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Lao PDR Tourism Destination Management Plan 2016 – 2018

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Lao PDR Tourism Destination Management Plan 2016 – 2018 Lao PDR Destination Management Plan: 2016 - 2018 Na8onal Lao PDR Tourism Destination Management Plan 2016 – 2018 Final 29th January 2016 Lao PDR Funded by: Prepared by: In conjunction1 with : MICT Lao PDR Destination Management Plan: 2016 - 2018 Table of Contents 1. ABBREVIATIONS .......................................................................................................................... 3 2. DESTINATION PROFILE ................................................................................................................. 5 3. VISION FOR THE DESTINATION, OPPORTUNITIES AND CHALLENGES ........................................... 10 3.2 SWOT ANALYSIS - LAO PDR ................................................................................................................. 10 3.3 UNIQUE SELLING PROPOSITION & DESTINATION POSITIONING: ................................................................... 13 4. MARKET-BASED ANALYSIS OF CURRENT VISITORS ...................................................................... 14 4.1 INTRODUCTION ................................................................................................................................... 14 4.2 ANALYSIS OF STRATEGIC VISITOR FLOWS .................................................................................................. 15 4. 3 PRIORITIZATION OF STRATEGIC VISITOR FLOWS ........................................................................................ 22 4.4 OVERALL CONCLUSION OF ANALYSIS ...................................................................................................... 23 5. DESTINATION ACTION PLAN ....................................................................................................... 25 6. MONITORING AND EVALUATION ................................................................................................ 39 6.1 WHY MONITORING & EVALUATION? ...................................................................................................... 39 6.2 THE RESULTS FRAMEWORK ................................................................................................................... 39 6.3 THE MEASUREMENT PLAN .................................................................................................................... 40 7. REFERENCES ............................................................................................................................... 52 8. ANNEX ....................................................................................................................................... 56 ANNEX 1: DEFINITIONS ............................................................................................................................... 56 ANNEX 2: BACKGROUND TO THE DESTINATION MANAGEMENT PLAN ................................................................. 58 ANNEX 3: PURPOSE AND USE OF THE DESTINATION MANAGEMENT PLANS ......................................................... 59 ANNEX 4: KEY LESSONS LEARNED: THE CHALLENGES OF DESTINATION MANAGEMENT .......................................... 61 ANNEX 5: THE SIX-STEP APPROACH TO THE ST GALLEN DESTINATION MANAGEMENT MODEL ................................ 62 ANNEX 6: LAO PDR TOURISM STATISTICS ...................................................................................................... 63 ANNEX 7: LAO PDR TOURISM KEY SOURCE MARKETS: EXISTING & NEW ............................................................ 67 ANNEX 8: ASEAN TOURISM STRATEGIC PLAN – STRATEGIC DIRECTIONS AND ACTIONS ......................................... 68 ANNEX 9: LAO PDR: PROPOSED DESTINATION MANAGEMENT NETWORK TASKFORCES ......................................... 69 ANNEX 10: LAO PDR: FEEDBACK FROM DMN ON DESTINATION MANAGEMENT PLAN, JAN 2016 ......................... 70 Lao PDR Destination Management Plan: 2016 - 2018 1. Abbreviations ADB Asia Development Bank AEC ASEAN Economic Community AFD Agence Francaise de Developpement ASEAN Association South East Asian Nations BAF Business Assistance Facility BKK Bangkok CBT Community Based Tourism CHRA Champasak Hotel & Restaurant Association CPATA Champasak Association of Travel Agents CPC Coffee Producers Cooperative, Champasak Province CTBP Champasak Tourism Business Promotion Project DBST Double Bituminous Surface Treatment for roads DEPT Department DEV Development MICT Department Information, Culture & Tourism DMC Destination Management Company DMN Destination Management Network DMO Destination Management Organisation EDC Enterprise & Development Consultants EMC Emerging Markets Consulting FIT Fully Independent Traveller GDP Gross Domestic Product GIS Geographic Information System GiZ Deutsche Gesellschaft für Internationale Zusammenarbeit GM General Manager GMS Greater Mekong Sub-region GOVT Government HNN Him Nan No Protected Area Khammouane HR Human Resource HRTAA Hotel, Restaurant and travel Agent Association, Oudomxay IBA Important Bird Area ICBF Integrated Conservation of Biodiversity and Forests INGO International Non Governmental Organisation INTL International IMCT Laos Institute Marketing, Culture and Tourism JICA Japan International Cooperation Agency KHM Khammouane KL Kuala Lumpur KOICA Korean International Cooperation Agency LANITH Laos National Institute of Tourism & Hospitality LP Luang Prabang Lao PDR Destination Management Plan: 2016 - 2018 LPG Luang Prabang LPHRA Luang Prabang Hotel & Restaurant Association LPTA Luang Prabang Transport Association LPATA Luang Prabang Association of Travel Agents LUXDEV Luxemburg Development M&E Monitoring & Evaluation MICE Meetings, Incentive, Conference & Exhibitions MICT Ministry of Information, Culture & Tourism MKT Market or Marketing MSME Micro Small & Medium Enterprises N/A Not Applicable NBCA Natural Biodiversity Conservation Area NGO Non Governmental Organisation NPA National Protected Area NTPC Nam Theun Power Company, Laos NZAID New Zealand International Development Agency ODX Oudomxay OPT Ock Pop Tok PAM Project Administrative Manual (ADB TIIG) PATA Pacific Asia Travel Association PDR People’s Democratic Republic PIU Project Implementation Unit PMC Handicraft Productivity & Marketing Centre, Oudomxay PRIV SEC Private Sector REF Refer or Reference SGDM St Gallen Destination Model SME Small Medium Enterprises UNESCO The United Nations Educational, Scientific and Cultural Organization TAEC The Traditional Arts and Ethnology Centre TIIG Tourism Infrastructure for Inclusive Growth Project, ADB TO Tour Operator ToT Training of Trainers TRANS Transport TSP Tourism Strategic Plan USD United States Dollar VTE Vientiane WWF World Wildlife Fund WCS Wildlife Conservation Society 4 Lao PDR Destination Management Plan: 2016 - 2018 2. Destination Profile - Lao PDR is centrally located in the heart of the Greater Mekong Region and South East Asia. - It is a landlocked country bordered by Myanmar and China in the northwest, Vietnam to the east, Cambodia to the south, and Thailand to the west. - Tourism is an important national economic sector that the government has placed as one of the eleven priority development sectors. - The country benefits from the advantages of its location, political stability as well as abundant and renowned natural, cultural and historical tourism resources. In addition, the ethnic diversity and friendliness of the local people are also key attractions for visitors. - International tourist arrivals have increased from 2.5 million in 2010 to over 4.2 million visitors in 2014 – growth of 65.5%. Ministry of Information, Culture and Tourism’s (MICT) target of achieving 4.5 million international visitors by 2020 will more than likely be exceeded1. - Domestic tourists account for 33% of all tourists. The sector is experiencing minimal growth with 2.08 million in 2014 and 2.03 million in 2013. - In 2014, the direct contribution of Travel and Tourism to GDP was LAK4,628.4bn (5% of total GDP) and is forecast to rise by 8.1% in 20152. - Despite all of this growth Laos tourism continues to compete with its regional competitors for ‘length of stay’ in the country. Laos is considered an add-on destination: 70% of international visitors visit other countries on their trip to Laos such as Thailand (60%), Cambodia, China or Vietnam (53%) or another South East Asian Country (18%)3. - 75% of all international visitors come from Thailand and Vietnam with Thailand a clear leader accounting for 52% of all international visitors. A high percentage of Thai visitors are day- trippers (they come to shop) to Vientiane from the Thanaleng Border Post and Savannakhet at Friendship Bridge II. Both of these border crossings account for 55% of all international arrivals. - Despite the high arrival numbers of Thai visitors their actual spending is extremely low (27% of total receipts). They spend very little on accommodation and transport due to their relatively short average length of stay yet more on food and beverages and retail trade. - The Chinese market reflects trends globally with large growth rates of 72% from 245,033 in 2013 to 422,440 in 20144. A lot of these visitors are business tourists followed by packaged tourists or ‘Amateur’ travellers (arriving by air, bus or car caravans)5. The extensive growth is largely due to the increasing trade relationships between Laos and China, the relaxation of the Chinese government’s previous restrictions on outbound travel, the introduction of government policies to increase Chinese leisure time and the rise of a Chinese middle class with higher disposable income6. - The European market
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