Tourism Fights Poverty

from left to right: Mr. Saisamon Tidakone Mayor of Pak Xeng District, Mr. Khamtan Somphanvilay, Deputy-Director Provincial Tourism Authority of Luang Prabang, Mr. Somsak Paseuthsai, North by North East and Mr Xieng Keo Head of Hua Keng Village

On 13 December the Tourism Authority of Luang Prabang Province convened the formal signing of a cooperative agreement between 12 rural communities along the Seuang River, North by North East Travel and provincial government agencies. The goal is simple - create a sustainable tourism destination that alleviates poverty. Achieving this will require work!.

The Seuang River Community-Based Tourism site is only one hour outside of Luang Prabang. Luang Prabang is a UNESCO Word Heritage site and a major tourism destination. The Seuang River communities though remain one of the poorest districts of Luang Prabang Province. For them little benefit from tourism has yet to trickled their way.

Tourism with the correct incentives can make a big difference for poverty alleviation. As the UN World Tourism Organization states "The potential for tourism to play a significant role in the alleviation of poverty is increasingly recognized by international bodies and national governments. Its geographical expansion and labor intensive nature support a spread of employment and can be particularly relevant in remote and rural areas where many of the poor live.” (http://www.unwto.org/step/about/en/step.php?op=1)

North by North East agrees. As a responsible tour operator we seek to work cooperatively with our new partners to create a win-win-win situation.

To do this we are creating a core product for Educational group tours customized to meet the curriculum and community service needs of international schools and universities. Tours will combine a variety of activities: sightseeing, volunteer work, academic field studies, leadership training, outdoor education and cultural exchange.

International students having fun with kids at village school

A secondary product will provide a variety of activities including mountain biking, rafting, hiking, village home stays and voluntourism.

A key component is a Village Development Fund. All tourist going to the area will pay a $2/day/person 'user fee' that is saved throughout the year. At the end of the year the villages have a meeting to decide how to divide the money for projects. Example - money to buy books for schools or putting a new roof on a village meeting hall.

Employment opportunities are expected to create much needed supplemental incomes for households throughout the area.

Another key component is the building of a community-lodge at Hau Keng village in 2008. This lodge will provide a base camp for future groups and allow 12 villages to benefit directly from community-based, eco-tourism. The lodge is owned and operated by the villagers.

Partner Profiles

North by North East Travel Services
• is a niche tour operator within a highly competitive mainstream travel market
• constantly strives to be unique / innovative / sustainable
• provides specialized high-end tours highlighting cultural, physical, and educational experiences
• defines sustainable tourism as “two or more cultures coming together in mutually beneficial exchanges. This allows hosts to generate sustainable livelihoods, strengthen local cultures in-balance with local environments. This creates a destination that guests want to visit for generations to come.”

The Villages of Seuang River Valley
All 12 villages have agriculture-based economies and are part of the poorest district in Luang Prabang. In a recent survey villagers estimated an annual income of $13.

Village names are: Hua Keng, Hat Sa-ngon, Pak Keng, Bouam Ngiu, Hat Hoi, Hat Sang, Hua Sa-king, Houa Nok, Hat Hit, Huay Pho, Na Pho and Sopchek.

Government Partners
This partnership is in cooperation and support of the following provincial government organizations: Provincial Tourism Authority, Pak Xeng District Office, The Agriculture and Forestry Department, The Industry and Commerce Department.

Poverty in Lao PDR

The United Nation's Human Development Index (HDI) for 2007 ranks Lao at 130 out of 177 countries - to compare China is 81, Thailand 78, USA 12 and Australia 3. For those interested Iceland is #1.

One of the core priorities of the government of Lao PDR continues to be the eradication of poverty, through the provision of an enabling environment for growth and development, which includes private sector development.

The foundations for reaching this goal have been laid during the past 28 years of peace and development in the country by:
(a) Moving consistently towards a market-oriented economy
(b) Building-up the needed infrastructure throughout the country
(c) Improving the well-being of the people trough greater food security and extension of social services."

However, as in many other parts of the world, poverty in Lao PDR is exacerbated by growing inequality. Overall, the incidence of rural poverty is 41 percent compared with 29 percent in urban areas. Urban adult literacy rates are almost double those of rural areas, and both child and maternal mortality rates differ profoundly. The list of such disparities continues.