Lao tourism institute seeks hotel partner

The institute has a 3,700-square-metre riverfront plot in downtown Vientiane that is suitable for a four-star hotel with 75-100 rooms to complement its training activities. Lanith, a modern, purpose-built teaching facility slated for completion in 2012, is part of an 8.5-million (338 million baht) bilateral development project between the Laotian and Luxembourg governments to strengthen human resources in Laos's hospitality and tourism sector.

"This is a unique opportunity for the right partner with strong corporate social responsibility credentials," said Peter Semone, the chief technical adviser to Lanith. "The partner will be able to enter the burgeoning Vientiane hotel market, earn a healthy return on investment and do something positive for poverty alleviation and the development of human resources in the tourism sector." Non-binding expressions of interest are being accepted until Jan 14. After that date, shortlisted candidates will be required to submit extensive proposals.

Mr Semone said the Laotian government is offering the selected partner exclusive terms including land-use rights for 40 years and special zoning privileges. The hotel's annual land rental fee will be used to underwrite a portion of Lanith's operating expenses. When fully operable, Lanith will accommodate as many as 400 full-time students in its two-year diploma programme. It will also offer a variety of industry training programmes for the existing hospitality workforce in Laos, which is estimated to be 20,000 strong.

Tour companies and hoteliers in Vientiane say the capital needs more four-star properties. The market is currently dominated by small, family-run guesthouses, and only a few hotels serve the middle market. Laurent Granier, director of sales and marketing at Vientiane's Ansara Hotel, described the capital as a "mid-market destination, where people go after visiting Thailand or Vietnam". "We know what the high-end and backpackers want, but what about the middle?" he said. "We need more value-for-money hotel properties."

In the second quarter of 2011, Lanith will circulate a detailed investment dossier to those parties that have registered their interest. In the second half of the year, up to four parties will be invited to submit formal proposals from which a final selection will be made. To date, a handful of registrations of interest by local, regional and international investment groups, operators and developers have been received. The Lao National Tourism Administration said Vientiane welcomed more than 800,000 tourists last year, with annual room occupancy reaching 63%.

Source=bangkokpost