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The Laos Conundrum
 
the laos conundrum
This year ASEAN Tourism Conference, the conference component of ATF (ASEAN Tourism Forum), focused on the business aspects of responsible tourism and how they applied to all destinations, whether mature or emerging.
That it was held in a new convention centre in Ventiane, built at a cost of US$10 million in time for ATF, in a country eager to prove it could host ATF at all costs, drove home questions on the wisdom of that business decision.
Was it indeed a business decision? Or was it down to national pride, egged on perhaps by Cambodia’s successful hosting of the show the year before? Had Laos thought hard enough if the move was sustainable to its own tourism development design? Is there a design, to begin with?
It is hard not to worry for a country as precious as Laos, with its UNESCO world heritage sites such as the 14th century city of Luang Prabang, ancient provinces such as the 3,000-year-old Plain of Jars in Xieng Khouang, as many as 20 pristine national parks that lend themselves to eco-tourism products and, above all, friendly people who are so dearly hospitable, as ATF itself has shown.
But ATF has also shown that Laos was not fully prepared for it. There were reports of buyers leaving early - these were among those housed poorly, unfortunately. There were reports of missed appointments at Travex, attributed to accessibility problems such as getting taxis. Like it or not, no matter how open-minded people think they are about emerging destinations, the reality is they still want a modicum of standards they are used to when holidaying or doing business in these destinations. Especially travel buyers, as this ATF has shown.
Is Laos in danger of approaching tourism with abandonment? Revenues from tourism rose to US$113 million in 2002, a figure enough to make anyone’s eyes dance. By now, tourism has become Laos' number one income earner. From a mere 14,400 visitors in 1990, just after its reform and open-door policy, Laos welcomed 735,660 in 2002. One wonders, at what point niche become mass?
In his keynote speech at the conference, Accor Asia Pacific chairman, Mr David Baffsky, a champion of sustainable tourism, used Cambodia's Angkor Wat as a case study in terms of the balance required in sustainable development.
Mr Baffsky said: "Why are tourists coming to the destination? Because they want to see the temples in their original state and they want them preserved. But tourists also want 21st century comforts and convenience, despite the fact that only a few decades ago, the area was a battleground.
"In turn, Cambodians are impatient in wanting to participate in the economic benefits. They want tourism to provide jobs, opportunities for their children, better health and education services and all the trappings of a modern economy - and they want it now."
Mr Baffsky's message was clear: achieve the right balance and do it now. Asia has a unique opportunity as it could learn from the mistakes made in the “so-called developed countries”. And the timing is never more opportune because of several reasons.
Consumers are being far more discerning about the hotels or tourism products they support. This forces companies to become more social, environmental and community-focused. The development of “ethical indices” around the world’s stockmarket also make it increasingly impossible for companies not to subscribe to sustainable development and social responsibility principles. Those such as Accor are also finding that it simply makes sense, that their strong sustainable development practices do have a direct and significant impact on the bottomline (see our pick of Accor's best eco-practices).
Asked for his opinion on Laos in a separate interview with TTG Asia, Mr Baffsky stressed that economic progress/development and mass tourism need not necessarily be in conflict.
Walking around Vientiane, he said he was impressed by the efforts of the Laotians in cleaning up the city for ATF and in trying to achieve balance in its tourism development.
Mr Baffsky said: "It would be interesting to understand what the logic was for the development of this (convention) centre. I am sure it cost a lot, it is a large centre. It needs to be underpinned by realistic views that it is going to be utilised to generate trade and tourism. Now this does not necessarily relate to mass tourism. There is no real conflict between economic progress and development, and mass tourism."
Tabuteau.
He added: "Laos is not a country that will ever satisfy mass tourism. It is always more of a niche tourism destination to my mind, part of a network of tourism in Indochina, ie, it is part of a tour within a region that has wonders of the world in a preserved state. By saying they do not want mass tourism is indicative that they want to be responsible.
"I do think there is not enough accommodation. It need not be five-star; just decent basic accommodation."
East-West Siam's managing director, Mr Vincent Tabuteau, another champion of sustainable tourism and a developer of eco-tourism lodges in northern and southern Thailand, said Laos needed the infrastructure and therefore its hosting of ATF was a good impetus for the country. On whether the kind of infrastructure should be small-scale projects that support local communities, rather than convention centres that might end up as white elephants, he said: "They have to start from scratch and do both, ie, invest at the base and also get to the hill (with small-scale projects that support local communities).
"But Laos does have to be careful that while it is building, there is a harmonious distribution of products. Problem is, investors find it easier to bet on one huge project (such as a convention centre) than 10-20 small-scale ones," he said.
Horwath Asia/Pacific managing director, Mr Robert Hecker, said eco-tourism projects were growing and spreading in Asia-Pacific and "good” eco-tourism products generated a premium spend. The problem in getting financing for them, however, had to do with several factors.
Among them: lenders are not familiar with ecotourism projects; project proposals are poorly presented/justified; if there are benchmark ecotourism projects, they are few or not well-known; and the reality is these projects compete for a limited pool of funds.
During a panel discussing key impediments to sustainable development in the region, Mr Tabuteau also said that local administrations must be made to be more aware of the issue.
"Given a marble lobby or a small hotel on the beach, they appreciate the marble better," Mr Tabuteau said
Posted on 20 May, 2008, Resource from TTG


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