Environmental Impacts of Trade Liberalization in the Tourism Sector of the Lao PDR

This research paper examines the environmental impacts of trade liberalization and regional integration on the tourism sector in Lao PDR. It highlights the growth of the industry, the role of ecotourism in conservation, and the risks of unplanned development, while providing strategic policy recommendations to ensure sustainable growth.

• The tourism sector in Lao PDR has experienced rapid growth, with arrivals increasing from over 14,000 in 1990 to 1.21 million in 2006, and revenue growing from over US$2.2 million to US$173.2 million in the same period.
• Regional markets, specifically Thailand, Vietnam, and China, represent 54 percent of total arrivals, while markets in Europe, the United States, Australia, and Japan account for over 78 percent of total expenditures despite representing just over 25 percent of arrivals.
• Ecotourism is a central component of the sector, relying on a system of 20 National Protected Areas (NPAs) that cover more than 14 percent of the country's land area.
• Tourism can provide positive environmental outcomes, such as creating alternative incomes for villagers to reduce resource pressure, generating funds for protected area management, and hindering illegal resource activities through the presence of operators.
• Unplanned tourism development can lead to negative environmental impacts, including habitat destruction, solid waste generation, noise pollution, and water pollution. In Vang Vieng, liquid waste and sewage from hotels and guesthouses are often discharged into the Song River untreated.
• The Nam Ha Ecotourism Project demonstrates a sustainable model by using existing forest trails, limiting group sizes to 8-10 tourists, and implementing a US$1 per day user fee for tourists to provide direct financial benefits for conservation.
• Regional integration through ASEAN and the ASEAN Tourism Agreement, along with infrastructure projects like the Lao/Thai Friendship Bridge 2 and airport extensions, is expected to drive further growth, with arrivals forecasted to reach 2 million per annum by 2010.

APA

Manivong, S., & Sipaaseuth, S. (2007). Environmental Impacts of Trade Liberalization in the Tourism Sector of the Lao PDR. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/rtea_lao_tourism.pdf

Chicago

Manivong, Sounh, and Somxay Sipaaseuth. Environmental Impacts of Trade Liberalization in the Tourism Sector of the Lao PDR. International Institute for Sustainable Development, 2007. https://www.iisd.org/system/files/publications/rtea_lao_tourism.pdf.

Wikipedia

{{cite report |last1=Manivong |first1=Sounh |last2=Sipaaseuth |first2=Somxay |title=Environmental Impacts of Trade Liberalization in the Tourism Sector of the Lao PDR |publisher=International Institute for Sustainable Development |date=December 2007 |url=https://www.iisd.org/system/files/publications/rtea_lao_tourism.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{manivong2007environmental, author = {Manivong, Sounh and Sipaaseuth, Somxay}, title = {{Environmental Impacts of Trade Liberalization in the Tourism Sector of the Lao PDR}}, institution = {International Institute for Sustainable Development}, year = {2007}, month = dec, url = {https://www.iisd.org/system/files/publications/rtea_lao_tourism.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }