Impact of on an Urban Community in Vang Vieng District (SOSAMPHANH et al.)

The Impact of Tourism on an Urban Community in Vang Vieng District, Lao PDR

Bounthavy SOSAMPHANH*1, Sekson YONGVANIT*2, a) and Yaowalak APICHATVULLOP*2

Abstract The purpose of this research is to study the impact of tourism in Vang Vieng District, Lao PDR. The study adopted various research methods including observation and moni­ toring of the landscape modifications, interviews and data analysis. The statistics on num­ bers of visitors reflect the development of tourist attractions and support systems within the local area. Since the Lao PDR’s opening-up tourism policy was introduced in 1994, there has been a steady increase of visitors to the region. This study shows that from 2004 onwards numbers of tourists have increased dramatically, making an impact on the local communities as well as natural resources within the region. The positive impacts include an improved quality of life for the locals as well as an expansion of job opportunities in a variety of industries. The infrastructure has been consolidated and vacant lands have been utilized to generate additional income sources. Negative impacts from the expansion of tourist attractions are also found to be the rise in the cost of living, unbalanced develop­ ment, drug abuse, robbery, pollution in the Xong River, while traditional occupations of local people have slowly decreased. Among the problems in tourist management to be improved are creating more opportunities for local people’s participation, supporting the potential for tourism, suppressing drugs and preventing drought and pollution of the Xong River. Keywords: sustainable tourism, development of tourism, impact of tourism, Vang Vieng

local communities accepted this policy by de­ I. Framework of Study veloping tourist destinations to attract more visitors. On the other hand, the government Tourism promotions in Lao PDR over the opened its borders with neighboring countries past two decades have generated a dramatic to facilitate the visit of foreign tourists and expansion of domestic tourism with consoli­ support the investment in infrastructure to link dated networks. Concepts of tourism have been tourist resources. applied in accordance with the government’s In the case of Vang Vieng District in tourism promotion policy such as natural, cul­ Province, the tourism promotion tural and historical tourism, emphasizing com­ policy of Visit Lao Year in 1999–2000 and the munity participation and conservation of natu­ improvement of National Highway No. 13 ral and tourism resources for sustainable North (NHN 13) have enabled tourism in this community development (Lao National Tour­ town to grow so rapidly. Subsequently, tourism ism Administration, 2006). On the one hand, became the main income source of the district

*1 PhD. candidate, Faculty of Humanities and Social Sciences, Khon Kaen University *2 Faculty of Humanities and Social Sciences, Khon Kaen University a) Corresponding Author

― 2 7 ― Regional Views No. 26 2013 through local people’s response in providing and the establishment of sustainability. visitors with various facilities, activities and services, which created many job opportuni­ II. Background of Tourism in Vang Vieng ties. Thus tourism benefited the local commu­ District nities and improved the life and economic situ­ ations of local people. However, at the same 1. Overview of Tourism in Lao PDR time, this tourism development affected the lo­ Before the implementation of Lao PDR cal communities in such negative ways as un­ opening-up policy, tourism in Lao PDR devel­ equal development and income distribution as oped spontaneously. There was no manage­ well as degradation of the physical characteris­ ment of tourist businesses. Most foreign tour­ tics and environments of communities. It also ists who visited were government had serious impact on the social and cultural representatives or international agencies rather traditions of the local community (Vang Vieng than holiday tourists. The foreign visitors were District Tourism Office, 2010). These negative mainly from the former socialist countries. impacts are already known not only to domes­ Since 1986, Laotian tourism has developed tic and foreign tourists but also to the mass and expanded rapidly, and it gradually came to media. Local people are also concerned about play an important role in social and economic the side effects of development on the commu­ development. The government’s new compre­ nity and resources. It is urgent to find a way to hensive policy and enlarged foreign coopera­ establish sustainable tourism in this area. tion policy changed from spontaneous tourism In this article, the author studies the impact to market-oriented business operations, which of tourism on urban communities in order to enabled Laotian tourism to grow steadily. The solve the above-mentioned problems. For that Lao National Tourism Company, founded in purpose, it is essential to make clear the actual 1989, was the first tourism company that oper­ situation of tourism management and the per­ ated tourism business in the name of the gov­ ceptions of community leaders, local commu­ ernment. Until 1991, this company monopo­ nity members and related entrepreneurs re­ lized tourism in the country, sometimes as garding prevention of negative impacts from joint-venture business with private sharehold­ tourism in Vang Vieng District. This study em­ ers, before private tourism companies emerged. ployed surveys, reviewed relevant documents In 1992, the government of Lao PDR set up and conducted interviews with community the Lao National Tourism Authority and com­ leaders, household representatives, entrepre­ missioned it to leverage the expansion of tour­ neurs and government officials in Vang Vieng ism. Subsequently, various policies and provi­ District involved with tourism especially in sions associated with tourism were announced, Vang Vieng Urban Community. The stages of resulting in the dramatic growth of the indus­ research are as follows: try. The number of foreign visitors increased a) Study the total area in the context of tour­ on a large scale: for example, in 2000, foreign ism development in Vang Vieng District by re­ tourists visiting Lao PDR doubled to 737,208 viewing relevant documents as well as explor­ from only 346,460 visitors in 1995, generating ing the local field through on-site survey. a total income of 912 billion kip (US$ 114 mil­ b) Interview with target respondents in­ lion) which was considered the largest income volved in the management of the main tourist in all exporting economic sectors (Phabouddy attractions in Vang Vieng District that seem to et al., 2010). have most impact on social, economic, cultural The number of foreign visitors to Lao PDR and environmental aspects of urban communi­ increased at even higher rate from 2004, as ty, causing the issues that concern local people, shown in Fig. 1. In 2010, Lao PDR accepted and then seeking prompt countermeasures 2,513,028 foreign tourists who brought a total c) Analyze the results of the survey in order income of 3,056 billion kip (US$ 382 million). to learn the impact of development and pro­ Tourism industries have expanded rapidly in pose measures for the improvement of tourism each district, where various tourist resources

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Fig. 1. Number of tourist arrivals to Laos (1990–2011) Source: Lao National Tourism Administration, 2012.

Table 1. Number of Accommodations, Restau- tourist activities. Another important tourism rants and Travel Agents in Laos resource is limestone caves. There are more Year Accommodations Restaurants Travel agents than 30 caves around the town and over 20 2004 957 589 82 caves have been opened for general visitors. In 2007 1,331 976 162 addition, good weather, beautiful landscapes, 2010 1,870 1,254 266 local traditional culture and unique life style Source: Annual Report of Lao National Tourism Ad­ also have potential for tourism in Vang Vieng ministration. District. It should be mentioned that there are also several other natural tourism resources lo­ have been developed. Within the whole coun­ cated not far from the main road (NHN 13). try, there were 434 cultural tourist sites, 209 Vang Vieng District is on the route between historical tourist sites and 849 natural tourist the capital of Vientiane and the World Heritage sites. Various business facilities related to tour­ City of , and this advantageous ism have been expanded as well (Table 1). location provides the area with an opportunity to welcome tourists. Those travelling between 2. Potential of Tourism in Vang Vieng Dis- the two cities are increasing year by year, and trict the town of Vang Vieng is developing rapidly Vang Vieng District is located in the north­ with infrastructure and support systems. At ern part of , and the town present, in the municipal area, hotels, guest­ lies about 156 km from the city of Vientiane on houses, resorts and bungalows number a total the NHN 13. More than two thirds of the dis­ of 105 premises with 1,672 rooms able to ac­ trict area is mountainous, mostly of limestone commodate 2,484 people per day, with 102 peaks and cliffs with different shapes and siz­ shops and restaurants with a seating capacity es. The average annual temperature is 25 de­ of 2,544 (Vang Vieng District Tourism Office, grees Celsius with an average annual rainfall 2012). Every day, more than a couple of thou­ of 3,681 mm. There are two seasons in a year; sand visitors arrive in this town. the dry season from late October to April and the wet season from May to early October. III. Development of Tourism in Vang Vang Vieng District can be reached through Vieng NHN 13 on which several scheduled bus ser­ vices are available every day. 1. Expansion of Tourism Among the important attractions to visitors Laos was a closed country before 1986, and are its natural tourism resources (Fig. 2). The in addition, unconnected local road systems Xong River is the main river of the district impeded accessibility to Vang Vieng. with the capacity to support various aquatic Travelling to Vang Vieng was mainly for the

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Fig. 2. Map of Vang Vieng District and its tourist sites. Source: Updated from Vang Vieng map and field survey on 30 Dec. 2011–4 Jan. 2012.

Fig. 3. Number of tourist arrivals to Vang Vieng from 1997–2011 Source: Vang Vieng District Tourism Office (2012) purpose of visiting relatives or friends, not nization’s delegation, primarily from former business travel. There were few foreign tour­ socialist countries (Phabouddy et al., 2010). In ists although some foreign tourists infrequently 1986, the government adopted an open door paid a visit as a country’s or international orga­ policy to foreign investment, introducing mar­

― 3 0 ― Impact of Tourism on an Urban Community in Vang Vieng District (SOSAMPHANH et al.) ket-oriented business management systems. that rainy season could be another reason. This enabled foreign visitors to travel in Lao As to the expansion of tourism resources in PDR officially (Yamauchi and Lee, 1999). By Vang Vieng District, there were only 9 caves 1995, having realized the importance of tour­ open to tourists in 1999, whereas by 2011, 20 ism, the National Assembly of Laos identified caves had been opened to tourists. In addition, the tourism industry as one of the priority sec­ 5 cultural tourism resources and 3 agro-tour­ tors in the action plans of national develop­ ism resources have been developed, and the ment. Investment in infrastructure was acceler­ number of accommodations in the town has in­ ated to expand tourism and road traffic creased, comprising 2 hotels, 85 guesthouses, between the cities of Vientiane and Luang 8 resorts and 10 bungalows. A large number of Prabang gradually increased. restaurants and various facilities for tourist ser­ With its advantageous location on the na­ vices have also opened business. Among the tional highway connecting the two cities, the factors which have promoted tourism in Vang residents of Vang Vieng took this opportunity Vieng since Visit Laos Year is the massive gov­ for urban development to attract en route trav­ ernment investment in infrastructure develop­ elers as well as advertising their district as one ment such as extension of electricity network of the most charming tourist sites in Laos. In from Nam Ngum Hydropower System, con­ 1994, the first tourism service was set up in struction of local water supply system, im­ Chang Cave area by Mr. Seng Phanit, an entre­ provement of road and transportation system preneur from Vientiane. Subsequently, he ex­ as well as establishment of a responsible agen­ panded development of natural tourism at cy to administer tourism directly. In accor­ some other tourist spots as well, building vari­ dance with this public development, the private ous facilities. In 1996, there were only 1 hotel sector has invested in the development of ac­ and 12 guesthouses in the municipal district, commodation facilities, restaurants and other and according to the first statistical record of services for visitors. tourists to Vang Vieng in 1997, there were only 4,468 visitors excluding those who did not stay 2. Tourism Management in Vang Vieng in accommodation. District The government announced Visit Laos Year In Vang Vieng District, the government is­ in 1998, which enabled its tourism to grow sues permits to operate tourism services, while dramatically (Fig. 3). For instance, accommo­ the actual tourism activities are mainly operat­ dations, restaurants, shops and other tourist ed by local people. Tourism groups and associ­ service facilities apparently increased, as it ations are organized to provide various types took only one year to double the total number of services as shown in Table 2. of tourists visiting the district from 6,694 in Among the services, tubing on the Xong 1998 to 14,436 in 1999. This increase of tour­ River is one of the most common and benefi­ ists continued, except for the period of 2003– cial activities to all communities. At present, 2005, when the Iraqi war and the tsunami di­ there are 10 different groups of tubing service saster in affected the growth rate of in the district, and almost every household in foreign tourists. Another negative factor at that the urban area is a member of a group. The time may have been the unsafe conditions for members hold equal shares in the association travelers along the NHN 13. Although the run by each community, with the shares vary­ number of tourists in Vang Vieng grew steadily ing from 350,000 to 850,000 kip per member again after 2005, the number of tourists in (1 US$=8,000 kip). The management of tubing Vang Vieng District declined for the first time activity is not so difficult. Every day, a small from 156,202 in 2010 to 148,696 in 2011. This unit of members is stationed at the service cen­ is partly because of the flood disaster in ter to rent out inner-tubes to tourists at 55,000 Thailand, the entry point by which many for­ kip per tube per day with an additional cost of eign visitors travel into Lao PDR. In addition, deposit of 60,000 kip per day. They arrange to the damage of NHN 13 by heavy rains during transport the inner-tubes to the upstream float­

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Table 2. Types of Tourism Service Associations and Groups Tourism Service Associations or Groups Services Activities Tubing association (10 different groups) Management of tubing on the Xong River Guesthouse-hotel association Accommodation service for visitors Restaurant and entertainment association Food, drinks and entertainment service Transportation associations (tuk-tuk, van, Transport service to tourist sites two-rowed pickup, bus) Canoe-Kayak service group Management of canoeing and kayaking on the Xong and the Lik Rivers Long-tail boat service group Long-tail boat cruise service on the Xong River 1) Trekking 2) Cave tour 3) Bicycle tour for enjoying nature and local lifestyle Tour guide service group 4) Historical and ancient tour 5) Cliff hanging 6) Balloon tour ing points located about 4 km north from the 1. Impacts on Human Aspects town with tuk-tuk service unit for a charge. It As to the positive impacts on the economy, costs 5,000 kip to transport a tube ring from many respondents (62.5%) agreed that tourism 8 : 00 am to 16 : 00 pm. In case any customer created new employment opportunities for lo­ fails to bring the tube rings back to the service cal people in Vang Vieng, generating addition­ center by 16:00 pm, they will be charged al income which is estimated at more than 50% 20,000 kip deduction on the deposit for late re­ of the total income. This corresponds to the re­ turn, and if the tube rings are lost or not re­ port of Lao National Tourism Administration turned, the deposit will not be refunded. (2009), which mentioned that in 2009, 60% of This tubing service management generates income in Vang Vieng was from tourism. As a almost the same level of income for the local result, the household sector could enjoy a mod­ people in the community. Each member re­ erate level of income. On the other hand, the ceives their monthly dividend at the end of the survey also showed negative impacts. More month after deduction of operational costs, tax than half of the respondents (56.25%) agreed and other public imposts. The costs of deduc­ that land prices had soared sharply, especially tion are calculated at the following rates: (a) in proximity to the developing zones in the Duty cost to Vang Vieng District at 5%, (b) municipality. Rise of living cost was also men­ Village Development Fund at 5%, (c) group or tioned by half of the respondents whilst outside association fund for service development at investors’ occupation of economically benefi­ 5%, (d) management cost at 3%, (e) environ­ cial areas was recognized by 37.5%. The out­ mental protection cost at 1%. In the end, each siders have generally invested in hotels, re­ member will receive a monthly dividend of sorts, trading and tourist packages while the about 80,000 kip to 120,000 kip majority of labor has been supplied by the lo­ cals. IV. Impacts of Tourism With respect to the social impacts, many re­ spondents (68.75%) strongly agreed that tour­ According to the interviews with 32 manag­ ism improved the well-being of the communi­ ers of tourism services in Vang Vieng Districts, ty. They consider that the expansion of tourism both positive and negative impacts are found in in Vang Vieng has led to less labor migration association with the tourism development. as well as more cooperation among the local people in middle to higher-level social classes. The survey also revealed that 43.75% of the

― 3 2 ― Impact of Tourism on an Urban Community in Vang Vieng District (SOSAMPHANH et al.) respondents were satisfied with the improve­ (56.25%) are concerned about the invasion into ments of social infrastructure in the municipal­ public natural lands by buildings for accom­ ity. However, many respondents (62.5%) modation, restaurants and beer bars. Other pointed out that tourism could cause an imbal­ problems mentioned by respondents include ance in development in certain areas of Vang the interfering with surrounding views by tall Vieng. Another negative impact was answered and overcrowded buildings as well as noise by 56.25% in that the tourism could encourage pollution by tourists (37.5%). prostitution, drug abuse and robberies, and a Before the expansion of tourism in Vang further 31.25% mentioned that the traditional Vieng, the spatial structure of this town was occupations of local people were deteriorating simple in terms of land use. The land was slowly. mainly used for housing and government As regards the impact on culture, as many as buildings, or otherwise remained vacant with three quarters of the respondents acknowl­ the former site of an airfield used during the edged that tourism has led the local people to War located at the eastern edge of the be aware of the necessity for conservation of town. The density of built-up area was not so historic sites, local culture and traditional ways high and such important facilities as municipal of living. A positive impact mentioned by market, bus station and government agencies 62.5% was the improvement of English skills. were located in the center of town. As tourism Some respondents (43.75%) referred to the ex­ started to grow, the land use was changed rap­ change of culture with tourists as a positive idly, especially after tourism regained its impact, and the same number of respondents growth in 2006. For example, the municipal agreed that tourism supported the diversity of market and bus station were relocated to the local culture. However, a few (25%) consid­ north of the town about 2 kilometers away ered that the expansion of tourism in Vang from the former sites in 2007 and 2008 respec­ Vieng disturbed local culture with the intrusion tively. Some government agencies also moved of Western culture, with 37.5% recognizing out to the new developing zone about 3 kilo­ such behavioral change as teenagers imitating meters away from the center of the town. western dressing styles of wearing miniskirts Moreover, the infrastructure was developed on or pants instead of sarong. As many as 31.25% a large scale in the town area. These changes of agreed that tourism damaged the value of local land use were caused by the rapid expansion of art and tradition. built-up area, which was attributed to the growth of tourism (Serey et al., 2010). Most 2. Impacts on Physical Aspects land in the town has been utilized for tourist As to the environmental impacts, the major­ facilities such as hotels, resorts, restaurants, in­ ity of respondents (62.5–75%) agreed that ternet café, rent-a-car shops, tour guide shops tourism encouraged the development of infra­ and so on. And the majority of the respondents structural facilities in the municipality. The (56.25%) recognized that the former vacant government has invested in roads, water-sup­ and vacated land had been successfully utilized ply canals, pipes and hydrants, electricity and to generate additional income. garbage disposal. The recreational sites have Figure 4 shows that the facilities for resorts, been developed as tourist attractions. On the restaurants and other tourist services were not other hand, some people are concerned about so large in area and concentrated mainly in waste disposal, water pollution and cleanliness Savang District next to the former airfield in of the town so as to be more attractive to visi­ the west. However, in Fig. 5, the area used for tors. For example, 37.5% recognized that tour­ tourist facilities is much more extensive and ism caused water pollution in the Xong River crowded in Savang District. Some facilities are through garbage dumping by tourists, entrepre­ expanding into the nearby villages along the neurs and community members, which corre­ main road and small side-streets, or even tres­ sponds with the report of Serey et al. (2010). passing on the bank of the Xong River. In addition, more than half of the respondents

― 3 3 ― Regional Views No. 26 2013 Source: author’s survey and interviews Source: author’s Distribution of tourist facilities in Vang Vieng Town in 2005 Town Vieng Vang Distribution of tourist facilities in 4. Fig.

― 3 4 ― Impact of Tourism on an Urban Community in Vang Vieng District (SOSAMPHANH et al.) Source: author’s survey in August 24–27, 2011, March 2–8 and May 4–7, 2012 August 24–27, 2011, survey in Source: author’s Distribution of tourist facilities in Vang Vieng Town in 2012 Town Vieng Vang Distribution of tourist facilities in 5. Fig.

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Table 3. Elements of sustainable tourism and the importance of the idea of community

Evaluation of importance by community (%) n=32 Elements of sustainable of tourism least less moderate much most Tourism providing local people with more job – 6.25 6.25 68.75 18.75 opportunities Income distribution from tourism acceptable to all – 6.25 18.75 68.75 6.25 stakeholders Supply of local materials and products to tourism 6.25 18.75 18.75 56.25 – sector Consideration on carrying capacity in tourism 6.25 12.5 31.25 37.5 12.5 development Community participation in tourism management – 18.75 43.75 37.5 – Source: Interview with the people in Vang Vieng town.

the local people. They want to prevent the de­ V. Evaluation of Elements for Sustainable creasing of water level and water pollution in Tourism by the Community the Xong River as well as careless accidents, drug abuse and other problems attributed to As shown in Table 3, among the five impor­ unmanageable numbers of tourists. tant elements for sustainable tourism, three of Tourism in Vang Vieng focused mainly on them are considered important (most or much) activities that can bring quick and stable in­ by the majority of the respondents (over 50%), come. The activities that take a longer time and while less attention is paid to the other two ele­ yield small income, such as trekking in the for­ ments; namely (1) consideration on the carry­ est or making handicraft or souvenirs, do not ing capacity in tourism development, and (2) attract the interest by the local people. community participation in tourism manage­ Accordingly, those tourists who are attracted ment. It will be necessary to improve the local by the diversity of local wild life have to travel people’s recognition of these two elements so in the forest by themselves and some of them as to make tourism sustainable in Vang Vieng met with an accident or were even killed on the District. jungle tracks. As well, even in the case of such According to interviews with community popular activities as tubing, kayaking or drink­ leaders, it was found that tourism management ing at a bar by the Xong River, many tourists in Vang Vieng is not equally open to every have accidents every year because the entre­ community member in some service activities preneurs neglect safety in order to make quick­ such as canoeing/kayaking service and long- er and larger income in a situation of keen tail boat service. Only some families can par­ competition. ticipate in these service groups to make in­ come. In the case of tubing association, every VI. Final Remarks family can hold membership, but the opportu­ nity is limited only to those who live in the ur­ Vang Vieng District is one of the most favor­ ban community area. The families from out­ able tourist areas in Lao PDR as it is located side the urban area cannot benefit directly from between two major cities. Within its urban this business. These points are not yet taken area, there are various tourism resources such seriously by the local people. as water bodies, caves, mountains, cliffs and As for the element of carrying capacity, the traditional ways of living of indigenous people. local people in general have not yet realized its Therefore, once the national policy of tourism importance. However, the water level in the expansion was reached, it transformed this dis­ Xong River is decreasing every year, and some trict into a popular destination for both domes­ people are very concerned about it as the activ­ tic and international tourists. Since the tourism ities on the Xong River bring a lot of income to service management in Vang Vieng District

― 3 6 ― Impact of Tourism on an Urban Community in Vang Vieng District (SOSAMPHANH et al.) started in 1994, its various tourism service ac­ University, who contributed their gener­ tivities and facilities dramatically expanded to ous help to this article. I am also indebted to support the increasing number of tourists. the Center for Research on Plurality in the At present, the groups and associations that Region (CERP) and the Graduate manage tourist services come to more than 10 School, Khon Kaen University for the research types. Tubing and kayaking on the Xong River fund. as well as visiting the caves are especially pop­ ular among the tourists. Most visitors to Vang References Vieng District are adolescent backpackers, some of whom behave badly with negative im­ Lao National Tourism Administration. 2006. Tourism pacts on the local community such as extrava­ Strategy from the Year 2006–2020 of Lao PDR. Vientiane: Lao National Tourism Administration. gance with food and drink or immodest cloth­ Lao National Tourism Administration. 2009. Master ing. However, tourism has benefited the Plan for Tourism Districts Administration: Vang community a lot and has been the key to im­ Vieng the Year 2010–2020. Vientiane: Lao prove the life and economic well-being of local National Tourism Administration. people. Nonetheless, it is important to note that Lao National Tourism Administration. 2012. more opportunity for local people’s participa­ Statistical Report on Tourism in Laos. Vientiane: tion and more careful development for carry­ Planning and Cooperation Department, National ing capacity will be needed to encourage and Tourism Administration. sustain tourism. The issue of wider participa­ Phabouddy, S., C. Chansombut, K.Siphandone and tion may include the distribution of income not S. Sivaravong. 2010. History and Lao Tourism only within the urban community but also Resources. Vientiane: Lao National Tourism Administration. among outside communities. Serey, D., S.Wayakone, P. A. Monzon, and P.T.Luon. 2010. An assessment of environmental impacts of Acknowledgments tourism in the Lower Mekong basin. Vientiane: Mekong River Commission. This article is a result of the cooperation of Vang Vieng District Tourism Office. 2010. Report many parties. The author would like to thank on Tourism Situation of Vang Vieng District. the Chiefs of various offices in Vang Vieng Vang Vieng: Vang Vieng District Tourism Office. District; namely Tourism Office, District Vang Vieng District Tourism Office. 2012. Administrative Offices, Urban Development Statistical Report on Tourism in Vang Vieng Organization and local people in Vang Vieng District. Vang Vieng: Vang Vieng District Community. Special thanks go to all professors Tourism Office. Yamauchi, S. and Lee, D. 1999. Tourism develop- in Curriculum for Development Sciences, ment in the ’s Democratic Republic. Faculty of Humanities and Social Sciences, New York: Department of Economic and Social Khon Kaen University, and Prof. Dr. Tetsuo Affairs, United Nations. Satoh at Department of Geography, Komazawa

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