Development of Tourism in the Greater Mekong Subregion

Development of Tourism in the Greater Mekong Subregion

Tourism is recognized as one of the fastest growing industries in the world. Over the next decade, it is expected to present major opportunities and major challenges for countries of Asia and the Pacific. In particular, the Greater Mekong subregion (GMS) - comprising Cambodia, Lao People’s Democratic Republic, Myanmar, Thailand, Vietnam and Yunnan Province of China- has great potential to attract visitors from around the world. With a trend now firmly established towards the liberalization of policy on tourism issues, the prospects for building up tourism into an important economic activity throughout the subregion have brightened considerably.

Tourism already contributes substantially to foreign exchange earnings, employment and government revenue; and direct, indirect and induced income in a number of countries in the region. It has also been found to help reduce regional economic disparities within countries, since areas suitable for tourism development are often situated far from the main centres of other economic activities. However, an important point needs to be stressed: A clearly defined policy towards tourism must first be in place; otherwise, adverse effects on a country's economy, society, culture and environment can be expected.

To optimize the benefits from tourism, countries of the Greater Mekong subregion which are in the early stages of tourism development will need to be more aware of its various impacts and implications: the economic impact, correct environmental management for tourism infrastructure investment and development, human resources development for the service sector, additional travel arrangements to expand intra-regional tourism, and the promotion of regional and sub-regional tourism, including tourism along the Asian Highway.

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Mekong Tourism Investment Forum 2007

Mekong Tourism Investment Forum 2007

Ho Chi Minh City, Vietnam

Tourism authorities from the six countries of the Greater Mekong sub-region met in HCM City on 29-30 March 2007 to seek common strategies to encourage investment in privately owned facilities and services.

One of the main speakers, Dr Pham Tu, Vietnam National Administration for Tourism (VNAT) deputy director general, said the forum sought ideas from the business community, tourism authorities and financing institutions.

The goal was to make the area a major tourism destination and contribute to poverty alleviation and sustainable tourism development, he said.

More than 150 representatives of the business community and tourism authorities from Viet Nam, Laos, Cambodia, Myanmar, Thailand, and Yunnan Province in China attended the second annual Mekong tourism investment forum.

Financial lenders, academics, experts and observers also contributed their ideas toward creating sustainable tourism, especially for small- and medium-sized companies that operate in the private sector.

Held by the ADB and VNAT, the forum explored specific investment options, including common commercial bank loans, currently available SME funds and soft-loans, venture capital, and personal financing.

Delegates also discussed green certification, networking and mentor programs and proposed solutions that ADB and other related institutions could support.

Dr. Tu said the Greater Mekong Sub-region, which covers 2.5 million sq. km and has a population of more than 300 million, has great potential for tourism development, with 14 UNESCO World Heritage Sites and monuments.

(www.mekongworldheritage.org http://whc.unesco.org/en/list)

In 2005, GMS received more than 20.5 million visitors, accounting for 11 per cent of the total number of tourist arrivals in the Asia-Pacific region. The figure is expected to grow to 50 million in 2015. Dr. Tu said in 2005 the GMS tourism sector earned US$16 billion and generated more than 4 million jobs.

Kamol Ratanavirakul, senior consultant at the Institute for SME Development of Thailand and president of Thai Hotel and Hospitality Management Association, said the International Finance Corp, ADB, the Japanese Overseas Economic Cooperation Fund and other lending institutions should provide more support to SMEs in the region.

That could be done by setting up a tourism development fund providing low-interest loans to tourism SMEs, he said.

According to an ADB report, participation by the private sector in the GMS was mixed. In Cambodia and Thailand, tourism-related businesses all belong to the private sector, while in China’s Yunnan Province, Laos and Vietnam, many are government-owned, particularly larger hotels. However, many small- and medium-sized travel agencies in Vietnam are in the private sector.

For further information please contact: www.mekongtourism.org

China to become world most popular tourist destination by 2020

China to become world most popular tourist destination by 2020

The World Tourism Organization predicts that in 2007, the number of overseas tourists in the Asia-Pacific region will grow at an annual rate of more than 4%, while China will become the world's No.4 most popular tourist destination. It is expected that China will exceed the United States to become the No. 1 tourist destination in the world by 2020,, the Yangcheng Evening News reported.

China's fast growing tourism industry has promoted the growth of other related industries, such as hotel industry and catering business. Many world-renowned hotels have established their chain hotels in China. Of the 200 five-star hotels in China, 60% are world famous brand hotels. In China, hotel business market is large and mature, which is irresistibly attractive to global hotel business. Their success in China means they have controlled a large market share in the world.

China's hotel industry started to generate profits in the fiscal year of 2005-2006, according to the "China Hotel Industrial and Research Report for the Year of 2007". The general performance of hotel industry is good as the accommodation rate of hotel rooms and the average price of rooms are both climbing. It is expected that the good situation will continue in 2007 and 2008, and hotel industry can continue to grow between 2007 and 2010.

In 2008, some 1,079 new hotels will open in the world, which can provide 131,517 guest rooms. This shows that in 2008, the net growth of new hotels will reach 2.8%. More hotel construction will begin in the Asia-Pacific region, particularly in China, where nearly 50% of the new construction will occur. China's hotel industry has made the fastest development in the world. As a result, other industries related with hotels have also witnessed a fast momentum of growth. In China, demand for hotels increases at a rate of more than 10% every year.

Tourism Boom

China has seen a boom in tourism in recent years. The country's tourism industry is expected to bring record revenues of a trillion yuan, up ten percent from 2006, according to the National Tourism Administration.

Some 129 million inbound visitors from overseas are expected to visit China in 2007, five million more than that last year. Domestic tourists are projected to take 1.5 billion trips within the country, up eight percent against last year.

The Chinese government has been encouraging its citizens to travel more to stimulate domestic consumption. China earned 33.5 billion U.S. dollars from tourism last year, making the country the sixth highest tourism revenue earner in the world.

Source: ChinaNews

19th GMS Tourism Working Group Meeting in Ho Chi Minh City, Vietnam

19th Meeting of the GMS Tourism Working Group

Mekong Tourism Coordinating Office (MTCO) is organising the 19th Meeting of the Greater Mekong Sub-region, Tourism Working Group in Ho Chi Minh City, Viet Nam. The meeting is kindly being hosted by the Viet Nam National Administration of Tourism and will be held on Thursday, March 29, 2007 from 09.00hrs – 18.30hrs. at the Rex Hotel .

Thereafter, a forum organised and sponsored by Asian Development Bank, Viet Nam National Administration of Tourism and Viet Nam Airlines will be held on Friday, March 30, 2007 also at the Rex Hotel

Entitle: Greater Mekong Subregion Sustainable Tourism Development Small and Medium Enterprise Investment Forum (TA 6279-REG) - Building a More Conducive Environment for Investment in Sustainable Tourism SMEs.

To know more about Mekong Tourism Forum or would like to know about Mekong Tourism and its activities, please check www.mekongtourism.org

Laos Opens Wartime 'Cave City' to Visitors

VIENGXAY, LAOS , March 6, 2007 -- A collection of dramatic caves that provided shelter to 23,000 Laotians during nine years of aerial bombardment in the Indochina War, has now been opened to the public.

Between 1964 and 1973 Laos became caught up in a secret war that remains largely ignored in world history. Up to 480 caves in Viengxay district in Houaphanh province were transformed into a de facto cave city. The caves were used to house leaders and fighters of the Phathet Lao army. Many caves had specialist functions such as hospital, shop, school, printing house, government office, bakery and theatre. In the hospital cave, patients were treated by Cuban doctors.

Today, five of the caves are open to the public. More caves will open soon. The surrounding area is a remote and scenic province of karst mountains, tall waterfalls, hot springs and a protected forest that is home to tigers and leopards. The area is rich in ethnic villages, silk weaving and archaeological sites. In the surrounding hills villagers live in simple wooden huts. Some still hunt with crossbows. Some weave intricate textiles on elaborate looms. Many grow rice on steep hillsides or in lush green paddies.

"At the height of the bombing it was impossible to imagine that tourists would one day wish to visit this place to learn about our experience," says Mr Phonekeo Latsachanh, who lived in one of the caves in Viengxay from 1964 to 1973. At the time he worked as an official in the cave designated as a trade office. "It's important that Lao people can now tell foreigners their story," he says.

Houaphanh province is the poorest in a country where 40% of the population survive on less than US$1 per day. Locally, tourism is now being heralded as a vital tool in the fight against poverty. The development of Viengxay has the support of the Laotian government. The Prime Minister's office has a permanent representative on the committee set up to oversee developments at Viengxay, the physical birthplace and spiritual cornerstone of modern-day Laos .

The Lao government has asked the World Tourism Organization (UNWTO), the Netherlands Development Agency (SNV) and the Asian Development Bank to develop the location as a tourist destination and world peace site that focuses upon poverty reduction and the needs of local people.

Over 20 tourism and heritage trainers have been brought in by international organisations to deliver practical advice that will help villagers benefit from the expected growth in tourism. Former war heritage sites such as the Cu Chi tunnels near Ho Chi Minh City (Saigon) in Vietnam and the Killing Fields Memorial at Choeung Ek near Phnom Penh in Cambodia attract hundreds of international visitors daily.

The Lao government hopes to create similar interest in Viengxay where the Lao National Tourism Administration (LNTA) is recording oral histories that visitors can listen to while they walk around the network of caves. The plan is to develop Viengxay as a national heritage town to be explored on foot.

"The Lao vision is to recreate the caves and tell the people's story," says UNWTO's Dr Harsh Varma who believes events at the cave system were remarkable. "Viengxay was a triumph of ingenuity and comradeship in the face of what many historians believe was the longest and most intensive aerial bombardment in world history."

However, visitors to this remote corner of northeast Laos must not expect an easy journey. While helicopters can be hired to Viengxay's airstrip and the airport at Xam Neua, 29 kms away, the nearest airport with scheduled flights to Vientiane is Xieng Khouang, a six-hour drive from Viengxay.

An increasing number of budget travellers have been finding their way to Viengxay from both Luang Prabang and Xieng Khouang on Laos ' public bus system. Some visitors prefer to be driven in from the Vietnamese border, 55 kms away. Viengxay is a 300-km or eight-hour drive from Hanoi , and four hours from Mai Chau in Vietnam - an increasingly popular mountain destination with many hill-tribes.

Accommodation in Viengxay reflects the township's remote frontier status. There is one simple hotel with 16 rooms and three basic guest houses with a combined total of 26 rooms. Forty-five minutes away in Xam Neua, the provincial capital, there are three hotels offering a total of 45 rooms. Xam Neua has 16 guest houses.

"For tourists who take the time to reach Viengxay and the nearby attractions throughout northeast Laos , we can promise a very enriching and educational experience," says Mr Somphong Mongkhonvilay, Chairman of the LNTA. "Viengxay will be an increasingly important part of the Northern Laos Heritage Route ," he says.

The Heritage Route Mr Somphong is referring to links the World Heritage site of Luang Prabang to Houaphanh and the mysterious Plain of Jars in Xieng Khouang.

The LNTA is due to unveil plans for Viengxay's 'cave city' development to international travel agents during the Lao Ecotourism Fair, July 26-29 in Vientiane . European film and TV documentary makers have already visited Viengxay and other programme makers are due to visit in the near future. In May, the UNWTO and SNV will help fund familiarisation trips for travel agents and foreign media.

With an average of only 10 visitors a day to the five open caves, Mr Siphan Vangduayang, Director of the Memorial Cave Office in Viengxay says: "We need more visitors. We had over 20,000 people living here all those years ago. We have room."

Information about Laos, please check Laos National Tourism Site:Site: www.tourismlaos.gov.la

Destination Cambodia - Part of GMS Project

DESTINATION CAMBODIA:

Part of the Greater Mekong Subregion (GMS) project.

Tourism in the GMS has become increasingly multi-country. In a highly competitive world tourism market, the GMS can survive and grow only if it promotes a "one holiday, several destinations" type of tourism. Individual tourism sectors in the GMS countries can only prosper when they are strongly linked to others.

The MEKONG TOURISM DEVELOPMENT PROJECT aims to reduce poverty in the GMS countries, contribute to economic growth, increase employment, and promote the conservation of the natural and cultural heritage. The specific objective of the Project is to promote sustainable tourism in the lower Mekong basin countries through infrastructure improvements, community and private sector participation, and sub-regional cooperation.

The Project will improve high priority, tourism-related infrastructure in Cambodia, Lao PDR, and Viet Nam, promote pro-poor, community-based sustainable tourism in rural areas, and strengthen sub-regional cooperation. It will mitigate environmental degradation, develop human resources, and promote cooperation between private and public sectors within the GMS by establishing tourism marketing and promotion boards.

Please check for further information: www.mot.gov.kh/adb_mtdp/index_adb.htm

China builds golden tour route in Lancang-Mekong River

China builds golden tour route in Lancang-Mekong River

Information from the Yunnan Provincial Navigation Administrative Bureau shows that since China kicked off a regular international passenger line from Jinghong port, in Yunnan, to Thailand’s Chiang Saen port in September, 2006, passenger load has surged in the Lancang- Mekong River. It is recorded that about 16,000 people traveled through the line in 2006, increasing by 90% from the previous year. A tourist route surrounding the border areas of China, Laos, Myanmar and Thailand is taking shape. On a large perspective, an international golden tourist route has been formed in the region.

Extending 4,880 kilometers in length, the Lancang-Mekong River flows past through China, Laos, Myanmar, Thailand, Cambodia, and Vietnam. It is a river that passes through the largest number of countries in Asia.

People living on the banks of the river have their distinctive ethnic cultures and local customs, which are displayed in everything from the houses they live in to the clothes they wear. From the river origin to its estuary, the river covers almost all kinds of geographical features except desert. The rainforests along the river and the breathtaking natural scenery have make it a golden tourism route, which the expert Li Qingyou, director of the Tourism Bureau in Yunnan's Xishuangbanna Dai Autonomous Prefecture, says is both ideal for people to enjoy the ecological scene, ethnic cultures, and sightseeing, and to conduct scientific studies.

In order to make the river serve its people, China, Laos, Myanmar and Thailand worked together and started to jointly explore the river two decades ago. Since the beginning of the 1990s, China has dug 260 kilometers of navigation channel at the section of the river in Yunnan Province. In 2001, a commercial navigation route traveling from Simao in Yunnan Province to Luangprabang, an ancient city of Laos, was officially opened. In 2006, the capacity along the Lancang-Mekong River was upgraded from the sixth to the fifth grade. Ships with a loading capacity below the 300-ton class can cruise the river throughout the year, said Qiao Xinmin, director of the Lancang River Navigation Affairs Bureau.

At present, tourist agencies in Yunnan have built seven large vessels for the river cruise, which contain altogether 500 cabins. By the end of this year, the express highway built from Kunming to Bangkok will be put to service. By then, a golden tour route will take shape along the border areas of China, Laos, Myanmar and Thailand, and tourists can travel to the Lancang-Mekong River by air, water, and land.

Source: ChinaNews