Laos to charge tourists 2 dollar per visit

 Laos intends to charge tourists up to US$2 a visit to finance its overseas promotions, according to the business plan of the recently established Lao Tourism Marketing Board. A provisional non-elected board has been appointed which will introduce to the Lao travel industry a business model and a proposed strategy to charge tourists to finance its promotions. LTMB will extend membership to include private sector travel companies during the first quarter of 2011 giving members a say in the policies and management of the board.

The decision to charge tourists as much as US$2 to underwrite overseas marketing programmes still requires government legislation to approve a collection process and ensure the funds can be legally passed on to the LTMB. The current law stipulates collection of all fees and taxes are paid to the Finance Ministry  for inclusion in the central government’s annual budget. Based on last year’s tourism data, Laos attracted 2,008,363 million tourists, which would give the board an annual promotion budget of US$4,016,760 million, less collection costs.

Fees would be collected at all international air and land immigration checkpoints. Laos has three international airports – Vientiane, Luang Prabang and Pakse – and 18 other border checkpoints where the visit fee would be collected. Collection logistics have still to be finalised, including the set up of counters at checkpoints and recruitment of staff to man them.

Travel associations such as the Pacific Asia Travel Association and IATA, which represents airlines, worldwide,  both criticise governments for adding taxes and fees  to travel costs claiming the practice discourages travel. Approval to set up the country’s first public-private tourism board specifically to promote the country overseas passed the final hurdle last month when the Lao National Tourism Administrations gave the project the green light after almost two years of deliberations.

It is the first private-public board set up in the communist ruled country, but to satisfy government hardliners, the Lao National Tourism Administration will hold the chairmanship of the board on a permanent basis. However, the inclusion of private sector tour enterprises  airlines, hotels and tour operators – on the board signals a marked departure in Lao tourism policy that could lift its promotions and marketing on the international stage.

Source=ttrweekly