A new regulation from the Lao Ministry of Agriculture and Environment aims to promote nature-based tourism in the country’s forested areas. The initiative offers incentives for small-scale private investment in national parks and protected zones, with a focus on projects that generate employment, support environmental conservation, and build partnerships with local communities.
The regulation is backed by a business leveraging facility financed by the World Bank. This facility is designed to attract investors from registered micro, small, and medium enterprises by providing advisory services on product development, training on nature-based tourism standards, and funding for infrastructure, marketing, and other aspects related to tourism development.
“The Lao PDR is developing sustainable private sector–driven nature-based tourism as one of the pillars of the next National Socio-Economic Plan and its National Green Growth Strategy,” said Mr. Kikeo Singnavong, Deputy Minister of Agriculture and Forestry. “Carefully regulated tourism development can bring great benefits in both employment and income generation for local people in forested areas, providing an economic incentive for them to conserve biodiversity and natural beauty.”
The business leveraging facility operates under the World Bank-supported Lao Landscapes and Livelihoods project. It offers three types of financing: planning and feasibility support, challenge funds for targeted investments in priority areas, and matching funds for product development and marketing. Companies interested in participating can apply through prospectuses issued by the Department of Forestry covering five national parks—Hin Nam No, Nam Et-Phou Louey, Nakai-Nam Theun, Phou Hin Poun, Phou Khao Khouay—and three protected areas: Khoun Xe Nong Ma, Laving Lavern, and Yord Nam Mo-Phou Sam Soum.
“Under the business leveraging facility, companies can access funds and technical support to develop tourism that will benefit local people through jobs while preserving the environment’s natural beauty, provided the companies meet the standards set by the government and follow protected area management plans, guidelines and regulations”, said Ms. Viengsamay Srithirath, World Bank Senior Country Officer for the Lao PDR.
The announcement event was attended by representatives from government agencies as well as residents from national parks and protected areas. Mr. Inthy Deuansavanh, president of the Lao Tourism Association, discussed some of the investment opportunities available across these eight protected sites.
According to estimates from the World Bank https://www.worldbank.org/en/country/lao/publication/green-growth-tourism-in-lao-pdr, nature-based tourism has potential to contribute about 10% of Laos’ GDP as well as 10% of total employment in coming years. The current project specifically targets job creation for 75,000 women.