Asean markets account for some 80% of Lao arrivals, more than twice the percentage of other Mekong Region destinations. Conversely, other Asia Pacific visitors only provide 10% of Laos’ arrivals, compared to 30-60% for other regional countries.
VIENTIANE – Lao and international travel experts zeroed in on the challenges and solutions for reaching the country’s tourism sector’s full potential at Lanith’s 8th Quarterly Symposium held in Vientiane in cooperation with the German Development Cooperation (GIZ).
Laos’ Vice Minister of Information, Culture and Tourism Chaleun Warinthrasak keynoted the event, stressing the development and marketing quality products, services, and better educating the work force to realize the sector’s full potential. “We are committed (to) working together with all stakeholders to achieve these goals.”
The Vice Minister stated Laos needed to generate more revenue per visitor, as the nation currently ranks last among Mekong Region countries, and has a reputation as an expensive destination.
German Ambassador to Laos Robert von Rimscha contrasted Cambodia’s revenue per arrival, which towers over Laos. Though both welcomed close to 3 million visitors last year, Cambodia hauled in US$664 per visitor, the third highest in the region, compared to US$149 for Laos, the Mekong’s lowest. The reason, according to the ambassador, is, “because Cambodia appeals to upscale markets and is accessible.”
Lao Tourism Marketing Board Senior Marketing Adviser Kirsten Focken’s presentation also focused on the arrivals/revenue issue. She pointed out that Asean markets account for some 80% of Lao arrivals, more than twice the percentage of other Mekong Region destinations. Conversely, other Asia Pacific visitors only provide 10% of Laos’ arrivals, compared to 30-60% for other regional countries.
Ms Focken pressed the arrival/revenue issue, showing how international visitors make up only 15% of the total, yet they generate 54% of the tourism revenue. Further, tourism revenue is increasing slower than arrivals.
While noting that top-spending German arrivals continued to slip in the first half of 2012, she said deep pockets from the U.S., France, and Australia are rebounding. Meanwhile, numbers from Korea soared 69% during the period.
Ms Focken said Laos is losing market share in the region, particularly with international tourists. Further, accommodation establishments and tour operators are suffering. The reasons for this, she stated, are weak promotion and lack of new products and ideas. “We must do better; we need new products that can be successful.” Ms Focken added that regional competition is tough. “Lao prices are high and people complain. Why? There is a lack of quality service. Laos needs more excitement.” She said Laos needs marketing efforts that encompass web and digital promotion, a focus on themes and niches, and responsible and creative tourism.
Khiri Travel’s Jason Rolan charged, “The biggest challenges to doing business in Laos are coordination and integration in marketing. Now it’s willy-nilly. I’ve talked to several agents from other countries. They’ve been here and say they can’t sell Laos. We need to attract FITs…Price is also an issue. Short, expensive flights affect package prices.”
On connectivity, Armin Hofmann, GIZ director in Laos, said Laos needs seamless travel, “Laos needs more direct flights, and carriers must redefine flight schedules as Bangkok layovers can last up to nine hours…but there must be demand.”
Ms Focken noted a lack of harmonization among development agencies, and between the private and public sectors. “Lao tourism seems to have a lack of direction and vision.”
Inthira (hotels and restaurants) General Manager Alexandre Tsuk also stressed a lack of collaboration. “The private sector thinks the government and development agencies don’t listen.”
Lanith (Lao National Institute of Tourism and Hospitality) Chief Technical Advisor Peter Semone suggested, “We must narrow down this problem and bring people together, such as at these symposia.”
Myanmar Tourism Federation Senior Tourism Advisor Daw Kyi Kyi Aye remarked that in Myanmar, the marketing budget is shared, especially for major trade shows. “We hold fund raising events like golf tournaments and gala dinners, and then the public and private sectors pick up the rest.”
She concluded, “The public and private sectors need to meet more often like at these Lanith symposia to share experiences, and establish more associations. This works well in Myanmar.”
Photo caption: Lao Tourism Marketing Board Senior Marketing Adviser Kirsten Focken.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
