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Savannakhet Province
Long-Term Tourism Development Strategy
Prepared for: SNV, Lao PDR
Prepared by: Emerging Markets Consulting Co., Ltd.
July 31, 2009
4/08/2009 Page 2 of 65
Table of Contents
Executive Summary....................................................................................................................4
Acknowledgements....................................................................................................................5
1. Introduction .......................................................................................................................6
2. Research Process ...............................................................................................................6
3. Savannakhet Provincial Profile ..........................................................................................7
3.1. Historical Perspective ............................................................................................7
3.2. Physical Characteristics..........................................................................................8
3.3. Demographic Profile ............................................................................................10
3.4. Economy...............................................................................................................10
4. Savannakhet Province 2009: The Current Situation, Opportunities and Challenges......13
4.1. Overview ..............................................................................................................13
4.2. Tourism Market....................................................................................................14
4.3. Tourism Infrastructure.........................................................................................19
4.4. Tourist Attractions ...............................................................................................26
4.5. SWOT Analysis......................................................................................................31
5. Savannakhet Province: Charting a Path for the Next Decade .........................................32
5.1. Vision....................................................................................................................32
5.2. Tourism Growth Trends – Global to Local ...........................................................32
5.3. Contextualizing Tourism Development ...............................................................33
5.4. Corridor to Route to Destination .........................................................................38
5.5. Savannakhet Province Tourism Development Strategy Goals and Objectives ..39
5.6. Strategic Targets ..................................................................................................40
5.7. Analysis, Forecasts & Impact ...............................................................................41
5.8. Targets: Increasing Visitor/Tourist Volume .........................................................48
5.9. Targets: Increasing Visitor/Tourist Expenditures ................................................48
5.10. Targets: Increasing Visitors/Tourist Length of Stay .............................................50
5.11. Positioning ...........................................................................................................50
5.12. Strategic Actions ..................................................................................................51
5.13. Strategy Matrix ....................................................................................................57
6. Implementation ...............................................................................................................60
7. Performance Evaluation ..................................................................................................61
Appendix A: Savannakhet Province Attractions ......................................................................62
Appendix B: Economic Corridors .............................................................................................65
4/08/2009 Page 3 of 65
List of Figures
Figure 1: Select Savannakhet Province Historical Events ..........................................................7
Figure 2: Savannakhet Province GDP per Capita .....................................................................10
Figure 3: Savannakhet Province Agricultural Crops (2007) .....................................................11
Figure 4: Savannakhet Province Natural Resources ................................................................12
Figure 5: Sequencing to Tourism Destination..........................................................................13
Figure 6: Number of Tourist Arrivals .......................................................................................14
Figure 7: International Tourist Arrivals, by Nationality ...........................................................16
Figure 8: Purpose of Visit, by Nationality ................................................................................17
Figure 9: East West Economic Corridor ...................................................................................21
Figure 10: Savannakhet Province Accommodation Options ...................................................22
Figure 11: Savannakhet Province Tourist Arrivals, by Month .................................................25
Figure 12: JICA sponsored Savannakhet Province Tourist Attractions....................................26
Figure 13: Map of Savannakhet Province Tourist Attractions.................................................29
Figure 14: JICA-sponsored Tourist Satisfaction Survey............................................................30
Figure 15: Lao PDR Tourist Arrival Statistics ............................................................................33
Figure 16: GMS Economic Corridors ........................................................................................36
Figure 17: GMS Priority Tourism Zones ...................................................................................37
Figure 18: Savannakhet Province 3-Staged Development Strategy ........................................38
Figure 19: Timeline: Corridor to Route to Destination ............................................................39
Figure 20: Tourism Volume Projections without Strategy Implementation ...........................41
Figure 21: Tourism Volume Projections with Strategy Implementation.................................43
Figure 22: Tourism Expenditures Projections without Strategy Implementation...................44
Figure 23: Tourism Expenditures Projections with Strategy Implementation ........................46
Figure 24: Incremental Impact of Strategy Implementation on Tourist Volumes ..................47
Figure 25: Incremental Impact of Strategy Implementation on Tourist Expenditures ...........47
Figure 26: Strategies / Actions .................................................................................................51
Figure 27: Schedule of Actions for Strategy Implementation .................................................58
4/08/2009 Page 4 of 65
Executive Summary
Overview:
Savannakhet Province is well positioned to capitalize on a host of factors that could
dramatically advance its tourism industry. The development of the East West Economic
Corridor, surge in tourist arrivals, growing interconnectedness of the Greater Mekong
Subregion, rise in border tourism, and range of natural, cultural and historical tourist
attractions in the Province, to name a few, highlight a wealth of largely untapped
opportunities.
The Savannakhet Province Long-Term Tourism Development Strategy 2010-2020 thus seeks
to provide a road map for Savannakhet Province to leverage its internal strengths and to
maximize promising external factors.
Interwoven throughout the strategy are several guiding principles and recommendations
that provide the underpinnings for successful tourism growth and development. These
include:
• A market-driven approach where Savannakhet Province bases its strategy on the
realities of the marketplace;
• Market segmentation where Savannakhet Province segments its tourist (customer)
base and formulates actions based on reliable market research;
• Setting clear targets and metrics, with an emphasis on tourist volume, length of stay
and expenditures (noting that pro-poor tourism, social inclusion and sustainability
are directly linked);
• Marketing and promotional efforts that target source markets, before tourists arrive
in Savannakhet Province;
• Facilitating incremental change, such as increasing tourist length of stay in hourly
increments; and
• Transitioning from “Tourism Corridor” to “Tourism Route” to “Tourism Destination.”
The strategy was conducted by Emerging Markets Consulting (EMC) in consultation with
SNV, Lao PDR and the Savannakhet Provincial Tourism Department (PTD). It involved
participation from a range of public and private stakeholders, culminating in a workshop
held in Savannakhet Province in June 2009.
Structure:
A profile of the Province is given to incorporate attributes of Savannakhet Province’s
agriculture, economy, history, geography, demographics, and industry into the tourism
strategy, where appropriate.
This is followed by a detailed assessment of the current tourism situation, opportunities and
challenges of the Province. It examines tourism traffic, key market segments and visitor
profile assumptions. Tourism infrastructure and products are also discussed. Comments
and recommendations based on the Project Team’s analysis and expert interviews are
captured within these corresponding sections.
4/08/2009 Page 5 of 65
The strategy then examines tourism growth trends at the global, regional and national level,
reviews the GoL NGPES, NSEDP and LTNA Tourism Strategies, and regional integration
efforts in order to provide greater context and support to the strategic recommendations.
This is followed by an overview of the 3 sequential phases leading to Savannakhet Province
becoming a tourist destination and an outline of the goals and objectives envisioned for the
next decade. Strategic targets are set around the areas of positioning and tourism volume,
length of stay, and expenditures.
A detailed analysis, forecast and impact assessment is then presented. Specific targets are
clearly outlined and the potential impact of the tourism strategy is quantified. This section
clearly illustrates the importance of the guiding principles mentioned above (market
segmentation, incremental change, targets and metrics etc.) and seeks to provide the
Savannakhet Provincial Tourism Department and relevant stakeholders with a clear view to
Savannakhet’s tourism potential.
Lastly, a portfolio of strategic actions are outlined around 10 key areas. These actions
support provincial tourism targets and goals and provide the overarching direction for
tourism development in the Province from 2010 to 2020. The newly recommended action
areas are then captured in a matrix alongside the existing Savannakhet PTD strategy areas,
along with timelines and stakeholder responsibility.
Acknowledgements
The Savannakhet Province Long-Term Tourism Development Strategy would not have been
possible without the support and input of many individuals. In particular, the study team
would like to acknowledge assistance received from:
• The Savannakhet Provincial Tourism Department staff and its Director Madame Bounmi
Khanthivong and Deputy Director Mr. Siha Phannavong;
• SNV Netherlands Development Organization - the Savannakhet-based team and Mr. Lee
Sheridan;
• Dr. Souphanh Keomisay, Vice Governor, Savannakhet Province;
• Private and public sector participants from the June 2009 Savannakhet Province Tourism
Stakeholder Workshop;
• District level leaders and officials;
• Mr. Tetsuo Isono, Chief Advisor/Tourism Development, EWEC, JICA;
• LNTA and Mr. Steven Schipani, Senior Advisor, Lao National Tourism Administration;
• Private sector stakeholders who generously gave their time and provided invaluable
perspectives on Savannakhet Province’s tourism industry, such as:
o Mr. Thongxay Phithamma, Managing Director SK Travel;
o Mr. Prasit, Director of ODOP;
o Mr. Hai, Owner of Lao Lao Der Restaurant;
o Ms. Adeana Shendal Greenlee, VP Marketing Savan Vegas Casino;
o Mr. Sirikhanexay Vongsiprasom, Sales and Marketing Director, and Mr. Steve Chong,
General Manager, Daosavanh Resort & Spa Hotel.
4/08/2009 Page 6 of 65
1. Introduction
The Savannakhet Province tourism sector has potential to grow tremendously over the next
decade. While the Province is already realizing significant tourist arrivals, the majority of the
tourist traffic is transit-only. A key objective is therefore to translate this volume into longer
stays with increased expenditure. To do this, Savannakhet Province must not only address
several of its tourist infrastructure shortcomings but also work steadily towards the larger
longer-term goal of becoming a tourist route and then a tourism destination.
There are high expectations for performance and the Savannakhet Provincial Tourism
Department, together with other key stakeholders including the private sector, has the
potential to achieve significant gains over the short, mid and long-term. Ultimately, the
targets outlined in this strategy will depend very much on the degree to which the public
sector and private sector work together. The private sector is viewed as a critical partner in
Savannakhet’s growth and development and this strategy presents many opportunities for
such partnerships to be fostered and developed.
2. Research Process
This strategy is based on primary and secondary research conducted by Emerging Markets
Consulting Ltd. (EMC). The Study Team comprised: Mr. Mark Taylor, Team Leader; Ms.
Oksana Voronenko, Consultant; Mr. Bounma Vongxay, Senior Analyst and external advisor
Mr. Douglas Hainsworth, Senior Tourism Expert. The work was conducted in consultation
with SNV and the Savannakhet Provincial Tourism Department (PTD) and involved
participation from a range of public and private stakeholders.
Primary Research / Consultations
There were two main elements to the primary research conducted. The first involved expert
interviews and meetings with public and private sector stakeholders in Savannakhet
Province, occurring from June 3 to June 7, 2009. It also involved discussions with subject
matter experts through the course of the strategy formulation process.
The second element centered on a stakeholder workshop which took place in Savannakhet
Province on June 20, 2009, which included representatives from each of the Savannakhet
Provincial Tourism Department Districts, private sector, donor organizations and research
institutions, among others.
Secondary Research
To ensure that the strategy was in-keeping with national and provincial policy and
development objectives, the Savannakhet PTD provided existing short-term high-level
strategy documents. This enabled the Project Team to align existing Savannakhet PTD
efforts and activities with the Project Team’s newly recommended strategies. SNV also
provided a number of supporting reports. These documents combined with EMC’s in-house
library and primary research provided a diverse selection of material from which to inform
and develop Savannakhet’s long-term tourism development strategy.
4/08/2009 Page 7 of 65
3. Savannakhet Provincial Profile
Savannakhet Province is located in the South of Lao PDR and is bordered by Thailand to the
west, Vietnam to the east, Khammouane Province to the north and Salavan Province to the
south. It is the second largest (21,774 km2) and second most densely populated province
(39 inhabitants / km2) in the country. Savannakhet is also a significant contributor to the
nation’s GPD (LK 7million per capita / 12% contribution)1 through its rich natural resources
and agriculture-forestry and mining industries.
The Province is part of East West Economic Corridor (“EWEC”), the concept of which was
created in 1998 by the Ministerial Conference of Greater Mekong Subregion (“GMS”) in
order to foster economic cooperation between and among Lao PDR, Myanmar, Thailand,
and Vietnam. Cooperation between the regions belonging to EWEC is designed to reduce
transport costs, make the movement of goods and people more efficient and reduce
poverty by supporting the development of rural and border areas. Road #9 forms one of the
main sections of the EWEC, running across the width of Savannakhet Province.
3.1. Historical Perspective
Savannakhet Province’s long and rich history dates back to the pre-historic period, providing
a unique opportunity for differentiation from other provinces within the Lao PDR. The
Province has been under the reign of multiple empires, such as the Sikhottabong Empire –
an earlier civilization than Lane Xang - and has survived several international conflicts. The
following timeline (not to scale) captures some of these important historical aspects.
Figure 1: Select Savannakhet Province Historical Events
Pre-Historic 19th Century
Archaeological Significance: Discovery of Dinosaur Bones & Footprints
French ColonialRule (1896-1950)
SikhottabongEmpire
Lane XangKingdom
16th Century
Franco-ThaiWar(1940-1941)
VietnamWar (1963-1974)
20th Century
Pathet Lao& Royal Lao
Govt Conflict(1958-1975)
RevolutionandIndependence(1975)
Pre-Historic 19th Century
Archaeological Significance: Discovery of Dinosaur Bones & Footprints
French ColonialRule (1896-1950)
SikhottabongEmpire
Lane XangKingdom
16th Century
Franco-ThaiWar(1940-1941)
VietnamWar (1963-1974)
20th Century
Pathet Lao& Royal Lao
Govt Conflict(1958-1975)
RevolutionandIndependence(1975)
From an archaeological perspective, Savannakhet Province is significant. French geologist
Josue Heilman worked in Savannakhet’s Xonebouli district between 1936 and 1939 and is
credited with the discovery of the bones of four species of dinosaurs: Slurped, Sauropode,
Theropode, and Iguanodon. These bones are on display at the Dinosaur Museum in
Savannakhet’s Kaysone Phomvihan District, providing tourists with a unique opportunity to
see and to learn about the Province’s natural history. Tourists can also travel to Phalanxay
district to see dinosaur footprints (102 km outside of Kaysone Phomvihan District). In
1 Savannakhet Provincial Tourism Magazine, 2009
4/08/2009 Page 8 of 65
addition to these pre-historic findings, archaeologists recently discovered the remnants of
an ancient mining system at the Sepon Mine.
Until the 16th century, the current territory of Savannakhet Province belonged to
Sikhottabong Empire. Savannakhet Province, originally called Muong Noyoynou was
established as Muong Luang Phonsim (presently Ban Phonesim, about 18 km from
Savannakhet town) during the time of the Anachak Lao Lane Xang Empire. In 1542 (before
the reign of King Saysetthathirath) after the death of his parents Thao Keosimma, the
second son of Thao Lunang and Nang Simma, relocated some villages to construct a new
village at Nakham on the bank of the river. Nakham village was later renamed Tha Hae
village, which was further developed into the present-day town. It was also in this period
that That Inhang, one of the main attractions of Savannakhet Province, was built. The That
Inhang stupa is believed to contain the spine of Lord Buddha and is one of the holiest
religious buildings in Southern Laos.
Savannakhet Province has seen conflict on several occasions throughout its history. In 1896
Lao PDR came under the administration of France (1896-1955). The French influence can
still be felt in Savannakhet’s architecture such as in Kaysone Phomvihan central square,
although many of the French colonial buildings are in disrepair. Savannakhet town was
bombed and occupied by Thai armed forces during the Franco-Thai War (1940-1941). During
the Vietnam War (1963-1974), Eastern Savannakhet formed part of the historic Ho Chi Minh
Trail, the supply route to South Vietnam for the North Vietnamese army. The Trail has since
been developed into an eco-trekking option. In 1971 the famous battle of Lam Seun 719
took place in Xepone District. Weapons that originated from that war (bombs, trucks, tanks
etc.) still remain today. From 1958 to 1975, there was internal conflict between Communist
Pathet Lao and the Royal Lao government. Lao regained its independence in 1975 after the
revolution.
The Province is also the homeland to a number of heroic revolutionists such as: Father
Kaduad, President Kaysone Phomvihan, President Nouhak Phoumsavanh, Mr. Phoun
Sipaseuth, revolutionary writers such as Mr. Sinana Sisane and Mr. Souvanthone
Bouphanouvong, as well as Mr. Champa Rattanasavan, the composer of famous songs such
as Koulappaksan, Songfangkhong, Padaekkonhai and Vieng Naifan.
Savannakhet Province thus seeks to leverage its unique history by weaving
a historical theme into its long-term tourism strategy - one that will cater
to domestic, regional and foreign visitors alike.
3.2. Physical Characteristics
Geographic Location
Savannakhet Province is located in the South of Lao PDR and is bordered by Khammouane
Province to the north, Salavan Province to the south, Vietnam to the east and Thailand to
the west.
4/08/2009 Page 9 of 65
The Province has 15 districts, 1,012 villages
and 134,646 households2. The 15
administrative districts of Savannakhet
Province are: Kaysone Phomvihan,
Outhomphone, Atsaphangthong, Xaybouly,
Xayphouthong, Songkhone, Champhone,
Atsaphone, Phalanexay, Xonbouly, Phine,
Sepon, Thaphangthong, Vilabouly and Nong
district.
Landform
With a total area of 21,774km2, Savannakhet
Province is the second largest province in
the country after Vientiane Province (22,554
km2). 61% of the land area is forested and
there is a small mountainous region in the
SVKSVK
east. The Province can be separated into lowland areas (59%) and upland areas (41%),
classified by height relative to sea level.
National Protected
Areas (“NPA”):
Phou Xang Hae NPA, Dong Phou Vieng NPA and Xe Bang Nuan NPA;
Rivers: Xe Bang Phai River (239 km long), Xe Bang Hieng River (339 km
long) and the tributaries such as Sepon, Xe Lanong, Xe Champhone
and Xe Xangxoi;
Waterfalls: Tad Salene, Tad Sadee, Tad Sakhoe, Tad Phalong
Lakes: Nong Luang (turtle lake), Soui Lake, Bungva Lake.
Major Roads: Road #9, Road #13; in late 2006 the 2nd Friendship Bridge was built
connecting Savannakhet to Mukdahan, Thailand.
These natural attractions provide opportunity for a range of tourism
options, such as family-friendly holidays, eco-trekking, hiking and water
activities.
Climate
Savannakhet Province has two seasons – the hot (rainy) season and the cold (dry) season.
The hot season runs from April to September and the cold season from October to March.
The annual mean rainfall is 1,468mm, temperature is 25.5 Celsius and climate is classified as
tropical monsoon.3
2 Ministry of Planning and Investment, Department of Statistics, 2007
3 JICA Summary Report on the Preparatory Study for Environmental and Social Considerations, October 2007
4/08/2009 Page 10 of 65
3.3. Demographic Profile
The population of Savannakhet is 858,582 (2007), with a 51%/49% female to male split. The
population density is 39 people per km2, the second highest in the country after Champasak
Province at 41 people per km2.
There are 11 ethnic groups reported in the Province, out of a total of 47 (or 68)4 tribes in Lao
PDR, depending on criteria used. These tribes comprise: Lao; Phouthai; Thaidam; Katang;
Mangkong; Chalee; Lava; Xuai; Paiko; Kalue and Ta Oy. The largest groups are Lao 62.1%,
Phoutai 15.2%, Mangkong 9% and Katang 8.7%.5
75% of the Savannakhet adult population is either employed or self-employed and 65% of
the employed labour force is farmers. The average size of the household is 6.4 people and
the average income per capita is LK 7,000,0006.
Ethnic groups in Savannakhet provide some opportunity to develop cultural
awareness and products, such as with textiles. Thong Lahasin Handicraft
Center, for example, is a training center for cotton weaving using natural
dyeing and non-chemical dyes based on the traditional Phoutai practices
from Lahanam village, Songkhone district. In general, however, ethnic
diversity will not be a competitive advantage or differentiator for
Savannakhet Province compared with other provinces in Lao PDR, such as
Luang Namtha.
3.4. Economy
In Pali, a Middle Indo-Aryan language, the word Savannakhet means “land of gold or
richness” (“Savanna” means “gold” and “khet” means “Territory”) and indeed, Savannakhet
is abundant in natural resources. Agriculture, forestry and mining are the major industries
in the Province.
Savannakhet GDP per capita has been growing slightly since 2005. The Province contributes
about 12% of the nation’s GDP.
Figure 2: Savannakhet Province GDP per Capita
Year: 2005 2006 2007 2008
GDP per Capita: $319 $443 $525 $587
4 Lao PDR counts 47 tribes settled throughout the country, based on a 1995 census. Research conducted by
France, America, the Soviet Union and Vietnam prior to 1975, recorded 68 tribes. 5 JICA Summary Report on the Preparatory Study for Environmental and Social Considerations, October 2007
6 Savannakhet Provincial Tourism Magazine 2009
4/08/2009 Page 11 of 65
Industry
According to the National Socio-Economic Development Plan (NSEDP) 2006-20107, four
cities will be developed to become regional socio-economic development centers of the
country. These cities will take leading roles in economic expansion and become the front
line for industrialization and modernization. Khaanthabouly (Savannakhet) will represent
the Central region of Lao PDR.
Over the past five years, Savannakhet Province has experienced expanded job opportunities
and greater income, due to increased jobs from investment projects, increased
commercialized production and increased exports. The manufacturing sector has been
growing steadily since 2001.
In tandem with benefits arising from increased transport/trade due to EWEC, the Savan-
Seno Special Economic Zone (SSEZ) holds potential to further stimulate investment and
strengthen linkages with Thailand and Vietnam. Planned business activities in the SSEZ
include an Export Processing Zone, Free Trade Zone and Free Service and Logistics Center
which, per DDFI, may include tourism, banking and other activities8.
Agriculture
Savannakhet Province’s agricultural area covers about 15% of the land. The 3 main
cultivated crops9 (season rice, irrigated rice and sugarcane) rank first among all other
provinces in the country:
Figure 3: Savannakhet Province Agricultural Crops (2007)
CropHarvested Area
(Ha)
Product
(Tons)
Provincial
Ranking
1 Season Rice 135,449 466,875 1
2 Irrigated Rice 21,100 97,520 1
3 Sugarcane 2,080 84,070 1
4 Vegetables and Beans 9,565 69,350 4
5 Starchy Roots 3,020 23,100 8
6 Maize 3,580 11,250 10
7 Tobacco 1,035 7,300 2
8 Peanuts 900 1,600 9
9 Upland Rice 1,050 1,575 15
10 Cotton 370 250 5
10 Main Savannakhet Crops
7 National Socio-Economic Development Plan (2006-2010), Committee for Planning and Investment, October
2006. 8 DDFI, Lao PDR; SEZ website: http://www.invest.laopdr.org/special%20zone.htm
9 Source: Ministry of Planning and Investment Statistical Yearbook 2007.
4/08/2009 Page 12 of 65
Savannakhet is increasingly moving towards commercial production of high-potential areas
such as seeded-trees for oil extraction and sugarcane. Current industrial plantations include
rubber tree concessions, eucalyptus tree concessions, cassava plantation concessions and
acacia plantation concessions.
Mining
Savannakhet Province is rich in mineral resources such as salt, limestone, copper, silver, gold
and granite. Of particular note is the Sepon gold mine in Vilabouly District, Savannakhet
Province which started operations in 2003.
Figure 4: Savannakhet Province Natural Resources
ResourceProduction Capacity /
Year (Ton)
Market
Consumption
1 Gypsum 200,000 Local + Export
2 Salt 10,000 Local
3 Copper 60,000 Export
4 Gold 5-6 Export
Natural Resources
Savannakhet’s growing economy thus provides opportunity for tourism
development and investment. Its agricultural strength could lead to
opportunities for agri-tourism, such as participation on working farms.
Savannakhet also holds potential to develop its factory tour offerings,
building off of the existing Savannakhet salt factory tour and forthcoming
tourism site at MinMetals’s (LXML/OZ Minerals) Sepon Mine. To the extent
possible, these should also reinforce Savannakhet’s historical theme, such
as the linking of archaeology (dinosaur findings) with rocks and minerals
and ancient mine shafts associated with Sepon Mine. As a first step,
however, demand and interest in new potential attractions/products
should be assessed.
The Savan-Seno Special Economic Zone and EWEC will further open the
door to new investment in the Province. These should be aligned with
Savannakhet’s long term tourism development strategy.
4/08/2009 Page 13 of 65
4. Savannakhet Province 2009: The Current Situation,
Opportunities and Challenges
Savannakhet Province is currently the second largest tourist entry point into Lao PDR,
following Vientiane Capital. The relatively recent surge in tourist/visitor arrivals - largely due
to the opening of the 2nd
Friendship Bridge and the development of EWEC - provides
substantial opportunity for positive socioeconomic growth and development, even if
Savannakhet is currently not the destination point for the majority of the traffic.
The ability to translate this tourist/visitor volume into increased expenditures and longer
stays is the overarching challenge. The solution lies in improving fundamental tourism
infrastructure and following a measured, strategic path that recognizes Savannakhet
Province’s unique attributes while packaging and positioning them to better service the
needs and demands of the market/customers.
4.1. Overview
Savannakhet Province aims to become a tourism destination. Before this can occur,
however, it must progress from its current position as a Tourism Corridor (Stage 1) to one of
a Tourism Route (Stage 2) and then to a Tourism Destination (Stage 3). The follow graphic
captures this typical progression.
Figure 5: Sequencing to Tourism Destination
TourismCorridor
TourismRoute
TourismDestination
Stage 1 Stage 2 Stage 3
TourismCorridor
TourismRoute
TourismDestination
Stage 1 Stage 2 Stage 3
Tourism Corridor:
Tourism infrastructure is generally lacking; focus is on the
movement of passengers and goods in the fastest possible time.
For Savannakhet Province, tourism is predominantly end-to-end
movement between Vietnam and Thailand.
Tourism Route:
Tourism infrastructure is developing and touristic qualities of the
route as well as the needs of the tourists are addressed. For
Savannakhet Province, opportunities to connect the main highway
with new routes and tourism products are provided. Mechanisms
to engage local communities and districts in potential economic
benefits are taken advantage of.
Tourism Destination:
Tourism infrastructure developed and routes and attractions are
marketed and packaged to a point where Savannakhet Province
becomes a tourism destination.
4/08/2009 Page 14 of 65
Currently, Savannakhet Province is still in Stage 1 - Tourism Corridor. Its strategic
geographical position between the Vietnamese and Thai borders almost guarantees a
constant tourist flow. There are currently more than 1,000 visitors a day crossing
Savannakhet Province borders and an unknown number of tourists (domestic and foreign)
already in-country travelling to/through Savannakhet Province.
The 2nd Friendship Bridge and Dane Savanh-Lao Bao - the two land border entry ports to
Savannakhet - are the second and the third largest entry ports in Lao PDR respectively, after
the 1st
Friendship Bridge in Vientiane. Yet most of this tourist traffic is in transit to a
destination other than Savannakhet Province and tourists are spending little time, if any, in
the Province.
Savannakhet’s tourism traffic is a clear strength and presents an
opportunity for the Province to transform itself first into a Tourism Route
and potentially thereafter into a Tourism Destination.
4.2. Tourism Market
Tourism Traffic
The volume of tourists10
entering Savannakhet Province11
has increased significantly over
the past 5 years, averaging 37% compound annual growth rate (CAGR)12
. Savannakhet
Province is currently the second largest port of entry for tourist arrivals in the country
(408,803 arrivals in 200813). The over two-fold increase between 2006 and 2007, shown
below, can primarily be attributed to the opening of the 2nd Friendship Bridge in Dec. 2006.
Figure 6: Number of Tourist Arrivals
114,391
135,686
165,360
399,667408,803
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2004 2005 2006 2007 2008
37% CAGR
10
Throughout this strategy, tourists are defined by the Lao definition rather than the international definition,
meaning an individual can be a tourist even if he or she stays less than one day in the country. 11
Determined by 2nd
Friendship Bridge and Dane Savanh port of entry; inter-province arrival data unavailable. 12
EMC analysis based on 2009 Savannakhet Provincial Tourism Department data and 2009 LNTA National data. 13 Source of data: Lao National Tourism Administration, 2008 Statistical Report on Tourism in Laos
4/08/2009 Page 15 of 65
Market Segmentation
It is crucial for the Savannakhet Province long-term tourism development strategy to be
demand driven. The Province should therefore take an external rather than an internal
focus; meaning it should proactively seek to satisfy the needs, wants and demands of its
growing number of tourist arrivals rather than simply relying on its existing offering.
To achieve this, Savannakhet must be equipped with reliable, up-to-date information about
its tourist (customer) base. It also must segment its tourist market. Otherwise the Province
may be attempting to offer the same marketing mix14
to vastly different customers,
potentially resulting in: decreased levels of satisfaction; fewer return visits; reduced lengths
of stay; and missed opportunities to generate expenditures.
Market segmentation should be based on factors that are common to one group yet
distinct from other groups as well as be measurable, meaningful and marketable. For
Savannakhet Province, this requires segmentation by:
• Geography (country/nationality and region),
• Demographics (age, gender, income, family status, etc.),
• Purpose (business, tourism, official, transit only, etc.),
• Travel Motivations (slightly more specific, such as sightseeing, shopping, history)
• Mode of travel (FIT, caravan, or organized coach tourism, etc).
Geographic segmentation is primarily used in this strategy given the overall lack of
available source market data.
Market research and analysis is strongly recommended to capture tourist
data by demographics, purpose15
and mode of travel. Only then will
Savannakhet Province be able to accurately develop new high-potential
tourism products, improve upon existing products and eliminate unproductive
ones.
Key Market Segments, by Nationality
Not only has the volume of international tourists changed significantly over the past four
years in Savannakhet Province, but also its makeup has changed significantly. According to
LNTA international arrival data, the number of Thai tourists in particular has significantly
increased after the opening of the 2nd
Friendship Bridge in 2006, resulting in Thai tourists
representing approximately two thirds of all international tourist arrivals in the Province
and Vietnamese arrivals decreasing to less than one third. “Other ASEAN”, “Non ASEAN”,
“Western” and “Other” tourist categories comprised less than 5% of international tourist
arrivals.
14 Marketing mix is also known as the four Ps (product, price, placement and promotion) 15
“Tourist arrivals, by purpose for 2007 is noted below but there are data integrity questions regarding the
dataset received from PTD.
4/08/2009 Page 16 of 65
Figure 7: International Tourist Arrivals, by Nationality
37%
51%
69% 67%
56%
42%
26% 29%
4% 4% 2% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008
Thailand Vietnam Western, NA & Other Non ASEAN Other ASEAN
According to Savannakhet PTD data16, in 2008 Savannakhet Province recorded 408,803
tourist arrivals (domestic and international) at its two land-based immigration entry points:
2nd
Friendship Bridge and Dane Savanh-Lao Bao. Thai (50%) and Vietnamese (27%) arrivals
comprised 77% of this total tourist flow and domestic tourist arrivals comprised 20%.
Key Market Segments, by Purpose
According to 2007 PTD data, the majority of domestic (55%) and Thai (88%) visitors travelled
to Savannakhet for the purposes of tourism while the majority of Vietnamese tourists (66%)
travelled to Savannakhet for the purposes of business. The large percentage of Vietnamese
travelling on business warrants further investigation.
16
The Savannakhet PTD, unlike the LNTA, releases domestic tourism arrival data. The quality of that data,
however, is not always reliable.
4/08/2009 Page 17 of 65
Figure 8: Purpose of Visit, by Nationality
6%1% 2%
25%
8% 8%
3%
2%
67%
55%
86%
22%
1%3%12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Domestic Thailand Vietnam
2007
Official Visit Business Tourism Other
Hence, the key market segments for Savannakhet Province to target
currently are and will likely continue to be Thai, Vietnamese and Domestic
visitors, including (i) those that chose Savannakhet Province as their main
destination and (ii) those in transit to other destinations.
There also has been significant shifts in the nationality (by percentage) and
purpose of visitors entering Savannakhet over the past four years,
underscoring not only volatility in Savannakhet’s tourism market but also
the need for the Province to be flexible and to gain a better understanding
of the makeup of tourists.
Visitor Profile, Attitudes and Activities
Source Market Survey: There is currently limited information regarding critical source market
tourism data for Savannakhet Province. SNV is currently funding research to obtain this
much needed information. The results of which should be incorporated into this strategy.
Nonetheless, the following hypotheses were derived from discussions with relevant
stakeholders from the public and private sector and presents initial assumptions regarding
the interests and attitudes of tourists in key market segments.
1. Thai: Thai tourists that arrive in Savannakhet Province are mainly transiting for vacation
in Vietnam (beach destinations as well as cultural and historical attractions). A
percentage of Thai visitors are coming over for gambling purposes at the Savan Vegas
Hotel & Casino. Visitors that are in transit usually are medium-level income tourists with
a strong preference for packaged tours. They find excursions and organized tours to
4/08/2009 Page 18 of 65
cultural, historical and religious destinations to be most appealing. They also prefer
comfortable, yet affordable accommodations ($30 range) and are seeking quality dining
and entertainment options. For natural attractions, these tourists are mostly interested
in beach destinations and find ecotourism treks to be less appealing. A large percentage
of the Thai visitors come from Isaan Province, Thailand.
2. Vietnamese: Vietnamese tourists that arrive in Savannakhet Province are mainly
transiting for vacation in Thailand (mainly to beach destinations, but with visits to
cultural and historical attractions en-route). Vietnamese tourist attitudes are similar to
Thai tourists with exception of the specific mix of cultural and historical attractions.
There also may be greater price sensitivity. [This assumption differs from the 2007
Savannakhet PTD findings that two thirds of Vietnamese are travelling to Savannakhet
for the purpose of business]
3. Domestic: Analysis of visitor arrival data from Savannakhet Province border check
points reveals that 20% of all tourists are Lao nationals, 57% of which are travelling for
the purpose of tourism. It is believed that domestic tourists are similarly in transit to
other destinations and spend little time in the Province itself. Domestic tourist attitudes
are similar to Thai and Vietnamese as they are looking to visit cultural, religious and
historical attractions.
4. North American and European: North American and European tourists tend to be
backpackers staying in Lao PDR and South East Asia for a prolonged period of time.
Most North American and European tourists arriving in the Province will choose to stay
in the Province for at least one day or more. They choose to visit Savannakhet Province
to become familiar with less-touristed provinces of Lao PDR and often have already
visited Vientiane, Luang Prabang, Vang Vieng and other major tourist destinations in Lao
PDR, or are planning to do so as their next stopping point. They are experiential tourists,
interested in cultural and natural attractions of the Province and find eco-treks,
homestays, village visits, handicraft manufacturing and other similar activities appealing.
5. All Other: Varies
6. Visitors who do not come to Savannakhet: While data is needed to substantiate why
tourists visiting Lao PDR elect not to come to Savannakhet Province, likely reasons
include time constraints, lack of awareness, and competing tourist attractions. Tourists
that spend a week or less in the country prioritize Savannakhet low on their itineraries
as little information is available on what Savannakhet has to offer and the linkages
between tour offices arranging excursions and tours in other provinces and in
Savannakhet are weak.
Most visitors that arrive in Savannakhet Province are believed to be in
transit to other destinations. Thus, an important goal of the tourism
strategy for Savannakhet Province is to incrementally increase transit
tourist time and money spent in the Province. As the Province transforms
itself from a Tourism Corridor into a Tourism Destination, Savannakhet will
need to further develop dining, shopping and entertainment options for
tourists and entice transit tourists to visit nearby attractions along their
route. Deep understanding of the specific needs and preferences of the top
4/08/2009 Page 19 of 65
3 market segments – Thai, Vietnamese, and Domestic tourists – is needed
to bridge tourist demand with Savannakhet service offerings.
4.3. Tourism Infrastructure
The provincial government recognizes the importance of upgrading Savannakhet Province’s
tourism infrastructure to capture a greater portion of transit tourist flow and thereby
increase tourism spend and length of stay.
While Savannakhet Province has a basic foundation in terms of tourism infrastructure, it
needs to work towards upgrading quality and variety across all sub-sectors of the industry
(accommodations, dining, entertainment, tours and attractions etc.).
Access and Transport Services Overview
Savannakhet Province is reasonably well connected to the capital city of Vientiane, other
provinces and the neighbouring countries of Thailand and Vietnam. Internal transport to
tourist attractions, however, represents a major challenge and is deterrent for tourists.
Located at the center of EWEC, Savannakhet Province is at the cross-roads of important
domestic and international trade routes. The latest immigration process initiatives, in
tandem with recently-implemented single-window and single-stop border inspections, are
expected to have a positive impact on trade and economic development.
Trade facilitation improvements and increases in business travel and
business exhibitions/events (such as MICE) could provide an interesting
market for Savannakhet to target in the future. Savan Vegas Hotel and
Casino, for example, is already considering developing a convention center
that can host up to 200 people.
Air Transport: The Province contains a small airport in the capital. The Vientiane-Pakse-
Savannakhet-Bangkok flight route is offered three times a week. The management of the
Savan Vegas Hotel and Casino has stated its intention to negotiate a daily flight to Bangkok
under the condition that Savan Vegas would pre-purchase 50% of the seats.
Increased air traffic - for casino-related activity or for other purposes –
offers an opportunity for greater marketing and tourism information at the
airport, in addition to ground transportation. The current low volume of
tourists arriving by air, however, does not yet make this a high priority.
Ground Transport: The Province is reasonably well connected to other regions of the
country and international destinations, offering 8 international bus connections and 8
domestic connections. The public buses usually serve 4-6 trips a day, while VIP buses serve
1 trip per day. 60% of the bus connections utilize Road #9, further making the development
of tourist attractions, facilities and dining along the road commercially attractive.
Standard Public Busses: the following domestic connections are available (7) - Attapeu,
Dongkhong, Nakasang, Pakse, Salavan, Sekong and Vientiane with the price for the service
4/08/2009 Page 20 of 65
ranging from approximately USD $5-$10; the following international connections are
available (7) - Danang, Dong Ha, Quang Tri, Hanoi, Hue, Lao Bao Border in Vietnam and
Mukdahan in Thailand with an average price for the service of ~$10;
VIP Busses: there are two daily VIP connections offered – one to Vientiane ($12) and one to
Hue ($13).
Ground transportation to and from national and international tourist
destinations (such as Vientiane, Danang and Bangkok) provide
Savannakhet Province with an opportunity to forge partnerships and
relationships with tour operators and agents, particularly organized coach
tourism. It also presents opportunities to develop and market its provincial
brand/identity.
Internal Transport: The internal transport servicing the 15 districts within the Province is
commonly served by songtheaws and tuk-tuks. There are 14 songtheaw connections
available serving the following destinations: Atsaphangthong, Atsphon, Champhon, Den
Sevanh, Outhouphon, Phalanxay, Phine, Sepon, Sonkhon, Thaphangthong, Vilabouly,
Xaibouly, Xaiphouthong and Xonbouly. There are around 3-6 trips per day from Kaysone
Phomvihan to the other districts, with an average price ranging from $2-6. Tuk-tuks also
circulate in Kaysone Phomvihan district to serve visitors and locals. However, a major
complaint of tourists is that it is difficult to find tuk-tuks and songtheaw service is not
available to many of the Province’s attractions.
Major infrastructure developments have improved domestic and regional
access to Savannakhet Province and provided a solid transportation
platform to build on. Savannakhet Province must now focus on the “last
mile,” facilitating access to its attractions by providing internal transport
that links to Road #9, Road #13 and city centers/tourist hubs. At present,
access to most of Savannakhet’s tourism attractions is simply too difficult
and/or expensive. Introduction of taxis or buses (private or public) that can
transport tourist to attractions should be explored.
Tour Operators: Savannakhet Province currently has a total of 11 ground operators. Four of
these - SK Travel, Souk Na Pha Travel, SV Travel, and Savan Ban Hao Travel - serve as the
main ground handlers for regional tour operators. The ground operators largely support
Thai and Vietnamese package tours and are not exclusively focused on Savannakhet
Province. The only local inbound operator that is developing and selling their own products
is the non-profit Savannakhet Eco-Guides unit, supervised by the Savannakhet PTD.
Regional Linkages: The East West Economic Corridor has significantly reduced travel time
and cost of transportation. Based on ADB CBTA estimates, time has been reduced from 12
hours to about 3 hours.
1. Road #9: The Road #9 stretches from Kaysone Phomvihan district through
Outhoumphone, Phalanxay, Phine, and Sepon districts of Savannakhet Province, all the
way to the Lao-Vietnamese border (245 km). The road serves as a gateway to the GMS-
EWEC, that links the following points in the region: (i) Mawlamyine-Myawaddy in
Myanmar; (ii) Mae Sot-Phitsanulok-Khon Kaen-Kalasin-Mukdahan in Thailand; (iii)
Savannakhet-Dansavanh in Lao PDR; and (iv) Lao Bao-Hue-Dong Ha-Da Nang in Vietnam.
4/08/2009 Page 21 of 65
The road is under the financial assistance of ADB and JICA for further development. The
ADB map below17 captures developments along the EWEC.
Figure 9: East West Economic Corridor
2. Road #13: The Road #13 connects to Road #9 at Seno Square and stretches from
Champasak Province in the south through to Khammoune Province and notherwards to
Luang Namtha. This is the main road linking the North and the South of Lao PDR. As
Seno is an important center for trading and investment, the Government has established
the first Special Economic Zone in the province – the Savan-Seno SEZ.
While still under development and seeking commercial investment
opportunities, the Province’s tourism strategy should note that the SSEZ
has designated areas for entertainment use and should coordinate on
tourism opportunities accordingly.
Accommodations
There are 17 hotels and 89 guesthouses in Savannakhet Province. 10 of these hotels and 60
of these guesthouses are located in Kaysone Phomvihan district (59% and 67% of the total
respectively). Total bed capacity for the Province is 2,924. The average price for a hotel
room is about USD $21 and the price for a room in the guesthouse is about USD $718. There
is no survey data regarding occupancy rates in the hotels and guesthouses, however, from
discussions with hotel and guesthouse owners, estimates place the figure below 50%.
17
Source: ADB, Presentation to the Workshop on the Benefits of Regional Cooperation: An Exchange Learning
Program between CAREC and the GMS, Hue 6-10 August 2007 18
EMC analysis based on 2009 Savannakhet Provincial Tourism Department data
4/08/2009 Page 22 of 65
Figure 10: Savannakhet Province Accommodation Options
Number# of
Single Rooms
# of
Double Rooms
Average
Price
Hotels 17 457 343 $21
Guesthouses 89 964 413 $7
Total 106 1,421 756
Summary: Accommodation Options
Despite the fact that Savannakhet Province has sufficient bed capacity, many Thai tourists in
transit to Vietnam choose to overnight in Mukdahan, Thailand instead of Savannakhet, Laos.
Though the interests and motivations of the tourists are to be explored further in a
forthcoming SNV study, initial assessment from discussions with stakeholders and from
industry analysts is that Savannakhet lacks quality accommodations (design, amenities etc),
dining and night entertainment options needed to meet the demands of mid and high-end
tourists.
These limiting accommodation/entertainment factors, coupled with lack of
organized affordable tours to Savannakhet’s Province attractions poses a
significant challenge to (i) increasing length of stay, (ii) increasing daily
expenditures and (iii) competing with Mukdahan’s service offering.
Food & Beverage
There are 80 restaurants with 1,656 tables and 3,312 seats in the Province, 25 of which are
in the Kaysone Phomvihan district. As Savannakhet does not currently have a tourism locus
point, accommodations and restaurants are spread out and tourists find it difficult to find a
good nearby restaurant. Also, based on discussions with relevant stakeholders, tourists
often desire dining options of higher quality than those currently available.
Near Thalat Yen, the main city square of Kaysone Phomvihan district, there
are plans to develop a night market (ADB-supported initiative) which could
serve as a much needed hub for tourist activity. Food and beverage outlets
are anticipated to accompany investment in the development of the
marketplace. In turn, there is then potential to attract more up-market
dining and boutique stores. This central tourist area thus holds potential to
become a hub and catalyst for tourism activities throughout the Province.
Entertainment
The Province currently lacks a variety of quality tourist entertainment options. There are
roughly 29 bars, karaoke bars and discotheques in Kaysone Phomvihan district, however
these do not cater to tourists. Among other entertainment options, there are several
massage shops in Kaysone Phomvihan district with prices ranging between 30K – 60K
LAK/hour. Savan Vegas Hotel & Casino has also been attracting a sizable clientele of Thai
tourists, most of whom are “day trippers” that spend little time in the Province aside from
their casino visit. There are a few shopping opportunities as well.
4/08/2009 Page 23 of 65
• Savan Vegas Hotel & Casino: The Savan Vegas Hotel and Casino opened in 2008 and is
the first five-star luxury gaming hotel and entertainment complex in Lao PDR. It is
located less than five minutes away from the 2nd Friendship Bridge and the Savannakhet
International Airport, in Nongdeune Village of the Kaisone Phomvihan district. The
property is owned and operated by Sanum Investments Limited, a Macau based
company. The hotel has 176 standard rooms (the suites are currently under
construction) and offers free accommodation to casino customers who purchase over
50K THB in non-negotiable chips. Currently, besides customers that are offered a
promotion, a very small percentage of the clients take advantage of the hotel
accommodations. Most of the gamblers come for a day trip. Savan Vegas hosts 500-
1,500 customers a day19. Currently, in addition to the casino, Savan Vegas has two
signature restaurants, a buffet restaurant, a retail outlet, a coffee shop, two bars, VIP
Karaoke and a luxurious spa on its premises. The expansion plans for Savan Vegas
include the construction of a golf course, shopping center complex, 2 additional
restaurants and a convention center hosting up to 200 people. The time horizon is 2-3
years.
• Shopping: There are about 10 shopping outlets that sell local handicrafts such as wood,
silk, cotton and bamboo products. Two of these locations are well known by tourists:
Savanxay market and the ODOP shop. Savanxay market is considered to be a provincial
attraction and the ODOP (One District – One Product) captures an attentive audience
near the Thai-Lao border, located directly after the immigration check point.
Entertainment and shopping options need to be strengthened
throughout Savannakhet Province. At tourist attraction sites, there
is clear opportunity to boost tourist expenditures through basic
handicraft and souvenir sales and the provision of food and
beverage. The majority of Savannakhet’s tourist attractions provide
little to no support in this area. One clear example is That Inhang. It
is Savannakhet’s top tourist attraction yet the site has no
restaurants, shopping, historical/cultural information, or other
support services.
Opportunities for pro-poor tourism should be integrated where
possible, particularly with regards to handicraft and food services,
whether customer facing or along the value chain itself. A few clear
entry points include: the proposed development of a night market
and EWEC road side rest stops, expansion of ODOP-type shopping,
and promotion of handicraft and local products. Products also need
to be promoted at other tourist locations such as hotels, casinos
and border/duty free shops. Additionally, there is opportunity to
introduce Lao products from across the country (not only
Savannakhet-based products), given that many tourist’s travels
through Savannakhet will serve as their “Lao experience.”
Understanding the shopping behaviours/preferences of
Savannakhet’s different market segments (Thai, Vietnamese, Lao,
19
Source: Savan Vegas Hotel and Casino management interview, June 2009
4/08/2009 Page 24 of 65
etc) and access points to reach these visits is essential. Many
Vietnamese tourists, for example, travel to shop..
Festivals & Events
Savannakhet Province has cultural, religious and historical festivals throughout the year.
They include:
• BounKhounlane Festival: traditional festival of the farmers organized at the paddy
courtyard after the rice is harvested to pay the gratitude to the earth, sky and deity of
land (takes place on the 3rd waxing day of the 3rd month in Lao lunar calendar, which is
around the beginning of February);
• Lao New Year Festival: festively celebrated holiday held yearly between 13th-15th of
April;
• Boun Phavet and Rocket Festivals: the villagers of Keankok village, Champhone district
celebrate both events together yearly at the end of April. The celebration includes the
procession of Vetnuntra into the town and a thousand ball rice procession;
• The Elephant Parade and Rocket Festival: a very relaxed and enjoyable festival, where
the local men can often be seen dressed in women’s clothing, make up and parading the
streets with great frivolity. The parade is held featuring home-made mock-ups of
elephants and horses and can be best witnessed at Ban Kang Kok village in Champone
District. Later on during the day, the villagers move to a nearby field where they
commence with the rocket festival –a competition to see whose home-made rocket can
be launched highest into the sky. The rocket festival shows appreciation to Pavathan
and calls for the rains without which the rice growing season cannot commence
(traditionally held around the end of April / beginning of May);
• Ork Phansa-Boat racing: held yearly during the 13th
-15th
waxing day and the first
waning day of the 11th
month of the Lao lunar calendar (about the middle of October);
and
• That Ing Hang Festival: the traditional festival which has been celebrated since the
ancient times that encompasses Buddhism and ritual ceremonies and Lao cultural
traditions and includes exhibition and sale of goods, traditional sport events, traditional
music and dance shows, modernized concert and other entertainment (takes place
between the 13th
-15th
waning day of the first month in the Lao lunar calendar or around
December).
Seasonality
At the national level, monthly tourist arrivals in 200820
(comprising international and
regional tourists), were greatest in the months of January/February, May/June and
November/December. These findings are moderately aligned with the tourist arrival
inflection points for Savannakhet Province (shown below), where January, April/May and
December had the greatest number of tourist arrivals. The difference between national
patterns and Savannakhet patterns is likely due to holidays and events that are occurring in
Thailand and Vietnam.
20
Based on 2008 data from LNTA 2008 Statistical Report on Tourism in Laos
4/08/2009 Page 25 of 65
Figure 11: Savannakhet Province Tourist Arrivals, by Month
0
5
10
15
20
25
30
35
40
45
50
55
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
ou
sa
nd
s
2003 2004 2005 2007
0
5
10
15
20
25
30
35
40
45
50
55
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
ou
sa
nd
s
2003 2004 2005 2007
Festivals and events provide opportunities to showcase Savannakhet Province
culture and history and should be promoted within Lao PDR and abroad.
Stronger provincial marketing campaigns and linkages with tour operators
and travel agents are clearly needed. Timing of events is also important and
requires not only examining Lao PDR travel trends but also the trends of its
source markets (especially Thailand).
Visitor Information Center
The provincial government has recently constructed a Tourism Visitor Center which provides
tourism information to local and foreign tourists. There is also an Eco-Guide Unit Visitor
Center in the center of Savannakhet town. These offices provide leaflets, maps, brochures
and magazines about Savannakhet Province and employ staff fluent in Lao and somewhat
competent in English. Thai and Vietnamese language should also be spoken due to ensure
communication across these key market segments.
More data is needed regarding the number and type of visitors using the
Visitor Information Center, as well as and how they learned of the Center.
Tourist inquiries should be logged to provide PTD and the private sector with
an ongoing database of tourist needs, satisfaction and opportunities to better
serve the market. Consideration should be given to setting up a Visitor
Information Center booth at the proposed night market.
4/08/2009 Page 26 of 65
4.4. Tourist Attractions
Savannakhet has many natural (40 registered), historical (31 registered) and cultural (21
registered) attractions. Many of these, however, are poorly maintained or are difficult to
access and have limited or no descriptive information available at the location itself.
To help raise awareness of tourist attractions, JICA and PTD have developed a series of
pamphlets to provide visitors with a brief overview of tourist attraction options available,
such as the map from the “Savannakhet Outskirts: One-Day Tour Circuit from Savannakhet”
pamphlet, shown below.
Figure 12: JICA sponsored Savannakhet Province Tourist Attractions
In total JICA and PTD have developed 7 pamphlets in 3 languages that include: Savannakhet
Downtown; Savannakhet Outskirts; Champhone; Ho Chi Minh Trail; Mekong River South;
Savannakhet Foods and Savannakhet Handicrafts.
Information provided at the tourist attraction sites, however, are still lacking.
4/08/2009 Page 27 of 65
The following provides an inventory of the main tourist attractions of Savannakhet Province.
Tourist Attraction Description
Wat Xayaphoum:
Old city pagoda built at the same time as Ban Tha Hae (1542), located in the
centre of Savannakhet town along the bank of the Mekong River in Ban
Xayaphoum;
Wat Lattanalangsy Another of the city’s beautiful temples built on a former rice field;
Old French colonial
buildings Can readily be seen in the central area of Savannakhet town;
Savannakhet
Dinosaur Museum
An exhibit of dinosaur fossils excavated from Ban Tang Vay in Xonbouly
District;
Kaysone Phomvihan
House
The house of former President Kaysone Phomvihan who was born in
Savannakhet in 1920;
Savanxai Market
The main market of Savannakhet City offering a variety of goods on sale
including local produce as well as imported Thai and Vietnamese foods, along
with a small selection of souvenirs;
ODOP Handicraft
Centre
A centre that showcases products from the One District One Product (ODOP)
project and includes a wide variety of handicrafts;
That Ing Hang A sacred stupa and reportedly the burial site for one of Buddha’s bones, an
important place for Buddhists and a registered national treasure of Lao PDR;
Dong Natad
Protected Area and
Nong Lom Lake
The NPA extends for 8,300 ha and has a beautiful lake in the center of the
forest where one can observe wild birds, butterflies and rare plants;
Lake Bungva The largest lake of the Province catered by several restaurants that provide
gazebos and rent pedalos;
Phonsim Village and
the old village ruins
Founded in 1577 during the reign of the King Fa Ngum, the village is one of
the first settlements in the Province; the ruins are located about 2km from
the current village location and are best experienced through one of the Eco-
Guides’ treks which can also include an overnight homestay in the village;
Phonsim Turtle Lake
Originally constructed for rice paddy irrigation, the lake is now home to
beautiful lotus blooms, bathing water buffalos and migratory birds;
unfortunately, the lake no longer contains turtles;
Dongmuang
Monkey Jungle
A sacred forest covering more than 3 hectares of land in Ban Dong Muong
populated by wild monkeys;
Hotay Pidok Library
An impressive old structure originally built in the 17th Century and the most
important repository of palm leaf books written in Burmese Pali, Khmer and
ancient Lao alphabets in Lao PDR;
Heuan Hin
The literal meaning is Stone House and the structure is believed to have been
one of 121 rest houses constructed by Jayavarman VII (1181-1218) along the
roads which once connected every corner of the Khmer empire;
Dinosaur Footprints
During the dry season one can see more than 10 dinosaur footprints that
have been preserved in the rock that makes up the riverbed nearby
Phalanxay town;
4/08/2009 Page 28 of 65
Tourist Attraction Description
Sepon Waterfalls Three waterfalls located close to each other. Salene Waterfall (80m), Sadee
Waterfall and Sakhoe Waterfall;
Lamson Battle Field
and War Museum
The historic Ho Chi Min Trail ran through Ban Dong Village, on Road #9, close
to the Lao-Bao border checkpoint to Vietnam; here the remnants of
American tanks and warplanes from the famous battle of “Lamson 719”
(1971) can be seen;
Ban Nateuy Salt
Factory
Ban Nateuy houses a salt factory which has been in operation since 1978;
tourists can arrange a tour by appointment;
Dong Phou Vieng
National Protected
Area:
The NPA extends to cover more than 1,970 km2 and features plenty of
greenery and wild life; 31 ethnic minority villages are also located in the area;
Ban That
An old temple that forms the basis of a valuable archaeological site; stone
tools such as jars and axes, earthen pipes and bowls, copper knives, pots etc
have been excavated from here and are now national treasures;
Other attractions
include:
Seno Town, Dong Daeng Lake, Oup Mung Stupa, Lahasinh Textile, That Phon,
Kongphanang Steam, Phalong Waterfall and the Lao Silk-Cotton Weaving
Centre, That Nang Lao Stupa, Lao-Vietnam Memorial, , Sammataek Rapid,
Tad Hai Bridge, KaTang Ethnic Village, Sepon Village, Ho Chi Min Trail, Mang
Kong Ethnic Village, Xebangnuan NPA, Phouxang Hae NPA, Gold & Copper
Mine, Phou Tai Ethnic Village, Hin Sam Sao Cliff, That Naglao, Dinosaur
Excavation Site, Ancient Stone Script, Danlatmangdongnay Cave, Kabao
Rapid, Nong Luang (Turtle Lake), Soui Lake, Taleo Kao Temple, Tham
Phaseng, and others.
4/08/2009 Page 29 of 65
Figure 13: Map of Savannakhet Province Tourist Attractions
B
30
31
37
4138
26
47
25
17
22
36
20
10
9
1113
45
40
42
28 35
21
18
16
15
44
4
81
2 6
14
7
39
2343
19
3 5
24
12
27
34
32
29
33
34
46
48
B
3030
3131
3737
413838
2626
4747
2525
1717
2222
3636
2020
1010
99
11111313
4545
4040
4242
2828 3535
2121
1818
1616
1515
4444
44
8811
22 66
1414
77
3939
23234343
1919
33 55
2424
1212
2727
3434
3232
2929
3333
3434
4646
4848
1. Wat Xayaphoum 2. Wat
Lattanalangsy
3. Old French
colonial bldgs.
4. Dinosaur
Museum
5. Kaysone Phomvihan
House
6. Savanxai Market 7. ODOP Handicraft 8. That Inghang 9. Dong Nathad
Forest
10. Bungva Lake
11. Phonsim Village
/ Turtle Lake
12. Seno Town 13. Dongmuang
Monkey Jungle
14. Ban Nateuy Salt
Factory
15. Hotay Pidok
16. Traditional
Dance
17. Dong Daeng Lake 18. Oup Mung Stupa 19. Lahasinh Textile 20. That Phon
21. Heuan Hin
(Stone House)
22. Kongphanang
Steam
23. Dinosaur
Footprints 24. L-V Memorial 25. Dong Phouvieng
NBCA
26. Sammataek
Rapid
27. Tad Hai Bridge 28. KaTang Ethnic
Village
29. Sepon Village 30. Salaen Waterfall
31. Sakhoe Waterfall 32. Historic War Site 33. Cable Bridge 34. Ho Chi Min Road 35. Mang Kong Ethnic
Village
36. Xebangnuan
NBCA
37. Phouxang Hae
NBCA
38. View Point 39. Gold & Copper
Mine
40. Phou Tai Ethnic
Village
41. Hin Sam Sao
Cliff.
Stone Pillar
42. That Naglao 43. Dinosaur
Excavation Site
44. Ancient Stone
Script
45. Danlatmangdongnay
Cave
46. Phalong
waterfall
47. Kaeng Kabao 48. Second
Friendship
Bridge
4/08/2009 Page 30 of 65
Tourist Satisfaction of Attractions
A tourist satisfaction21 survey carried out by JICA in 2008 focused on tourists that chose to
stay in the Province for at least one full-day day. The survey22 included 503 tourists: 59% of
the participants were from Europe and North America, 31% from Thailand and Vietnam and
the remaining 10% were domestic tourists and tourists from other ASEAN countries.
The findings revealed that the most visited attractions were Xayaphom Temple, French
Buildings, Savanxay Market, That Ing Hang, Dinosaur Museum, Bungva Lake, Ho Chi Minh
Trail, Hotay Pidok, Tad Hai Bridge and Stone House.
As is evident from the survey, tourists mainly chose to visit the attractions that are nearby
to the city center. Although many of the attractions located farther away would likely have
been of interest to these tourists, the difficulty of access and lack of information proved to
be a deterrent and may have swayed the responses.
Figure 14: JICA-sponsored Tourist Satisfaction Survey
Tourist Attraction Satisfaction
Tad Hai
Bridge, 5%
Savanxay Market,
5%
Bunga Lake, 6%
Dinosaur
Museum, 7%
Xayaphoum
Temple, 10%
Other, 15%
French Colonial
Buildings, 21%
That Ing Hang, 25%
Ho Chi Minh
Trail, 2%
Stone House, 2%
Hotai Pidok
Library, 2%
21
JICA Tourist Satisfaction Surveys, May 2008. 22
Note that the high percentage of Western tourists surveyed is not representative of actual Savannakhet
tourist arrivals. In 2008 “Western, NA and Others” segment represented only 2% of total share of Savannakhet
arrivals.
4/08/2009 Page 31 of 65
4.5. SWOT Analysis
The following presents a high-level scan of the internal and external Savannakhet Province
tourism environment.
STRENGTHS WEAKNESSES
Inte
rna
l
• Regional tourist growth (arrivals)
• Increase in Thai visitor market share
(Thais comprise 50%)
• 37% arrival growth rate over the past 5
yrs
• Favorable infrastructure and access: Rd
#9 (EWEC) and Rd #13
• Support (political will and donor funding)
to develop Savannakhet tourism industry
• Differentiation via historical theme;
potential SVK branding/identity
• Cultural, natural and historical attractions
• Lack of understanding of
tourist/visitor profiles
• Lack of “brand identity” for SVK
• Attraction information – tourists
have a hard time figuring out what
SVK has to offer and information at
attractions is unavailable
• Lack of quality/reliable tourism
data and statistics
• Little marketing/promotion
outside of SVK
• Poor “Last mile” connections to
attractions
• Limited private sector involvement
in destination marketing
OPPORTUNTIES THREATS
Ex
tern
al
• Develop Savannakhet into a tourism
destination
• Develop stronger branding
• Grow domestic and regional interest
• Leverage high volume and growth rate
(37%); 2nd largest entry point into Laos
• Modalities to cater to a multi-segmented
market
• Increase length of stay and expenditure
opportunities with understanding of
tourists needs / wants / demands
• Develop targeted campaign to tour
operators, agents etc to incrementally
increase stay & spend.
• Increase coordination of marketing and
industry participation
• Improve tourist attraction sites
• Incrementally transition “transit-only
tourists” to tourists
• Emergence of regional and border
tourism
• Limited capacity among many
officials to plan and market the
tourism sector
• Inaction and/or resources spent on
low impact activities - missing out
on SVK’s potential from high
tourist volume
• Competition from other provinces;
ability to compete for tourist’s time
• Reduced funding for development
and promotion
4/08/2009 Page 32 of 65
5. Savannakhet Province: Charting a Path for the Next
Decade
5.1. Vision
Existing PTD vision statement here, if available
5.2. Tourism Growth Trends – Global to Local
Tourism Growth – The Global
Perspective
The tourism industry has grown
rapidly around the globe and many
governments prioritize this sector as a
core strategic area for socio-
economic development. In 1990, the
number of global tourists reached
455 million, with revenues generating
$264 billion (USD). In 2005, the
number of tourists had grown to 805
million with revenues generating
$640 billion (USD). The projection for
2020 is about 1.56 billion
international tourists, with an
expected revenue of $1.55 trillion
(USD).
Global Tourism
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1990 2005 2020
Mil
lio
ns
Year
Inte
rna
tio
na
l T
ou
ris
ts
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Bil
lio
ns
Re
ve
nu
e G
en
era
ted
International Tourists Revenue Generated
Tourism Growth – The Regional Perspective
As countries in GMS region opened their borders for travel, foreign trade and investment in
early-1990s, new travel patters and trends emerged involving border tourism. The
borderland areas of Thailand and Myanmar, Thailand and Cambodia, Thailand and Laos, and
China/Yunnan Province saw rapid increases in the number of regional visitors. By 2004, the
number of foreign border area visitors reached 24 million, a rise by 19% in that year alone.
As the regulations and laws in most of the countries allow border pass holders to stay for at
least 72 hours, trends of day-trippers or weekend visitors have emerged. Currently, foreign
4/08/2009 Page 33 of 65
border area visitors constitute the largest tourist group in GMS sub-region, accounting for
60% of all visitor movements to GMS countries. Thus, understanding and studying the
travel patterns and preferences of this group is becoming increasingly important and better
statistics is needed.
Tourism Growth – The Lao PDR Perspective
The number of tourists to Lao PDR has been increasing constantly with an average growth
rate of 20.53% from 1990-2008. In 2000-2001 the number of visitors slightly decreased due
to the SARS threat but the market rebounded quickly after 2004. The number of tourists in
Lao PDR continued to increase through to 2008 with 1,736,787 tourist arrivals generating
$276 million (USD).
It is important to note that even though Western tourists constituted less than 25% of the
total arrivals, the group contributes more than 50% of the total revenue as these tourists
tend to stay longer and have higher daily spending limits than regional tourists.
Interestingly, this may not hold true for Savannakhet. As indicated by the results of a recent
JICA Survey (2008) in Savannakhet, Thai tourists spend the most on shopping and dining
options out of all of the tourists visiting the Province. This trend needs to be further
investigated and validated.
Figure 15: Lao PDR Tourist Arrival Statistics
Lao PDR Tourist Arrivals
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Th
ou
san
ds
Year
To
uri
st
Arr
iva
ls L
ao
s
$0
$50
$100
$150
$200
$250
Mil
lio
ns
Re
ve
nu
e G
en
era
ted
International Tourists Revenue Generated
5.3. Contextualizing Tourism Development
The National Growth and Poverty Eradication Strategy (NGPES)23
, National Socio-Economic
Development Plan (NSEDP) 2006-201024 and the LNTA National Tourism Strategy 2006-
23
Government of Lao PDR (2004) National Growth and Poverty Eradication Strategy – Lao PDR 24
Committee for Planning and Investment National Socio-Economic Development Plan (2006-2010), October
2006
4/08/2009 Page 34 of 65
202025 was reviewed in order to ensure that the strategy is in line with the development
goals of national and provincial authorities. The following section highlights notable
excerpts from these documents:
NGPES:
The NGPES is a comprehensive framework for growth and development with a particular
focus on poverty reduction in the poorest districts.
Sustainable Revenue Development
o “The Lao PDR’s strategic location as a land link for the GMS countries should act as
yet another boost to economic growth. The GMS Subregion (Cambodia, Lao PDR,
Cambodia, China/Yunnan Province, Myanmar, Thailand, and Vietnam) is one of the
most dynamic in the world, with a population soon approaching 300 million.
Completion of transport corridors and other projects linking the Subregion offer great
benefits for the Lao PDR. The transport corridors will include special economic zones
(SEZ) and industrial estates, such as the SEZ proposed for Savannakhet. These
investments will further increase the Government’s revenue base.”
Mining Sector
o “The Lao PDR’s mining sector has received a strong boost from commencement of
operations in 2003 of the Oxiana Gold Mine in Sepon, Savannakhet. The mine is
proving highly profitable and is generating royalties for the Government; tax
revenues will increase sharply when the tax concessions are completed in 2-4 years
time.”
NSEDP:
The NSEDP is aimed at addressing development priorities including poverty alleviation and
supporting the achievement of the MDGs.
Inland Transportation
o “Priority will be given to highways and roads stretching to borders such as some
sections of the North-South road to Bokeo, Luang Namtha; some sections of the East-
West road to Savannakhet;”
Air Transport
o “The airports such as Pakse, Savannakhet and Luang Prabang will be upgraded to
sub-regional airports to ensure air transportation between the Lao PDR and other
Greater Mekong Sub-region (GMS) countries.”
Urban Development
o “Khaanthabouly (Savannakhet) to become the leading city for socio-economic
development of the Central region.”
Services
o “Focus on investment in Savan-Seno special economic zone (Savannakhet) and other
areas which link the Lao PDR with Vietnam and Thailand. Focus on investment for
Savannakhet special economic zone and the duty free shop at Seno (Savannakhet),
25
Lao National Tourism Administration (2006) Lao PDR Tourism Strategy 2006 – 2020.
4/08/2009 Page 35 of 65
which link the Lao PDR with Vietnam, and other provinces with Vietnam and
Thailand.”
o “Attention will be paid to the activities for marketing, firstly via the East-West
economic corridor. Exports will be encouraged by advertisement, and open access to
market information for domestic and foreign investors and businessmen.”
o “The Central Region, with Vientiane capital, will be developed to be the transit route
for international exchange. Savannakhet will be the gateway and the country’s
economic bridge.”
Lao PDR LNTA Tourism Strategy 2006-2020
The objective of the Lao PDR Tourism Strategy 2006 – 2020 is to raise awareness in relation
to the significance of and the benefits to be gained from tourism development. One of the
overall goals of the strategy is to develop Lao PDR as a globally-known tourism destination
in terms of cultural, natural and historical tourism in a sustainable and participatory manner
so as to contribute to socio-economic development and poverty reduction for poor people
of all ethnic groups.
Development of Participatory Ecotourism
o “At present, the lesson from the model project in Luang Namtha has already been
applied by other 8 province of Phongsaly, Luang Prabang , Xiengkhuang, Vientiane,
Bolikhamxay, Khammouane, Savannakhet and Champassack.”
Advertisement and Promotion of Tourism Marketing
o “In recent years, NTA has collaborated with the Tourism Business Association, hotels,
and restaurant to advertise and promote Lao tourism both at the regional and
international levels… To response to the demand of tourism information for tourists
and interested individuals, NTA has established tourist information center at the
office of NTA in Vientiane capital and in many provinces such as Luangnamtha,
Oudomxay, Huaphanh, Luangprabang, Khamoune, Savannakhet and Champasack.
Also, NTA publishes a magazine to promote Lao tourism.”
Protection of National Forests
o “Dongphouvieng protected forest in Savannakhet Province with the areas of 1.970
km2.”
o “Xebangnuan protected forest in Savannakhet Province with the areas of 1.260
km2.”
o “Phouxanghea protected forest in Savannakhet Province with the areas of 1.060
km2. The total national protected areas in the central part are 15,800 km2. These
protected forests are still in natural abundant and beautiful that can be adapted to
be natural tourism sites.”
Formulation of Regional Master Plan
o “Savannakhet Province is a transit area from Thailand through Laos to Vietnam and
from Vietnam through Laos to Thailand which is a great potential and need particular
addressed in order to turn the transit areas to be become stop over areas and more
importantly to generate revenue for the Province; other tourism products, for
4/08/2009 Page 36 of 65
instance, 23 Lamseun Battle Field 719 historical site, Dinosaur‘s skeleton discovery
site, Gold and Copper extraction sites, etc…”
o “Establish tourist information center in Savannakhet in order to incorporate all
tourist information and source for the provinces in central part.”
Lessons Learned
o Increase coordination with sectors and local authorities is the key factors both for
raising the awareness on tourism development and infrastructure and facilities
development.
o Management and development must support the corporation, coordination,
participation of all levels and sectors concerned including communities and other
associations to secure for safety, quality service; setting of reasonable fees;
promotion of domestic goods production; production of souvenirs; promotion of fairs
and traditional festivals to boost tourism.
o Seek for cooperation and assistance from international organizations on markets in
neighboring countries in order to develop and promote Lao tourism into regional and
global integration
GMS Economic Corridors / Regional Integration
Moving from a land-locked to a land-
linked nation and promoting regional
integration is an imperative for Lao
PDR.
In order to enhance integration into
the region, ASEAN and Greater
Mekong Sub-region (GMS) initiatives
have set forth ambitious development
and infrastructure plans.
The “Growth Triangle Plan” between
Laos, Vietnam and Cambodia,
“Emerald Triangle” for the
development of tourism between
Laos, Cambodia and Vietnam and the
East West Economic Corridor “EWEC”
linking Vietnam, Laos, Thailand and
Myanmar are of particular
importance.
The extent of these zones is captured
in figure 1626
to the right (EWEC noted
by red circle) and Figure 1727
, below.
Figure 16: GMS Economic Corridors
26
Source: ADB, GMS flagship Initiative East West Economic Corridor, 26 June 2005 27
Source: ADB, The Greater Mekong Tourism Sector Strategy, 2005.
4/08/2009 Page 37 of 65
Figure 17: GMS Priority Tourism Zones
4/08/2009 Page 38 of 65
5.4. Corridor to Route to Destination
Savannakhet Province aims to become a tourism destination. With the EWEC as a catalyst,
this goal becomes attainable. The process should generally be viewed through the lens of
three sequential phases – moving from “tourism corridor” to “tourism route” to “tourism
destination.”
Figure 18: Savannakhet Province 3-Staged Development Strategy
TourismCorridor
TourismRoute
TourismDestination
Stage 1 Stage 2 Stage 3
Tourism Corridor connects twoTourism Destinations.
However, tourists spend little tono time stopping along the Corridor
Tourists take time to visit attractions while en route to their destination and take advantage of shopping anddining opportunities.
However few tourists stayovernight.
International, regional and domestic tourists are willing totravel to the location for the appeal of its historical, cultural or natural attractions
Tourists stay overnight.
INCREASED: VOLUME INCREASED: VOLUME
SPENDINGSTAY (hours)
INCREASED: VOLUME
SPENDINGSTAY (days)
TourismCorridor
TourismRoute
TourismDestination
Stage 1 Stage 2 Stage 3
Tourism Corridor connects twoTourism Destinations.
However, tourists spend little tono time stopping along the Corridor
Tourists take time to visit attractions while en route to their destination and take advantage of shopping anddining opportunities.
However few tourists stayovernight.
International, regional and domestic tourists are willing totravel to the location for the appeal of its historical, cultural or natural attractions
Tourists stay overnight.
INCREASED: VOLUME INCREASED: VOLUME
SPENDINGSTAY (hours)
INCREASED: VOLUME
SPENDINGSTAY (days)
Key Steps
Key steps along the path to becoming a tourism destination include:
Tourism Corridor (Current Situation)
• Majority of the visitors arriving in the Province are in transit to other destination and
spend little time, if any in the Province itself;
• Tourism is predominantly end-to-end movement between Vietnam and Thailand.
Tourism Route
• Improve tourism infrastructure by developing and promoting cultural attractions and
dining and entertainment options along the Route;
• Continue developing and improving accommodations and transportation system in
anticipation of growing tourism demand;
• Actively market the Province to the regions of interest and form partnerships with tour
operators in other provinces and countries to include the Province in the itinerary on the
way to final destination.
4/08/2009 Page 39 of 65
Tourism Destination
• Develop a brand identity that distinguishes Savannakhet from other destinations and
entices the tourists to spend time in the Province;
• Continue developing the attractions that support the brand identity;
• Continue developing the tourism infrastructure to satisfy tourist demands.
Timing
The timing of the transition from Corridor to Route to Destination depends on the extent to
which tourism development activities can be implemented in the Province. Recognizing that
plans are already in motion to further develop the EWEC and there is general consensus
around the strategic objective of becoming a tourist destination, targets have been set to
become a tourism route by 2011 and a tourism destination by 2015.
Figure 19: Timeline: Corridor to Route to Destination
Current 2011 2015
Tourism Corridor
Tourism Route
Tourism Destination
� Transit � Half day to full day � 1-2 Days
Current 2011 2015
Tourism Corridor
Tourism Route
Tourism Destination
� Transit � Half day to full day � 1-2 Days
5.5. Savannakhet Province Tourism Development Strategy
Goals and Objectives
In light of this information, the following section outlines Savannakhet Province’s strategy
and its specific response to maximize its tourism potential over the next decade.
Underpinning this strategy are seven key goals and objectives:
1. Ensure tourism products are in line with market needs, interests and demands.
2. Focus on and track core tourism metrics: increasing tourist volume, length of stay and
expenditure
3. Provide a clear overarching path for the Province to progress from “tourism corridor”
to “tourism route” to “tourism destination.”
4. Take an incremental approach to tourism development. Small but strategically placed
steps/actions can yield large benefits when tourist volumes are high.
5. Foster effective partnerships and alliances with stakeholders to advance sustainable
tourism development.
4/08/2009 Page 40 of 65
6. Improve quality of tourism services/products to meet different market segments
needs.
7. Proactively encourage pro-poor tourism and inclusion of local communities.
5.6. Strategic Targets
The Savannakhet Provincial Tourism Department has set ambitious yet achievable targets
for positioning and growth in visitor/tourist numbers, expenditures and length of stay.
Savannakhet Positioning
Goal 1: To become a Tourism Route by 2011;
Goal 2: To become a Tourism Destination by 2015; and
Goal 3: To develop a provincial brand identity around the EWEC “historical theme”.
Tourist Volume
Goal 1: To maintain 11.2% domestic and international visitor/tourist arrival growth
rate until 2012 (Tourism Route Phase); and
Goal 2: To increase domestic and international visitor/tourist arrival growth rate by
1% annually (from the 11.2% base) from 2012 until 2015 (Tourism Destination Phase).
Tourist Expenditure
Goal 1: To increase annual domestic and international visitor/tourist expenditures by
5% per year;
Goal 2: To double 2009 tourist expenditures in 2012, generating an estimated $13.8M
in 2012; and
Goal 3: To double 2012 tourist expenditure in 2015, generating an estimate $27.7M in
2015.
Tourist Length of Stay
Goal 1: To increase percentage of domestic and international visitors/tourists who
stay 1 day + by 1% a year (from the 33.3% base) through 2012 (Tourism Route Phase);
and
Goal 2: To achieve a target of 45% of domestic and international visitors/tourists
staying 1 day + by 2015 (Tourism Destination Phase), excluding casino.
4/08/2009 Page 41 of 65
5.7. Analysis, Forecasts & Impact
The following section forecasts Savannakhet Province tourist volume, length of stay and
expenditure through 2015, based on analysis of PTD and LNTA arrival data from 2004 to
present and interviews with key stakeholders.
It also assesses impact by comparing tourist volume, length of stay and expenditure with
and without the proposed long-term tourism development strategy.
Tourism Arrivals
Amongst the many factors that influence tourism arrivals, three are of particular
importance:
1. The role of Thai tourists (constituting approximately 54% of Savannakhet tourist
arrivals28
),
2. The role of Vietnamese tourists (constituting approximately 24% of Savannakhet tourist
arrivals29),
3. The role of the Savan Vegas Casino (conservatively accounting for approximately 500
arrivals a day in 2009 and expected grow to ~2,500 per day by 2012)
Savannakhet Province tourist arrival volume projections for 2009-2015, without strategy
implementation and segmented by nationality, are outlined in the figure below.
Figure 20: Tourism Volume Projections without Strategy Implementation
Projections without Strategy Implementation - Tourist Volume
2009E 2010E 2011E 2012E 2013E 2014E 2015E
Tourist Arrivals ('000s) 733.7 1,064.4 1,358.7 1,570.3 1,736.3 1,875.0 2,026.6Growth Rate 48.0% 45.1% 27.6% 15.6% 10.6% 8.0% 8.1%
Thai Visitors (Excl. Casino) 304.0 337.9 375.7 417.7 464.3 516.2 573.9Growth Rate 11.2% 11.2% 11.2% 11.2% 11.2% 11.2% 11.2%
Visitors (1 Day +) 101.3 112.6 125.2 139.2 154.8 172.1 191.3
Transit (0 - 0.3 Days) 202.6 225.3 250.5 278.4 309.6 344.1 382.6% Transit 66.7% 66.7% 66.7% 66.7% 66.7% 66.7% 66.7%
Casino 173.4 433.4 650.2 780.2 858.2 901.1 946.2Growth Rate 150.0% 50.0% 20.0% 10.0% 5.0% 5.0%
Vietnamese (Excl. Casino) 133.6 148.5 165.1 183.5 204.0 226.8 252.2Growth Rate 11.2% 11.2% 11.2% 11.2% 11.2% 11.2% 11.2%
Visitors (1 Day +) 44.5 49.5 55.0 61.2 68.0 75.6 84.1
Transit (0 - 0.3 Days) 89.0 99.0 110.1 122.3 136.0 151.2 168.1% Transit 66.7% 66.7% 66.7% 66.7% 66.7% 66.7% 66.7%
Casino 9.1 18.3 27.4 32.9 36.1 37.9 39.8Growth Rate 100.0% 50.0% 20.0% 10.0% 5.0% 5.0%
Domestic 113.6 126.3 140.4 156.1 173.6 192.9 214.5Growth Rate 11.2% 11.2% 11.2% 11.2% 11.2% 11.2% 11.2%
Visitors (1 Day +) 37.9 42.1 46.8 52.0 57.9 64.3 71.5
Transit (0 - 0.3 Days) 75.7 84.2 93.6 104.1 115.7 128.6 143.0% Transit 66.7% 66.7% 66.7% 66.7% 66.7% 66.7% 66.7%
28 Based on LNTA statistics, 2009 29 Based on LNTA statistics, 2009
4/08/2009 Page 42 of 65
The following assumptions were used:
Assumptions
• Tourist arrivals will grow at 11.2% compound annual growth rate (CAGR),30 – the same
tourist arrival growth rate Savannakhet experienced prior to 2007. This rate avoids
distortion from the one-time uptick in 2007 when the opening of the 2nd
Friendship
Bridge resulted in a two-fold increase in tourist arrivals over the previous year and 5-
year CAGR of 37% (2004-2008). It also offsets the lacklustre 2007-2008 year on year
tourist arrival growth rate of 2%, which is well below national average and suggests
possible errors in the arrival data set (note challenges with Tourism Data in section 5.12,
Tourism Management actions). The 11.2% CAGR growth rate is therefore believed to be
realistic and in alignment with LNTA national projections.
• Transit tourist estimates assume that all of the Thai tourists that enter at Dane-Savanh
Gate are returning from a trip to Vietnam and therefore can be considered as “transit”
(41.3% in 2008). The number of Vietnamese transit tourists is calculated in a similar
fashion - all Vietnamese visitors arriving at the 2nd
Friendship Bridge are considered to
be “transit” (40.3% in 2008). These numbers are likely to be underestimated as they
don’t account for the number of Thai and Vietnamese transit tourists who travel to
other provinces in Lao or exit the country through a different gate. From the discussions
with the stakeholders in the tourism sector in the Province we understand that the
number of the transit visitors is at least two thirds of all arrivals. We have assumed that
the 2008 transit tourist percentages remain constant through 2015, in the absence of
the proposed tourism strategy.
• The number of domestic tourists (102,000 in 2008) is derived by grossing up the number
of total arrivals in 2008 by 20% estimate, using Savannakhet PTD 2007 data. We have
assumed that the number of domestic tourists in transit is similar to that of Thai and
Vietnamese (67%).
• The Savan Vegas Casino will attract approx. 2,500 customers daily by 2012 and
approximately 3,000 customers daily by 2015, with the majority of the growth coming in
the early years. For 2009 and 2010, daily customers are conservatively estimated to be
500 per day and 1,250 per day respectively. These forecasts and the 150% increase from
2009 to 2010 take into account that Savan Vegas only became fully operational in 2009,
is expected to employ a rigorous marketing campaign and management’s view that daily
customers numbers are already reaching above 1,000 (as of June 2009).
• The Savan Vegas Casino’s current customer composition of 95% Thai and 5% Vietnamese
will remain the same through 2015. The percentage of other nationalities is considered
negligible for the purpose of the analysis.
• Approximately 95% of Savan Vegas customers do not leave the casino premises to visit
the sights in the Province31. Thus, even though Savannakhet tourist arrivals will
approach 2 million in 2015, only about a quarter of these tourists will be spending time
and money in the Province itself, in the absence of the proposed tourism strategy.
The provincial tourism strategy seeks to (i) increase the incremental time that transit tourists
spend in the Province and (ii) entice transit tourist to stay overnight.
30 Based on historic growth rates derived from the LNTA’s Statistical Report on Tourism (2000-2008) 31 According to discussions with Savan Vegas management. June 2009.
4/08/2009 Page 43 of 65
Savannakhet Province tourist arrival volume projections for 2009-2015, with strategy
implementation, are outlined in the figure below.
Figure 21: Tourism Volume Projections with Strategy Implementation
Projections with Strategy Implementation - Tourist Volume
2009E 2010E 2011E 2012E 2013E 2014E 2015E
Tourist Arrivals ('000s) 733.7 1,064.4 1,358.7 1,570.3 1,743.8 1,900.5 2,083.7Growth Rate 48.0% 45.1% 27.6% 15.6% 11.0% 9.0% 9.6%
Thai Visitors (Excl. Casino) 304.0 337.9 375.7 417.7 468.5 530.2 605.4Growth Rate 11.2% 11.2% 11.2% 11.2% 12.2% 13.2% 14.2%
Visitors (1 Day +) 101.3 116.0 132.7 151.8 183.8 223.3 272.4
Transit (0 - 0.3 Days) 202.6 221.9 242.9 265.9 284.7 306.9 333.0% Transit 66.7% 65.7% 64.7% 63.7% 60.8% 57.9% 55.0%
Reduction 1.0% 2.9%
Casino 173.4 433.4 650.2 780.2 858.2 901.1 946.2Growth Rate 150.0% 50.0% 20.0% 10.0% 5.0% 5.0%
Vietnamese (Excl. Casino) 133.6 148.5 165.1 183.5 205.9 233.0 266.0Growth Rate 11.2% 11.2% 11.2% 11.2% 12.2% 13.2% 14.2%
Visitors (1 Day +) 44.5 51.0 58.3 66.7 80.7 98.1 119.7
Transit (0 - 0.3 Days) 89.0 97.5 106.8 116.8 125.1 134.9 146.3% Transit 66.7% 65.7% 64.7% 63.7% 60.8% 57.9% 55.0%
Reduction 1.0% 2.9%
Casino 9.1 18.3 27.4 32.9 36.1 37.9 39.8Growth Rate 100.0% 50.0% 20.0% 10.0% 5.0% 5.0%
Domestic 113.6 126.3 140.4 156.1 175.1 198.2 226.3Growth Rate 11.2% 11.2% 11.2% 11.2% 12.2% 13.2% 14.2%
Visitors (1 Day +) 37.9 43.4 49.6 56.7 68.7 83.5 101.8
Transit (0 - 0.3 Days) 75.7 82.9 90.8 99.4 106.4 114.7 124.5% Transit 66.7% 65.7% 64.7% 63.7% 60.8% 57.9% 55.0%
Reduction 1.0% 2.9%
International Tourists
Based on the above, tourist volume and length of stay targets aim to:
1. Convert 1% of transit visitors (0 - 0.3 days) to visitors (1 day +) each year (from the 66.7%
transit to 33.3% visitor ratio) during the Tourism Route stage of development, resulting
in:
• 64% transit visitors (0 - 0.3 days) and 36% visitors (1 day +) in 2012; or
• 383,000 transit visitors (0 - 0.3 days) and 218,000 visitors (1 day +) in 2012.
2. Gradually grow visitor arrivals by an additional 1% each year (from the 11.2% base)
during the Tourism Destination stage of development, resulting in:
• 14.2% visitor arrival growth in 2015; or
• 871,000 tourist arrivals in 2015, excluding casino.
3. Achieve a target percentage of 45% visitors (1 day +) by 2015, a 12% increase over 2012
totalling 228,000 visitors.
Tourism Route Tourism Destination
4/08/2009 Page 44 of 65
Domestic Tourists
Based on the above, Savannakhet’s tourist volume and length of stay targets aim to:
1. Convert 1% of transit visitors (0 - 0.3 days) to visitors (1 day +) each year (from the 66.7%
transit to 33.3% visitor ratio) during the Tourism Route stage of development, resulting
in:
• 64% transit visitors (0 - 0.3 days) and 36% visitors (1 day +) in 2012; or
• 99,000 transit visitors (0 - 0.3 days) and 57,000 visitors (1 day +) in 2012.
2. Gradually grow visitor arrivals by an additional 1% each year (from the 11.2% base)
during the Tourism Destination stage of development, resulting in:
• 14.2% visitor arrival growth in 2015; or
• 226,000 tourist arrivals in 2015.
3. Achieve a target percentage of 45% visitors (1 day +) by 2015, a 12% increase over 2012
totalling 102,000 visitors.
Tourist Expenditure
Savannakhet Province tourist expenditure projections for 2009-2015, based on volume and
length of stay forecasts without strategy implementation above, are outlined below.
Figure 22: Tourism Expenditures Projections without Strategy Implementation
Projections without Strategy Implementation - Tourist Expenditures
2009E 2010E 2011E 2012E 2013E 2014E 2015E
Projected Spend ($ in M) $6.8 $7.9 $8.9 $10.0 $11.1 $12.2 $13.6Growth Rate 16% 13% 12% 11% 11% 11%
Thai Visitors (Excl. Casino) $4.2 $4.6 $5.2 $5.7 $6.4 $7.1 $7.9
Visitors (1 Day +) 3.5 3.9 4.3 4.8 5.3 5.9 6.6
$ Spend - Visitors $34.5 $34.5 $34.5 $34.5 $34.5 $34.5 $34.5
Transit (0 - 0.3 Days) 0.7 0.8 0.8 0.9 1.0 1.1 1.3
$ Spend - Transit Tourists $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
% of Transit Spending 0.3 Days + in the Province 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3%
Casino 0.1 0.4 0.7 0.8 0.9 0.9 0.9
$ Spend - Casino Customers $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
% of Casino Customers Visiting the Province 5.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Vietnamese (Excl. Casino) $1.1 $1.3 $1.4 $1.5 $1.7 $1.9 $2.1
Visitors (1 Day +) 0.9 1.0 1.1 1.2 1.4 1.5 1.7
$ Spend - Visitors $19.9 $19.9 $19.9 $19.9 $19.9 $19.9 $19.9
Transit (0 - 0.3 Days) 0.2 0.3 0.3 0.3 0.4 0.4 0.4
$ Spend - Transit Tourists $8.0 $8.0 $8.0 $8.0 $8.0 $8.0 $8.0
% of Transit Spending 0.3 Days + in the Province 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3%
Casino 0.0 0.0 0.0 0.0 0.0 0.0 0.0
$ Spend - Casino Customers $8.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
% of Casino Customers Visiting the Province 5.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Domestic $1.4 $1.5 $1.7 $1.9 $2.1 $2.3 $2.6
Visitors (1 Day +) 0.8 0.8 0.9 1.0 1.2 1.3 1.4
$ Spend - Visitors $19.9 $19.9 $19.9 $19.9 $19.9 $19.9 $19.9
Transit (0 - 0.3 Days) 0.6 0.7 0.7 0.8 0.9 1.0 1.1
$ Spend - Transit Tourists $8.0 $8.0 $8.0 $8.0 $8.0 $8.0 $8.0
% of Transit Spending 0.3 Days + in the Province 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3%
4/08/2009 Page 45 of 65
Assumptions:
• The average length of stay of tourists that choose to visit the Province (rather then just
transit through) is approximately 1 day32.
• Average spend in Savannakhet Province for Thai tourists is $35 per day and for
Vietnamese tourists is $20 per day. These figures have been adjusted from another
recent survey which indicated average spend for Thai and Vietnamese tourists to be $27
USD. The change reflects 2008 LNTA national findings that Thai tourist expenditures are
higher than Vietnamese tourist expenditures ($52 vs $30 for passport holders and $30 vs
$12 for pass holders).
• One third of transit tourists spend a portion of the day in the Province, possibly visiting
attractions along the way, stopping for lunch and shopping for souvenirs.
• Within this group (one third of transit tourists), Thai transit tourist spend approximately
$10 and Vietnamese transit tourists spend approximately $8.
• 10% of casino customers will visit Savannakhet tourist attractions and will have spending
levels/patterns similar to those of the transit tourists.
Based on the above, with the implementation of the proposed strategy Savannakhet
Province will aim to:
1. Increase annual spend of Thai, Vietnamese and domestic tourist groups by 5% per year
to adjust for inflation;
2. Increase the percentage of the transit tourists spending 0.3 + days in the Province by
5.6% annually (from the 33.3% base) to reach 50% by 2012 and by 8.3% thereafter to
reach 75% by 2015;
3. Increase the percentage of casino customers who visit attractions in the Province to 20%
by 2012 and 25% by 2015;
4. Increase expenditure opportunities for casino customers to spend on entertainment
(dining, karaoke, shopping etc.). The casino group may hold more potential than that of
the transit tourists.
32
While a previous JICA-sponsored survey indicated that Thai and Vietnamese tourists stay 2+ days in the
province, the data is believed to be based on a sample that was skewed towards tourists staying in
Savannakhet town, overstating the average length of stay.
4/08/2009 Page 46 of 65
Figure 23: Tourism Expenditures Projections with Strategy Implementation
Projections with Strategy Implementation - Tourist Expenditures
2009E 2010E 2011E 2012E 2013E 2014E 2015E
Projected Spend ($ in M) $6.8 $8.6 $10.9 $13.8 $17.4 $21.9 $27.7Growth Rate 27% 28% 26% 26% 26% 26%
Thai Visitors (Excl. Casino) $4.2 $5.1 $6.2 $7.6 $9.7 $12.5 $16.0
Visitors (1 Day +) 3.5 4.2 5.1 6.1 7.7 9.8 12.6
$ Spend - Visitors $34.5 $36.3 $38.1 $40.0 $42.0 $44.1 $46.3
Increase 5.0% 5.0%
Transit (0 - 0.3 Days) 0.7 0.9 1.2 1.5 2.0 2.6 3.3
$ Spend - Transit Tourists $10.0 $10.5 $11.0 $11.6 $12.2 $12.8 $13.4
Increase 5.0% 5.0%
% of Transit Spending 0.3 Days + in the Province 33.3% 38.9% 44.4% 50.0% 58.3% 66.7% 75.0%
Increase 5.6% 8.3%
Casino 0.1 0.5 1.1 1.8 2.3 2.7 3.2
$ Spend - Casino Customers $10.0 $10.5 $11.0 $11.6 $12.2 $12.8 $13.4
Increase 5.0% 5.0%
% of Casino Customers Visiting the Province 5.0% 10.0% 15.0% 20.0% 21.7% 23.3% 25.0%
Increase 5.0% 1.7%
Vietnamese (Excl. Casino) $1.1 $1.4 $1.7 $2.1 $2.7 $3.4 $4.4
Visitors (1 Day +) 0.9 1.1 1.3 1.5 2.0 2.5 3.2
$ Spend - Visitors $19.9 $20.9 $22.0 $23.1 $24.2 $25.4 $26.7
Increase 5.0% 5.0%
Transit (0 - 0.3 Days) 0.2 0.3 0.4 0.5 0.7 0.9 1.2
$ Spend - Transit Tourists $8.0 $8.4 $8.8 $9.3 $9.7 $10.2 $10.7
Increase 5.0% 5.0%
% of Transit Spending 0.3 Days + in the Province 33.3% 38.9% 44.4% 50.0% 58.3% 66.7% 75.0%
Increase 5.6% 8.3%
Casino 0.0 0.0 0.0 0.1 0.1 0.1 0.1
$ Spend - Casino Customers $8.0 $8.4 $8.8 $9.3 $9.7 $10.2 $10.7
Increase 5.0% 5.0%
% of Casino Customers Visiting the Province 5.0% 10.0% 15.0% 20.0% 21.7% 23.3% 25.0%
Increase 5.0% 1.7%
Domestic $1.4 $1.6 $1.9 $2.2 $2.7 $3.3 $4.1
Visitors (1 Day +) 0.8 0.9 1.1 1.3 1.7 2.1 2.7
$ Spend - Visitors $19.9 $20.9 $22.0 $23.1 $24.2 $25.4 $26.7
Increase 5.0% 5.0%
Transit (0 - 0.3 Days) 0.6 0.7 0.8 0.9 1.0 1.2 1.3
$ Spend - Transit Tourists $8.0 $8.4 $8.8 $9.3 $9.7 $10.2 $10.7
Increase 5.0% 5.0%
% of Transit Spending 0.3 Days + in the Province 33.3% 38.9% 44.4% 50.0% 58.3% 66.7% 75.0%
Increase 5.6% 8.3%
Though the proposed tourism strategy leads to relatively small increases in the volume of
tourists visiting the Province, the increase in expenditures is considerable: $3.8M USD by
2012 and $14.1M USD by 2015.
Tourism Route Tourism Destination
4/08/2009 Page 47 of 65
Figure 24: Incremental Impact of Strategy Implementation on Tourist Volumes
734
1,064
1,359
1,570
1,7361,875
2,027
57
25
8
0
300
600
900
1,200
1,500
1,800
2,100
2009E 2010E 2011E 2012E 2013E 2014E 2015E
Without Strategy Implementation Incremental Gain
Figure 25: Incremental Impact of Strategy Implementation on Tourist Expenditures
$6.8$7.9
$8.9$10.0
$11.1$12.2
$13.6
$2.0
$3.8
$6.4
$9.7
$14.1
$0.7
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2009E 2010E 2011E 2012E 2013E 2014E 2015E
Without Strategy Implementation Incremental Gain
4/08/2009 Page 48 of 65
5.8. Targets: Increasing Visitor/Tourist Volume
Goals / Objectives
Goal 1: To maintain 11.2% domestic and international visitor/tourist arrival growth
rate until 2012 (Tourism Route Phase); and
Goal 2: To increase domestic and international visitor/tourist arrival growth rate by
1% annually (from the 11.2% base) from 2012 until 2015 (Tourism Destination Phase).
At present, the majority of arrivals in Savannakhet Province are in transit to other
destinations and spend little to no time in the Province itself. While the long-term tourism
strategy aims to increase tourist volume, higher priority is given to increasing length of stay
and expenditures with the existing customer base.
Targets therefore have been set to maintain the 11.2% domestic and international
visitor/tourist arrival growth rate through 2012 and then to increase that growth rate by 1%
annually through 2015, the Tourism Destination Phase.
Through the process of increasing length of stay and expenditures, tourist volume is
expected to increase due to efforts in areas such as:
• Making Savannakhet a more attractive destination;
• Increasing the percentage of return visitors due to satisfied tourist experiences
(developing attraction sites and ease of access);
• Improved targeting of new and existing markets and products;
• Enhanced shopping and entertainment venues and options; and
• Implementing a clear branding/image strategy.
There is also a forecasted increase in self-drive, or caravan tourism in the sub-region,
especially emanating from the two key source markets of Vietnam and Thailand. This will
help support the tourist volume goals set above.
5.9. Targets: Increasing Visitor/Tourist Expenditures
Goals / Objectives
Goal 1: To increase annual domestic and international visitor/tourist expenditures by
5% per year;
Goal 2: To double 2009 tourist expenditures in 2012, generating an estimated $13.8M
in 2012; and
Goal 3: To double 2012 tourist expenditure in 2015, generating an estimate $27.7M in
2015.
4/08/2009 Page 49 of 65
As the Province undergoes transformation from a Tourism Corridor to a Tourism Route,
emphasis should be placed on increasing tourist expenditures, rather than overall tourist
volume. To effectively achieve the spending targets set for the Province, Savannakhet
needs to focus on the following areas:
Improving Market Access and Availability: Though Savannakhet Province has much to offer
in terms of cultural and historical attractions, local cuisine, and handicrafts, these products
are not easily accessible for the end customer, the tourist. The lack of opportunities for
tourists to spend money on local products and services is a major hurdle. Currently, after
tourists travel distances to reach a tourist attraction, they spend little time at the location
since there are no supporting facilities to purchase souvenirs, relax, dine etc. For the most
part, the only income generated at the attraction is the entrance fee, which tends to be
quite small.
On the other hand, producers of local handicrafts struggle to get their products to market
and restaurant owners struggle to retain attractive occupancy rates. Thus, one of the aims
of the provincial tourism strategy is to strengthen the links between producers and
customers. Action items include, but are not limited to:
• Setting up souvenir shops and dining facilities in the vicinity of the popular attractions;
• Improving supply chain linkages for local handicraft producers and providing them with
access to sell goods at popular tourist shopping facilities; and
• Arranging tourist visits to the manufacturing facilities.
Improving the Product: A second key element is to help local producers improve the quality
of their product offering. Action items include, but are not limited to:
• Providing access to raw materials and higher quality inputs;
• Improving the packaging and presentation of the product; and
• Design enhancements and improved versioning of products.
Promoting the Product: The promotion strategy should target both tourists staying in the
Province and tourists in transit. As awareness of what the Province has to offer rises,
visitors will find it more appealing to spend time in the Province, visit attractions, purchase
souvenirs and dine at the local restaurants. Action items include, but are not limited to:
• Savannakhet Province marketing itself through direct advertising in regions from which
it hopes to attract the tourists (radio, TV, travel magazines etc.);
• Forming relationships with tour operators in source markets, enticing them to include
the Province on travel itineraries; and
• Hosting familiarization (FAM) trips.
4/08/2009 Page 50 of 65
5.10. Targets: Increasing Visitors/Tourist Length of Stay
Goals / Objectives
Goal 1: To increase percentage of domestic and international visitors/tourists who
stay 1 day + by 1% a year (from the 33.3% base) through 2012 (Tourism Route Phase);
and
Goal 2: To achieve a target of 45% of domestic and international visitors/tourists
staying 1 day + by 2015 (Tourism Destination Phase), excluding casino.
The Savannakhet Province tourism strategy seeks to incrementally increase length of visitor
stay in the Province. As the Province continues to develop and promote its attractions,
tourism expenditures and incremental time spent in the Province is expected to grow
commensurately. The hurdle in the transformation from Tourism Route to Tourism
Destination is reaching the tipping point when there are sufficient attractions and
entertainment options in the Province to entice the tourists to stay overnight. PTD should
therefore aim to attract tourists to the Province as the main destination as well as to entice
transit tourists to spend an extra day in the Province.
Stage 1 -> Attracting Transit Tourists: Demand forces are favourable for Savannakhet
Province as tourists in transit may need an overnight rest stop along their journey and
usually are enticed by the prospect of visiting another country en route to the final
destination. As the Province continues to improve its tourism infrastructure and raise
awareness about its tourist attractions, transit tourists currently choosing to overnight in
Mukdahan, Thailand will consider Savannakhet, Lao PDR as an alternative. The evening
Food Market and Handicraft Markets currently planned by ADB will likely contribute to
increasing the number of tourist arrivals and their length of stay. Shopping is a particular
draw for both the Thai and Vietnamese market.
Stage 2 -> Attracting Provincial Tourists: The Province needs to continue developing a
strong brand image and a unique identity in order to attract tourists. Creative promotion
strategies linking tour operators in other popular proximate regions with the ones in
Savannakhet Province will help raise awareness and solidify Savannakhet’s brand image.
5.11. Positioning
Destination Brand
Savannakhet Province needs to develop a brand to market and differentiate itself, especially
in light of strong competition from other Lao PDR provinces. The Province’s long and rich
historical heritage presents a unique positioning opportunity, one that is currently being
explored in association with EWEC. Tourists look for distinct attractions and features in a
destination when deciding whether upon their itinerary. Thus, as Savannakhet works
towards becoming a tourism destination, the provincial government needs to develop a
clear, strong differentiating image.
4/08/2009 Page 51 of 65
5.12. Strategic Actions
The Savannakhet Long-Term Tourism Development Strategy presents ten core strategic
actions areas, shown in the figure below.
Figure 26: Strategies / Actions
2. TourismAttractions
2. TourismAttractions
3. Services3. Services
4. Access /Transportation
4. Access /Transportation
5. Accommodation5. Accommodation
6. Entertainment/ Shopping
6. Entertainment/ Shopping
7. RestaurantFood & Bev
7. RestaurantFood & Bev
8. TourismManagement
8. TourismManagement
1. Marketing1. Marketing
Increase Tourist
Volume
Length of Stay
Expenditures
9. Resources: Human and Financial9. Resources: Human and Financial
10. Coordination and Partnerships10. Coordination and Partnerships
SAVANNAKHET STRATEGIES / ACTIONS
2. TourismAttractions
2. TourismAttractions
3. Services3. Services
4. Access /Transportation
4. Access /Transportation
5. Accommodation5. Accommodation
6. Entertainment/ Shopping
6. Entertainment/ Shopping
7. RestaurantFood & Bev
7. RestaurantFood & Bev
8. TourismManagement
8. TourismManagement
1. Marketing1. Marketing
Increase Tourist
Volume
Length of Stay
Expenditures
9. Resources: Human and Financial9. Resources: Human and Financial
10. Coordination and Partnerships10. Coordination and Partnerships
SAVANNAKHET STRATEGIES / ACTIONS
1. Marketing
Brand/Identity Development: “Savannakhet Historic Trail” is being considered as the
official brand and slogan for the EWEC and attractions along Route #9. This, in all
likelihood, will become the backbone of the Province’s branding strategy.
• Focus on destination image development, production of marketing materials and
building knowledge of the area among the wider tourism industry33
.
• Develop positioning statements, service standards, corporate relation guidelines,
and a marketing strategy around the finalized brand34
.
33 Reference ADB EWEC Strategy, Lee Sheridan 34
Ibid.
4/08/2009 Page 52 of 65
Tour itineraries: Promote tour itineraries in Savannakhet. Provide good quality maps to
tourists that include self-guided walking tours as well as guided tour options. Facilitating
access (transportation) to tourist attractions is crucial.
Information Dissemination: Market Savannakhet tourism offerings to tourists/visitors
before they arrive in the Province. Public guidebooks, websites, travel and tour
agencies, travel shows and national tourism campaigns provide a range of options for
information dissemination and to increase consumer awareness and demand. (Follow a
sequenced path to ensure that infrastructure is in place to meet expectations, especially
for campaigns and travel shows).
Merchandising: Develop merchandise for flagship attractions, such as That Inhang and
the Dinosaur Museum (curios, t-shirts, books, information, postcards, collectables etc.)
Events and Fairs: Hold regular festivals, events and fairs (food and handicraft). Market
the events throughout Lao PDR (particularly at tourist entry points) as well as at key
source destinations, such as in Mukdahan and DaNang. See section 4.3, Festival and
Events above. The PTD and JICA have planned a Food Festival in October 2009. (Events
and Fairs will be better supported by the development of a Night Market and other
planned infrastructure improvements).
MICE Sub-market: Savannakhet Province may have a strategic advantage in the MICE
(Meetings, Incentives, Conferences and Events) sub-market. It is: (i) located at the
“cross-roads” of the GMS with reasonable access; (ii) has some suitable facilities, such as
the casino; (iii) likely would have a lower cost structure than current popular centers in
the region (BKK, Da Nang, PP, HCMC) and; (iv) would possess a relative “newness” of
location - many frequent attendees to such events become bored with the usual venues.
MICE activities can also be especially effective in the tourism “shoulder season” such as
Feb. - March and July – Dec. and there are a number of promising sectors that operate at
a sub-regional level that could be targeted, such as mining, transportation, trade,
education, and tourism. The MICE segment also can be an above average spending/day
earner that would also increase average length of stay.
Flagship Attractions: Identify flagship attractions by market (important to segment the
tourist market as rankings may be different among Thai, Lao, Vietnamese and Western
tourists) and then promote attractions and merchandising activities.
Familiarization (FAM) Trips: Arrange for FAM trips for travel industry, media and for
traders. (This should occur only after Savannakhet’s tourism infrastructure has been
further developed and niches and target markets have been carefully identified. While
FAM trips can be very advantageous, poorly planned and executed FAM trips can
damage future tourism opportunities for the Province).
Provincial Profiles and Brochures: Once data has been collected and analysed regarding
source markets and more information comes to light regarding visitors and tourists,
Savannakhet should develop targeted provincial profiles and brochures. These could
focus on attracting foreign investment in support of the tourism industry or on particular
sector, trade or industry areas.
2. Tourism Attractions
4/08/2009 Page 53 of 65
Flagship Attractions: Savannakhet Province needs to clearly identify its flagship
attraction(s), by market segment. It can then promote and market those attractions
accordingly.
Information: Savannakhet Province needs to improve the quality and dissemination of
its tourist attraction information. The following areas are key:
• Tour Operators: Savannakhet should cooperate with tour operators in other
provinces and countries to include Savannakhet in their itineraries. Major locations
include Savannakhet, Vientiane, Luang Prabang, Vang Vieng, other popular
destinations in Lao PDR and counter party tour operators in Thailand and Vietnam.
Savannakhet PTD also needs to work with prevailing industry incentive schemes that
foster operator involvement /cooperation.
• Hotels: All hotels in the Province should have brochures that provide tourist
information and nearby attractions;
• Tourist Information Centres: A newly constructed tourist information centre has
been established on the ground floor of the Savannakhet PTD. However,
information/signage is still needed to direct tourists to this location. A tourist
information booth should also be considered at the border.
• Tourist Attraction Sites: At nearly all of Savannakhet’s tourist attractions there is
little to no information available about the attraction’s cultural or historical
significance.
Access: The Province needs to improve access to the tourist attractions. See subsection
below discussing action steps regarding access and transportation.
Maintenance: Some of the attraction sights are in poor condition and in need of
renovation.
Lack of Amenities: Tourism amenities and facilities need to be developed at tourism
attraction locations.
3. Services
There are three main areas in which tourism services need to be strengthened:
• Construction of roadside service stations to cater to in-transit tourists along EWEC.
(ADB is planning to develop these at Muang Phine and Phalanxay);
• Improvement of the availability of tourism information across all districts; and
• Development and strengthening of the “last mile” transport services to facilitate
tourist length of stay and ease of access to attractions.
4. Access / Transportation
Though the Province is fairly well connected externally, internal transport remains a
challenge. Tour providers ought to organize affordable half-day tours that could
combine several destinations in one outing, improving tourist access to attractions and
providing services at a reasonable price. If tourists are only interested in visiting a single
destination, there needs to be a more readily available and less expensive transport
4/08/2009 Page 54 of 65
service options available. Tuk-tuks in the Province are not always easy to locate and
demand for these services will only grow as tourist flow increases.
• Tourists need logistics/details regarding how to reach attractions independently.
• Tourism information should be provided on notice boards at bus stations and other
tourist hubs.
• Tuk-tuk service and availability of local transport should be improved, including for
buses arriving in the evening and night time.
5. Accommodation
In order to effectively compete with other accommodation options, Savannakhet
Province needs to upgrade its quality of accommodations and to make them more
affordable. The majority of the tourists that arrive in the Province are middle-income
level. The proverbial “low hanging fruit” for Savannakhet Province is to entice tourists
that currently overnight in Mukdahan, Thailand en route to Vietnam to spend the night
in Savannakhet instead. Thus, Savannakhet needs to develop accommodations that
could effectively compete with Mukdahan in quality and price.
• Encourage the development of accommodations at strategic locations for
tourism development.
• Improve the reporting of occupancy levels and marketing data by
accommodation businesses/providers.
• Provide tourism information services at accommodation locations.
• Provide training for owners, managers and staff of accommodation businesses.
6. Entertainment / Shopping
Thai and Vietnamese tourists are interested in shopping opportunities and seek bargain
goods as well as local souvenirs and handicrafts. Savannakhet PTD should study the
shopping patterns and preferences of its tourist base and stimulate development of
establishments that can meet market-based demands.
• Foster connectivity between buyers and sellers, strengthen the role of
associations, and encourage public-private partnerships that will develop
entertainment and shopping in the Province.
• Provide training in branding, packaging, marketing and pricing of products.
• Re-zone the existing night market area to become a “walking street” (ADB
initiative)
• Develop an evening handicraft market in Kaysone Phomvihan district.
• Develop night market entertainment. This could include traditional music and
dance performances, similar to the Chiang Mai, Thailand Night Bazaar or other
outdoor events. Ensure that night market development is linked with promotion
of handicraft and local product sales.
• Develop a theme/representation from all of Laos, rather than exclusively
focusing on Savannakhet. For many people travelling along EWEC, it will be their
only experience in Laos, and as many of them are of a souvenir buying nature it
4/08/2009 Page 55 of 65
would maximize the spending/visitor if more was made available to them. SVK as
the “Cross-roads” in Laos could add to the “trading” dimension of such a theme.
• Organize monthly or twice-monthly events at the handicraft/night market.
Timing should attempt to coincide with major festivals in Savannakhet and public
holidays in Thailand and Vietnam.
• Prioritize necessary physical improvements such as landscaping, benches and
seating, signage, etc.
7. Restaurants / Food & Beverage
Although there is some range in quality and price of restaurant offerings in the Province,
very few cater to the mid-upmarket tourist segment. The location of restaurants is also
very dispersed, such as in Kaysone Phomvihan. Savannakhet Province should thus work
towards developing better quality dining options and encouraging restaurant owners to
open establishments near town centers or areas where the Savannakhet PTD seeks to
develop critical mass. For example, the planned Savannakhet Evening Food Market
(Mekong Riverside Night Market) should provide incentive for new restaurant and food
& beverage establishments which further reinforces surrounding tourism infrastructure.
8. Tourism Management
Leadership and Direction: The Savannakhet Provincial Tourism Department has a critical
role in providing leadership and direction and coordinating the many different tourism-
related players and initiatives within the Province. Given the task at hand and
recognizing that human and financial resources are limited, it should draw upon
available resources that are similarly motivated to see the tourism sector prosper,
namely the private sector, industry associations and donor/non-governmental
organizations.
Role of Industry Associations: One area in which greater support is needed is industry
associations. Roles and responsibilities, however, need to be more clearly delineated
and members need to see value in their membership and the activities that the
association undertakes. The hotel and restaurant association and transport associations
in particular need to be strengthened.
Pro-poor Tourism (PPT): The Savannakhet PTD must give explicit attention to ensuring a
pro-poor focus in each area of the suggested strategic actions, as appropriate. This
includes expanding business and employment opportunities for the poor as well non-
economic benefits such as capacity building, training and employment, mitigating
negative environmental impacts and promoting pro-poor participation and public-
private partnerships.
Tourism Data: In order to formulate an effective strategy, the Province must first and
foremost understand the demographic profile, tastes and preferences of its current
visitors (customers) and then anticipate how trends and patterns may be changing.
Once this becomes clear, the PTD can develop more tailored work plans around how to
best cater to the needs and demands of tourists. At present, the data available is very
limited and often incomplete. To address this, the following actions are recommended:
4/08/2009 Page 56 of 65
• Hotel Association Survey: The Hotel Association should, at minimum, encourage
hotels to take better records of visitors and present tourists with an optional survey
to capture data regarding length of stay, destinations visited on the trip, attractions
of interest in the Province, shopping, etc. Survey training and coordination would be
needed however.
• Border-Crossing Survey: The provincial government and the immigration department
need to coordinate and improve upon entry and exit border-crossing data. Surveys
should be implemented to collect demographic data and support the Province’s
markets segmentation strategy.
• Data Availability and Integrity: Finding reliable, accurate data upon which to base
demand estimates and strategic recommendations is a known challenge. For
example, prior to 2007, LNTA statistics for international entry points were combined
into a single provincial figure dataset. There are also inconsistencies between figures
published by the LNTA and statistics from the PTD. And there is often no data
collected at all – such as with domestic tourists and international tourists that arrive
in Savannakhet overland within Laos. In order to better match Savannakhet’s
tourism strategy with market realities, improvements in data availability and data
integrity is much needed.
Environmental Sustainability: Attention needs to be given to environmental
sustainability in the implementation of actions suggested in this strategy and the
subsequent development of annual Savannakhet PTD work plans. It is critical for
Savannakhet Province to protect its resource base and to promote sound environmental
practices.
9. Resources: Human and Financial
Human resource management: Capacity building and training plays an important role in
the long-term success of the Savannakhet tourism strategy. The existing 2009-2010
Savannakhet PTD strategy clearly outlined areas where capacity building is sought.
Training for owners, managers and staff of restaurant and hospitality businesses should
also be included in this list. Opportunities to link with national and regional tourism
training initiatives of donor organizations such as Lux Development are also
recommended.
Financial Resources: The strategy recognizes that the PTD has limited financial resources
to work with. This provides additional rationale for actively engaging with the private
sector. In particular, exploring commercial investment opportunities and devising
creative public private partnerships (PPPs) is recommended. As a starting point, the PTD
should prioritize areas where it believes the private sector could “plug in” and then
engage in dialogue with the private sector to determine “fit” and how the provincial
government may assist in facilitating those relationships and activities.
10. Coordination
Increase Transparency of Donor Activities: At present, there are three major
international organizations working in the area of tourism development in Savannakhet
Province - SNV, ADB and JICA. Coordination and cooperation appears to be decent, but
could be strengthened. The Project Team recommends a more transparent process
4/08/2009 Page 57 of 65
whereby short, mid and long-term initiatives of these organizations are consolidated,
published and shared with the private sector and relevant stakeholders. The information
would allow stakeholders to improve business planning efforts and perhaps become
more active participants in the Province’s tourism development process. Indeed, an
underlying objective of donor organizations is to promote sustainable activities and
improved communication and involvement with stakeholder groups increases the
likelihood of this happening.
Develop a Provincial CSR / Public Private Partnership Strategy: Opportunities for PTD to
partner with the private sector to strengthen Savannakhet’s tourism industry have
largely been untapped. Commercial businesses share a common interest in
strengthening the Savannakhet tourism industry and greater collaboration between
public and private activities is needed. A Corporate Social Responsibility (CSR) / Public-
Private Partnership strategy that clear prioritizes the Province’s tourism needs and that
solicits private sector involvement is recommended. This could provide a framework for
discussion amongst stakeholders and help ensure that non-PTD initiated tourism
activities are prioritized and aligned with the Province’s long-term tourism development
objectives. A CSR strategy should seek to leverage private sector core competencies as
well as to promote pro-poor linkages, particularly in the area of value chain
development of the handicraft and restaurant industry. Philanthropic-oriented activities
also come under the purview of CSR. A few potential areas for public-private sector
cooperation may include:
• Private sector sponsoring or “adopting” a tourism site;
• Increase sourcing of local goods, products and labour, rather than importing;
• Strengthening human resource development (training) for hospitality and tourism;
• Promotion of tourism products and services; and
• Encourage strategic investment, such as in the areas of: transport services; roadside
stations; eco-lodges and restaurants; development of tourist facilities at key
attractions; and provision of vendor stalls and shopping outlets for Lao handicrafts
and products.
5.13. Strategy Matrix
The following matrix presents a schedule of actions for strategy implementation, based on
the above 10 action areas, as well as suggests potential stakeholder involvement.
4/08/2009 Page 58 of 65
Figure 27: Schedule of Actions for Strategy Implementation
Recommendations
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2020
Description
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Marketing Strategy and Vision:
Brand / Identity Developmentx x x
Develop a differentiated destination identity to be used in m-ting campaign x x x x
Flagship Attractionsx x
Prioritize attractions to be developed & promoted x x x
Marketing and Promotion Materials:
Provincial Profiles and Brochures (English, Lao, Thai, Vietnamese Languages) x x
Develop marketing and promotion materials in multiple languages x x x x
Tour Itinerariesx x
Develop short (i.e. half-day) tours combining several flagship attractions x x x
Marketing and Promotion Mediums:
Tour Agents
x x x
Develop relationships with tour agents in
other popular destinations in Lao PDR, as well as key source destinations, such as Mukdahan and DaNang, to include SVK in the itineraries of their customers
x x
Internet / Websites
x x
Develop internet content for tourism websites in multiple languages (English, Lao, Thai, Vietnamese)
x x x
Hotels
x x
Make the marketing materials available for distribution at the hotels; coordinate sightseeing tours with tour operators
x x
Sights
x x
Distribute and promote information not only about the particular sight itself but also about neighboring and flagship attractions
x x
Information Centers
x x
Information dissemination & tour coordination; signs and posters at other locations to direct to the information center
x
Familiarization (FAM) Tripsx x x
Organize well planned trips inside and outside the country x x x
Trade Shows / Events and Conferencesx x x x
Attend trade shows and promote the province x x x
Development and Maintenance of Flagship Attractionsx x x x
Develop and preserve flagship attractionsx x x x
Sight Informationx x
Provide information about the attraction at the sight
x x
Merchandising
x x
Provide opportunities for the locals to sell souvenirs and handicrafts at the attraction
sight x x x x
Events and Fairsx x
Encourage and promote local festivities (i.e. That Inghang Festival)
x x
Target Segment Study (Market Survey)
x x x x
Study the preferences of different target groups of tourists and promote the attractions according to the group's interests
x x x x
Rest Stops
x x
Develop rest stop areas along the road with restaurants and souvenir shops x x x
TBD
Tour Itinerariesx x
Develop short (i.e. half-day) tours combining several flagship attractions
x xa
In-town transportation
x x x
Make sure transportation in-town and to nearby attractions is easily accessible (i.e. tuk-tuks)
x x x
TBD
Who?
(Suggested Lead Involvement)
Implementation
(Timing)2. T
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Strategy
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Recommendations
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New
Reco
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Acti
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Co
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2009 -
2010
Ro
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: 2
011 -
2015
Desti
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: 2
016 -
2020
Description
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Development Around Tourism Locusx x x
Encourage development of quality affordable accommodations options
x x
Promotion
x x x x
Cooperate with tour operators to promote local hotels and guesthouses; offer promotional rates and incentives to encourage rapid growth
x x
Staff Trainingx x
Provide training for hotel staff to improve the quality of service
x x x
Target Segment Study (Market Survey)
x x x x
Study the preferences for accommodation options of each of the target groups (price, quality, other)
x x x
Shopping Options Development
x x x x
Development of shopping opportunities, i.e. night market, handicraft shops, etc. x x x x x
Product Developmentx x x x
Improvement of the local products (packaging, production, marketing) x x x x
Government Incentives
x x x
Various development incentives, i.e. tax incentives or changing the hours of bridge operation, etc.
x x
Target Segment Study (Market Survey)
x x x x x
Study the preferences for entertainment and shopping options of each of the target groups
x x x x x x x
Development x x x x
Development of quality dining options around the tourism locus
x x
Staff Trainingx x x
Provide training to staff in food & beverage sector
x x x
TBD
Role of Industry Associations
x
Define the role of industry associations
x x x
Survey and Data Administration
x x x
Accurate data collection and survey administration: hotel association survey, border crossing survey, source market survey, etc.
x x x x
Staff Training x x Training for PTD staff x
TBD
TBD
Coordinated Strategy (Donors, PTD, Private Sector) x x x Coordination of development efforts x x x
Public-Private Partnership / Corporate Social Responsibility
Encourage CSR practices, partner with private sector companies to promote the province as part of their own marketing campaign, encourage community participation (i.e. have a private sector company "adopt" an attraction for development)
x x x x x x
Promotion to Investors x x x x
Promotion of the development opportunities to potential Investors
x x x x
6. E
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. A
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. C
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8. T
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Man
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7. F
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Be
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Who?
(Suggested Lead Involvement)
Implementation
(Timing)
Strategy
Actions
4/08/2009 Page 60 of 65
6. Implementation
The Savannakhet Province Long Term Tourism Development Strategy 2010 – 2020 has been
developed in consultation with select provincial tourism stakeholders. As this is an
overarching strategic directional document, it is recommended that private sector, relevant
donors/NGOs and associations continue to be informed and have opportunity to provide
further input into the proposed development and marketing of Savannakhet as a tourism
destination.
As such, the strategy should be distributed by the PTD for discussion, feedback, finalization
and adoption. As development proceeds and additional source market data comes to light,
the strategy should be reviewed and updated on a regular basis. The actions will be
implemented through the annual work plans of the PTD and key partners. It is envisaged
that, where appropriate and relevant, these actions will also inform the annual plans of key
partners so as to ensure a consistent approach to pro-poor sustainable tourism
development in Savannakhet Province.
A key requirement for the future is a strengthening of the working partnerships between
the PTD, other government organizations, the private commercial sector and donors/NGOs
so that the combined resources and expertise achieve maximum benefits for the tourism
industry and local communities. Achieving a successful outcome from the tourism
development strategy hinges on the willingness and commitment of all stakeholders to
implement the strategy and to follow it through.
This strategy recognizes that tourism sector in Savannakhet Province is, in the near- and
medium-term, heavily reliant on the traffic flow to and from Thailand and Vietnam, largely
due to the Savannakhet Bridge and East-West Economic Corridor. There are two key inputs
into this strategy that are currently being commissioned: (i) Source Market Data Study35 and
(ii) East-West Economic Corridor Strategy36. Findings and recommendations from those
reports must be integrated into this Strategy ex-post to ensure that implementation is
coordinated, demand-driven and mutually reinforcing, resulting in a sustained and
prosperous tourism industry. Savannakhet PTD looks forward to working with all
stakeholders to bring that about.
35 Study is sponsored SNV in conjunction with ADB, MMG (formerly LXML Oz Minerals). 36 EWEC strategy is being developed by the ADB.
4/08/2009 Page 61 of 65
7. Performance Evaluation
The success of the tourism development strategy can be judged in both quantitative and
qualitative terms. For each of the actions specified in the strategy, indicators will be
identified when drawing up activity plans for implementation. However, some of the
general criteria that will be used to evaluate performance include:
• Achievement of the strategy’s vision, goals and outcomes;
• Increase in domestic and international visitor arrivals;
• Increase in length of stay in the Province;
• Increase in revenue generated by tourism in the Province;
• Increase in visitor numbers to tourism attractions;
• Increase in accommodation occupancy rates;
• Trends in business activity such as new and improved accommodation, restaurants,
entertainment venues, tour operators, tourism attractions, etc.
• Increase in employment from tourism;
• Development of new tourism projects and donors in the Province;
• Level of industry co-ordination and networking;
• Level of visitor satisfaction; and
• Level of coverage in the media, including guidebooks and travel websites.
4/08/2009 Page 62 of 65
Appendix A: Savannakhet Province Attractions
The table below lists attractions across the 15 districts in Savannakhet.
Name of attractions Type Access Distance (Km)
Kaysone Phomvihan District
1 Inhang Stupa Cultural 15
2 Dongnatad (NPA) Cultural 15
3 Wat Xayaphoume Natural Center
4 Dinosaur Museum Cultural Center
5 Wat Latanalangsy Tai Historical Center
6 Revolutionary Hall Cultural Center
7 Kaysone Phomvihan House Historical Center
8 French Colonial Buildings Historical Center
9 Savanxay Market Historical Center
10 Thonglahasin (Lao cotton) Cultural Center
11 Nateua Salt Factory Cultural 18
12 Phonsim Old Town Natural 20
13 Bangva Lake Natural
14 Friendship Bridge Natural 7
Outhomphone District
1 Old Road 4 Directions Historical Center
2 French Army Traces Historical 4
3 Pha Cave Historical 34
Atsaphangthong District
1 XangHae Mountain Historical
2 Wat Phouvangkone Natural 25
Xaybouly District
1 Keinkabao Historical 1
2 Phoudanmakeua Natural 48
3 Dansana Natural 85
4 Danhong Natural 85
5 Laksama kateub Village Natural 64
6 Sama leaves Cultural 58
7 Laksama Cultural 65
8 Old wall-Nongheuathong District Cultural 52
9 Crocodile Lake Historical 61
10 Cultural Gate Natural
Xayphouthong District
1 Phone Stupa Historical 22
2 Suantan Temble Cultural Center
3 Stone House Cultural 15
4 Elephant Collin Cultural 0
5 Pha Cave Natural 15
4/08/2009 Page 63 of 65
Name of attractions Type Access Distance (Km)
Songkhone District
1 Keingkongpanang Historical 7
2 Phathad Om Stupa Natural 6
3 Phasaing Cave Cultural 11
4 Old Trisory Hole Cultural 10
5 Tiger Cave Historical 50
6 Kaing Ahong Natural 30
7 Kaing Khan Gnaing Natural
8 White Sand Bench Natural 9
9 Plat Rock Natural 27
10 Weaving learning in Ban Lahanam Natural 9
11 Dinosaur Bone Discovery Area Cultural 16
Champhone District
1 Water Recevoir Historical 22
2 Money Forest Natural 28
3 Ho Tay Pidok Library Natural 26
4 Public Lake (turtle lake) Cultural 11
5 Yoodbag Recevoir Natural 6
6 Old temple Natural
7 Kou Temple Historical
8 Water Recevoir Houa Thoid Cultural
9 Houa Chiao Recevoir Natural
Atsaphone
1 Discovery of Dinosaur Area Historical 42
2 Phouxang Hae NPA Historical 20
3 Phoumankone Temple Natural 25
Phalanexay District
1 Natural River Rock Area Historical 1
2 Traces of Dinosaur Natural 1
3 Buddha Status fell Historical 8
4 Phouxang Hae NPA Cultural 30
Xonbouly District
1 Discovery of Dinosaur Area Historical 30
2 Rare Deer Area Historical 22
3 Rare Deer Area Natural Center
4 Temple Cultural 7
5 Public Lake (turtle lake) Cultural 13
6 White Bird Like Natural 4
Phin District
1 Dongphouvieng NPA Historical 20
2 Natural River Rock Area Natural 25
3 Tad Hai Bridge Natural 35
4 Lao Army Monument Historical Center
Xe Pon District
1 LamXeun War Traces Historical 22
2 Ho Chi Minh Trail Historical 45
3 Salan Waterfall Historical 50
4 Sakhoai Waterfall Natural 10
5 Sadi Waterfall Natural 55
6 Phong Cave Natural 2.5
7 Old Xe pon Temple Natural 25
8 Ou Bridge Cultural 24
4/08/2009 Page 64 of 65
Name of attractions Type Access Distance (Km)
Thaphangthong District
1 Xe Bangnouan NPA Historical 15
2 Dongxethouan Jungle Natural 12
3 Water Recevoir Xe Salalong Natural 24
4 Natural Mountain Phoutintok Natural 11
Vilabouly District
1 Phouxang Hae NPA Historical 45
2 Goldmine View Natural 5
3 Nang Lao Stupa Natural 40
4 Big Rock Cultural 12
5 Waterfall Pha Long Cultural 30
Nong District
1 Nature of Xe Lanong Historical 1
2 Ho Chiminh Trail Natural 24
3 Natural Water Rock Area Historical 18
4 Natural Water Rock Area Natural 5
5 Lake Natural
6 Old House Historical
7 Waterfall XeLo Historical
8 Mountain Lapheung Natural
9 Asteroid Natural
4/08/2009 Page 65 of 65
Appendix B: Economic Corridors
Source: ADB
