Thai travel businesses urged to Laos - The Nation

Travel Business

Bamrung Amnatcharoenrit

The Nation November 30, 2012 1:00 am

The country of about 6 million people has modernised its legislation governing foreign investors. It now allows them to control a 100-per-cent stake in three-to-five-star hotels, and a 70-per-cent stake in travel companies. Laos also offers tax incentives, said ATTA president Sisdivachr Cheewarattanaporn.

ATTA yesterday invited Sounh Manivong, director-general of the Tourism Development Department of the Laotian Ministry of Information, Culture and Tourism, to outline tourism prospects and business opportunities after the AEC opening.

Sounh said the Laotian government was making a big effort to prepare for the AEC. It has made the tourism industry one of the 11 priorities for driving its economic development. Tourism revenue currently makes up 7-9 per cent of Laos' gross domestic product. It has also created jobs across the nation, aimed at reducing poverty.

The landlocked country has introduced an open-door policy. Its focus is to cooperate with foreign investors to sustain its development, especially in economic, natural, and cultural aspects. To serve its growth, the government has improved the country's infrastructure, especially the road network to connect with neighbouring nations.

"The strong point for investing in Laos is that the country is safe and has political stability. It is also rich in natural resources, and its labour cost is still low, with a minimum wage of 50,000 kip [Bt200] a day,'' he said.

Although the nation will face higher competition within the 10-nation AEC bloc, it will go step by step to secure its growth. The best way is to share benefits with neighbouring nations via joint operations, he said. The country will promote natural, cultural and eco-tourism, which is a strong position to lure foreign visitors.

This is the Tourism Year of Laos, and in January the country will host the Asean Tourism Forum, aiming to strengthen its role in the region.

In the first nine months of this year, the number of foreign tourists was 2.4 million, an increase of 12 per cent. For the full year, the number is expected to reach 2.9 million, up from 2.7 million in 2011. Sounh believes a conservative estimate is 5 million foreign visitors in 2020.

Last year, 1.5 million Thais visited Laos.

Tourism revenue will increase by 13 per cent this year from US$400 million (Bt12 billion) in 2011. It is expected to keep growing at the rate of 13 per cent annually. Spending per head by foreign tourists is $180?? Per day?? and its figure is expected to increase to $250 in 2015 via upgraded service programs.

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Source: http://www.nationmultimedia.com/business/Thai-travel-businesses-urged-to-Laos-30195305.html

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