The report examines how higher agricultural productivity and new markets for tourism can help reduce poverty rates. Agriculture employs 60% of the Lao PDR’s labor force. Meanwhile, about 42,000 people, 62% of whom are women, were employed in tourism before COVID-19 hit.
COVID-19 travel disruption has forced half of the 360 tourism businesses that were surveyed to temporarily close, with 70% of workers furloughed, according to the report. An immediate response is needed to shore up the tourism sector. This can include providing financial assistance to tourism businesses, speeding up COVID-19 vaccinations, and enabling a responsible reopening of travel through transparent, effective, and clear communication of health and safety protocols.
In the longer term, the report recommends investing in agriculture and tourism, inclusive of interlinking industries such as transportation, irrigation, urban services, and digital connectivity infrastructure. Developing human capital to ensure high-quality services, expanding visa exemptions, and promoting organic food production and certification are also among the policy recommendations to increase competitiveness.
