Public & Private Sector Consultation Meeting on Key Issues in Lao Tourism Sector

On 18 November 2022 afternoon, Ministry of Information, Culture and Tourism (MICT) in collaboration with Lao National Chamber of Commerce and Industry (LNCCI) organized a Public & Private Consultation Meeting on Key Issues in Lao Tourism Sector at Lao Plaza Hotel, Vientiane Capital.

The meeting was chaired by Ms Darany Phommavongsa, Director General, Tourism Business Management Department, MICT, Ms Phonemaly Inthaphome, Director General, Tourism Development Department, MICT and Mr. Inthy Deuansavanh, LNCCI Board.

Key issues in Lao tourism sector were discussed as follows:

Issues no. 1 – 6 were raised during the Lao Business Forum

1) Lack of policy support nature-based tourism development

– Private sector proposal: 1) Improve existing policy or issue new policy the support nature-based tourism development, reduce concession fee and approval process, 2) Update legislation no. 002 on service fee, differentiate environmental fee between nature – based tourism development and other type of projects.

– Response / Progress: Department of Forestry, MAF reported that legislation no. 002 is being updated by MOF, a consultation workshop was organized on the last Sep 2022. Decree no. 134 on national protected area is being updated, it will be completed by Dec 2022.

2) Difficult document approval process for organizing tourism sport events

– Private sector proposal: a specific guidance should be provided by MOES, which includes fee and approval process for arranging a tourism sport event.

– Response / Progress: MOES reported on the previous meeting that the process is being reviewed, but they were not in this meeting. MICT to follow up with MOES.

3) Difficult document approval process for travel agent organized travelers

– Private sector proposal: the travel agent organized travelers approval process should be eliminated by Ministry of Public Security (MPS).

– Response / Progress: Department of Tourist Police, MPS reported that this proposal has been raised in the national assembly, it has been agreed that the process has to be remained.

4) Limited tourism marketing and promotion due to human resource and budget constraint

– Private sector proposal: 1) The Lao Tourism Promotion Board (LTPB) should be urgently established in order to lead the tourism marketing activities. The budget for LTPB should be from the tourism development fund. 2) review the effectiveness for the use of the tourism development fund, decree no. 119. 3) private sector should be involved in decision making process on how to fund should be used.

– Response / Progress: Tourism Business Management Department, MICT reported that the decree on LTPB is being drafted in collaboration with LNCCI and supported by USAID LBE Project. It is almost completed. Decree no. 119 on tourism development fund is being reviewed.

5) Lack of proper maintenance in some tourist attractions

– Private sector proposal: Increase collaboration with private sector for better operation and maintenance of the public owned tourist attractions.

– Response / Progress: Tourism development department, MICT agreed on principle. MICT to prepare a policy.

6) Lack of noise pollution control

– Private sector proposal: rule and regulation should be strictly enforced and monitored, particularly noise from restaurants and entertainment businesses.

– Response / Progress: Vientiane Capital DICT reported that the Vientiane governor’s agreement has not been fully implemented due to the limited number of authorities. MICT requested Department of Tourist Police to submit a report from their monitoring visit, MICT to propose the government.

Additional issues

7) It is difficult to book train tickets for travel agent organized travelers

– Private sector proposal: 1) Short term: extend advance booking duration for at least 10 days for travel agents, 2) The train ticket booking system should be similar to flight booking system, name of passengers should be indicated on the tickets.

– Response / Progress: Laos – China Railway Company Limited reported that: 1) Currently, the train ticket advance booking can only be done within 5 – 7 days, it is not possible to do it in 10 days due to the limited train. The demand is still fragmented which makes it difficult to allocate more train. 2) On 13 September 2022, name of the passengers were added into the tickets. 2) The train ticket booking application is being developed, we will train to get it done and launch it on 03 December 2022. Passengers will be able to book online.

8. Limited visa policy to attract target markets

– Private sector proposal: 1) There should be visa exemption policy for target market, details in attached file (Visa policy). 2) Improve E-visa and Visa on Arrival – VOA approval process, make it easy, simple and fast. 3) Adjust E-visa price, it should be cheaper than Visa on Arrival. For example, getting VOA for all nationalities costs 40 USD, except Vietnam and Chinese are 20 USD while E-visa costs 50 USD. 4) Investigate officers who ask for additional service charge without providing any receipt. Provide clear information about fees for visitors. 5) Add more international border check points that VOA and E-visa can be obtained, such as Nam Souy – Na Meo, Viengsay district, Houaphanh province and Namphao, Lak Sao, Bolikhamxay province

– Response / Progress: Department of Consular, MOFA reported that 1) visa exemption policy has to be agreed by the government, it should be proposed by relevant sector (MICT) and it will be proposed to the government by MOFA. The proposal needs to include advantage and disadvantage of visa exemption policy. Action: MICT to prepare a proposal to MOFA. 2) Getting Visa On Arrival (VOA) is not difficult, it can be done within 5 – 10 minutes. 3) E-visa is more expensive than VOA because it is the private sector investment, part of the fee goes to the private sector. 4) VOA and E-visa cannot be obtained in some international check points due to the limited number of visitors.

9) Independent big bike travelers have difficult access to Laos

– Private sector proposal: Improve document approval process for independent big bike travelers, it should be similar to the cars..

– Response / Progress: Department of Transportation, MPWT reported that the bilateral agreement indicates that only visitors travel on 4 wheels vehicles can be entered Laos independently, but people travel on motorbike need to be arranged by a travel agent. Big Bike Association: going through a travel agent increases the cost for big bike travelers, Lao people can travel by big bikes to Thailand independently, Thai people (and other nationalities) should be allowed to enter Laos by big bikes as well. Department of Tourist Police, Ministry of Public Security: in order to allow big bike travelers to enter Laos similar to 4 wheels vehicles travelers, it depends on the government. Action: MICT to prepare a proposal to the government to allow big bike travelers enter Laos independently similar to 4 wheels vehicles.

10) Limited stay permit duration for border pass holders

– Private sector proposal: Extend stay permit duration from 3 to 7 days. For example, Thai visitors who visit Champasak and would like to travel to other Southern Laos provinces..

– Response / Progress: Department of Consular, MOFA reported that border pass usage policy depends on the bilateral agreement between neighboring countries or provinces. Thailand has already proposed this, but it is still not applicable according to our law. Further discussion is needed with Thailand. Department of Immigration, MPS responded that the bilateral agreement between two countries only allow people living at the borders, province to province and they are not allow to travel to other provinces. However, we used to have an agreement with China that allow Chineses to travel to our three northern provinces. Further discussion is needed with neighboring countries. MICT to follow up with relevant departments and private sector in Southern Laos.

11) Lack of regional flight promotion policy

– Private sector proposal: 1) Reduce tax and relevant fee for flight landing. 2) Special tax and relevant fee policy for Lao Airlines as the national airline, 3) Improve approval process and relevant fee for private jet landing, other countries approve within 24 hours

– Response / Progress: Department of Aviation, MPWT did not show up, MICT to follow up on this.

12) High travel cost of long-haul travelers due to the lack of direct flight

– Private sector proposal: Conduct research and develop direct flight promotion policy..

– Response / Progress:​ Department of Aviation, MPWT did not show up, MICT to follow up on this.