GMS Sustainable Tourism Development Project in Lao PDR

GMS Sustainable Tourism Development Project in Lao PDR

Implementation Plan of the Project

April 2009 – December 2013

November 2009

List of Acronyms

ADBAsian Development Bank

APPAction Plan of the Project

CBTCommunity-based Tourism

DEDGerman Development Service

EAExecuting Agency (LNTA)

EIAEnvironmental Impact Assessment

EMPEnvironmental Management Plan

EWECEast-West Economic Corridor

GoLGovernment of Lao PDR

GMSGreater Mekong Subregion

HRDHuman Resource Development

IEEInitial Environmental Evaluation

IPPImplementation Plan of the Project

Lao PDRLao People’s Democratic Republic

NGONon-Government Organization

NPANational Protected Area

LNTALao National Tourism Administration

NSECNorth-South Economic Corridor

NTFPNon-timber Forest Product

PAMProject Administrative Memorandum

PCUProject Coordination Unit

PIUProject Implementation Unit

PPMSProject Performance and Monitoring System

PTDProvincial Tourism Department

RRPReport and Recommendation of the President to the Board of Directors (ADB)

SMESmall to Medium Enterprise

SNVNetherlands Development Organization

TMPTourism Master Plan

TSSTourism Sector Strategy

WCSWildlife Conservation Society

WWFWorld Wildlife Fund for Nature

Map of Project Sites

Table of Contents

1.Introduction

2.Key Problems and Opportunities

1.1 Project Impact and Outcome

1.2 Project Outputs

Output 1 A: Lao PDR: Biodiversity Protection in the Siphandone Wetland

Output 1 B: Vang Vieng Town Environmental Improvement

Output 2: Pro-Poor, Community-Based Tourism & Supply-Chain Projects Operational

Output 3: North-South and East-West Economic Corridors in Lao PDR Developed

Output 4: Human Resources in the Tourism Sector Developed

Output 5: Efficient Project Implementation Services are Operational

3.Project Management

4. Project Activity Planning, Implementation & Reporting

4.1 Activity Planning

4.2 Activity Implementation

4.3 Activity Reports

4.4 Pro-Poor Approach

4.4 Monitoring & the Project’s Performance Monitoring System

5. Reporting Procedures

5.1 Activity Reporting

5.2 PIU and PCU Quarterly Reporting to the Lao Government and ADB

5.3 Consultant/Expert Reporting

5.4 Bi-annual Report

5.5 Annual Financial Audit

5.6 Tracking Project Progress – Time Elapsed, Disbursement, Weighted Activities

5.7 Project Completion Report

Appendicespp 17 - 34.

I. Estimated Timing of Consultant Inputs

II. Project Activity Schedule and Targets 2009 – 2013

III. 6-month Action Plan of Project, Project Activity Proposal & Report Forms and Training Plan Record Templates

IV. Sub-Contract Template

V. Quarterly Report Template

VI. Project Memo and Travel Request Templates

1.Introduction

The GMS Sustainable Tourism Development Project (2009-2014) is mainly financed by a US$ 10 million grant from the Asian Development Bank with additional budgetary resources sourced from the Government of Lao PDR. The Lao National Tourism Administration (LNTA)is the executing agency responsible for the coordination, management and implementation of the project in the 9 target provinces of Champasak, Salavanh, Savannakhet, Vientiane Province, Houaphanh, Oudomxay, Sayabouli, Bokeo and Luang Namtha. A Project Coordination Unit (PCU) has been established within the LNTA’s Department of Planning and Cooperation to manage and supervise the project, and separate Project Implementation Units (PIU) are embedded in each participating province’s Provincial Tourism Department (PTD) and Vang Vieng Municipality’s Urban Management Authority. There are a total of 10 project PIU’s and 1 PCU, staffed by approximately 56 civil servants and local contractors.

The goal of the project is to contribute to the sustainable socioeconomic development of Lao PDR focusing especially on poverty reduction, sustainable development, heritage protection, and protection of vulnerable groups from exploitation. To achieve this goal the project seeks to increase tourism’s contribution to poverty reduction by expanding the traditional community-based tourism approach to include tourism-related supply and value chains interventions; enhance the protection and conservation of natural, cultural and urban heritage assets of importance for tourism; improve the facilitation of tourism along the economic corridors by improving services and management of tourist attractions found there; raise public sector official’s tourism management skills at the national, provincial, district and site level; improve service and hygiene standards among staff in small to medium hospitality enterprises; and enhance local private sector investment in small and medium-scale tourism enterprise and operation. There are 5 parts of the project:

Part 1.A: Biodiversity Conservation and Protection through Tourism at the Siphandone Wetland

Part 1.B: Urban Environment Protection and Management - Vang Vieng Town Waste Water Centralization and Treatment

Part 2: Pro-Poor Tourism Development in Salavanh, Vientiane Province, Houaphanh, Oudomxay, Sayabouli and Bokeo Provinces

Part 3: Facilitation of Tourism on the North-South (Part 3.A) and East-West (Part 3.B) Economic Corridors

Part 4: Human Resource Development

Part 5: Institutional Strengthening and Implementation Assistance

This Implementation Plan of the Project (IPP) covers the period of 1 April 2009 – 31 December 2013 and outlines project schedules, results to be generated, systems and procedures to be applied in implementing the project, information management and how project deliverables and impacts on society will be monitored. Broad project activity categories areidentified in the Project Administrative Memorandum (PAM), with detailed information on output targets, responsible implementation personnel, schedules, and budgetguidance for the PIU’s appearing in 6-monthAction Plans of the Project (APP). The STDP will implement a total of nine (9) APP’sbeginning on 1 April 2009 and ending on 30 September 2013. The APP is theproject’s main planning tool. It is a revolving document that includes performance indicators, informs the PIU’s and PCU how to carry out management actions, and outlines measures to ensure that the project stays on target. Following completion of APP number 9 in September 2013, a project completion report will be written and submitted to ADB and the Lao Government (GoL) by 31 December 2013.

2.Key Problems and Opportunities[1]

Despite the rapid increase in international tourism arrivals to the GMS and tourism’s contribution to the subregional economy, the benefits of tourism are concentrated on only a few destinations and generally do not reach the poor.The capacity of governments and the tourism industry to protect their environmental and cultural heritage from potential damage caused by this rapid growth are weak, posing significant risks for the sustainability of the sector. The key challenge for the GMS is to manage this rapid growth to ensure that tourists are offered a diversity of high-quality products that benefit the poor and contribute to the preservation of the environment and the rich cultural heritage of the subregion. Public sector intervention in tourism is required to (i) minimize infrastructure constraints and bottlenecks that hamper tourism development, (ii) regulate and monitor the use of public tourism assets by private operators to mitigate negative externalities, and expand opportunities for the poor to benefit from tourism. GMS governments need to establish partnerships with the private sector and local communities to develop models for a new subregional pattern of tourism development that (i) improves the sustainability of natural and cultural assets and urban areas for tourism, (ii) creates new tourism products that benefit the poor, (iii) taps the opportunities offered by the recently completed GMS transport corridors to promote subregional tourist circuits that can attract new tourists and help to increase the length of stay and expenditures, and (iv) enhances human resource capacity in tourism SMEs and among public sector officials to improve the competitiveness and quality of service.

1.1Project Impact and Outcome

The impact of the Project will be the development of a sustainable, culturally and environmentally sound, pro-poor tourism approach for the GMS and the preservation of natural and cultural heritage. It will contribute to implementing the GMS-Tourism Sector Strategy. The project outcome will be sustainable tourism development that creates livelihood opportunities for the poor. The project area covers nine provinces in the Lao PDR including Bokeo, Champassak, Houaphanh, Luang Namtha, Oudomxay, Saravanh, Savannakhet, Vientiane, and Xayaboury. Based on detailed site surveys and selection[2], the project will directly involve and benefit poor communities in 9 provinces, 17 districts and approximately 53villages. Performance targets, including gender and ethnic participation targets and suggested indicators appear in the project’s Design and Monitoring Framework[3].

1.2 Project Outputs

Output 1 A: Lao PDR: Biodiversity Protection in the Siphandone Wetland

The Siphandone Wetland is in Champasak Province forms part of a significant biodiversity corridor through Lao PDR, Cambodia, and Thailand. It contains about four thousand islands and is home to more than 72,000 people. Poor communities living in and adjacent to the wetland depend on it for food security and income. Over the years, the growing population and high fish prices have brought intensified fishing and hunting, threatening Siphandone’s biodiversity. The subproject will provide alternative income opportunities for local people, including employment in hotels, guesthouses, guiding, providing tourist transport and selling handicrafts and local products to tourists. Additional income from these new opportunities is expected to stem current economic activities that contribute to the site’s environmental deterioration. The subproject includes (i) upgrading a 4 kilometer (km) access road that connects Route 13 to the boat landing at Nakasang village; (ii) improving existing pathways on Don Det and Don Kone islands; (iii) environmental improvements at Nakasang and on Don Det and Don Kone; (iv) constructing visitor information, a new market, drainage, sanitation and interpretation facilities on the Nakasang village side of the wetland; and (v) constructing fully interpreted access trails at Nakasang and on Don Det, Don Kone, and other islands.

Output 1 B:Vang Vieng Town Environmental Improvement

Vang Vieng town is a tourist center and service point between Vientiane and Luang Prabang. The number of tourists visiting the town has grown annually by 15% to 20% and surpassed 100,000 in 2008. Tourism businesses and the growing local population pollute the environment with solid wastes and wastewater discharged directly into the drainage system and the Xong River, which is also used for tourism activities. The subproject will improve environmental conditions in Vang Vieng town, contribute to reducing downstream river pollution, and protect the water quality of the river for local use and tourism. It includes (i) expanding and improving the existing drainage system in the core area of Vang Vieng town; (ii) upgrading selected roads in the core area to ensure that storm water drains into side-entry pits; and (iii) installing a bio-filter to remove contaminants (e.g., hydrocarbons, trash and sediments).

Each subproject above will also include the preparation, establishment, development and/or implementation of (i) heritage-based tourism master plans and zoning and management plans; (ii) small tourism-related infrastructure such as access roads, boat landings, pathways and trails, and drainage and waste management systems; (iii) capacity development and livelihood support programs for local communities, especially including women, youths, and ethnic groups, to develop and operate community tourism enterprises and revitalize cultural industries in partnership with private tourism operators;(iv) agender and ethnic minority development program; (v) a public awarenessprogram targeting tourists, tourism operators, and local communities on natural and culturalresource conservation and protection, respect for cultural heritage, controlling the traffic in wildlifeand antiquities, efficient waste management practices, HIV/AIDS, and other tourism issues; (vii) amarketing and promotion program and materials to promote sustainable tourism and culturalproducts in association with local private tourism companies; (viii) institutional strengthening andcapacity building in the agencies in charge of operating and maintaining project facilities; (ix)manuals to guide the preparation and implementation of future GMS tourism subprojects focusedon wetlands, protected areas, urban sites, and ethnic groups/minorities; and (x) a monitoringand evaluation program.

Output 2: Pro-Poor, Community-Based Tourism & Supply-Chain Projects Operational

The approach includes the development of tourism products and tours designed and operated by local communities in partnership with the private sector, and supply-chain initiatives to link the production of agricultural goods and handicrafts by poor communities to the local, regional, and national tourism economy. Output 2 aims to protect ethnic cultures and minimize the adverse impacts of tourism, especially on vulnerable groups such as women, youths, and the elderly. The output aims to increase rural employment and the incomes of the poor by developing new tourism products and services in partnership with the private sector. The poor will benefit working as guides and providing food, accommodation, cultural performances, and local transportation to tourists. New opportunities will be developed to produce and sell local handicrafts, food, and other products to tourists.

The output in each of the 9 provinces will lead to establishment of one model CBT site, one model CBT circuit, and one local product supply chain. This project component includes; (i) development of community-based tour products and services, (ii) a public awareness program for tourism, (iii) the identification and development of tourism-related supply-chain initiatives, (iv) capacity development in tourism related SMEs and communities, (v) the construction of small tourism-related infrastructure, (vi) a gender and ethnic minorities development program, (vii) a marketing and promotion program, (viii) the promotion of community tourism networks and tourism stakeholder associations, (ix) a joint manual to guide the preparation and implementation of pro-poor tourism initiatives in the GMS (coordinated between the Lao PDR and Viet Nam), and (x) a monitoring and evaluation program.

Output 3: North-South and East-West Economic Corridors in Lao PDR Developed

The output will result in the development of GMS transnational tourism corridors. It will provide models for a subregional approach to developing tourism opportunities along the GMS transport corridors that contributes to their transformation into subregional economic corridors. The output will help participating countries coordinate with other GMS countries, and install common tourism signage along the main GMS transport corridors. About 6 subprojects to improve the infrastructure of tourism sites will be developed in the Lao PDR along the north–south economic corridor (NSEC) which links Yunnan Province in the PRC to the Lao PDR and Thailand. Along the east–west economic corridor (EWEC)which links, Thailand, Viet Nam and Lao PDR 5 sites have been selected for inclusion in the project.

This output aims to create economic opportunities for local communities located alongthe corridors; lengthen the time tourists spend in participating countries, create jobs, especially for women and ethnic groups/minorities, protect the integrity of natural and cultural heritage atthe sites by installing appropriate infrastructure and management systems, promote privatesector participation and develop interpretative materials and displays to add value,understanding, and appreciation of the selected sites. The Project will also include activities to help manage the risks associated with the increased movement of people and tourists across borders.

The output includes (i) preparation of tourismdevelopment and management plans for individual sites and each economic corridor; (ii)constructing tourism-related infrastructure along the corridors, including access roads, parkinglots, ticket booths, information centers, walking trails, markets, and interpretation and sanitaryfacilities, with partnerships between local communities and the private sector for investment,operations and maintenance; (iii) a community awareness and livelihood-support program; (iv)tourism management training for site managers and a local tour-guide training program; (v) amarketing and promotion program; (vi) a gender and ethnic groups/minorities developmentprogram; (vii) a public awareness program for HIV/AIDS, human trafficking, drug abuse, andother tourism-related concerns; (viii) a joint manual on procedures and practices to developGMS tourism corridors, coordinated between the Lao PDR and Viet Nam; and (ix) a monitoring and evaluation program.

Output 4: Human Resources in the Tourism Sector Developed

Output 4 will create a pool of master trainers to meet training needs in the areas of (i) small-scale tourism and hospitality operations (40 people) and (ii) public sector tourism planning and management (50 people). Under the first training area, some master trainers will be selected to train trainers of staff in tourism SMEs. Under the second training area, the Project will support master trainers’ training of provincial, district, and local public officials responsible for tourism management in pro-poor planning and management. The output includes (i) a review of the existing training needs assessment for staff in tourism SMEs and public tourism officials; (ii) the revision or development of service standards for SME tourism and hospitality enterprises, as well as related training standards based on Association of Southeast Asian Nations (ASEAN) models and the HRD/training needs assessment; (iii) the development of gender and ethnic-sensitive training kits and manuals, teacher training materials and case studies, best practices, and lessons learned; (iv) the production of CD ROMs and web-based training materials; (v) the development and maintenance of a web-based knowledge center accessible to all GMS countries; (vi) the translation of training manuals into Lao and other ethnic languages; (vii) support to the LNTA Tourism and Hospitality training Center and National University of Lao PDR Tourism Programme; (viii) the training of master trainers in English and of trainers and government officials in local languages; and (ix) a monitoring and evaluation program.

Table 1: Lao PDR Detailed List of Planned Intervention Sites, Community Service Groups, Infrastructure, 2009 – 2013

Province / Subproject / CBT Tours and Supply Chain Sites / Villages Involved / Proposed Infrastructure / Community Service Groups / Construction Design & Supervision