Laos tourism 'ripe for investment'

Tourist arrivals reached 3.1 million people in 2012, up by 14 per cent compared to the year before. Looked at another way, it means that for every two Laotian men or women, there is one foreign visitor, which is a very high ratio even in many popular tourist destinations.

Officials described such proportions as considerably high, which creates conditions conducive for investment in the hotel, restaurant and services sector, particularly in connection with the tourism industry.

The director-general of the Tourism Development Department, Soun Manivong, told the Vientiane Times that there has been growing investment from both the state and private sectors in an effort to develop more tourist attractions in recent years.

Such investment has seen the necessary infrastructure and visitor facilities installed at some 700 tourism sites, which are now up and running throughout the country, the director said. Another 800 potential tourist attractions that boast natural, historical and cultural attractions have yet to be developed, and this represents untapped investment potential.

“The government has a policy in place to promote investment,” Soun said, stressing that any interested investors are more than welcome to invest in the tourism and hospitality industry.

Many business executives have poured capital into various kinds of tourism-related businesses in recent times, such as building hotels, guesthouses and restaurants, along with tour company services.

Lao Hotel and Restaurant Association president Oudet Souvannavong forecasts that investment in hotels and restaurants where tourism is the core focus will have much higher investment potential, such as those working closely with tour companies to offer more complete holiday packages.

Laos has enjoyed robust growth in tourist arrivals in recent years. The 2012 arrivals of 3.1 million means Laos was able to exceed the target forecasted for 2013, and due to such growth they will have to revise the target, according to Soun.

Hotels and guesthouses are among the prime beneficiaries of tourism growth, as every visitor needs somewhere to stay. Statistics show that hotel and guesthouse rooms in the five central provinces increased from 8,800 rooms in 2005 to more than 21,000 rooms in 2011, according to Oudet.

Notably, visitors from neighbouring Cambodia represented the biggest growth rate of 107 per cent, with Cambodian tourists increasing from about 7,500 in 2011 to more than 15,500 a year later.