13 is not paved. Ban Phanom, Ban Xang Kong, Ban Xiang Leck

2km Vehicle Access roads from N.R 13 to each villages are not paved

Muang Ngoi 100km Vehicle and Boat Road to Nong Khiaw is paved but no road to Muang Ngoi

Figure 3-11 Conditions of Access Roads to Tourism Resources Muang Ngoi in northern Luang Prabang province, which is currently a destination mainly for backpackers, is accessible only by boat from Nong Khiaw because of no road connection to Muang Ngoi from surrounding areas. Accordingly, DCTPC has a plan to construct a graveled road to Muang Ngoi. However, it should be considered that tourists visiting Muang Ngoi are

Luang Prabang

Ban Xang Kong & Ban Xiang Leck

PhanomTat Sae Waterfall

Ban En

Ban DonmoBan Longlao

Kouang SiWaterfall

Ban Xanghai

Ban Pak Ou

Pak Ou Cave

Unpaved Access Road


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expecting adventure type of experience in this area, and that constructing a road to Muang Ngoi could reduce such attractiveness. Careful consideration is necessary in planning such a road. Access to many of the major tourism resources such as Pak Ou Cave, Ban Chan, and Tat Sae waterfall requires a boat trip which itself can also be featured as tourist attraction. Since the Mekong and its tributaries have historically been a major transport mode for Lao people, most villages located along the rivers have a boat landing that has also been used for tourism as shown in the table and figure below. However, the condition of these boat landings is generally very poor. Many of them even don’t have stairs to the river, and people need to walk down on steep, dirt trail. In addition, as landing places are not well arranged or stable enough, it can be dangerous to board on a small rolling boat. Especially, it is extremely difficult for the elderly or disabled people to take a boat with the current condition. It is highly beneficial to improve these boat landings for promoting boat trips among wider segments of tourists.

Table 3-5 Major Existing Boat Landings Used for Tourism Location River Remarks Pak Ou Cave and Ban Pak Ou

Mekong The landing at Pak Ou Cave was improved.

Ban Xang Hai Mekong No stairs. LPB Municipality Mekong 4 major boat landings in the LPB municipality for speedboat, VIP

boat, long distance slowboat, boat to Xiang mene, and tourist boat to Pak Ou. Out of them only VIP boat landing is improved.

Ban Chan Mekong Tat Sae Waterfall and En

Nam Khan

Boat landing at Tat Sae Waterfall was improved by LNTA.

Muang Ngoi and Nong Khiaw

Nam Ou Both boat landings are improved by ADB

Figure 3-12 Existing and Potential Boat Landings for Tourism

Tat Sae WaterfallBan En

Ban DonmoBan Longlao

Kouangsi Waterfall

Ban Xanghai

Ban Pak Ou

Pak Ou Cave

Upstream of Nam Khan River

Elephant Resort

Ban Xianglome

Speed boat landing

Ban Paksi Ban Muangkhay

Ban SeluanBan Sing

Ban PaklungBan Chan

Ban Xiangmene

Luang Prabang-Slow boat landing-VIP boat landing-Wat Nong boat landing-Royal Palace boat landing

Existing Tourism Boat Landing

Potential Tourism Boat Landing


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3.5.5 Urban Infrastructure Development (1) Urban Development Strategy One of the strategies proposed by SCOT is to extend the urban area to the surrounding areas of Luang Prabang town in order to reduce development pressure in the town center, thereby conserving the World Heritage site. The governor of the province approved this strategy and related projects as described earlier. The Study Team also considers that it is extremely important to direct development forces toward the outer areas for achieving sustainable tourism development in Luang Prabang. Specifically, it is considered that the area to the northeast of Luang Prabang town, which SCOT proposed as economic/industrial area, is suited for urban extension partly because the area includes important transport access such as the airport, the north bus terminal and National Road 13. Also the new university will soon open in the area. Infrastructure development to promote urban extension to this area is expected to contribute to sustainable overall urban development in Luang Prabang. In addition, tackling the poverty in Chomphet district, located on the opposite side to Luang Prabang over Mekong River, is an important issue in the province. Despite its proximity to Luang Prabang town, Chomphet district is recognized as relatively poor area partly because of its geographical disadvantage with no road connection across the Mekong. It has been argued that the new Mekong Bridge will contribute to promoting development in this area, which would be true, but this effect would be brought about at the expense of huge amount of investment. Perhaps, constructing a bridge over the Mekong would be a long-term measure that should be considered after the crossing demand reaches a certain level. The Study Team considers that it is more appropriate to use ferries as a short- to medium term measure for the development of Chomphet district. This alternative is described later. (2) Transport Infrastructure i) Traffic Management in Urban Area Due to the increase in traffic volume, traffic management has become an important issue in the World Heritage site. Major issues are summarized as follows: Traffic accidents inside the town have become a serious issue especially on N.R. 13 due to

relatively heavy traffic on the road mixed with heavy vehicles, passenger cars, motorbikes, bicycles and pedestrians.

Although a bus with seat capacity equal to, or more than, 20 seats is prohibited to enter the center of the World Heritage area, many large buses are often seen in the area.

Parking on the main street of the World Heritage area causes traffic congestion as well as traffic accidents.

It is necessary to examine the following measures for resolving these issues: Separation of bicycle and motorbikes from heavy vehicles Strict enforcement of traffic regulation Introduction of new traffic regulation such as one-way Installation of street lighting Installation of traffic signals Parking management in the World Heritage area Capacity building of traffic police


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ii) Bypass and Outer Ring Road As mentioned earlier, the urban development plan of Luang Prabang includes the construction of a new bypass of N.R.13 with its planned alignment passing around 8 km east of Luang Prabang town. In addition, UDAA has a plan to build a new outer ring road at the east end of Luang Prabang town. The planned alignments of these roads are illustrated in the figure below. Bypass Road The planned alignment of the bypass branches from N.R. 13 at Ban Kokngiou and runs along an existing graveled road northeastward to Ban Phok Nov that is located along Nam Khan River. At the village, the alignment crosses Nam Khan River and then follows an existing path to Sensouk where it joins N.R.13. The construction of the bypass is considered to be relatively easy because it basically follows the existing road or path all the way. Due to its planned location that is not so close to Luang Prabang town, the bypass is supposed to function as a road that will mainly serve the traffic bypassing Luang Prabang town. However, the volume of such traffic is expected to be low. According to the traffic count survey conducted on N.R. 13 by DCTPC in May 2006, the average traffic volume is 289 vehicles/day in the south of Luang Prabang and 205 vehicles/day in the north as shown in the table below. In addition, it is considered that many of these vehicles are destined for Luang Prabang town, which possibly would not use the bypass even if it existed today.

Table 3-6 Average Daily Traffic Volume on N.R.13

Nam Ou Bridge (Northern LPB)

Namming Bridge (Southern LPB)

Heavy truck 3 6Medium truck 20 63Heavy bus 17 33Medium bus 16 70Mini bus 52 35Passenger cars, pick-up, light truck, and tuk-tuks 99 79Total 205 289Note: These are average of traffic volume in 5 days in May 2006 Source: DCTPC Luang Prabang

Potential effect of the bypass on promoting development is mixed. The south section of the bypass, from Ban Kokngiou to Ban Phok Nov, is located closely to the Nam Khan tourism area where several tourism recourses exist, including Tat Sae waterfall, several villages with tourism potential, and a quality resort operated by the private sector. Improvement of this section will contribute to promoting tourism development in this area. On the other hand, the north section extending from Ban Phok Nov to Ban Sensouk would have much less potential for development. There are only a few small villages with no major tourism resources along this section. Basic infrastructure such as road, water supply and electricity is limited, and no other concrete development plan for this area than the bypass exists at the moment. The north section of the bypass is considered to become hardly feasible given the current condition. Outer Ring Road The planned alignment of the outer ring road proposed by UDAA is located along the east edge of Luang Prabang town, starting from the university currently under construction, passing by Ban Phanom, and reaching Ban Na Luang at the south edge of Luang Prabang town. The road is expected to carry much more traffic than the bypass as it is expected to serve not only the bypassing traffic but also the traffic running between the north and the south of Luang Prabang


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town that will be diverted from N.R. 13 to avoid traffic congestion on the section of N.R.13 in the urban area. Moreover, the ring road would contribute to promoting development along the road, particularly to the northeast of Luang Prabang town, the area proposed by SCOT as development area where the new university is now under construction. There is, however, a major constraint on this outer ring road. Its construction will involve major difficulty especially for the south section including the section at Ban Naluang because the residential area has reached the skirts of the mountains located along this section, and there is almost no space suitable for constructing a new road between the residential area and the mountains. Also widening the existing road that is part of the planned alignment is difficult because houses have already been built on both sides of the road. New Alignment of Bypass Considering these conditions, the Study Team has proposed a new alignment of the bypass road (hereinafter called “the new bypass”), which can take advantage of the potential effects of both the original bypass and the ring road. The new bypass starts from Ban Kokngiou and follows the same alignment of the original bypass. It then goes westward from the south of Ban Phok Nov, and turn to the northeast near Ban Phanom.17 Then it crosses Nam Khan River and joins N.R. 13 at Ban Phonxai. The new bypass is illustrated in the figure below (with broken line) together with the original bypass and the ring road. Note that for the new bypass, there can be other crossing points over Nam Khan than the one illustrated in the figure.

Figure 3-13 Alignments of Planned Bypass, Outer Ring Road, and New Bypass An important advantage of the new bypass is its expected effect on promoting development of both the Nam Khan tourism area and the area to the northeast of Luang Prabang town. It is expected to carry traffic between Luang Prabang town and northern Luang Prabang district (unlike the original alignment of the bypass), functioning as a bypass of N.R. 13 from Luang Prabang to Ban Phonxai where urbanization has been in progress in recent years. One important issue on this new bypass is the location of the crossing point over Nam Khan, which needs to be 17 It should be noted that there is a high mountain surrounded by the existing alignment of National Road 13 and the newly proposed alignment of the bypass. For this reason, it is physically not possible to put the alignment going straight from Ban Kokngiou to Luang Prabang town or to the new development area.

ＬＰＢ

Kokngiou

Phonxai

Naluang

Sensouk

Outer Ring Road Proposed UDAA

Bypass Proposed by SCOT

Existing N.R 13

Nam Khan Tourism Area

Phok NovNew Bypass

Phanom

New Development Area


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studied further. iii) Ferry Port As described earlier in this section, development in Chomphet district located on the right bank of the Mekong is one of the important issues in relation to tourism development and heritage conservation in Luang Prabang. Even though part of the district is designated as the World Heritage site, it has not benefited well from the tourism development that has taken place on the Luang Prabang side of the river. The Study Team has proposed to provide ferry service across the Mekong as a short- to medium-term alternative to the construction of a new Mekong Bridge. Based on existing plans as well as discussions with concerned agencies, the Study Team identified three candidate locations for a pair of ferry ports as shown in the figure below. Preliminary comparison of these locations is made as follows:

Table 3-6 Preliminary Comparison of Candidate Sites for New Ferry Port Location Advantage Disadvantage Xiang Keo Cargo Port

- Existing cargo port on the LPB side

- Existing access roads on the both side

- Slow river flow

- Water depth not enough for ferry on the Chomphet side

- Located in the nature conservation area - Need to go through the LPB urban area

for accessing N.R. 13 Muangkham (Site for Planned Mekong Bridge)

- Existing access road on the LPB side

- Located in the northeastern development area

- Easy access to N.R.13

- Rapid river flow

Kokchou Cargo Port

- It is the site for the planned cargo port on the LPB side.

- Far from LPB town - Far from Xiangmene, a capital of

Chomphet district

Figure 3-14 Candidate Locations for Ferry Ports Based on the comparison of advantages and disadvantages of each location, the Study Team suggests developing a new ferry port at Ban Muangkham, the site for the planned Mekong Bridge. Together with the provision of ferry service, it is necessary to improve the road from

LPB

Ban Phonxai

Ban Chan

Ban Sensouk

N.R 13

Ban Phanom

Ban Muangkham

Xiang Keo Cargo Port

Kokchong Cargo Port

Ban Xiangmene

Candidate Location for Ferry Port

New Development Area

Ban Donmai


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Ban Muangkham to Ban Xiangmene that is capable of carrying heavy vehicles. iv) Water Supply Capacity expansion and extension of water supply is one of the urgent issues in and around Luang Prabang town. The existing supply capacity utilizing water taken from Nam Khan River is 8,000 m3/day. There are other treatment facilities using natural springs at Phoupheung that can provide 10,000m3/day and 5,000m3/day in rainy and dry seasons respectively. In total, the supply capacity in Luang Prabang is 18,000m3/day and 13,000m3/day in rainy and dry seasons respectively. According to the relevant statistics, the average water demand is 13,200m3/day in 2005 and 16,400 m3/day on a peak day in April 2006. Due to the increase in population and tourists, water demand has increased, with the current demand being 1.3 times that of 5 years ago. The supply capacity is already falling short of demand during dry season, and the expansion of the supply capacity is urgently needed to meet increasing water demand. In addition, the extension of water supply to the northeast of Luang Prabang town is urgently needed for the development of this area that will contribute to reducing development pressure in and around the World Heritage site. The most urgent in this regard is to establish water supply for the new university that is scheduled to open in 2008. v) Electricity Currently, electric power supply in Luang Prabang is sufficient compared with the demand. According to EDL (Lao Electricity Company), the existing demand in Luang Prabang is 12 MW while the supply capacity is 25MW. With the assistance from ADB and the Government of Norway, the extension of power supply has been undertaken in several districts in the province, which is to be completed by 2008. Although blackout sometimes occurs in Luang Prabang town due to breakdowns of the transmission system from the Nam Ngum Dam, power supply currently is not an issue for tourism development in Luang Prabang. vi) Other Urban Facilities As mentioned in section 3.5.3, various urban facilities related to tourism should be provided especially in the World Heritage area in a way to harmonize with the landscape in the site. These facilities include: shade trees, plantings, open space with benches for meeting and resting, bicycle parking, streetlights, trash bins, orientation maps, and signboards. 3.5.6 Conservation Needs Even though many projects were implemented for heritage conservation as mentioned in section 3.3, it is highly necessary to make continuous effort to conserve the cultural heritage in Luang Prabang to improve the quality of the heritage. In addition, conservation of nature resources should be considered because natural scenery in Luang Prabang is also an important tourism resource. The issues and needs on conservation are summarized below. (1) Background of the World Heritage Conservation i) Background of the World Heritage Luang Prabang town has been listed as UNESCO World Heritage since December 1995, more for its radiating harmony due to the subtle mix between architecture, urban structure, natural landscape, vegetation, ponds, rivers and traditional local customs, than because of the


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outstanding value of each component of the site. According to UNESCO, Luang Prabang is an outstanding example of the fusion of traditional architecture and Lao urban structures with those built by the European colonial authorities in the 19th and 20th centuries. Its unique, well-preserved townscape illustrates the blending of these two distinct cultural traditions. To be included in the World Heritage List, sites must be of outstanding universal value and meet at least one out of ten selection criteria. These criteria are explained in the Operational Guidelines for the Implementation of the World Heritage Convention, which, besides the text of the Convention, is the main working tool on World Heritage. Luang Prabang met three cultural criteria (ii) (iv) and (v), on the basis of a selection list of six cultural and four natural criteria. These criteria are: (ii) to exhibit an important interchange of human values, over a span of time or within a

cultural area of the world, on developments in architecture or technology, monumental arts, town-planning or landscape design;

(iv) to be an outstanding example of a type of building, architectural or technological ensemble or landscape which illustrates (a) significant stage(s) in human history; and

(v) to be an outstanding example of a traditional human settlement, land-use, or sea-use which is representative of a culture (or cultures), or human interaction with the environment especially when it has become vulnerable under the impact of irreversible change.

ii) Administration and Management of the World Heritage Conservation The protection, management, authenticity and integrity of properties are also important considerations to select a Site. When Lao authorities were going to nominate Luang Prabang as a World Heritage site, some of those elements (protection and management) were not available or suitable. As operational guidelines for the implementation of the World Heritage Convention are strict, Lao authorities made a commitment to found an official body to manage the site and to develop legislation for heritage protection in Lao PDR. As a first step, Lao Authorities promulgated in 1995 the Luang Prabang Master Plan taking into account the limits and the nature of the World Heritage Site-to-be. To honor these commitments, Lao Authorities signed in 1996 a convention with the French City of Chinon to set up the Maison du Patrimoine (MDP). Although it currently is an official Lao public institution (since 2002), it was at that time a project supported by UNESCO. MDP was set up to give Luang Prabang a tool to preserve its heritage as well as to work on urban development of Luang Prabang. After an observation phase, MDP implemented in 1999 the Urban Development Program of Luang Prabang (PAU-LP) as described in section 3.3. As part of this project, MDP conducted in 2000 a first review of 1995 Luang Prabang Master Plan. This new regulation framework named PSMV (protection and development plan) replaced the Master Plan in the World Heritage Site area and its second version was approved by the Lao government in 2002. In 2005, Lao Authorities fulfilled their commitment, promulgating a law on heritage protection in Lao PDR. Decrees for operationalizing the law are still under consideration. Facing the growth in tourism, MDP raised in 2004 a sensitive issue of developing Luang Prabang around the protected area, and laid out an outline of Luang Prabang development through the Scheme for Territorial Coherence (SCOT) study as described earlier. Local


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Authorities approved the broad lines of proposals made by SCOT and a review of the 1995 Luang Prabang Master Plan (which is for areas outside of the World Heritage site) was conducted by Urban Research Institute under MCTPC taking account of the orientations proposed by SCOT. (2) Conservation Needs in the World Heritage Site The conservation needs in the World Heritage site are generated by the obligation to keep the outstanding universal value of the site in a way to continue to meet the aforementioned three selection criteria while dealing with development needs. MDP is working focussing on this target, implementing conservation and development project while conducting enforcement of the Heritage Master Plan (PSMV). But the task is not easy. It is true that developing tourism is a good way to give heritage a new using value, which is the best way to promote its sustainable conservation, but more and more people are now trying to get quick income from tourism and tend to misuse heritage, defacing the fragile ambience of Luang Prabang. At the same time, there has been a lack of efforts by stakeholders for conservation and maintenance of the heritage. It is not possible to protect a living site without the active collaboration of its inhabitants, and partnership has to be promoted between local people and the official bodies in charge of the management of the site. There is a huge need of communication, education and training, focusing on the local population and on administrative staff. Until now MDP and UDAA have concentrated on conservation of material heritage and development of infrastructure, which are still needed, but it is also necessary to undertake such programs as art conservation (architecture, sculpture, murals, etc.) and revival of intangible heritage. The conservation needs in the World Heritage Site can be summarized as follows: Capacity building:

- Institutional support to the official bodies involved in the management of Luang Prabang site;

- Administrative and technical training for human resources of the official bodies involved in the management of Luang Prabang site;

- On-the-job training for the technicians and the craftsmen involved in heritage restoration process;

Communication:

- Information about value of World Heritage to be provided for Luang Prabang administrative departments;

- Education of young generations on the themes of heritage conservation and Lao traditional culture;

- Cultural training for tourist guides; - Research about Lao culture and developing publication to disseminate this knowledge

in Laos and abroad; - Lay out a cultural festival in Luang Prabang.

Restoration operations:

- Restoration of civil and religious patrimonial architecture, with a priority on timber


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structures (which actually are in danger); - Restoration of monastic gardens; - Restoration of ancient mural paintings; - Restoration of the urban landscape by plantation of trees.

Infrastructures and facilities:

- Construction of infrastructure and site improvement for festivals; - Electricity network improvement in the World Heritage area; - Fire fighting system; - Footbridge on the confluent between the Mekong and Nam Khan River linked with

parking areas for buses and cars on the north of Nam Khan. Some proposals have been made by the BCEOM team based on the local traffic survey carried out in 2005.

- Alley work; - Public toilets with water sanitation.

(3) Conservation Needs in Surrounding Areas In 2004, MDP was involved in the Scheme for Territorial Coherence (SCOT) study that targeted Luang Prabang town and its surrounding areas. The main idea of the study was that the principles used to harmoniously develop Luang Prabang can be applied to its surrounding areas and on a larger scale, taking account of the changes that have taken place in the area since the time when Luang Prabang was listed as World Heritage. Tourism and urban developments in Luang Prabang undergoing over the period have resulted in two prominent phenomena. The first and most obvious one is the increase in tourists, which is expected to continue in the future. SCOT projected that foreign visitor arrivals will reach between 300,000 and 1,000,000 in 2020. Likewise, the number of accommodations has increased significantly over the period. The second one is the centrifugal effects of Luang Prabang town on local populations that have tended to leave rural villages, causing a substantial increase in urban population. The increase is mainly due to Lao people attracted by the town itself and by the growth of the tourist industry. Consequently, MDP is now facing the following issue: the redistribution of wealth that has been caused mainly by tourism development has tended to concentrate incomes in the protected area, which consequently has attracted people. Therefore, the target would be to restore a balance between Luang Prabang and its suburbs by establishing new development centers, which is expected to relieve congestion in the World Heritage site. This will in turn contribute to making the protection work more effective. Other measures for readjusting the urban-rural balance include: developing tourist attractions outside of Lurang Prabang town, promoting agricultural production and improving the quality of local arts and crafts. Concerning agricultural production, one phenomenon that has been recognized on Luang Prabang markets is chronic shortages in fresh products (fruit and vegetables, meat but also flowers). Traditional Lao restaurants as well as middle and top quality restaurants targeting foreign clients are facing such shortages in fresh products. Importing these products from other Lao provinces and from China, Vietnam and Thailand has become quite common, resulting in rising prices due to the involvement of longer supply chains. In Luang Prabang, this shortage has now been seen as an opportunity for sustainable development of urban and suburban


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agriculture. Capturing this opportunity can be one of the effective measures toward readjusting the balance between urban and rural parts of this area. As for local arts and crafts, a survey of the origin of the products sold at tourist sites in Luang Prabang indicates that the majority of them are produced in other provinces and even abroad including China and Vietnam. It is extremely important to conserve traditional know-how and improve the quality of local arts and crafts with adapting part of the production to tourist market in order to spread tourism income to several countryside villages and to reduce rural-urban migration. As SCOT mentions, however, when a village is becoming a new tourist site without protection guidelines to manage its development, it can lose its heritage value and its tourist potential in only several years. Heritage conservation is a prerequisite for promoting a sustainable tourist development around Luang Prabang. Major conservation needs around Luang Prabang town are summarized as follows: Restoration operations:

- Restoration of heritage buildings (civil or religious architecture); - Restoration of murals; - Restoration of Buddhist caves (statues).

Management of cultural resources:

- For every village open to tourism, developing a community Preservation and Development Plan which takes account of cultural heritage existing in the village and its surroundings, and community guidelines to keep alive local cultural traditions and intangible heritage (costume, dance, music, etc.).

Small infrastructures and facilities:

- Footpath fitting out and security to access to tourist sites (caves, waterfalls, view, etc.); - Improvement of water supply network and latrines in the visited villages, based on the

state of the network and the needs of the local residents and tourist. Activities generating income linked with tourism:

- Local agriculture promotion; - Handicraft promotion, through assessment of techniques and materials used, and

training for quality improvement and marketing; - Setting up community infrastructure (restaurant, market hall, etc.); - Creation of cultural and natural tourist attractions (botanical garden, interpretation

center, etc.); - Trainings for local tourist guides.

(4) Conservation Needs in Nam Khan Eco-Valley As described in section 3.3, French “Région Centre” and UNESCO is assisting implementation of Nam Khan Eco-valley project. Human and ecological balances of the Nam Khan valley are now threatened, because of the concentration of population on the communication axis (river and roads) and agricultural system becoming unsustainable (land pressure and sanitary risks). Tourism could provide a good opportunity to encourage environment management, enhancement of local knowledge and cultures, and activities generating incomes directly or indirectly linked with tourism (handicraft, local food, etc.). This will in turn contribute to


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relaxing concentration of tourists in the World Heritage site. One major issue in this regard is a need for having better understanding of natural, cultural and historical values of the Nam Khan valley, which is essential for identifying an appropriate way to achieve sustainable development in the area partly using tourism. It is extremely beneficial to initiate actions to meet this need through such measures as: (i) receiving technical assistance for promoting conservation and sustainable development in the Nam Khan Eco-Valley, and (ii) setting up “infrastructure” to support such efforts, for example, establishing a study center in the area that can be a station for those to be engaged in research, conservation and development activities related to the Nam Khan Eco-Valley. As for technical assistance that may be available, the Nam Khan Eco-Valley Project should apply to join Man and the Biosphere (MAB) Program of UNESCO. The target of this program is to promote biodiversity conservation and sustainable development, based on local community efforts and sound science. This program will seek to reconcile economic and social development with environmental and cultural protection, through partnerships between people and nature. Nam Khan Eco-Valley Regional Park will be ideal to test and demonstrate approaches to sustainable development on a regional scale in connection with Luang Prabang World Heritage Site. The main characteristics of biosphere reserves promoted through UNESCO MAB programs are as follows: Having a zoning pattern for conservation and development; Focusing on a multi-stakeholder approach, with particular emphasis on the involvement of

local communities in management; Forming a tool for conflict resolution of natural resource use, through development of

dialogues; Integrating cultural and biological diversity, especially with the use of traditional knowledge

in ecosystem management; Demonstrating sound policies based on research and subsequent monitoring; Making the area a site for education and training. In addition, the program will have to deal with the conservation of the cultural tradition (vernacular architecture, costume, music, dance, etc.) of a mosaic of ethnic groups. MAB program will be a tool for integrated management of land, fresh waters and living resources, by putting in place bioregional planning schemes, through integrating conservation of biological diversity into sustainable development with appropriate zoning. This zoning includes strictly protected core area, surrounded by buffer zones where people also live and work. These zones will then be surrounded by transition area where sustainable development will be promoted. 3.5.7 Environmental Management In order to maintain the aesthetic value of the entire area of the World Heritage site, it is in principle essential to develop an integrated environmental management plan for the area and to take appropriate measures based on the plan, including keeping all of the emissions (i.e., air pollutants, waste water and solid waste) within the nature’s assimilative capacity (carrying capacity). For today’s Luang Prabang, however, it is quite important to focus on the most urgent issue in view of the lack of resources necessary for undertaking integrated environmental management.


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As has been pointed out regarding the environmental issues in Luang Prabang,18 priority should be given to solid waste management, which is also an important element from the viewpoint of tourism development. For solid waste management, it is particularly important to undertake rational and proper handling and management of Municipal Solid Wastes (MSW), largely generated from commercial, trade and industrial centers of an area. For this to be achieved, stakeholders should cooperate on a continuing basis, including MSW dischargers, residents, commercial concerns and the authorities or UDAA in this particular case. Specific measures include: reducing the volume of MSW on the demand side (garbage generators), and more efficient exploitation of landfill space on the supply side (municipality’s collection and disposal capacity). Both of these are considered below. (1) Solid Waste Management i) Major Issues ADB assisted Luang Prabang UDAA (Urban Development Administration Authority) in building a new landfill site at a cost of US$225,000 under the Secondary Town Improvement Program for Luang Prabang. The landfill site, located at Ban Napet, started to receive municipal solid waste from 2001. The volume of daily truckload of garbage dumped is roughly 30ton/day using 3 trucks with capacity of 5 tons, each undertaking 3-4 hauls a day. However, collection service is not fully extended even to part of the populated built-up areas in the town center partly because some of the areas cannot be physically accessed due to narrow lanes and small bridges that are inadequate to support the load of heavy trucks, as well as because of insufficient fleet of collection trucks. Under the prevailing circumstances, inappropriate handling of garbage by residents is frequent, potentially causing deterioration in the townscape especially on the river banks along the Mekong and Nam Kang River. At present, UDAA collects garbage from 36 villages in Luang Prabang District. Monthly collection charges have been imposed by UDAA on villagers, hotels, restaurants, markets and other business establishments. However, UDAA has a plan to expand its service area to collect garbage from 58 villages by 2010. In anticipation of an increasing volume of garbage to be discharged from the growing tourism industry including hotels, guesthouses and restaurants located in Luang Prabang town as well as the planned expansion of collection service areas, UDAA estimates that the present landfill capacity will be fully exploited by 2008. ii) Issues on Present Landfill Operation The landfill site is located at Ban Napet (or Ban “8-km€35) 8km away from the town center. It has a dimension of approximately 100m in width x 250m in length. Open dumping without demarcating fixed cells is observed, resulting in scattered active faces on the site, leading to inefficient exploitation of the garbage receiving space. Maximum capacity of the site in terms of volume of garbage to be received is estimated to be some 250,000 cubic meters. Without undertaking compaction by roller grader (as is the case at present), the remaining receivable volume as of May 2006 is estimated to be roughly one fourth 18 For example, the importance of addressing the issue of solid waste management in Luang Prabang is pointed out in “Impact – Tourism and Heritage Site Management in the World Heritage Town on Luang Prabang, Lao PDR,” 2004, UNESCO.


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of the capacity, which translates into the life of at most 2 years more. The present landfill site is not equipped with proper drainage and leachate retention pond, thus unable to function properly. Covering the active face with minimum thickness of soil layer is not practiced daily, resulting in possible outbreak of flies, pest and rodents, affecting the immediate surrounding environment very badly. iii) Recommended Strategy for Luang Prabang Municipal Solid Waste Management The present landfill site is built and operated below sanitary standards, characterized by open dumping without daily soil cover and without proper leachate drainage and leachate effluent treatment. Emergence of flies is already causing annoyance to visitors to the site. Even simple observation of the site indicates that the sanitary condition of the present landfill is sub-standard. It is recommended that a suitable candidate landfill site should be explored and put into service. The new site shall be within 8-10 km haul distance from the center of Luang Prabang town, with a minimum life of 15 years, enough to receive a garbage volume of 450,000 cubic meters. For efficient operation of landfill, it is preferred to secure a land with a minimum width of 200m by 500m in length (15ha) with an average height of 10m. Separately, an administration office, heavy-duty loader and backhoe, and an O&M shop are necessary. Once the new landfill site starts operation, the present landfill should be closed in a proper way, by thick soil cover for the entire surface with venting methane gas via vertical pipes and embankment of the site by earth dam and leachate collecting drain and retention pool. (2) Raising Awareness of Stakeholders regarding Municipal Solid Wastes i) Major Issues With the rapid increase in visitors to Luang Prabang, the volume of solid waste discharged will also increase rapidly. In addition, UDAA has a plan to extend the area of collection service. These two factors will certainly put pressure on the available space for dumping. Under these circumstances, it is imperative to enhance stakeholders’ awareness on proper handling of municipal solid wastes based on so-called 3R principle, i.e., “Reduce, Reuse, and Recycle”. The 3R principle is a widely recognized concept for efficient and effective management of solid wastes; the demand side, i.e., garbage generators, will be suppressed, thereby generating less garbage, which will allow the supply side, i.e., municipality’s collection and disposal capacity, to reduce much of the landfill work. Without enhanced awareness on the part of local residents, issues on municipal solid wastes would not be resolved comprehensively, but the volume of waste load would keep growing. When undertaking awareness enhancement campaign based on the 3R principle, it is also imperative to emphasize that uncollected garbage should not be dumped into such places as major rivers, and that people should continue to pay monthly collection charges in order to maintain the system in a sustainable way. ii) Recommended Measures It is recommended that the following measures be taken in order to cope with growing volume


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of municipal solid wastes: Community campaign organized by the village chief, Tutorial campaign to educate community leaders and school children based on the 3R

principle River banks beautification campaign with community initiatives Encourage the business of recyclers that are coming from outside of the province 3.5.8 Potential to Benefit Communities Major issues and needs described in earlier sections It is considered that a desirable tourism development approach for poverty alleviation in Luang Prabang would be as follows: As described in earlier sections, development of village tourism is an important element of the tourism development that should take place in Luang Prabang. In order to promote village tourism, various improvements should be made, which may include: Infrastructures and facilities, including boat landings, landscape, roads, planting, toilet,

stairs, and drainages. Restoration of cultural and historical heritage, including heritage buildings, murals and

Buddhist caves. Activities to generate income, including local agriculture promotion, quality improvement

of handicraft and its marketing, creation of cultural and natural tourist attractions, and training for local tourist guides.

Management of cultural resources, through community preservation and development to

keep alive local cultural traditions and intangible heritage. These improvements and efforts are expected to benefit local communities directly. In addition, various access roads need to be improved for promoting tourism outside of the World Heritage site as well as for promoting Luang Prabang tourism during rainy season. Some of the important roads leading to major tourist sites are not passable or are difficult to pass during rainy season. Access road improvement can benefit local communities, ensuring access to market, and to basic health and educational services. These are essentially consistent with the approach of tourism development for poverty alleviation described in section 3.2. In order to bring about actual benefits to local communities, it is extremely important to incorporate these improvement measures in designing projects and programs to be proposed in this study.


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CHAPTER 4

Proposed Development Packages 4.1 Summary of Critical Issues and Needs Based on the findings described in Chapters 2 and 3, critical issues and needs related to tourism development in Luang Prabang are summarized below (some of them are for Lao tourism as a whole). These are the important basis for the development packages and candidate sub-projects and programs proposed later in this chapter. i) Promotion and Marketing (Note: These are also related to other areas below.) Weak image of Lao tourism Limited information on Lao tourism as well as on the heritage of Luang Prabang, even on

the World Heritage site Need to reduce seasonality Need for emphasizing resources that can be a strong tourist drawcard and for developing /

improving potential resources including Luang Prabang and Mekong River (Note: The Study Team firmly believes that Lao PDR should feature the Mekong more aggressively.)

ii) Human Resource Development Serious lack of human resources in the tourism sector HRD/training highly necessary in both private and public sectors. iii) Need for Product Diversification Lack of variety in attractions even in Luang Prabang, leading to: a) relatively short length of

stay in Luang Prabang, resulting in low level of revenue from tourism, and b) further putting pressure on the central area of Luang Prabang, threatening the cultural heritage and sustainable tourism development

Need to improve and develop tourism resources outside of the World Heritage site iv) Quality of Tourism Resources Need for overall quality improvement, which is essential for developing Luang Prabang as

quality destination, avoiding its becoming a cheap destination that would for the most part attract low-spending travelers

Importance to attract the upmarket through quality improvement, thereby increasing revenue from tourism by putting less pressure on the most important tourism resource of Luang Prabang, which is cultural and historical heritage

Need for providing greater amount of quality information on Lao tourism and on Luang Prabang, thereby adding value to the tangible tourism resources19

v) Transport Access Bad conditions of access roads to tourism resources, causing difficulty to access them in the

19 Those concerned with the tourism sector should recognize the importance of providing the market with (quality) information on tourism resources and products. In the business world in advanced countries, it is recognized that one of the important branding techniques is to add highly valued information to the target product. In this regard, it is useful to remember the following phrase: “total brand value of a product is composed of (i) fundamental value of the product, (ii) informational value regarding the product, and (iii) peripheral value associated with the product.”


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rainy season Need for access improvement to tourism resources, which is critically important for

achieving geographical diversification of tourism products as well as for reducing seasonality of tourism

vi) Urban Infrastructure Development Need for infrastructure development in order to divert development pressure from the center

area of Luang Prabang toward the north vii) Conservation Needs Need for conservation of the World Heritage site, which undoubtedly is the most important

tourist site in Luang Prabang Need for providing quality tourism products with well-conserved heritage viii) Environmental Management Need for environmental management and enhancing carrying capacity, particularly in the

area of solid waste management, which is often critical at tourist destinations ix) Potential to Benefit Communities Need for promoting activities linked with tourism to generate income of rural communities Need for designing projects and programs to benefit rural communities as well as to benefit

other segments of the population 4.2 Proposed Development Packages 4.2.1 Eight Development Packages Through intensive discussions with concerned agencies, departments and stakeholders in Luang Prabang Province, concerned agencies in Vientiane and people in the tourism industry as well as based on the field visits to many of the tourist sites in the province, the Study Team formulated several development packages that are expected to meet the critical needs associated with the tourism sector development in Luang Prabang. Each of these packages is to consist of a group of sub-projects and programs that will contribute to achieving the major objectives (described subsequently) intended for these packages. Eight development packages were proposed, specifically as follows: Development Package 1: World Heritage Site (Inner Area) Development Package 2: LPB Outer Urban Area Development Package 3: LPB South Development Package 4: LPB South – Mekong Route Development Package 5: LPB North & Nam Ou Route Development Package 6: LPB East – Nam Khan Route Development Package 7: LPB Farther North Development Package 8: Capacity Development, Environmental Management,

Marketing & Promotion Figure 4-1 indicates the locations of these packages (PKG 1 to 7 that focus on certain geographic areas). Details of each package are described in section 4.3.


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4.2.2 Objectives and Approach The overall objectives to be achieved by these development packages as well as the development approach to achieve these objectives are as follows: Overall Objectives (Five-Point Objectives): Induce tourists to visit a greater number of tourist sites outside of the core area of the World

Heritage site (Provision of Wider Menu of Tourist Attractions). Offer quality experience to tourists at each major tourist site (Emphasis on Quality). Conserve, and add value to, the World Heritage site (Conservation of the World Heritage

Site). Consider benefiting concerned local communities through tourism (Benefit Communities) Minimize adverse environmental impacts of tourism development (Environmental

Management). As mentioned earlier, Luang Prabang should not become a cheap destination, i.e., a destination that would for the most part attract low-spending tourists. Luang Prabang, for example, is not a beach resort that can viably choose to pursue volume of tourists, aggressively targeting low-spending tourists. The Study Team believes that it is undesirable for Luang Prabang as tourist destination to further increase low-spending tourists without attempting to attract higher-spending segments or upmarket. If low-spending tourists continue to increase rapidly, further and faster concentration of tourists in the core area would result, partly because low-spending tourists tend to move less and stay longer in the city center, as well as these tourists tend to stay at inexpensive guesthouses, many of which are located in the core area. This, of course, does not mean that Luang Prabang should stop attracting low-spending tourists. What it means is that Luang Prabang should attempt to attract higher-spending segments or upmarket. Bearing this in mind, Luang Prabang should focus on quality improvement and provision of wider menu of tourist attractions as well as on conservation of the World Heritage site and environmental management. Pursuing these through implementing the proposed development packages will contribute to attracting higher-spending tourists and lengthening tourists’ stay in Luang Prabang while conserving the cultural, historical and natural heritage. This will in turn lead to the achievement of sustainable tourism development in Luang Prabang. In addition, poverty eradication is always an important issue to be addressed in Lao PDR, and benefiting concerned local communities will also be pursued by these packages. Principal Approach (Five-Point Approach): Diversify tourist attractions in a true sense, through developing/improving, while

conserving, the sites possessing high-potential tourism resources outside of the core World Heritage site, including the sites that can feature “Mekong River” which is an extremely powerful tourist drawcard widely known across the world.

(Note: Packages 2 to 7 are all intended for product diversification, with Packages 3 to 6 featuring the Mekong as well as other attractions.)

Improve the quality of the targeted resources (e.g., waterfalls, villages, cultural heritage

such as Buddhist monasteries, caves, and local products and handicrafts) with particular attention to be paid to conserving and sustaining local heritage, as well as improve the access to these resources (including access roads and boat landing facilities/landscape at the targeted places); in other words, improve the quality of both “points and links” that are the


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fundamental elements of tourism resources.

(Note: Due consideration has been given to conserving and sustaining local heritage in each package. In addition, improvement of “points and links” is an important focus for Packages 2 to 7.)

Conserve, and add value to, the World Heritage site by (i) inducing development in the

north of Luang Prabang district, which is one of the most important urban development strategies of Luang Prabang, (ii) managing traffic (both road and river) in the core area, (iii) adding new attractions to the World Heritage site with emphasis on conservation of Luang Prabang’s cultural heritage, which would become one of the symbolic tourist attractions that are generally lacking in Luang Prabang, and (iv) paying attention to conservation and development of Chomphet district on the other side of Mekong River, part of which is also designated as the World Heritage site.

(Note: Package 1 focuses on the World Heritage site, while Package 2 attempts to induce development outside of the core area. Both packages also include measures to conserve and develop Chomphet district.)

Put emphasis on capacity building and human resource development for improving the

quality of tourism-related services, as well as on educating local communities concerning heritage management and use of tourism as an opportunity to generate income.

(Note: Package 8 focuses on capacity building and human resource development. All of the other packages also attempt to train or educate local communities concerning heritage management and use of tourism for income generation.)

Pay attention to carrying capacity of the area as tourist destination, and take adequate

measures for managing the environment, particularly in the area of solid waste management that is critically important for achieving sustainable tourism development.

(Note: Package 8 addresses the improvement of solid waste management, while the enhancement of environmental awareness is one of the subjects in all of the packages.)

4.3 Candidate Sub-Projects and Programs 4.3.1 Development of Long List A long list of sub-projects and programs was developed, consisting of candidates for inclusion in the Project package to be proposed in the Study. Tables 4-1 – 4-7 provide the long list with the candidate sub-projects and programs for each of the eight development packages. For each sub-project/program, the following items are included: code number, classification that indicates the area of the sub-project/program, project name, (potential) implementation body, location, main objectives, brief outline, and initial estimate of the cost. It should be noted that many of the costs provided in the tables are based on rough estimates and are very preliminary, requiring further examination. The list was prepared based on the following information and examination: The Study Team discussed priority projects and programs with officials of concerned

departments and sections of Luang Prabang Province, concerned officials of Luang Prabang and Chomphet districts, concerned officials of LNTA, MCTPC and MIC, resident staff of concerned donor agencies, experts or advisors dispatched by donor agencies who are currently working for concerned agencies/departments in Lao PDR or Luang Prabang


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Province, and people in the tourism industry. The team also consulted with the Governor and the Vice Governor of Luang Prabang Province regarding priority projects and programs that are related to tourism development in Luang Prabang.

To further discuss priority projects and programs with concerned departments of the

province, a brainstorming workshop was held on May 11, 2006, attended by concerned officials of the following entities: Provincial Tourism Office; the Departments of Planning and Investment, CTPC, Information and Culture, Industry and Handicraft, and Agriculture and Forestry; Heritage Office; UDAA; Provincial Science, Technology and Environment Office; LNTA; as well as by the Study Team.

The Study Team carried out intensive site surveys of a number of (potential) tourism

resources in the province to identify their potential as well as the adequate approach to improve them.

In addition, the Study Team had a joint meeting on May 19, 2006 with concerned officials

of LNTA, MCTPC and Lao Airlines, and discussed their priority projects and programs that are relevant to the objectives of the Study.

The team also examined relevant plans including the investment program of the province

compiled by the Department of Planning and Investment, the Governor’s decision on the development plan around Luang Prabang town (based on SCOT, which is an AFD-assisted urban development plan for Luang Prabang), the provincial tourism development strategy approved in 2002, projects and programs proposed in SCOT, a Luang Prabang tourism development master plan prepared in 1997 with assistance from the Thai government, and so on.

It should be noted that the Study Team formulated the aforementioned development packages in the process of discussing priority projects and programs with concerned agencies. As such, these packages are not an entirely new invention or a framework proposed before specific projects and programs were examined, but are an output that came out of: (i) the plans and project ideas that have existed, (ii) the discussions made between the concerned officials and the team on priority projects and programs, and (iii) major issues and needs associated with the tourism development in Luang Prabang that were reviewed or identified through those discussions. It is therefore believed that these packages are consistent with the development that has been planned or pursued in Luang Prabang Province. A brief introduction of each of the development packages is provided below.

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Pilot Study for Project Formation for

Luang Prabang Tourism Sector D

evelopment Project in Lao PD

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Development Package 1: World Heritage Site (Inner Area)Code Classification Name of the sub-project Implementation

BodyLocation Main objectives Brief outline Cost ($'000)

(InitialEstimate)

1-1 Cultural HeritageConservation

Rehabilitation and Improvement ofthe Royal Palace Museum

MIC / MDP ConservationArea

To rehabilitate the museum building, and addnew feature to the museum

Re-roof the main building, repair decayed part of the wall,restore the royal garage and organize the exhibition of thefour royal cars.

600

1-2 Tourism ResourceDevelopment

World Heritage City CommemorationPark

UDAA / MDP East end of theconservationboundary

To commemorate the World Heritage City, andprovide new activities for tourists as well as forLPB residents

Re-development of large open space for World HeritageCity Garden for tourists as well as local people, includingsetting up a festival green theater

250


World Heritage City ConservationHall

MIC / MDP To bedetermined

To develop a conservation information centercommemorating the World Heritage City, andprovide conservation training for local community

Information center of World Heritage City by audio visualpresentation and training of conservation for localcommunities and students

2,800

1-4 Infrastructure Mekong Bank & Boat Landing (3locations) improvement

UDAA / DCPTC ConservationArea

To improve quality and operation of boatexcursions on the Mekong

Development of boat landing system (Royal Palace Port,Wat Nong Port, and Slow Boat Port) with informationboards and landscape

1,500

1-5 Infrastructure Grid Burying (Built in undergroundwiring system) Phase 2.

UDAA / MDP ConservationArea

To improve and beautify the urban landscape Lay power, telephone lines underground for the remainingareas

4,500

1-6 Infrastructure Fire Fighting System UDAA / MDP ConservationArea

To conserve historical buildings that areextremely important asset in LPB.

Development of fire fighting system in the importanthistorical conservation site, and place a small fireextinguisher in each temple

2,000

1-7 Infrastructure/Transport

Traffic Management in LPBMunicipality

DCTPC / UDAA/ MDP

Old town area To properly manage tourist traffic, enhance trafficsafety and reduce traffic congestion in the centerof LPB

Survey and implement traffic management measuresincluding physical and regulatory measures (such as strictenforcement by traffic police)

122

1-8 Infrastructure/Road

Nam Khan Pedestrian Bridges DCTPC / UDAA/ MDP

ConservationArea at NamKhan

To link between the center area and the north-eastern area, and promote development in thenorth-eastern area

Construction of two bridges for pedestrians andmotorbikes

N/A


Governor River Bank OrnamentalGarden

MDP Ban That Luang(Luang Prabang)

To improve the urban landscape of LuangPrabang

Laying out of a public park for open-air performances. 35


Heritage Conservation and Revivalof Buddhist traditions in Xiang Mene

MDP Ban Xieng Mene(ChompetDistrict)

Conservation of heritage buildings / Revival oflocal Buddhist traditions

Restore patrimonial Buddhist buildings (partly for Buddhistmeditation center), improve access to the Buddhistsanctuary cave, revive the meditation tradition in LPB.

365


Access Improvement to TouristResources in Xiang Mene

DCTPC Ban Xieng Mene(ChompetDistrict)

To improve access to tourism resources anddevelop tourism on the other side of the Mekong

Improvement of road in the Xiang Mene village 200

1-12 Infrastructure/Port

Mekong bank & Boat LandingImprovement in Xiang Mene

DCPTC ChomphetDistrict

To improve quality and operation of boatexcursions on the Mekong

Development of boat landing system (Xiang Mene Port)with information boards and landscape

500

1-13 Tourism RelatedFacilities

Renovation of Dara Market MDP / UDAA ConservationArea

To improve the market that is located in thecenter of the World Heritage site.

Renovation of Dara Market, including constructing newmarket buildings, underground parkings, landscaping andpavement works.

1,250


Tourism Information Center LNTA ConservationArea

To provide comprehensive information ofNorthern Region as well as of LPB

Renovation of a candidate building, development of visualinformation system, and compilation and provision ofinformation

1,500

Table 4-1 Long List of Candidate Sub-Projects and Programs for Development Package 1: World Heritage Site (Inner Area)

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Development Package 2: LPB Outer Urban Area (1 of 2)Code Classification Name of the sub-project Implementation


(InitialEstimate)


Bus Terminal Improvement in LPBmunicipality

DCTPC / LNTA LPB District To improve bus terminal and overland tourpromotion

Pavement of the existing three bus terminals, informationprovision with multi-language signboard, and improvementof waiting area and landscape

150

2-2 Tourism ResourceDevelopment /Cultural HeritageConservation

Industrial village improvement &Promotion (targeting 6 villages)

DIH / DIC / MDP LPB District To improve local handicraft products and theirsales while preserving the villages

Possibly, development of a village center, promotion oftheir products, natural and cultural heritage conservationand infrastructure / landscaping development, thoughsubject to opinions of the villages

300


Investment promotion of TouristFacility

LNTA LPB District To promote international standardaccommodation facility in the region

Investment promotion seminar and brochure production 50


Road Improvement in LPB UrbanArea

UDAA LPB District To improve access by vehicle to the inside ofLPB urban area

Pavement and new construction of small streets withmany sections, totaling about 4km.

800


Access Improvement to Ban XiengLek and Xan Kong

DCTPC LPB District To improve access from LPB to two villagesfamous for fabrics and handicraft production, anddevelopment in the north of LPB District

Pavement of existing graveled roads 1,125


Road Improvement in the Southwestof LPB Urban Area

DCTPC LPB District To improve the link from Xiang Keo port in thesouth to the national road 13, bypassing the citycenter, thereby reducing the movement of heavyvehicles in the central area.

Pavement of existing graveled roads 713


New Outer-Ring Road in LPB UrbanArea

UDAA LPB District To establish a bypass (inner bypass) of thenational road 13 for reducing traffic volume in thecenter of LPB.

Construction of new road 11,500


Widening of National Road 13 UDAA LPB District To provide road capacity enough for trafficdemand in the future, and ensure traffic safety.

Widening of National Road 13 from 6m to 12m for a 2.5kmsection.

625


Lighting for Main Roads UDAA LPB District To ensure traffic safety during night, and providesense of security for tourists.

Installation of lights along major roads 278


New Bypass Road for National Road13 (New Alignment)

DCTPC LPB District To reduce heavy vehicles in the central area, andpromote development in the north of LPB District

Construction of new bypass of national road 13. (Note:This alignment is different from that proposed in SCOT.)

4,200

2-11 Infrastructure/Water Supply

Improvement of Water SupplySystem

Water SupplyDepartment

LPB District To enhance water supply capacity in LPB urbanarea, and promote urban and industrialdevelopment in the north of LPB District.

Expansion of facilities for water supply system 1,000


New Ferry Port in the North DCTPC LPB District To improve access of motor vehicles (includingtrucks) to the other side of Mekong River

Construction of new ferry ports on both sides of MekongRiver near the new university site in the north of LPBDistrict.

1,000

Table 4-2 Long List of Candidate Sub-Projects and Programs for Development Package 2: LPB Outer Urban Area (1 of 2)

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Development Package 2: LPB Outer Urban Area (2 of 2)Code Classification Name of the sub-project Implementation


(InitialEstimate)

2-13 Infrastructure/UrbanInfrastructure

Urban Infrastructure Development inBan Don Mai

MDP / UDAA Ban Don Mai(Luang Prabangdistrict)

To promote development in the north of LPBDistrict at a potential location of a new ferry port.

Planning and development of urban infrastructure andpublic facilities, as well as landscaping.

750


Urban Infrastructure Development inMuang Kham Village

MDP / UDAA Ban MuangKham (ChomPhet district)

To promote development in Chomphet District ata potential location of a new ferry port.

Planning and development of urban infrastructure andpublic facilities, as well as landscaping.

550


Improvement of the Xiengkeo Port inthe South

DCTPC LPB District To reduce cargo handled at the port located atthe city center, and enable access by a big ferry

Improvement of facilities of the existing cargo port in thesouth.

709


Speed Boat Landing Improvementon Northern Side of Nam Khan

DCPTC LPB District To improve quality and operation of boatexcursions on the Mekong

Development of boat landing system (Speed Boat Port)with information boards and landscape

100


Mekong River Bridge DCTPC /MCTPC

DP4: LPBDistrict andChomphet

To improve access to and from the opposite sideof the Mekong River, and access to the border ofThailand.

Construction of Mekong River Bridge in the north of LPBDistrict.

39,000

2-18 Infrastructure/Airport

LPB Airport Improvement DCTPC/DAC LPB District To expand transport capacity of LPB airport tomeet tourism growth, and improve safety and

Airport expansion including improvement of runway andterminal building

N/A


Cultural Centre DIC Ban Na ViengKham (LuangPrabang)

To conserve intangible heritage. Cultural centre for traditional performances includingtraining centre for the conservation of various culturalheritages

850

2-20 Cultural HeritageConservation /HRD

Handicraft Community TrainingCentre

DIC / DIH Ban Na ViengKham (LuangPrabang)

Handicraft survival and revival / Incomegeneration to local people through tourism.

Community Training Centre promoting survival and revivalof Art and Crafts. Training program about traditional Artand Crafts and adaptation of the local production to

450


Luang Prabang Province EthnicMuseum

DIC Ban Na ViengKham (LuangPrabang)

Vernacular culture conservation Ethnic museum of Luang Prabang Province. Collection oftraditional vernacular items. Presentation of the differentethnic groups and their life style.

650

2-22 EnvironmentalManagement

Environmental AwarenessCampaign

UDAA LPB District To enhance environmental awareness in LPBurban area, and ensure that LPB is anenvironmentally friendly city.

Resume environmental awareness campaign suspendedsince the termination of ADB's Secondary TownImprovement Plan, which is to be conducted throughmedia and initiatives by communities

15

Table 4-2 Long List of Candidate Sub-Projects and Programs for Development Package 2: LPB Outer Urban Area (2 of 2)

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Development Package 3: LPB SouthCode Classification Name of the sub-project Implementation


(InitialEstimate)


Tourist Attraction Improvement atKouang Si Waterfall Area

LNTA Kouang SiWaterfall

To improve attractiveness of the site, andconserve the watershed area

Improvement of additional lookover decks and walkingarea

250


Access Improvement to Longlao DCTPC LPB District Access improvement from LPB to Longlao, andtourism development in Kouang Si and Longlaoarea

Pavement of the existing graveled road 1,350


Forest Trail Development LNTA LPB District Tourism development in Kouang Si, Nomg Hao,and Longlao area

Development of trekking trail between Longlao andKouang Si waterfall

60



VillageCommittee/District Office

At each oftargeted villages

To enhance environmental awareness, andreduce garbage discharge and handling ofplastics

Conduct environmental awareness campaign throughinitiatives by village committee

3

Development Package 4: LPB South - Mekong RouteCode Classification Name of the sub-project Implementation


(InitialEstimate)


Development of Stopover Placesalong Mekong Route

LNTA / District /MDP

Villages inChomphet andLPB districts

To develop villages as a stopover place for boatexcursions on the Mekong, thereby increasingincome of the rural villagers.

Improvement of boat landing sites, rest area, landscaping,and information signboards at several villages along theMekong (Ban Chan, Ban Pak Lung, and Ban Saluan inChomphet district, and Ban Sing and Ban Pak Si in LPBdistrict)


Development and Protection ofVillages along Mekong Route

MDP / District /LNTA

Villages inChomphet andLPB districts

Preservation of the village and improvement ofits tourist potential

Management of natural and cultural heritage conservation,infrastructure and landscaping development, andinformation provision at several villages along the Mekong(Ban Chan, Ban Pak Lung, and Ban Saluan in Chomphetdistrict, and Ban Sing and Ban Pak Si in LPB district)

300


Ban Chan Industrial VillageImprovement

DIH / DIC / MDP LPB Water route(Chomphetdistrict)

To improve local handicraft products and sales Develop a village information center and undertakepromotion.

70


Biodiversity Conservation andWaterfall Area Improvement nearBan Pak Lung

LNTA / DAF /MDP

LPB Water route(Chomphetdistrict)

To improve the waterfall area as a new touristattraction.

Biodiversity conservation and park improvement in thewaterfall area.

200


Construction of National Road 4B DCTPC ChomphetDistrict

To establish access from the border of Thailandto LPB

Construction of national road 4B 16,750


Construction of Access Road to NewCargo/Ferry Port in the North

DCTPC ChomphetDistrict

To establish access to the new ferry/cargo port atBan Muang Kham

Construction of paved road 675


Muangkhay Boat LandingImprovement (from Mekong toKouang Si)

DCPTC LPB District To improve quality and operation of boatexcursions on the Mekong

Development of boat landing system with informationboards and landscape

100


Solid Waste Management inChomphet District

DCPTC ChomphetDistrict

To improve solid waste management operationfor the targeted urban villages of ChomphetDistrict

Improvement of garbage collection and disposal operationof target villages in the Chomphet District

200







3

Table 4-3 Long List of Candidate Sub-Projects and Programs for Development Package 3: LPB South, and for Development Package 4: LPB South – Mekong Route

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Development Package 5: LPB North & Nam Ou RouteCode Classification Name of the sub-project Implementation


(InitialEstimate)


Tam Ting (Pak Ou) improvement LNTA LPB North To improve the quality of one of the major touristsites in the north from LPB.

Provide information signage with multi-language anddirection signboard

20


Sun Chao Maha Chewit (KingIsland) tourist site improvement

LNTA / MDP /DCTPC

LPB North To develop a new tourist site with a rest area. Historic site, lookout deck, walkway, and rest areaimprovement

50


Northern Agricultural College &Agro-tourism site (100ha.)

MOE LPB North Improvement of facilities and agro-tourism Improvement of class rooms, dormitory, access of campusand landscape

250


Improvement of Tourist BoatLanding for Pak Ou Cave

DCTPC Ban Pak Ou To improve quality and operation of boatexcursions

Development of boat landing system at Pak Ou port withinformation boards and landscaping

100


Access Improvement to Pak Ou DCTPC Pak Ou District To ensure road access from National Road 13 toPak Ou cave, especially in rainy season

Improvement of existing mud road 1,125


New Khokjong Cargo Port DCTPC LPB District To handle all the cargo to and from the upperstream of Mekong River, and eliminate cargomovement on the section in the conservation

Construction of new cargo ports on both sides of Mekongriver near Pakxuang

1,187







3

5-8 Tourism ResourceDevelopment /Cultural heritageconservation

Development and protection of PakOu village

MDP Ban Pak Ou(Pak Ou district)

Preservation of the village and improvement ofits tourist potential

Management of natural and cultural heritage conservation;Infrastructure and landscaping development.

150


Pak Xuang Development Program MDP and others Ban Pak Xuang(LPB & Pak Oudistricts)

To develop a new tourist site throughconservation and improvement of culturalheritage and tourism resources.

Restore Don Khoun Island, the monastery, Phou KeoStupa built on the top of the hill, the former royal garden,with landscaping. Improve Pak Xuang Agriculture School,and develop and conserve Ban Pak Xuang.

1,075

Table 4-4 Long List of Candidate Sub-Projects and Programs for Development Package 5: LPB North & Nam Ou Route

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Development Package 6: LPB East - Nam Khan RouteCode Classification Name of the sub-project Implementation


(InitialEstimate)


Tad Sae Waterfall AreaImprovement

LNTA LPB North East To conserve natural resource and enhanceattractiveness of this high potential site.

Landscaping, walking trail improvement, toilet facility andsignboards

150


Tad Mo Khot Waterfall AreaImprovement

LNTA LPB North East To conserve natural resource and promotion Landscaping, walking trail improvement, toilet facility andsignboards

100


Rural village improvement (4villages)

District Office /LNTA / MDP

LPB North East To improve, while preserve, the villages as NamKhan-based tourist site

Improve river excursions with stopover at Ban Pak Vet,Ban Xieng Nguen, Ban Don Mo (all located in XiengNgeun district), by improving boat landing places,landscape, toilet, and signboards, with management ofnatural and cultural heritage conservation. Improve andconserve Ban Xieng Lom (in LPB district) as well.

500


Forest Trail Development LNTA LPB North East Tourism development in Ban Xiang Lome Area(10km)

Development of trekking trail starting from Ban XiangLome

108


Nam Khan Eco Valley Nature StudyInformation Center

District Office /MDP

Ban XiangNgeun ?

To conserve natural resource and promotion Initial development of study center: administration officefor nature study project and promotion. Promotion ofnature conservation

200


Bypass road for National Road 13(South Section)

DCTPC LPB North East To reduce heavy vehicles in the LPB city area,as well as improve access to nature tourismresources along Nam Khan

Construction of bypass of national road 13 1,000


Bypass road for National Road 13(North Section)

DCTPC LPB North East To reduce heavy vehicles in the LPB city area Construction of bypass of national road 13 on the originalalignment proposed in SCOT for the north section.

3,800


Access Improvement for Nam KhanRiver Tourism Area

DCTPC LPB North East To improve access to several cultural villagesand to nature tourism resources along Nam Khan

Pavement of existing graveled roads 810


Public Transport ParkingImprovement in Xiang Ngeun

DCTPC LPB North East To improve car and public transport access fromLPB and other regions to this area.

Graveled pavement of the existing parking 150







3

Table 4-5 Long List of Candidate Sub-Projects and Programs for Development Package 6: LPB East – Nam Khan Route

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Development Package 7: LPB Farther NorthCode Classification Name of the sub-project Implementation


(InitialEstimate)


Pak Mong (Muang Nam Bak)Tourism Development

ProvincialGovernment /LNTA

Muang NgoyDistrict

To facilitate urban infrastructure improvement,and promotion in accommodation

Communication system, water supply system, electricsystem expansion and tourism promotion

1500


Pha Bo Cave tourist siteimprovement


Muang NgoyDistrict

To conserve natural resource, and landscapeimprovement

Landscape improvement and public toilet facilityimprovement

80


Muang Ngoy Tourism Development ProvincialGovernment /LNTA

Muang NgoyDistrict

To improve drainage and treatment system Water drainage and treatment at central area 1200


Ban Nayang Tourism Development ProvincialGovernment /LNTA

Muang NgoyDistrict

To improve tourist facility and promotion inNayang village

Village center for product demonstration, and display,village trail information signboards

200


Pha Hao Cave tourist siteimprovement


Muang NgoyDistrict

To conserve natural resource, and landscapeimprovement

Landscape improvement and public toilet facilityimprovement

80


Road Improvement in Nong Kiwauvillage

DCTPC Muang NgoyDistrict

To improve access inside Nong Khiaw Pavement of existing graveled roads 225


Access Improvement form NamBakto Nanang


To improve access to tourism resources in thearea

Pavement of existing graveled road 600


Access Road to Vietnam Border DCTPC Muang NgoyDistrict

To improve access to and from Vietnam (DienBien Phu)

Pavement of existing roads 16,750


Boat Landing Improvement on NamOu River


To improve tourist access from National Road 1to old Muang Ngoy

Improvement of port facilities in Nong Khiaw and MuangNgoy

200







3

Table 4-6 Long List of Candidate Sub-Projects and Programs for Development Package 7: LPB Farther North

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Development Package 8: Capacity Development, Environmental Management, Marketing & Promotion (1 of 2)Code Classification Name of the sub-project Implementation


(InitialEstimate)

8-1 HRD Improvement of Central Tourism andHospitality Training Center (THTC)

LNTA Vientiane To meet human resource needs in Lao PDR andCentral Region, and improve the quality of touristservices

Establishment of new training facility of THTC as keytraining center in the country and in the Central Region.

8-2 HRD Development of Northern Tourismand Hospitality Training Center inLPB

LNTA LPB To meet human resource needs in LPB and inthe North, and improve the quality of touristservices.

Establishment of key training center for the NorthernRegion, which may include development of new trainingfacilities.

8-3 HRD Development of Mobile Training Unitfor Northern Tourism HRD

LNTA LPBWoman's Union

To conduct village-based tourism training at lowcost for LPB and Northern Part, and improveskills of rural villagers.

Setting up special "Mobile Training Unit" - vehicle withspecial training kip and trainers to conduct on-site training

8-4 HRD Trainers Training on TourismManagement and Services

LNTA Overseas (e.g.,Thailand)

To provide HRD training for developing qualifiedtrainers and leaders that are absolutely lacking inLao PDR

OJT training at advanced country in tourism aimed atdeveloping good quality trainers in LNTA and other relatedorganizations

8-5 HRD / Marketingand Promotion /InstitutionalDevelopment

Technical Transfer to LNTA and LPBProvincial Tourism Office

LNTA VTE and LPB To enhance capacity of LNTA in tourism sectordevelopment and management, investmentpromotion, marketing and promotion, andtourism and hospitality training as well as inimplementation and coordination regarding thisLPB Project.

Provide assistance for management and development ofthe tourism industry (including development of appropriateregulations), investment promotion for development oftourist facilities, operation of Tourism and HospitalityTraining Center, development of marketing and promotionstrategy and specialists, implementation of LPB Project.


Rehabilitation of Landfill Site UDAA / DCPTC DP8 To improve the existing sanitary conditions, andexpand the capacity of the site

Development of the new landfill site next to the existingone, with closure of the existing landfill site that will reachcapacity soon.

12,500


Strengthening Landfill Capacity UDAA LPB District To strengthen landfill operation capacity thatseriously lacks at present.

Improvement of efficiency and effectiveness in sanitarylandfill operation, through training, procurement ofnecessary equipment and installing weighing station.

800


Awareness Campaign onEnvironment

LPB District To improve stakeholders' awareness on cleanerenvironment

Conduct environmental awareness campaign 10

Table 4-7 Long List of Candidate Sub-Projects and Programs for Development Package 8: Capacity Development, Human Resource Development, Environmental Management, Marketing & Promotion (1 of 2)

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Development Package 8: Capacity Development, Environmental Management, Marketing & Promotion (2 of 2)Code Classification Name of the sub-project Implementation


(InitialEstimate)

8-9 Cultural heritageconservation /HRD

Restoration of the mural paintings inLuang Prabang

MDP 7 sites in andaround LuangPrabang:

Conservation of the patrimonial wall paintings Restore wall paintings in Vat Pak Ou; Vat Don Mo (2sanctuaries); Vat Chan Nua; Vat Phu Xang; Vat LongKhun; Vat Hatsiao; Vat Pa Ke; Vat Pa Houak.

450


Revival of Buddhist cave sanctuaryin Luang Prabang

MDP 3 pilot sitesaround LuangPrabang:

Development and protection of Buddhist Culture Revival of the Buddhist cave and the sacred statues still inplace at pilot sites of Tam Pak Ou; Tam Saluan; TamXiengmen.

N/A


Community training program forheritage management

MDP / DIC / DIH Various villagesto be targeted bythe Project.

Sustainable development / income generation tolocal people through heritage conservation andtourism. Education of the population in order thatthe local Heritage conservation will be improved.

Training program on sustainable development (natural,cultural heritage conservation, tourism development /management, development of "local know-how" in LPB'sarchitecture and other production, or intangible heritagesurvival / revival) at villages to be targeted by the Projectin Luang Prabang, Chompet, Xieng Ngeun and Pak Oudistricts, and in Nam Khan Eco-Valley.

N/A

8-12 Cultural heritageconservation /

Researches and Publicationprogram

DIC Luang Prabang Dissemination of knowledge on heritage Researches and Publication program about local culturalheritage. Publication in Lao and foreign languages.

350

8-13 Marketing &Promotion

Marketing and Promotion Materialsfor Northern Area

LNTA Northern Area(LPB)

To enhance destination awareness, promoteproduct diversification, and reduce touristsconcentration in the heritage site.

Preparation of comprehensive promotion-materials of LPBand Northern area in major languages


Improvement of Marketing andPromotion Materials of Laos(National Level)

LNTA Laos To promote international tourism, helping travelagencies in major market promote Lao tourism.

Preparation of basic promotion-materials which introducevarious tourist sites and products in whole county in majorlanguages


Improvement of existing Web-siteand Network

LNTA Laos To improve tourism information and marketingsystem cost-effectively.

Improvement of existing LNTA Web-site, and developmentof Web Network among key stations


Promotion Program LNTA Laos To raise incentive of travel agents to develop tourpackages to Laos

Organizing selected FAM Trip, and conducting promotionseminar and workshop overseas (in major markets)


Sister City Program(Between LPB + Some JapaneseCity)


ＬＰＢ To develop new promotion channel in Japan Provide assistance to establish a Sister City relationshipbetween LPB and some Japanese City

Table 4-7 Long List of Candidate Sub-Projects and Programs for Development Package 8: Capacity Development, Human Resource Development, Environmental Management, Marketing & Promotion (2 of 2)


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4.3.2 Primary Features of Each Development Package (1) PKG 1: World Heritage Site (Inner Area) Candidate sub-projects and programs for Package 1 are listed in Table 4-1. This package focuses on conservation, and adding value to, the core area of the World Heritage site through the following measures: Create, using underutilized plot of land, a new focal point that can be a “must-see” site in

Luang Prabang as World Heritage: Currently, there is virtually no site or facility where tourists and local people can understand and recognize the value of the cultural, historical and natural heritages of Luang Prabang as well as the importance of their conservation. It is critically important for Luang Prabang to be able to “communicate” the value and the importance of its heritage to visitors as well as to local people in order to conserve and sustain its local heritage.

Address critical issues in the World Heritage site, including introduction of fire fighting

system that is absolutely necessary, rehabilitation of the Royal Palace Museum, traffic management, and landscaping.

Take appropriate measures for conservation of Ban Xiang Mene in Chomphet district

located on the right bank of the Mekong, including conservation of cultural heritage in the village, improvement of access to tourism resources, among others. This area, which generally is worse off than the left side of the Mekong, is also part of the World Heritage site, although there has been a serious lack of measures to be taken for conservation and development of the area.

(2) PKG 2: LPB Outer Urban Area Candidate sub-projects and programs for Package 2 are listed in Table 4-2. This package is intended to improve the quality of tourist attractions outside of the core area and to promote urban development in the north of Luang Prabang district, mainly through the following measures: Improve the quality of local arts and crafts and their marketing, targeting several villages

near the city center, as well as improve access to those villages. Induce development in the north of Luang Prabang district, thereby reducing development

pressure in the city center, primarily through (i) construction of a bypass of National Road 13 (on the newly proposed alignment that is closer to Luang Prabang town than the original bypass alignment), which is intended also for removing heavy trucks from the center, (ii) introduction of ferry services (for vehicles as well as for passengers) to cross the Mekong linking between Chomphet district and the north of Luang Prabang district, together with the improvement of road access to the ferry ports, (iii) extension of water supply to the north of Luang Prabang that is critically needed for the development of the north, and (iv) provision of basic urban infrastructure near the crossing point for the ferry services.

(Note that constructing a bridge over the Mekong has been proposed by the province, and thus is listed in the table. In our view, this project would be a longer-term measure for linking between the two districts across the river as well as for connecting Luang Prabang with northern Thailand by land. It is considered that an appropriate shorter-term measure for


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these purposes would be to start operating ferries across the Mekong as proposed above.) Improve, and/or expand, the airport of Luang Prabang located at the outer urban area,

although this needs to be studied further. No feasibility study (F/S) has been conducted for improvement or expansion of Luang Prabang airport as of May 2006, although this sort of study appears to be coming up. According to the Department of Civil Aviation of Lao PDR, funding from the United States Trade and Development Agency (USTDA) for conducting an F/S has been more or less secured, and a study to determine the scope of work for the F/S has been carried out by a Singaporean engineering firm. It is necessary to wait for the completion of the F/S before making any judgment on the future improvement or expansion of the airport.

(3) PKG 3: LPB South Candidate sub-projects and programs for Package 3 are listed in Table 4-3. This package is intended to improve the quality of a trip to Kouang Si Waterfall that is one of the major tourist attractions outside of the World Heritage site. The waterfall offers magnificent scenery particularly during rainy season. This package consists of site improvement and trail development around the waterfall, inducing visitors to the waterfall to stay longer and spend more in the area. These measures are indispensable for fully utilizing this site with tourist drawing power, because the site currently offers little attraction other than the waterfall itself. (4) PKG 4: LPB South – Mekong Route Candidate sub-projects and programs for Package 4 are listed in Table 4-3. This package focuses mainly on improving a tour on the Mekong by boat that will offer visits to villages as well as the views of the nature and the people’s lives along the route, thereby making it one of the major attractions outside of the World Heritage site. This will be achieved primarily through: Improvement and beautification of boat landing sites at key villages along the Mekong route,

together with conservation and landscaping in the villages, information provision and promotion of local handicrafts, and site improvement at tourist attractions such as waterfall and cave.

This package also includes construction of access road in Chomphet district to the new ferry port proposed in Package 2 and construction of National Road 4B that runs through Chomphet district and Xayaboury Province, leading to the border of Thailand. The latter is for linking between Luang Prabang and northern Thailand. (5) PKG 5: LPB North & Nam Ou Route Candidate sub-projects and programs for Package 5 are listed in Table 4-4. This package is intended to improve the quality of a trip to Pak Ou Cave and its surrounding area, mainly through the following measures: Improvement of the existing resources at Pak Ou, including Pak Ou Cave itself and Ban Pak

Ou, which is the village providing access to the cave (with improvement of boat landing system and information provision, conservation of natural and cultural heritage, and landscaping in the village).


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Improvement of the access road to Ban Pak Ou and Pak Ou Cave from National Road 13 to

ensure access to these sites from Luang Prabang town by land during rainy season. Development of a new tourist site located between Ban Pak Ou / Pak Ou Cave and Luang

Prabang town, adding a new feature to the trip to the Pak Ou area, thereby enhancing the attractiveness of this trip.

This package also includes construction of a new cargo port in the north of Luang Prabang district to receive cargo coming from further north including that from PRC. One of the objectives of this plan is to eliminate the movement of cargo traffic from the section of the Mekong located in the World Heritage site. (6) PKG 6: LPB East – Nam Khan Route Candidate sub-projects and programs for Package 6 are listed in Table 4-5. This package is intended to improve the quality of a trip to Nam Khan-based tourist sites, mainly through the following measures: Site improvement at Tad Sae Waterfall that has been underdeveloped at present, including

trail development, landscaping, information provision, and improvement of tourist facilities such as rest area.

Development of forest trekking trail from Ban Xiang Lom, adding a new feature to the

tourist attractions in this area. Improvement of the access road to the above sites from Luang Prabang town, which

consists of: (i) the section from Luang Prabang town to the original alignment of the bypass of National Road 13 and (ii) the south section of the bypass. (Note that these two sections together with the section of National Road 13 from Luang Prabang town to the southern junction between Road 13 and the bypass will form a loop road.)

Improvement of river excursions to and from several villages along the Nam Khan route (as

gateways to Nam Khan Eco-Valley), with improvement of boat landing places, landscaping, information provision, provision of rest areas, conservation of natural and cultural heritage in the villages, parking improvement to function as gateway to Nam Khan Eco-Valley, etc.

Development of a Nam Khan Eco-Valley nature study/information center, intended to

provide opportunities of studying nature along Nam Khan Eco-Valley for nature conservation and promotion of the valley for tourism.

This package also includes construction of the north section of the original alignment of the bypass road although it is judged that the newly proposed alignment (see Package 2) will better contribute to stimulating development in the north as well as to diverting heavy vehicles from the city center. (7) PKG 7: LPB Farther North Candidate sub-projects and programs for Package 7 are listed in Table 4-6. This package is intended to develop tourist sites in Muang Ngoy district of the province, located further north of Pak Ou district, as one of the major tourist destinations in Luang Prabang Province.


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(8) PKG 8: Capacity Development, Environmental Management, Marketing &

Promotion Candidate sub-projects and programs for Package 8 are listed in Table 4-7. They can be categorized into human resource development, capacity development, heritage management at villages, environmental management, and tourism promotion and marketing. Each of these components includes the following sub-projects and programs: HRD and Capacity Development

- Development of LNTA Tourism and Hospitality Training Center (THTC) in VTE (and possibly in LPB as well)

- Development of LPB mobile training unit. - Capacity building of LNTA and LPB Provincial Tourism Office, and training of

trainers. Environmental Management

- Capacity expansion of the landfill site, with better operation of the site: critically important.

- Environmental awareness campaign. Heritage Management at Villages

- Management of cultural heritage, income generation through tourism - Restoration of paintings at Buddhist temples, statutes at caves.

Tourism Promotion & Marketing

- Production of promotion materials. - Improvement of the existing website. - Carrying out essential promotional programs. - Sister city program.

4.4 Selection Criteria These sub-projects and programs in the long list were then prioritized to select the ones that will be included in the Project to be proposed in the Study for potential JBIC financing. Three factors, “Urgency,” €34(Potential) Effect” and “Implementability,€35 were used for prioritizing the long-list projects. These factors detailed below are considered particularly important for selecting the sub-projects and programs that will cost-effectively achieve the aforementioned objectives of these development packages (Five-Point Objectives). For each factor, a score of ‘1’, ‘2’ or ‘3’ was given for rating the sub-project or program, with the scoring based on the following criteria: Urgency:

3: It is considered that the sub-project/program should to be implemented immediately in order to achieve at least one of the aforementioned objectives, and/or is a prerequisite for other projects/programs.

2: Implementation of the sub-project/program is less urgent, and/or pre-conditions need to be established before its implementation (e.g., implementation of certain projects


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or programs should come first before implementing this sub-project or program).

1: Implementation of the sub-project/program is considered to address a long-term issue, thus judged not particularly urgent.

(Potential) Effect:

3: The sub-project/program is expected to contribute to achieving at least one of the aforementioned objectives cost-effectively.

2: The sub-project/program is considered less important for achieving the objectives, and/or substitute measures or their equivalents are available for achieving the objectives.

1: The extent of the effect of the sub-project/program relative to its expected cost is considered low and/or very uncertain.

Implementability

3: It is expected that the sub-project/program would involve no major difficulty or uncertainty/risks in terms of project implementation, operation, management and maintenance. At the same time, preparation for implementation of the sub-project/program can be made without major difficulty.

2: The sub-project/program would possibly involve some difficulty or uncertainty/risks in terms of project implementation, operation, management, maintenance or project preparation.

1: The sub-project/program would face major difficulty in terms of project implementation, operation, management, maintenance or project preparation that cannot be handled satisfactorily within the prospective JBIC-financed project.

4.5 Selection Results Based on the criteria set out above, the long-list sub-projects and programs were prioritized as shown in Tables 4-8 – 4-14 For each sub-project/program, the scores for the three factors were averaged, and the priority (1, 2 or 3) was given based on the averaged score as follows: Priority 1: Sub-projects and programs with the overall score higher than 2.5.

(Note: These sub-projects and programs were given the scores of at least 3, 3, and 2 for the three factors.)

Priority 2: Sub-projects and programs with the overall score higher than 2.0 and lower than 2.5.

Priority 3: Sub-projects and programs with the overall score equal to, or lower than, 2.0.


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Development Package 1: World Heritage Site (Inner Area)Code Classification Name of the sub-project Urgency Effect Implemen

tabilityOverallScore

Priority


Rehabilitation and Improvement ofthe Royal Palace Museum

3 3 3 3.0 1


World Heritage City CommemorationPark

3 3 2 2.7 1


World Heritage City ConservationHall

3 3 2 2.7 1

1-4 Infrastructure Mekong Bank & Boat Landing (3locations) improvement

3 3 3 3.0 1

1-5 Infrastructure Grid Burying (Built in undergroundwiring system) Phase 2.

2 2 3 2.3 2

1-6 Infrastructure Fire Fighting System 3 3 2 2.7 1

1-7 Infrastructure/Transport

Traffic Management in LPBMunicipality

3 3 2 2.7 1


Nam Khan Pedestrian Bridges 2 2 2 2.0 3


Governor River Bank OrnamentalGarden

2 3 3 2.7 1


Heritage Conservation and Revivalof Buddhist traditions in Xiang Mene

3 3 2 2.7 1


Access Improvement to TouristResources in Xiang Mene

2 3 2 2.3 2


Mekong bank & Boat LandingImprovement in Xiang Mene

3 3 3 3.0 1


Renovation of Dara Market 3 3 1 2.3 2


Tourism Information Center 3 3 2 2.7 1

Table 4-8 Prioritization of Long-List Sub-Projects/Programs – Development Package 1: World Heritage Site (Inner Area)


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Development Package 2: LPB Outer Urban Area (1 of 2)Code Classification Name of the sub-project Urgency Effect Implemen


Priority


Bus Terminal Improvement in LPBmunicipality

2 2 3 2.3 2


Industrial village improvement &Promotion (targeting 6 villages)

3 3 2 2.7 1


Investment promotion of TouristFacility

3 3 2 2.7 1


Road Improvement in LPB UrbanArea

2 2 3 2.3 2


Access Improvement to Ban XiengLek and Xan Kong

3 3 3 3.0 1


Road Improvement in the Southwestof LPB Urban Area

2 3 2 2.3 2


New Outer-Ring Road in LPB UrbanArea

2 2 1 1.7 3


Widening of National Road 13 2 2 2 2.0 3


Lighting for Main Roads 3 3 3 3.0 1


New Bypass Road for National Road13 (New Alignment)

3 3 2 2.7 1

2-11 Infrastructure/Water Supply

Improvement of Water SupplySystem

3 3 3 3.0 1


New Ferry Port in the North 3 3 2 2.7 1

Table 4-9 Prioritization of Long-List Sub-Projects/Programs – Development Package 2: LPB Outer Urban Area (1 of 2)


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Development Package 2: LPB Outer Urban Area (2 of 2)Code Classification Name of the sub-project Urgency Effect Implemen


Priority


Urban Infrastructure Development inBan Don Mai

2 3 2 2.3 2


Urban Infrastructure Development inMuang Kham Village

2 3 2 2.3 2


Improvement of the Xiengkeo Port inthe South

2 3 2 2.3 2


Speed Boat Landing Improvementon Northern Side of Nam Khan

2 3 3 2.7 1


Mekong River Bridge 1 2 1 1.3 3

2-18 Infrastructure/Airport

LPB Airport Improvement 2 2 2 2.0 3


Cultural Centre 2 3 2 2.3 2


Handicraft Community TrainingCentre

2 3 2 2.3 2


Luang Prabang Province EthnicMuseum

2 3 2 2.3 2



3 3 2 2.7 1

Table 4-9 Prioritization of Long-List Sub-Projects/Programs – Development Package 2: LPB Outer Urban Area (2 of 2)


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Development Package 3: LPB SouthCode Classification Name of the sub-project Urgency Effect Implemen


Priority


Tourist Attraction Improvement atKouang Si Waterfall Area

3 3 2 2.7 1


Access Improvement to Longlao 2 2 3 2.3 2


Forest Trail Development 3 3 3 3.0 1



3 3 2 2.7 1

Development Package 4: LPB South - Mekong RouteCode Classification Name of the sub-project Urgency Effect Implemen


Priority


Development of Stopover Placesalong Mekong Route

3 3 2 2.7 1


Development and Protection ofVillages along Mekong Route

3 3 2 2.7 1


Ban Chan Industrial VillageImprovement

3 3 2 2.7 1


Biodiversity Conservation andWaterfall Area Improvement nearBan Pak Lung

3 3 2 2.7 1


Construction of National Road 4B 2 2 2 2.0 3


Construction of Access Road to NewCargo/Ferry Port in the North

3 3 2 2.7 1


Muangkhay Boat LandingImprovement (from Mekong toKouang Si)

3 3 3 3.0 1


Solid Waste Management inChomphet District

3 3 2 2.7 1



3 3 2 2.7 1

Table 4-10 Prioritization of Long-List Sub-Projects/Programs – Development Package 3: LPB South & Development Package 4: LPB South – Mekong Route


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Development Package 5: LPB North & Nam Ou RouteCode Classification Name of the sub-project Urgency Effect Implemen


Priority


Tam Ting (Pak Ou) improvement 3 3 2 2.7 1


Sun Chao Maha Chewit (KingIsland) tourist site improvement

3 3 2 2.7 1


Northern Agricultural College &Agro-tourism site (100ha.)

2 3 2 2.3 2


Improvement of Tourist BoatLanding for Pak Ou Cave

3 3 3 3.0 1


Access Improvement to Pak Ou 3 3 3 3.0 1


New Khokjong Cargo Port 2 2 3 2.3 2



3 3 2 2.7 1


Development and protection of PakOu village

3 3 2 2.7 1


Pak Xuang Development Program 3 3 2 2.7 1

Table 4-11 Prioritization of Long-List Sub-Projects/Programs – Development Package 5: LPB North & Nam Ou Route


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Development Package 6: LPB East - Nam Khan RouteCode Classification Name of the sub-project Urgency Effect Implemen


Priority


Tad Sae Waterfall AreaImprovement

3 3 2 2.7 1


Tad Mo Khot Waterfall AreaImprovement

2 3 2 2.3 2


Rural village improvement (4villages)

3 3 2 2.7 1


Forest Trail Development 3 3 2 2.7 1


Nam Khan Eco Valley Nature StudyInformation Center

3 3 2 2.7 1


Bypass road for National Road 13(South Section)

3 3 3 3.0 1


Bypass road for National Road 13(North Section)

1 1 2 1.3 3


Access Improvement for Nam KhanRiver Tourism Area

3 3 3 3.0 1


Public Transport ParkingImprovement in Xiang Ngeun

2 2 3 2.3 2



3 3 2 2.7 1

Table 4-12 Prioritization of Long-List Sub-Projects/Programs – Development Package 6: LPB East – Nam Khan Route


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Development Package 7: LPB Farther NorthCode Classification Name of the sub-project Urgency Effect Implemen


Priority


Pak Mong (Muang Nam Bak)Tourism Development

2 2 2 2.0 3


Pha Bo Cave tourist siteimprovement

2 2 2 2.0 3


Muang Ngoy Tourism Development 2 2 2 2.0 3


Ban Nayang Tourism Development 2 2 2 2.0 3


Pha Hao Cave tourist siteimprovement

2 2 2 2.0 3


Road Improvement in Nong Kiwauvillage

2 2 2 2.0 3


Access Improvement form NamBakto Nanang

2 2 2 2.0 3


Access Road to Vietnam Border 2 2 2 2.0 3


Boat Landing Improvement on NamOu River

2 2 2 2.0 3



2 2 2 2.0 3

Table 4-13 Prioritization of Long-List Sub-Projects/Programs – Development Package 7: LPB Farther North


109

Development Package 8: Capacity Development, Environmental Management, Marketing & Promotion (1 of 2)Code Classification Name of the sub-project Urgency Effect Implemen


Priority

8-1 HRD Improvement of Central Tourism andHospitality Training Center (THTC)

3 3 2 2.7 1

8-2 HRD Development of Northern Tourismand Hospitality Training Center inLPB

3 3 1 2.3 2

8-3 HRD Development of Mobile Training Unitfor Northern Tourism HRD

3 3 2 2.7 1

8-4 HRD Trainers Training on TourismManagement and Services

3 3 1 2.3 2

8-5 HRD / Marketingand Promotion /InstitutionalDevelopment

Technical Transfer to LNTA and LPBProvincial Tourism Office

3 3 1 2.3 2


Rehabilitation of Landfill Site 3 3 2 2.7 1


Strengthening Landfill Capacity 3 3 2 2.7 1


Awareness Campaign onEnvironment

3 3 2 2.7 1

Development Package 8: Capacity Development, Environmental Management, Marketing & Promotion (2 of 2)Code Classification Name of the sub-project Urgency Effect Implemen


Priority


Restoration of the mural paintings inLuang Prabang

2 3 2 2.3 2


Revival of Buddhist cave sanctuaryin Luang Prabang

2 3 2 2.3 2


Community training program forheritage management

3 3 2 2.7 1

8-12 Cultural heritageconservation /

Researches and Publicationprogram

2 3 2 2.3 2


Marketing and Promotion Materialsfor Northern Area

3 3 2 2.7 1


Improvement of Marketing andPromotion Materials of Laos(National Level)

3 3 2 2.7 1


Improvement of existing Web-siteand Network

3 3 2 2.7 1


Promotion Program 2 3 2 2.3 2


Sister City Program(Between LPB + Some JapaneseCity)

2 3 2 2.3 2

Table 4-14 Prioritization of Long-List Sub-Projects/Programs – Development Package 8: Capacity Development, Environmental Management, Marketing & Promotion


110

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