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Lao Tourism Boom attracts Global Hotel Brands

Lao Tourism Boom attracts Global Hotel Brands

International hotel and resort chain Hilton has announced its plan to open the company’s first hotel chain in the Lao capital Vientiane, marking the latest move by several global hotel brands that are flocking to the landlocked country hoping to benefit from its rapidly growing tourism sector.

Hilton celebrated its ground-breaking ceremony on September 9 for the new DoubleTree by Hilton Vientiane with its partner TPD Company, a subsidiary of TK Group in Laos.

The 188-room hotel, which is slated to open in 2022, will be located near the Nam Phou Fountain, an iconic public square in the heart of the town center.

Increasing interest from global hotel brands

Hilton is not alone in its foray into Laos. In recent years, the country has witnessed increasing interest from global hotel and resort brands seeking new business opportunities in Laos, one of the fastest-growing economies in Southeast Asia.

Thailand’s AVANI Hotels & Resorts, for instance, launched its first hotel in the historic town of Luang Prabang last year by rebranding an existing 53-room hotel.

AVANI currently operates 24 hotels and resorts in 15 countries, and Laos was one of the three latest countries that the brand expanded its business along with Australia and New Zealand.

InterContinental Hotels Group (IHG) made its debut in Laos by opening a Crowne Plaza in Vientiane to much fanfare in early 2017.  The company then signed a management agreement with BIM Group in 2017 to develop the first Holiday Inn hotel in Vientiane.

The company said at that time that the 250-room hotel would begin its operations in 2019.

Separately, IHG has also laid out a plan to open the first InterContinental hotel in the country that is set to begin its operation in 2021. The hotel is expected to be equipped with more than 400 rooms.

Promising indicators

Hotel investment inroads by global brands are not a coincidence given the fact that the tourism sector plays a significant role in the Lao economy, and it is evident that the government is determined to nurture it further.

The Lao government last year launched the Visit Laos Year 2018 campaign to attract more tourists, followed by this year’s bilateral Visit Laos-China Year 2019.

The country has upgraded and is to expand its airports and means of public transport while the improvement works for tourism-related facilities are underway in many provinces, including famous tourist destinations such as Vang Vieng.

The government expects that tourist arrivals will exceed 6 million by 2020 and generate income in excess of USD 993 million.

Accordingly, the growth of the tourism industry in Laos is expected to create more jobs and contribute to its economy, according to the latest report by the United Nations’ World Travel and Tourism Council.

The report indicated that tourism has directly resulted in 114,000 jobs being created in Laos, and it is expected to rise to 121,000 jobs in 2028, which will represent about 3 percent of total employment.

Tourism and related services, as a while, have generated more than 385,000 jobs in Laos, helping to improve per-capita income for people in the country, the report added.

Fierce competition

The increasing number of players means rising competition, and it is doubtless among the factors driving demand affecting considerations on the viability of the business in the country.

Mercure Vientiane is believed to be among the latest that faced such a challenge.

The Vientiane branch of the international hotel chain ceased its operations on March 1, for reasons that were not disclosed.

The 172-room hotel used to operate under an Accor Novotel brand franchise back in 1993 and continued under the Mercure banner until its closure.

Vientiane already has more than 300 hotels and guesthouses, but the arrival of the 200-room Crowne Plaza is believed to have put other top-end hotels, such as Mercure Vientiane, under pressure.

Mercure Vientiane’s proximity to the larger and newer Crowne Plaza Hotel by IHG was pointed out as one of the possible factors to contribute to the hotel’s decision to close.

According to the Laotian Times’s estimation, there are currently about 20 hotels across Laos that are either managed or invested by international hotel brands.

LXML Handover Artifacts Discovered in Sepon Mine to Government

LXML Handover Artifacts Discovered in Sepon Mine to Government

Today, Lane Xang Minerals Limited Sepon (LXML) handed over more than 7,800 artifacts to the Lao Government. These artifacts – made up of copper, bronze, chalcedony (regular gems), ceramic, wood among others – have been discovered on site at Sepon mine. This is an outcome from LXML’s decade-long support to the Lao Government in archaeological research and cultural heritage preservation.

On behalf of LXML, Mr Saman Aneka – Managing Director handed the artefacts to Ms Vanpheng Keopanya – Director of the Lao National Museum; Mr Nalathiveth Ammalathithada  – Director of Savannakhet Museum and Ms Touythong Keovongsa – Head of Vilabouly Information, Culture and Tourism Office under the honourable witness of Mr Bouageun Saphouvong – Vice Minister of Information, Culture and Tourism; Mr Khamphoune Touphaythoune – Vice Governor of Savannakhet Province and concerned officials from central, provincial, and district level.

After the handover, these artifacts will be showcased at the Lao National Museum (828 items handed), the Savannakhet Museum (409 items handed), and the Vilabouly Cultural Hall (6,644 items handed).

 Copper ingot is a product from ancient mining, before being processed into a tradeable product 1,000-2,500 years ago. These copper ingots were unearthed at Sepon mine.
Copper ingot is a product from ancient mining, before being processed into a tradeable product 1,000-2,500 years ago. These copper ingots were unearthed at Sepon mine.

“Implementation of the MoU has led to a remarkable outcome reflecting the extensive effort and ownership of all those involved” said Mr Bouageun Saphouvong, Vice Minister of Information, Culture and Tourism. “Apart from the ancient artefacts discovered throughout the technical processes, compliance to related laws and regulations, and procedures of LXML; we’ve also gained significant scientific historical and cultural evidence that reflects ancient political and socio-economic governance especially how the industrial and commerce sector was governed back then at a local, national and regional level.”

Since 2008, LXML has invested over US$1.3 million in supporting 3,000 years of Lao history and heritage through our archaeological research with the Department of Heritage (DoH) of the Ministry of Information, Culture and Tourism, the National University of Laos, and James Cook University of Australia. The program sponsors fieldwork that unites a unique community at local, national and international levels. Volunteers from Vientiane, local villagers, Australian and Lao students, archaeologists and Lao officials from the DoH stationed at Sepon mine cooperate closely together to conduct research.

LMXL Hands Over Ancient Artifacts to Lao Government
Potteries, iron axe, iron machete, spears, and coins from the 17th to 18th century, all discovered at Sepon mine.

Remarkable discoveries of artefacts and heritage sites have been made at the Sepon mine in the Vilabouly District, Savannakhet Province. In March 2018, the team of archaeologist discovered evidence of more than 200 antic mine shafts dating back over 3,000 years ago. This means Vilabouly district is considered one of the first mining and metallurgy areas in Southeast Asia.  We believe ancient mining around Sepon mine continued to about 1,300 years ago (700 AD) where people have excavated the rich copper ore then refined it in the so- called Peun Baolo and Thong Na-Gneuak (Dragon Field) locations and exchanged minerals and metals since then.  These dates have been confirmed from the examination of bamboo matting found in the mentioned well-preserved ancient mine-shaft support structures laid in the compacted wet clay just below the surface (10 to 40 meters deep).

An archaeologist studying and preserving potteries, bronze bowl, bronze plates, bronze axes, and other ancient artifacts uncovered at Sepon mine through partnership between LXML; Ministry of Information, Culture and Information; National University of Laos; and James Cook University of Australia since 2008.
An archaeologist studying and preserving potteries, bronze bowl, bronze plates, bronze axes, and other ancient artifacts uncovered at Sepon mine through partnership between LXML; Ministry of Information, Culture and Information; National University of Laos; and James Cook University of Australia since 2008.

Other artefacts unearthed include mining equipment such as wooden ladders, pulleys, mallets, painted bamboo baskets, and rope made from lianas; a large ‘Dong Son’ bronze era drum currently on display at the National Museum in Vientiane; and crucibles, copper ingots, jewellery, ceremonial items and other artefacts highlighting Laos’ pivotal place in regional history.

“While the handover today marks a significant milestone of our partnership in historical and cultural heritage preservation, it is not the end.” said Mr Saman Aneka, LXML Managing Director. “LXML stands committed to continue providing support and to work hand in hand with our Government counterpart and academia for at least another 10 years until mine closure.”

Mining has been essential in the development of civilisation and society throughout history. Excavations will continue and we look forward to reveal more exciting discoveries about Lao culture and history.

This story provided by Lane Xang Minerals Ltd.

Second Sustainable Tourism Solutions Expo to be Held on 27-28 September 2019

Second Sustainable Tourism Solutions Expo to be Held on 27-28 September 2019

After last year’s well-received first event in Luang Prabang, the second Sustainable Tourism Solutions Expo (STSE) will take place this week in Vientiane on 27-28 September 2019 at the Crowne Plaza. The STSE is the region’s leading specialized fair for the tourism industry to celebrate, explore, and exhibit the latest trends, insights, and technology in sustainable tourism and hospitality practices.

Fifty-four exhibitors from Laos and the Mekong region will showcase their products, services, and initiatives over the two-day event, which is free to attend. These companies represent several categories relevant to the theme of the event: eco-friendly hotel supplies, handicrafts, organic food, initiatives and projects, as well as responsible tours and accommodation.

The exhibitors will introduce business owners to environmentally-friendly cleaning products, toiletries, and plastic-free packaging. They will offer locally-produced substitutes for imported food and beverages. Several booths will focus on technology like wastewater treatment systems, solar energy, and water conservation equipment. Importantly, enterprises that attend the expo will learn how their business can benefit from supporting and contributing to community development and social initiatives.

A new addition to this year’s agenda is production demonstrations. On the second day of the expo, 11 different companies and organizations will make individual presentations about their products and services to interested attendees. These include: Asia One Resort Supply, Soap4Life Foundation, Epurtek, Pankham Jampa Holdings, Saoban Handicrafts, Green Discovery, RefillMyBottle, Mai Savanh Lao, Thavixok Rattan House, AgroAsie Group, and Bamboo Lao.

One of the most enriching parts of the expo will be its symposia program, bringing together renowned thinkers from the region to discuss topics that matter greatly to the tourism industry. On Friday 27th September, visitors will be able to attend three symposia: “Policy Mechanisms for Plastic Reduction in Tourism in Southeast Asia,” “Human Resources Development and Job Creation in the Tourism and Hospitality Sector,” and “Towards a Circular Economy in Food: The Role of the Tourism Industry.” On Saturday 28th September, the seminar “Grow Your Business with Great Communication” will be held, as well as a workshop entitled “How Sustainability Helps Accommodation Businesses Save Money,” for which pre-registration is required.

The second Sustainable Tourism Solutions Expo is organized by the Ministry of Information, Culture, and Tourism, with support from the Ministry of Natural Resources and Environment, the Lao Association of Travel Agents (LATA), the Lao Hotel and Restaurant Association (LHRA), the Small and Medium Enterprises Service Centre (SSC) operated by the Lao National Chamber of Commerce and Industry and the Department of Small and Medium Enterprise Promotion (Ministry of Industry and Commerce) and the Regional Economic Integration of Laos into ASEAN – Trade and Entrepreneurship Development (RELATED) Project of the Lao-German Development Cooperation.

For a complete list of exhibitors, a full schedule, or details about symposia, please see the website of the Sustainable Tourism Solutions Expo: www.stse.la.

Laos to study marijuana for medical uses

Laos to study marijuana for medical uses

Laos has formed a task force committee to conduct a study on the potential of marijuana for medicinal use.

The committee, led by the Minister of Health Dr Bounkong Syhavong, is to carry out a study on the use of marijuana for medicinal purposes as well as its economic, social, and political impact while ensuring compliance with international principles, the Vientiane Times reported.

The Lao government will take further steps based on the findings of the study.

The government’s move came after the health ministry submitted a proposal to build a hospital to treat cancer with traditional medicines extracted from marijuana and other natural herbs.

The government first agreed in March to organize a seminar to discuss and study medicinal marijuana.

Since the cultivation, trade and use of marijuana are currently prohibited in Laos, current legislation has to be amended if Laos were to legalize medicinal marijuana, Vientiane Times noted.

“Despite being illegal, many Lao people are believed to use cannabis to relieve pain and fatigue,” the paper added.

Prohibition Partners, a nongovernmental organization with a mission to open up the international cannabis industry, believes cannabis producers and large pharmaceutical companies from the West see enormous business potential in Asia, which is considered the “untapped” market.

The organization estimates 85.5 million of Asia’s roughly 4.5 billion population in 2019 are cannabis users, projecting the Asian market will be worth USD 8.5 billion in 2024, with medical use accounting for USD 5.8 billion of that.

This is mainly because allowing medical cannabis is seen as a step toward approving recreational use as seen in Canada’s case, which legalized cannabis in late 2018 after years of allowing medical use.

South Korea, for example, legalized cannabis in November last year although it still remains a subject for strict control.

In the same month, Japan approved clinical trials for the cannabis compound Epidiolex, a CBD oral solution used in treating epileptic patients.

The move was followed by Thailand that approved marijuana for medical use and research in December last year.

Meanwhile, Malaysian Health Minister Dzulkefly Ahmad said in June that drugs had destroyed many lives, but wrongheaded governmental policies had destroyed many more.

He noted that he thought it was obvious that after 40 years of war on drugs, it had not worked and there should be the decriminalization of drugs, adding that such a move would be a “game-changer”.

Laos joins UNDP Accelerator Lab Network to Tackle Development Challenges

Laos joins UNDP Accelerator Lab Network to Tackle Development Challenges

Laos has become one of the latest countries to have Accelerator Lab launched by the United Nations Development Programme (UNDP).

The lab is designed for participating countries to find “radically new approaches” that fit the complexity of current development challenges.

It aims to transform UNDP’s collective approach by introducing new services, backed by evidence and practice, and by accelerating the testing and dissemination of solutions within and across countries.

The lab also analyzes challenges within local contexts to identify connections and patterns in search of new avenues of work to act effectively in addressing wicked development challenges. UNDP currently runs 60 labs across 78 countries.

In Laos, the lab will map local grassroots solutions, test them and, if found viable, scale them up to quickly answer important challenges, according to a statement by UNDP Los. In particular, the global plastic crisis and youth employment are among focuses.

“With the Accelerator lab, we want to quickly identify burning issues that affect people and economic development, explore and map the solutions that already exist, experiment what could work and share widely in Lao PDR and with the rest of the world,” said Ricarda Rieger, UNDP Resident Representative.

Thailand Arrests Lao Money Launderer linked to Drug Ring

Thailand Arrests Lao Money Launderer linked to Drug Ring

Thailand has arrested an alleged money-launderer in Mukdahan Province, bordering Savannakhet. The arrest was the result of an ongoing investigation into the money trail generated by a drug ring based in Laos, which smuggles drugs into Thailand’s northeastern provinces.

41-year Watchaphum Sudlar was charged with money laundering, with the Thai police claiming he laundered more than THB 200 million (USD 6.5 million) over a four-month period, according to the Lao Post.

The laundered money had been transferred to the bank account held by a man only identified as Mr. A Money, and the cash was later sent to other accounts.

Thai investigators tracked down the money trail, which led to the arrest of Mr. Watchaphum, according to an article in the Bangkok Post.

Police found THB 1.5 million in cash and LAK 55 million (USD 6,240) in his possession, along with four bank account books and five ATM cards. Other items seized included a pickup truck, five mobile phones, a gold necklace, a 1.8-carat diamond ring and other items.

Mr. Watchaphum denied all of the charges, however. He told police he ran a currency exchange business in Outhoumphone, in Savannakhet Province in Laos, and he would often withdraw THB 500,000 to 5 million at a time upon customers’ requests.

He insisted he had no knowledge about the source of the money that his clients acquired, adding his only took fees from them.

Mr. Watchaphum is well known in certain Lao circles as the husband of a Savannakhet-based net idol named “Jae Nang,” famous for her rants and critiques released on  Facebook.

(Photo: Bangkok Post)

VietinBank Opens Laos Headquarters in Vientiane

VietinBank Opens Laos Headquarters in Vientiane

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has inaugurated the headquarters in the Lao capital Vientiane, a move that comes amid increasing cooperation between Laos and Vietnam in the banking and finance sectors.

VietinBank opened its first branch in Laos in 2012, which was officially upgraded in 2015 to VietinBank Laos to become a wing of VietinBank. Then the bank opened a branch in Champasack Province in September 2016.

Speaking at the inauguration ceremony on September 17, Lao Deputy Prime Minister and Finance Minister Somdy Duangdy said the new headquarters will contribute to raising the brand name of the bank, and giving a facelift to Vientiane and Laos in general, as quoted by Nahn Dan newspaper.

VietinBank’s move comes with the latest cooperation between Laos and Vietnam in the finance and banking areas.

The Bank of the Lao PDR and the State Bank of Vietnam held a conference on September 17 to share experience in macro-economy management, particularly in the finance-banking area.

They exchanged views on macro-economic and currency policy as well as the method of management over commercial banks run by the State and related matters while having agreed to continue foster affiliation in professional activities and information technology application.

In particular, the two sides vowed to encourage and create favorable conditions for commercial banks of each other to seek partnership and invest in each other’s country to promote the banking system in both countries.

They also discussed “difficulties” and “obstacles” that six Vietnamese commercial banks in Laos, including VietinBank, are facing and how to tackle them, Vietnam Plus reported without providing further details.

Chinese-Lao Collaborative Movie “Champa Blossom” Premieres

Chinese-Lao Collaborative Movie “Champa Blossom” Premieres

A Chinese and Lao collaborative production, Champa Blossom, has officially premiered at Vientiane’s Major-Platinum Cineplex.

The movie was jointly produced by Laos and China, and begins screening nationwide today.

A ceremony was held for the premiere at the cineplex on Wednesday, attended by the cast, crew, producers, and relevant government officials from both countries.

“It is a please to celebrate the friendship between Laos and China, especially during Visit Laos-China Year 2019,” said Mr. Vithoun Soundara, Director General of the Cinema Department, Lao Ministry of Information, Culture, and Tourism.

The story of Champa Blossom demonstrates the friendly and cooperative relationship between Laos and China, and delves into the significance of the friendship and unity between the two nations while presenting the beautiful natural scenery of Laos to the audience.

Shooting commenced in 2016, with a cast of Lao and Chinese actors, telling the story of love between Lao and Chinese nationals, and demonstrating the differing but equally beautiful cultures of each.

The star of the show is Lao doctor-turned-actress Chandaly Ningnang Sitpraxay.

In the 90-minute film, five Chinese youths who travel among ASEAN countries, one of which is Laos.

During the visit, they meet a young Lao girl who is half-Lao and half-Chinese, and who works part-time in a restaurant. Together they join to sing the song Thian Mi Mi.

Later, two of them meet again in Luang Prabang and young love blossoms between them.

The movie is in celebration of the 55th anniversary of bilateral relations between Laos and China.