Enviro News Asia, Vientiane – The Government of the Lao People’s Democratic Republic (Lao PDR) has launched a new policy offering incentives for nature-based tourism investment in the country’s forest areas. The decision, announced today by the Ministry of Agriculture and Environment, aims to strengthen the role of the private sector in developing sustainable tourism, while creating jobs and protecting the environment.
Under this regulation, small-scale investors are encouraged to invest in national parks and protected areas through projects that build economic partnerships with local communities. This initiative is expected to drive green economic growth and support biodiversity conservation.
A World Bank–funded business leveraging facility—part of the Lao Landscapes and Livelihoods project—will support the policy. The facility will provide consulting services for businesses, training on nature-based tourism, and funding for small-scale public infrastructure, marketing, and tourism product development.
“Lao PDR is developing sustainable, private sector–driven nature-based tourism as one of the pillars of its upcoming National Socio-Economic Plan and National Green Growth Strategy,” said Kikeo Singnavong, Deputy Minister of Agriculture and Forestry. “Well-regulated development will not only create jobs and boost income for local communities but also provide them with an incentive to preserve the country’s natural beauty and biodiversity.”
The facility offers three types of financing: funding for planning and feasibility studies, challenge funds for priority investments in specific areas, and matching funds for product development and marketing. Interested companies can apply through prospectuses prepared by the Department of Forestry for five national parks—Hin Nam No, Nam Et-Phou Louey, Nakai-Nam Theun, Phou Hin Poun, and Phou Khao Khouay—as well as three protected areas: Khoun Xe Nong Ma, Laving Lavern, and Yord Nam Mo-Phou Sam Soum.
“Through this business leveraging facility, companies can access funds and technical support to develop tourism that directly benefits local people through job creation while preserving natural beauty—provided they comply with government standards and follow protected area management plans and guidelines,” said Viengsamay Srithirath, World Bank Senior Country Officer for Lao PDR.
The announcement was attended by government representatives, local residents from the national parks and protected areas, and Inthy Deuansavanh, President of the Lao Tourism Association, who outlined various investment opportunities available in the eight priority areas.
The World Bank estimates that nature-based tourism could contribute up to 10% of Laos’s Gross Domestic Product (GDP) and 10% of its employment. The project also aims to create job opportunities for 75,000 women, empowering communities while preserving the natural beauty of the “Land of a Million Elephants.” (*)
