Lao travel tax extends to neighbours

A surprise decision by Laos to introduce a US$2 travel tax on foreign visitors also extends to a US$1 levy on border pass travellers, mainly rural traders who cross the border daily to sell agricultural goods in Laos. The inclusion of border pass travellers in the travel tax was confirmed by a LTMB statement posted on the TTR Weekly’s website Tuesday. The travel tax has been approved as a revenue earning component of the recently formed Laos Tourism Marketing Board. According to  LTMB legislation, the tax would be used to fund overseas promotions to drive more tourists to the land-locked country.

Last year, the country welcomed around 2 million foreign tourists. Under the new provision, they would be required to pay US$2 every time they visited the country. The tax will be collected at 18 land border checkpoints and three airports in Laos – Vientiane, Luang Prabang and Pakse. No time line has been given on when collection will begin, but it should be up and running prior to Laos hosting the annual Mekong Tourism Forum in May. Collection will involve government agencies and ministerial regulations will need to be issued to govern how the tax revenue is distributed to the board. It is not clear whether agencies at the checkpoints will deduct collection costs, before revenue is handed over to the board for its overseas promotions.

Based on a rough estimate foreign arrivals should raise slightly more than US$4 million a year, while revenue earned from border pass travellers (Thais, Cambodians, Chinese, Burmese and Vietnamese citizens) could raise another US$2 to 3 million. According to earlier LTMB statements, made by the  recently appointed board president, the tax will be used to hire a European public relations agency to generate publicity through international media. It understood the agency will organise public relations activities to raise awareness for Laos’ mainly heritage and ecotourism attractions.

Residents in Thai provinces, bordering Laos, will not be overly pleased by the prospect of paying Bt33 every time they cross the border to visit Laos. They are mainly poor traders, or farmers selling agricultural goods and they cross the border daily. It could raise travel costs to reach the Lao market by an estimated Bt1,000 a month per individual. Thousands of traders from both countries cross the border daily at Nong Khai, Nakhon Phanom, Mukdahan and Chong Mek, while there are other smaller checkpoints along the length of the Mekong River that demarks the border between the two countries.

Source=ttrweekly