Docstoc

Site Selection Report

Document Sample
Site Selection Report Powered By Docstoc
					                   Site Selection Report

  Pro-Poor Community-Based Tourism & Supply Chains

GMS-Sustainable Tourism Development Project in Lao PDR

(Salavanh, Vientiane, Oudomxay, Champasak, Sayabouly,
           Bokeo and Houaphanh Provinces)




      ADB - GMSSustainable Tourism Development Project in Lao PDR
                 Lao National Tourism Administration


                            September 2009
Abbreviations and Acronyms

ADB         Asian Development Bank
CBET        Community-based Ecotourism
CBT         Community-based Tourism
DANIDA      Danish Development Assistance
DED         German Development Service
EU          European Union
Fam trip    Familiarization trip
GTZ         Lao-German Cooperation Agency
hr(s)       hour(s)
Kg          Kilogram
Km          Kilometer
LHA         Lao Handicraft Association
LNTA        Lao National Tourism Administration
Min         minute
NGPES       National Growth and Poverty Eradication Strategy
NTFP        Non-timber forest products
PTD         Provincial Tourism Department
SC          Supply Chain
SNV         Netherlands Development Organisation
STDP        Sustainable Tourism Development Project
TAT         Tourism Authority of Thailand
USD         United States Dollar
WCS         Wildlife Conservation Society
WTO         World Tourism Organization
WWF         World-Wide Fund for Nature or World Wildlife Fund




                                                                2
  Map of Lao PDR with priority CBT and supply chain sites




                                     5
              4   4
                            5                      6            6


                       7
                       3
                            7        3    3




                                                                                           2
                                                                                               2




                                                                                 1


                                                                                      1

         Community-Based Tourism Sites                                            Supply ChainSites
1) Ban Hang Khone Dolphin Watching – Khong District,                1) Palm Sugar Production in Ban Hinsou – Khong
   Champasak Province                                                  District, Champasak Province
2) Tad Lo Waterfall and SanoneTrek – Lao Ngam District,             2) Ban Houay Houn Textiles – Lao Ngam District,
   Salavanh Province                                                   Salavanh Province
3) Koun Lang Cave – Kasi District, Vientiane Province               3) Khmu & Yao Handicrafts at Koun Lang Cave – Kasi
4) Nam Fa Ecotourism Activities - Ton Peung District, Bokeo            District, Vientiane Province
   Province                                                         4) Natural Tea and Honey of the White Lahu – Meuang
5) Nam Kat Waterfall – Xay District, Oudomxay Province                 Meung District, Bokeo Province
6) Viengthong Hot Spring – Viengthong District, Houphanh            5) Pottery of Ban Yor – Beng District, Oudomxay
   Province                                                            Province
7) Pha Xang Mountain – Sayabouly District, Sayabouly Province       6) Silk and Cotton Textiles of Ban Saloei – Sam Neua
                                                                       District, Houaphanh Province
                                                                    7) Tai Lue Cotton Textiles of Ban Viengkeo , Hongsa
                                                                       District, Sayabouly Province




                                                                                                           3
                                                  TABLE OF CONTENTS
1      BACKGROUND AND CONTEXT ...................................................................................... 6
    1.1        TOURISM AND COMMUNITY-BASED TOURISM DEVELOPMENT IN LAO PDR ....................... 6
    1.3        GMS SUSTAINABLE TOURISM DEVELOPMENT PROJECT IN LAO PDR............................... 7
    1.4        STDP PRO-POOR, COMMUNITY-BASED TOURISM & SUPPLY CHAIN COMPONENT ............. 7
    1.5        OBJECTIVE OF THIS REPORT.......................................................................................... 8
2      METHODOLOGY ............................................................................................................... 8
    2.1        PRE-SELECTION PROCESS ............................................................................................ 8
    2.2        FIELD SURVEYS ............................................................................................................ 8
    2.3        MARKET SURVEYS ........................................................................................................ 9
    2.4        LITERATURE REVIEW ..................................................................................................... 9
    2.5        STAKEHOLDER CONSULTATION & FINAL SELECTION ..................................................... 10
3      RESULTS OF FIELD SURVEYS ..................................................................................... 10
    3.1        SUMMARY OF CBT AN SUPPLY CHAIN SITES SURVEYED ............................................... 10
    3.2        SUMMARY OF PRIORITY CBT AND SUPPLY-CHAIN SITES ............................................... 11

    3.3    RATIONAL FOR SELECTION AND BRIEF DESCRIPTION OF PRIORITY COMMUNITY-BASED
    TOURISM SITES ...................................................................................................................... 14
      3.3.1 Champasak Province: Hang Khone Community-based Ecotourism Site ............... 14
      3.3.2 Salavanh Province: Ban Sanone Trek and Tad Lo Guide Service Unit .................. 15
      3.3.3 Vientiane Province: Koun Lang Cave ...................................................................... 16
      3.3.4 Bokeo Province: Nam Fa Hot Spring and Ecotourism Activities ............................. 17
      3.3.5 Oudomxay Province: Nam Kat Waterfall ................................................................. 19
      3.3.6 Houaphanh Province: Viengthong Hot Spring ......................................................... 21
      3.3.7 Sayabouly Province: Pha Xang Mountain Trekking, Boating and ........................... 22
      Homestay.......................................................................................................................... 22

    3.4 RATIONALE FOR SELECTION AND BRIEF DESCRIPTION OF SELECTED SUPPLY CHAIN SITES AND
    PRODUCTS ............................................................................................................................. 24
      3.4.1 Champasak Province: Ban Hinsou Palm Sugar ..................................................... 24
      3.4.2 Salavanh Province: Ban Houay Houn Textiles ....................................................... 25
      3.4.3 Vientiane Province: Khmu & Yao Handicrafts ..................................................... 26
      3.4.4 Bokeo Province: Ban Tor Lae Tea & Honey........................................................ 27
      3.4.5 Oudomxay Province: Ban Yor Pottery ................................................................... 28
      3.4.6 Houaphanh Province: Ban Saloei Textiles ............................................................. 29
      3.4.7 Sayabouly Province: Ban Viengkeo Textiles ....................................................... 30

    3.5 COMPLIANCE WITH SELECTION AND EVALUATION CRITERIA ................................................. 31
      3.5.1 Priority CBT Site Compliance with Pro-Poor and Environmental Screening
      Checklists: Issues Identified and Proposed Mitigation Measures .................................... 31
      3.5.2 Priority Supply Chain Site Compliance with Pro-Poor and Environmental Screening
      Checklists: Issues Identified and Proposed Mitigation Measures .................................... 34
4      RESULTS OF MARKET SURVEYS ................................................................................ 36
    4.1        RESULTS OF CBT MARKET SURVEYS ............................................................................ 36

    4.2    RESULTS OF SUPPLY CHAIN PRODUCT MARKET SURVEYS ............................................ 36
      4.2.1 Market Surveys for Ban Hinsou Palm Sugar ........................................................... 36
      4.2.2 Market Surveys for Ban Houay Houn Textiles ........................................................ 37
      4.2.3 Market Surveys for Khmu & Yao Handicrafts at Tham Khoun Lang ....................... 38
      4.2.4 Market Surveys for Ban Tor Lae Tea & Honey ....................................................... 40
      4.2.5 Market Surveys for Ban Yor Pottery ........................................................................ 41
      4.2.6 Market Surveys for Ban Saloei Textiles .................................................................. 41
      4.2.7 Market Surveys for Ban ViengkeoTextiles .............................................................. 42




                                                                                                                                           4
5      POVERTY INDICATORS – PROVINCIAL AND DISTRICT OVERVIEWS ..................... 43
6      REVIEW OF GENDER ISSUES ....................................................................................... 44
    6.1       REVIEW OF GENDER ISSUES REGARDING CBT INTERVENTIONS .................................... 44
    6.2       REVIEW OF GENDER ISSUES REGARDING SUPPLY CHAIN INTERVENTIONS ..................... 44
7      MAIN RISKS IDENTIFIED AND MITIGATION MEASURES ........................................... 45
    7.1    MAIN RISKS AND MITIGATION MEASURES TO CBT PRODUCTS ....................................... 45
      7.1.1 Risks to Hang Khone 4000 Islands Community-based Ecotourism Site .............. 45
      7.1.2 Risks to the Ban Sanone Trek and Tad Lo Guide Service Unit ........................... 45
      7.1.3 Risks to Koun Lang Cave ..................................................................................... 45
      7.1.4 Risks to Nam Fa Ecotourism Activities .................................................................. 46
      7.1.5 Risks to the Nam Kat Waterfall ............................................................................. 46
      7.1.7 Risks to the Pha Xang Area Ecotourism Destination ........................................... 46

    7.2    MAIN RISKS - SUPPLY CHAIN PRODUCTS. PROPOSED MITIGATION MEASURES ............... 47
      7.2.1 Risks to Ban Hinsou Palm Sugar ......................................................................... 47
      7.2.2 Risks to Houay Houn Textiles .............................................................................. 47
      7.2.3 Risks to Khmu & Yao Handicrafts ........................................................................ 47
      7.2.4 Risks to Ban Tor Lae Tea & Honey ...................................................................... 47
      7.2.5 Risks to Ban Yor Pottery....................................................................................... 48
      7.2.6 Risks to Ban Saloei Textiles ................................................................................. 48
      7.2.7 Risks to Ban Viengkeo Textiles ............................................................................... 48
8      PRIORITY CBT AND SUPPLY CHAIN SITE DEVELOPMENT CONCEPTS ................. 48
    8.1    CBT SITE DEVELOPMENT CONCEPTS .......................................................................... 48
      8.1.1 Hang Khone 4000 Islands Community-based Ecotourism Site............................ 48
      8.1.2 Ban Sanone Trek and Tad Lo Guide Service Unit ............................................... 50
      8.1.3 Koun Lang Cave ................................................................................................... 51
      8.1.4 Nam Fa Ecotourism Activities ............................................................................... 53
      8.1.6 Viengthong Hot Spring.......................................................................................... 56
      8.1.7 Pha Xang Area Ecotourism .................................................................................. 57

    8.2    PRIORITY SUPPLY CHAIN DEVELOPMENT CONCEPTS .................................................... 59
      8.2.1 Traditional Palm Sugar production on Don Khong ............................................... 59
      8.2.2 Ban Houay Houn Textiles ..................................................................................... 60
      8.2.3 Khmu & Yao Handicrafts at Koun Lang Cave ...................................................... 62
      8.2.4 Ban Tor Lae Tea & Honey .................................................................................... 63
      8.2.5 Ban Yor Pottery .................................................................................................... 64
      8.2.6 Ban Saloei Textiles ............................................................................................... 66
      8.2.7 Ban Viengkeo Textiles .......................................................................................... 67
9      PROPOSED ACTIVITIES AND OUTPUT TARGETS ..................................................... 69
10        BENEFICIARIES .......................................................................................................... 69
    10.1 CBT BENEFICIARIES ................................................................................................... 69
      10.1.2 Beneficiaries of the Sanone Trek and Tad Lo Guide Service .......................... 69
      10.1.3 Beneficiaries of the Koun Lang Cave ............................................................... 69
      10.1.4 Beneficiaries of the Nam Fa Trekking, Rafting and Ethnic Village Tour .......... 70
      10.1.5 Beneficiaries of the Nam Kat Waterfall ............................................................. 70
      10.1.7 Beneficiaries of the Pha Xang Area Ecotourism Site ....................................... 70

    10.2 BENEFICIARIES OF SUPPLY CHAIN PRODUCT DEVELOPMENT ......................................... 70
      10.2.1 Beneficiaries of Ban Hinsou Palm Sugar .......................................................... 71
      10.2.2 Beneficiaries of Ban Houay Houn Textiles ....................................................... 71
      10.2.3 Beneficiaries of Khmu & Yao Handicrafts......................................................... 71
      10.2.4 Beneficiaries of Ban Tor Lae Tea & Honey ...................................................... 71
      10.2.5 Beneficiaries of Ban Yor Pottery ....................................................................... 71
      10.2.6 Beneficiaries of Ban Saloei Textiles ................................................................. 72
      10.2.1 Beneficiaries of Ban Viengkeo Textiles ............................................................ 72



                                                                                                                                   5
1. Background and Context

1.1 Tourism and Community-Based Tourism Development in Lao PDR
Since 1990, tourism has been growing at an average annual rate of 20.53%, reaching
a total of 1,736,787 visitors in 2008. Tourism is projected to continue growing to
3,367,642 visitors in 2015. It is the country‘s second largest export sector, grossing
USD$275.5 million in 2008, and is one of the top development priorities for the
government. The top two interests for visitors to Lao P.D.R are nature (70%), culture
(68%), and temples and monuments (55%).

Accordingly, the Lao government has made it a priority to develop sustainable
ecotourism that benefits ―natural and cultural heritage conservation, local socio-
economic development, and spread[s] knowledge of Lao PDR‘s‘ unique cultural
heritage around the world.‖1 Community-based tourism (CBT) was first developed
formally in Lao PDR starting in 2000 by the UNESCO Nam Ha Ecotourism Project,
which has since become a common model for including ethnic communities in
tourism. There have since been many projects initiated throughout the country by
various development agencies, including DANIDA, GTZ, DED, WWF, SNV, the EU,
and WTO. There are guide service units that operate out of provincial tourism
information offices and are responsible for leading CBT tours in at least seven
provinces. In addition, there have been a growing number of private sector CBT
initiatives, such as Green Discovery treks in Luang Namtha Province in the north and
the La Folie ecolodge in Champasak Province in the south. There are dozens of such
private and public sector products listed on the website www.ecotourismlaos.com and
promoted in publications such as Stay Another Day.

Tourism-Related Supply Chains in Lao PDR
The increasing numbers of tourists visiting Lao PDR means the poor have more
chances to participate and share benefits from tourism-related supply chains that
include accommodation, food, excursions and handicrafts.

Under the Lao PDR National Tourism Development Strategy 2006 – 2020, three main
regions for potential tourism development have been identified: 1) Northern region
including, for example, Luang Prabang, Luang Namtha, Xieng Khuang and Bokeo
provinces; 2) Central region, including Vientiane Municipality, Khammouane,
Savannakhet provinces and 3) Southern region, including Champasak, Attapeu and
Salavanh provinces.

The above provinces such as Bokeo, Salavanh and Houaphanh were selected for
this project because they have high numbers of poor families and to increase the
poor‘s participation in the toursm industry and tourism-related supply chains. The
participation of the poor in tourism-related supply chains does exist in Lao PDR but to
a limited extent. Local products are sold to traders who live in or come to villages to
by products wholesale. The poor are are also employed by, and suppy
accommodation establishments, restaurants and markets. The retailers and
wholesalers in the markets trade to passer-by tourists, local Lao and international
traders from neighboring countries, mostly Thailand and Vietnam. Sometimes they
export abroad to Japan, France, Germany and the U.S.A or participate in
international trade fairs.
Houaphanh, for example, produces textiles products like skirts (sins), scarves, purses
and others in association with Lao Women Union. Once the products are finished,
some of them are sold at the ―Night Market‖ in Luang Prabang by traders to tourists
or traders from Thailand. Whereas in Vientiane, plenty of textiles are bought in the

1
    Lao National Tourism Administration, ―National Ecotourism Strategy and Action Plan: 2005-2010, Summary‖.



                                                                                                               6
Morning Market by local and international retailers and wholesalers and then sold to
tourists. The wholesalers from Vientiane commonly export textiles to Thailand, Japan,
Japan, France, Germany and the U.S.A.

It is not only private sector that plays roles in brining the poor into the tourism-related
supply chains. Public companies such as Lao Cotton State Enterprise and Lao
Handicraft Association (LHA) also link the poor to handicraft supply chains. The first
agency has established outlets in major tourist centers such as Luang Prabang and
Champasak. The LHA facilitates national and international distribution channels at
trade fairs for its members who employ the poor as their main producers.

1.3 GMS Sustainable Tourism Development Project in Lao PDR
The Sustainable Tourism Development Project, funded by a grant from the Asian
Development Bank (ADB) to the Governments of the Lao PDR and Viet Nam, is
designed to contribute towards the sustainable socioeconomic development of Lao
PDR focusing especially on poverty reduction, sustainable development and
protection of the natural and cultural heritage. To achieve this goal the project seeks
to enhance the protection and conservation of natural, cultural and urban heritage
assets of importance for tourism sector development; increase the contributions to
poverty reduction of pro-poor tourism initiatives by expanding the traditional
community-based tourism approach to include participation in tourism-related supply
and value chains by poor communities; improve the facilitation of tourism along the
economic corridors; raise public sector official tourism management skills at the
provincial, prefecture, country, district and site level; improve service and hygiene
standards among staff in small to medium hospitality enterprises in the provinces;
and enhance locally generated private sector participation in small and medium
tourism enterprise investment and operation. The project has a five-year
implementation period in Lao PDR and is active in nine provinces; Bokeo, Luang
Namtha, Savannakhet, Champasak, Houaphanh, Oudomxay, Salavanh, Sayabouly
and Vientiane Provinces. This report is concerned with the identification and selection
of community-based tourism (CBT) and supply chain products in seven provinces. A
discussion and rationale for the selection of sites in Luang Namtha and Savannakhet
provinces is included in separate project reports.2

1.4 STDP Pro-poor, Community-based Tourism & Supply Chain Component
The pro-poor, community-based and supply chain tourism component of the project
will develop an extended model for pro-poor tourism that includes traditional CBT
development approaches supplemented by new supply chain initiatives. The pro-poor
subproject is designed to involve and benefit more poor communities in the tourism
economy while protecting ethnic minority cultures and minimizing the adverse
impacts of tourism especially on vulnerable groups such as women, youth and the
elderly. The pro-poor tourism subproject seeks to expand the traditional pro-poor
community-based tourism approach where individual or clusters of tour programs are
developed and operated by communities, to a more inclusive model that will link the
production of agricultural goods and handicrafts by poor communities into the national
tourism economy. Main activities include: (i) prepare a community-based tourism tour
product development and awareness programs; (ii) identify and develop tourism
industry related supply chain opportunities; (iii) undertake capacity building for
tourism-related local micro-enterprises and communities; (iv) design and implement
small-scale tourism-related infrastructure; (v) prepare and implement a gender
develop participation program; (vi) prepare and implement an ethnic minorities‘
participation program; (vii) prepare and implement a marketing and promotion
program; (viii) encourage the promotion of community-based tourism networks and

2
    See north-south and east-west economic corridor planning documents



                                                                                         7
tourism stakeholder associations; (ix) develop and implement a project performance
monitoring system; and (xi) design and publish a manual to guide the preparation and
implementation.

1.5 Objective of this Report
The purpose of this report is to present a variety of CBT and Supply Chain products
for inclusion in the Sustainable Tourism Development Project. The report aims to
provide the reader with an understanding of the methodologies used in selecting the
products, important information related to each of the selected products and a short
action plan for developing each priority site.


2 Methodology
The methodology for selecting products for development by the project followed four
main steps: pre-selection, field surveys, market surveys, literature review and a
stakeholder consultative meeting to agree on final selection of priority sites and
interventions.

2.1 Pre-selection Process
Pre-selection was done in order to create a focused survey process. First, provincial
tourism implementation unit teams (consisting of mainly staff or provincial tourism
departments) participated in a one-day seminar to learn about the various criteria
used in selecting CBT and Supply Chain products. Lessons learned from the Mekong
Tourism Development Project and other tourism development projects were
presented, and recommendations on how to choose appropriate products were
discussed. Following the seminar provincial teams were instructed to use selection
criteria against provincial tourism development plans to pre-select approximately
three CBT and three Supply Chain products for future survey.

Before implementing surveys, the pre-selected CBT and Supply Chain products were
presented in each provincial project inception meeting held by national project
supervisors and experts. Additional input from district and provincial tourism
stakeholders was collected and a final list of pre-selected CBT and Supply Chain
products to be surveyed was created.

2.2 Field Surveys
Field surveys were conducted at all pre-selected sites. Survey teams were composed
of international and national ecotourism and Supply Chain experts and staff from
provincial tourism departments, district tourism offices, provincial planning
departments, provincial and district offices of information and culture, provincial and
district agriculture and forestry offices, village administration officials, local guides and
other key stakeholders. Before setting out on surveys, international and national
experts briefed survey teams on the theory and practice of survey and site selection;
the methodology for using forms and administering interviews; and lessons learned
regarding CBT and Supply Chan surveys. Survey forms were reviewed together and
explained. Responsibilities for survey and interviews were delegated between team
members in order to encourage participation and to build capacity of provincial and
district officials. Villages were informed ahead of time to prepare to receive the survey
team and to take the team to see the tourism products selected.

Upon reaching each site, the survey team met with village administration officials and
conducted an interview to gather village-level data using the forms ―Village-Level
Tourism Development Questionnaire‖ and ―Village level Handicraft/Local Product
Producers Interview‖ (see Appendix XI. Survey Forms). The team interviewed other
villagers when necessary to fill information gaps or to gauge village interest and


                                                                                           8
feelings regarding tourism. During the survey of the tourism product, the team used
the forms ―Pro-poor Tourism Intervention Screening Checklist‖ and ―Environmental
Impact Screening Checklist‖ to determine the appropriateness of the product against
pro-poor tourism development norms and environmental impact criteria stipulated in
the project document. Photos of attractions and relevant sights were taken to
document the condition of each site/product. Sketch maps were used to detail the
area and location of the products. Each product survey was done in one day, typically
a full day for each site visited. For CBT products that involved an overnight stay in a
village, a rapid survey of the area and main villages on the tour took place.

After surveying all pre-selected products for each province, a meeting with the survey
team and provincial tourism officials was conducted to analyze the strengths and
weaknesses of each product and make a comparative scoring of all of the products.
This information was used to rank the products according to a host of criteria and to
create a general consensus of which products should be chosen and why. These
consultative meetings were seen as yet another way in which to build the capacity of
local stakeholders learning how to develop CBT and value chains.

2.3 Market Surveys
Market surveys were conducted by the project in order to determine what types of
products should be developed and how based strictly on the views of visitors, private
sector stakeholders, and product buyers and sellers. There were two main types of
market surveys done: interviews of buyers and sellers of handicrafts and local
products and a written visitor survey that was filled-in by tourists.

Interviews with buyers and sellers of products: During product surveys, key
private sector stakeholders were interviewed to solicit their opinions about the tourism
market and current demand for CBT and Supply Chain products and their ideas about
which pre-selected products were the most relevant and attractive to the private
sector. Some interviews were done with individuals, while others were done with a
small focus group of private sector stakeholders. Specifically for value-chain
products, various buyers and sellers of handicrafts and similar value-chain products
were interviewed at major markets and trading centres, not necessarily in the same
provinces from where the products being considered originated. Advice on how to
develop the products and potential ways in which they can be marketed was solicited.
These interviews were very useful and informative. It is suggested that more such
private sector interviews be employed in all future selections processes done by the
project.

Visitor Surveys: Each provincial implementation unit conducted a survey that
targeted 300 tourists in each province from May to August 2009 using the form
―Visitor Survey‖. The data was analyzed using SPSS and Excel.

2.4 Literature Review
Important documents and books related to tourism in Lao PDR were reviewed to
gather market information, tourism statistics, and to ensure that the project product
selection process was in line with provincial and national tourism development plans
and was harmonized with other private-sector and donor-supported tourism
development plans.

Guidebooks were consulted to better understand tourist‘s demands and interests in
each province. These guidebooks helped determine if any proposed products had
any prior promotion; what the guidebooks recommend for each province; and what
types of products are in demand.



                                                                                      9
Provincial tourism development plans and provincial statistical reports were consulted
to ensure that development of proposed tourism products was in-line with provincial
and local poverty-reduction policies and targets.

2.5 Stakeholder Consultation & Final Selection
After completing the pre-selection produces, site surveys and team consultative
meetings, market analyses, and literature reviews, final consultative meetings at each
province were held to present findings by experts and provincial implementation unit
teams and to gather final inputs before choosing products. Stakeholders who
attended the meetings discussed the results of the surveys before reaching a final
consensus on which products should be chosen. One CBT and one Supply Chain
product were initially selcted for each province. The meeting also included a review
what types of infrastructures, trainings and marketing methods are needed for each
product so that all stakeholders were in agreement with and aware of the future
direction of the project.


3    Results of Field Surveys

3.1 Summary of CBT an Supply Chain Sites Surveyed
A total of 25 CBT sites in 7 provinces and 18 districts were surveyed.. For details of
each survey and an analysis of each site and product, refer to Appendices A and B.
The provinces, districts and type of CBT and Supply Chain sites surveyd are shown
in table 1.

Table 1: CBT and Supply Chain Sites and Products Surveyed
Province       District    CBT Area/Site            Supply Chain Site       District SC Site
Champasak      Khong       Tha Kau Village          Ban Hin Siou Palm       Khong
                           Homestay & Traditional   Sugar
                           Medicine
                           Hang Khone Dolphins,
                           Biking and Homestay
                           Hang Sadam Camping
                           & Dolphin Souvenirs
                           Somphamit Waterfall
                           Market
Savalanh       Salavanh    Nong Boua Crocodiles
               Lao Ngam    San Dong Trek            Ban Vanggao Coffee      Lao Ngam
                           Houay Seng Waterfall     Ban Houay Houn
                           & Coffee Plantation      Textiles
Vientiane      Vang        Yord Houay Lem Trek      Ban Viengxai Textiles   Vang Vieng
               Vieng
                                                    Ban Phone Su Textiles
                                                    Ban Phone Sung
                                                    Textiles
               Kasi        Tam Koun LangCave        Ban Houay San           Kasi
                                                    Textiles
                                                    Ban Thong Meut
                                                    Basket Weaving
               Meuang      Nam Lik Boat Trip        Ban Nong Ped/Na         Meuang Feuang
               Feuang                               Sang Textiles
                                                    Ban Phone Basket        Phonehong
                                                    Weaving
               Hin Heup    Mai Dok Trek



                                                                                               10
                                    Na Keuan Boat
                                    Association
Bokeo                Ton Peung      Nam Fa Hot Spring &           Ban Nam Tee Textiles        Ton Peung
                                    Waterfall

                     Houayxai       Nam Yawn Waterfal &           Ban Don Ngern Silk          Houayxai
                                    Phou Pha Ngoi/Pha             Weaving
                                    Daeng Trekking
                                                                  Ban Mai Pattana
                                                                  Embroidery
                                                                  Ban Sidonxai Textiles




Province             District       CBT Area/Site                 Supply Chain Site           District SC Site
Bokeo                Meung                                        Ban Nam Geung Gao           Houayxai
                                                                  Textiles
                                    Houayxai-Xieng Dao            Tor Lae Tea & Honey         Meung
                                    Route; Tea
                                    Tea Trees and Lahu
                                    Handicrafts
Oudomxay             Xay            Nam Kat Waterfall             Ban Kat Whisky              Xay
                                                                  Ban Punghieng
                                                                  Textiles
                                                                  Ban Longya Textiles
                                    Chom Ong Cave                 Ban Homxay Textiles
                     Beng           Mok Vaen Tea Tree             Ban Yor Pottery             Beng
                                    Forest
                                                                  Ban Sibounheung             Houn
                                                                  Corn
Houaphanh            Viengthong     Viengthong Hot Spring
                     Sam Neua       Tad Phonexay (Saloei)         Ban Houkang Fruits &        Sam Neua
                                    Waterfall                     Vegetables
                                    Nameuang Hot Spring           Ban Saloei Textiles
                     Viengxay       Tad Nam Noua
                                    Waterfall
Sayabouly            Saya           Tad Chao Waterfall
                                    Ban Keo Caves and
                                    Boat Trip
                     Hongsa         Ban Viengkeo                  Ban Viengkeo Textiles       Hongsa
                                    Elephants

3.2 Summary of Priority CBT and Supply-Chain Sites3
Following the surveys and final stakeholder meetings, one CBT product and one
supply chain product were selected in each province. Priority sites are shown in table
2.




3
 Note: The number of poor people in table 2 is calculated by multiplying the average number of people per household
by the number of poor households.




                                                                                                                 11
Table 2: Top Ranked Community-Based Tourism Sites
        Site/Product             Province          Villages Included       Ethnicity(s)          Population            No. of Poor People*
                                                                                             (people/households)       (people/households)
Hang Khone Dolphin             Champasak     Hang Khone Village        Lao Loum           Hang Khone: 266/46       Hang Khone: 29/5 Hang
Watching, Bicycle Rides &                    Hang Sadam Village                           Hang Sadam: 527/96       Sadam: 16/3 Total: 45/8
Homestay
                                                                                          Total: 793/142
Ban Sanone Trek and Tad Lo     Salavanh      Sanone Village            Suay,Ta Oy, In,    Sanone: 502/84           Sanone: 49/8
Guide Service Unit                           Kanouane Village          Katang, Lao        Kanouane: 265/56         Kanouane: 47/10
                                             Senvang Village                              Senvang: 2060/336        Senvang: 166/27
                                                                                          Total: 2827/476          Total: 262/45
Koun Lang Cave                 Vientiane     Houay San Village         Yao                Houay San: 209/38        Houay San: 17/3
                                             Thong Meut Village        Khmu               Thong Meut: 1,127/227    Thong Meut: 74/15
                                                                                          Total: 1336/265          Total: 91/18
Nam Fa Ecotourism Activities   Bokeo         Nam Fa Village            Black Lahu         Nam Fa: 535/79           Nam Fa: 210/31
                                             Nam Tee Village           White Lahu         Nam Tee: 258/58          Nam Tee: 13/3
                                             Don Ngern Village         Kalom &Tai Dam     Don Ngern: 423/99        Don Ngern: 13/3
                                             Mai Pattana Village       Yao                Mai Pattana: 327/54      Mai Pattana: 18/3
                                                                                          Total: 1543/290          Total: 254/40
Nam Kat Waterfall              Oudomxay      Faen Village              Khmu Ou            Faen: 574/96             Faen: 167/28
Chom Ong Cave (road only)                    Chom Ong Village          Khmu Lue           Chom Ong: 874/129        Chom Ong: 237/35
                                                                                          Total: 1,448/225         Total: 404/63
Viengthong Hot Spring          Houaphanh     That Hiem Village         Tai Daeng          That Hiem: 556/102       That Hiem: 120/22
                                             Samphanthong Village      Hmong              Samphanthong: 450/78     Samphanthong: 219/38
                                             Meuang Hin Village        Yao                Meuang Hin: 288/51       Meuang Hin: 141/25
                                             Naphone Village           Lao Loum           Naphone: 245/45          Naphone: 229/42
                                                                                          Total: 1,539/276         Total: 709/127
Pha Xang Area                  Sayabouly     Keo Village               Khmu Um            Keo: 267/57              Keo: 14/3
                                             Nathang Village           Lao Loum           Nathang: 637/122         Nathang: 10/2
                                             Pak Hoong Village         Hmong              Pak Hoong: 428/80        Pak Hoong: 70/13
                                             Pha Xang Village          Yao                Pha Xang: 747/115        Pha Xang: 19/3
                                                                                          Total: 2079/374          Total: 113/21
Total                          7 provinces   21 villages               16 ethnic Groups   11,565 people            1,878 poor people
                                                                                          2,048 households         322 poor households



                                                                                                                                             12
Table 3: Top Ranked Supply Chain Sites
         Site/Product             Province               Villages Included            Ethnicity(s)             Population                  No. of Poor People*
                                                                                                           (people/households)            (people/households)
Palm Sugar Production in       Champasak        Hin Sou                         Lao Loum              Hin Sou: 958/173                Hin Siou: 5/1
Ban Hin Sou
                                                                                                      Total: 958/173                  Total: 5/1
Ban Houay Houn Textiles        Salavanh         Houay Houn                      Katu                  Houay Houn: 710/100             Houay Houn: 7/1
                                                                                                      Total: 710/100                  Total: 7/1
Khmu & Yao Handicrafts at      Vientiane        Houay San Village               Yao                   Houay San: 209/38               Houay San: 17/3
Koun Lang Cave
                                                Thong Meut Village              Khmu                  Thong Meut: 1,127/227           Thong Meut: 74/15
                                                                                                      Total: 1,336/265                Total: 91/18
Natural Tea and Honey of       Bokeo            Tor Lae                         White Lahu            Tor Lae: 165/37                 Tor Lae: 229/52
White Lahu
                                                                                                      Total: 165/37                   Total: 229/52
Pottery of Ban Yor             Oudomxay         Yor                             Tai Leu               Yor: 682/133                    Yor: 20/5
                                                                                                      Total: 682/133                  Total: 20/5
Silk and Cotton Textiles of    Houaphanh        Saloei                          Lao Pong              Saloei: 952/168                 Saloei: 100/18
Ban Saloei
                                                                                                      Total: 952/168                  Total: 100/18
Tai Lue Cotton Textiles of     Sayabouly        Viengkeo                        Tai Leu               Viengkeo: 1,052/252             Viengkeo: /13/3
Ban Viengkeo
                                                                                                      Total: 1,052/252                Total: /13/3
Total                          7 provinces      8 villages                      7 ethnic groups       5,855 people                    465 poor people
                                                                                                      1,128 households                98 poor households

Notes:   The number of poor people is calculated by multiplying the average number of people per household by the number of poor households.
         The number of poor people and poor households are likely to be more than the figures presented in the table. There are also more communities providing either
         labor or raw materials linked to villages in table 2, but because of time constraints, the survey team could not determine the exact number of poor people and
         households in communities other than those surveyed.




                                                                                                                                                                          13
3.3   Rational for Selection and Brief Description of Priority Community-Based
      Tourism Sites

For more detailed descriptions refer to Appendices A and B.

3.3.1 Champasak Province: Hang Khone Community-based Ecotourism Site
Four CBT sites were surveyed in Champasak Province: Tha Khau Homestay, Hang
Khone Dolphin Watching and Ecotourism Activities, Hang Sadam Camping and
Dolphin Souvenirs, and Somphamit Waterfall. Hang Khone village area was selected
due to its good mix of natural and cultural attractions, potential for improvement and
development upon an existing flow of tourists, and ability to create a model for
ecotourism that can improve the value and image of Don Det/Don Khone. Hang
Sadam village can also be included in activities developed at Hang Khone, which is
another benefit of choosing this location.

Hang Khone Village is located on the southern tip of Khone Island, a major tourist
destination. The village currently receives an average of five boats trips and 25
tourists per day in the high season and three boat trips and 15 tourists per week in
the low season, yielding an estimated 696 boat trips and 3,480 tourists per year and
an estimated 41,760,000 kip per year from the boat trips split among 25 families in
the boat association, or 1,670,000 kip per year per family. In addition to the boat
service, the village has one restaurant and three shops that sell drinks and snacks. In
addition, half of the families reportedly sell coconuts to guesthouses and restaurants,
while just a handful of families sell vegetables and chickens. The village has 46
households, of which five are poor and the rest with just enough income for basic
subsistence. Current tourism at Hang Kone includes boat trips to see the dolphins
and sightseeing of the old French rail-boat landing. Potential attractions include hikes
to the top of the forest conservation area; homestay; bicycle rides to Khone Yuak
island; boat trips to see dolphins that include lunch and tours at Hang Sadam village;
and accommodation on Hang Khone Yuak island.

Hang Kone was chosen as the main CBT site for Champasak Province for the
following reasons:
     (i)   Hang Khone Village is close to a main staging point, Ban Khone/Don Det,
           for tourists and is in a good location for attracting more tourists. Hang Khone
           is also the starting point for trips to Hang Sadam Village located on a nearby
           island.
     (ii) Boat trips, bicycle rides, homestays, walks to the top of the forest
           conservation area, and other possible activities are, in general, safe.
     (iii) The village is easily accessible by bike, motorcycle, car or foot from the
           main staging point.
     (iv) Compared with other villages surveyed, Hang Khone has the highest
           number of families in poverty, with five. It can also help to spread tourism to
           Hang Sadam Village, which has three families in poverty.
     (v) Tourism at Hang Khone has a variety of natural and cultural attractions,
           including boat rides to watch the endangered Irrawaddy dolphins, bicycle
           rides to Khone Yuak Island (provided a new bridge) which includes a visit to
           an old Buddhist temple, homestay in a traditional southern Lao village, and
           potential fishing trips. All such attractions are already popular tourist
           attractions.
     (vi) The village already has a current flow of tourists, which can be expanded
           upon to put more money into the village and into the hands of those not
           benefiting from tourism.
     (vii) This product type is already proven, as there is a steady flow of tourists to
           the site and to other similar sites nearby.


                                                                                       14
   (viii) Villagers at Hang Khone need support in developing their unique attractions
          and strategic location into a higher income earning tourism product that
          promotes their culture and the conservation of the natural and cultural
          attractions, i.e. dolphins, forest conservation area, Khone Yuak Island and
          the old temple. Services currently provided in the village are very basic and
          do not take advantage of the true opportunity.
   (ix) The developments necessary require inputs that the provincial and district
          tourism authorities are capeable of performing.
   (x) Joint management of the dolphin area is critical to the survival of this
          endangered species. Inclusion of Hang Khone and Hang Sadam as key
          tourism development areas can support conservation of the dolphins. Hang
          Khone village can help to include Hang Sadam by including lunch stopovers
          at Hang Sadam on its boat trips.

3.3.2 Salavanh Province: Ban Sanone Trek and Tad Lo Guide Service Unit
Three CBT sites were surveyed in Salavanh Province: Nong Boua Crocodiles and
Trekking, Tad Lo Waterfall and Sanone Trekking, and Houay Seng Waterfall and
Coffee Plantations. Tad Lo Waterfall and Sanone Trekking was selected due to its
importance for tourism in Salavanh Province, current and potential flow of tourists,
and attraction value in comparison with the other two sites.

The Ban Sanone Trek is a new trekking route that has yet to be opened in Lao Ngam
District of Salavanh Province. The trek includes three villages and a potential 140
beneficiary families in the two main villages that would provide services to tourists,
Sanone and Kanouane, The trek is located close to the main staging point of Tad Lo,
located at Ban Senvang village, which has 336 families. The total number of poor
families in these three villages is 45. The attractions on the Sanone trek include a
multi-tiered waterfall, ethnic villages, community forests and agricultural plantations,
local livelihoods, a nine-hole cave, a mountain climb and panoramic view from atop a
plateau.

The Ban Sanone Trek and Tad Lo Guide Service was chosen as the main CBT site
for Salavanh Province for the following reasons:
    (i)    The Ban Sanone Trek is very close to the staging point of Tad Lo, which is
           just 5km away. The trek includes a cluster of three villages. The guide
           service at Tad Lo will also be linked to the trek‘s development to ensure
           that the operation is sustainable. The guide service will support tourism in
           other villages. In contrast both Nong Boua and Houay Seng are both quite
           further away from their respective staging points than the Sanone Trek.
    (ii)   The trek is, in general safe. The most difficult part is a walk downhill
           alongside a waterfall; this segment can be improved to accommodate
           trekkers of all abilities with proper steps and railings. In contrast, Phou
           Katae located in the Nong Boua area has a lot of UXO.
    (iii)  The starting village for the trek is easily accessible by foot, bike,
           motorcycle and car from the main staging point. In contract, Houay Seng,
           for example, is a very long distance from the main road and is not easily
           accessible during the rainy season.
    (iv)   Although the Nong Boua area has a higher number of poor families than
           the Sanone Trek, a program centred on the Sanone trek and the Tad Lo
           Guide service unit, which has many more activities and village
           destinations, can have a significant number of impact on poverty. In
           contrast, Ban Houay Seng has very little, if any, poverty to alleviate.
    (v)    The Sanone trek has a good variety of cultural and natural attractions,
           including a multi-tiered waterfall, community forests, agricultural



                                                                                     15
            plantations, a nine-hole cave, ethnic villages, and a mountain climb that
            has ends on a plateau with panoramic views of the area.
   (vi)     Tad Lo, the staging point for the Sanone Trek, has a steady flow of
            tourists, much higher than Salavanh town, the staging point for Nong
            Boua. Nong Boua, in contrast, received only 50 tourists in the previous
            year, despite having information in most guidebooks and packaged tours
            available from the tourism department information office. The project will
            also be assisting to establish the ―Tad Lo Waterfall Park‖ which will be
            complimentary to the trekking & CBT activities.
   (vii)    Trekking in the Tad Lo area is a proven tourism product; tourists visit Tad
            Lo every day looking to purchase trekking packages. Unfortunately, due to
            non-operation of the guide service units, such products are currently not
            being sold. In contrast, visits to Nong Boua have proven to not work
            because the main attraction, crocodiles, is very hard to see and is not very
            impressive.
   (viii)   The guides who work from Tad Lo are in need of capacity building to
            revive their service and take the lead.
   (ix)     The developments necessary do not require inputs that the provincial and
            district tourism authorities do not have the capacity to supply. However,
            reviving the guide service is a challenge, as it has already failed and has
            not yet been put back into operation by the provincial tourism department.
   (x)      Joint management of the guide service with the private sector has already
            been tentatively agreed to between the provincial tourism department and
            the Tad Lo Resort. The Tim Guesthouse has also been a part of creation
            of the guide service and sales of treks. There is also interest on the part of
            the local government and the private sector to jointly manage the local
            market in Ban Senvang in order to promote the sale of local products.

3.3.3 Vientiane Province: Koun Lang Cave
Five CBT sites were surveyed in Vientiane Province: Yord Houay Lem Trek, Koun
Lang Cave, Upper-Nam Lik Boat Trip, Dok Mai Trek, and the Nakeuan Boat
Association. Koun Lang was selected due to the fact the cave is an excellent tourist
attraction, there is a good mix of natural and cultural attractions, excellent location
between Luang Prabang and Vang Vieng and implicatons for both poverty alleviation
and natural resource protection.

Koun Lang Cave is located within the village area of Ban Houay San, which is
situated 14 km from Kasi town on the new northern route of Road 13. To get to the
cave, one must travel down a dirt road two kilometers by car or tractor before walking
through beautiful old growth forest up a steep mountain for about 15 minutes. The
cave is quite impressive and must be at the top of the list of the most beautiful caves
in Vientiane Province. The forest surrounding the cave is beautiful old growth jungle.
The two villages nearby, Houay San and Thong Meut have rich ethnic cultural value
of Yao and Khmu ethnicities. The cave was opened last year to tourists for Pii Mai
and received 4-5,000 visitors and generated a combined 7-8,000,000 kip for the two
villages. However, the cave will not likely receive many tourists until the new road to
Luang Prabang is finished. The villages have a total of 265 households (combined, 2
villages) of which 18 are poor; overall the villages seem rather poor and marginalized.

Koun Lang Cave was chosen as the main CBT site for Vientiane Province for the
following reasons:
     (i)    Koun Lang Cave is located just off one of the most traveled routes by
            tourists, the route between Luang Prabang and Vang Vieng, and has a
            cluster of two villages located nearby. Although the route has not yet been
            opened, it will receive hundreds of tourists per day once it is opened,


                                                                                       16
            which is planned for 2010. All of the other products except for the Nam Lik
            boat trip starting in Meuang Feuang were also located close to staging
            points.
   (ii)     The trip to and into the cave is relatively safe. The floor of the cave is
            mostly earth, which is not very slippery. The walk up to the cave is not
            dangerous either. However, improvements to both the trail up to the cave
            and certain places in the cave, especially the entrance to the cave and to
            various caverns in the cave, do need improvement to make is safe for
            average tourists. In contrast, the treks in Vang Vieng and Hin Heup
            districts were quite difficult and a bit unsafe for average tourists to enjoy.
   (iii)    The trail to the cave is accessible by a dirt road that is about 2km away
            from the main road. This road needs some improvement to allow for non-
            four-wheel drive cars. However, it is in good enough condition for villagers
            to transport tourists in tractors.
   (iv)     Houay San and Thong Meut villages, located at the entrance road to the
            cave, were the poorest villages surveyed in Vientiane Province, with 18
            poor families and just 15 of the total 265 households having more than
            enough income to subsist.
   (v)      Koun Lang Cave has an excellent variety of natural and cultural
            attractions. The cave itself is a high quality attraction, along with a
            beautiful old growth forest that surrounds it. The colorful of the Yao culture
            of Houay San village is a big plus, as well as the Khmu folktale about the
            cave and surrounding Khmu culture in Thong Meut village. None of the
            other sites surveyed had as great a mix of natural and cultural attractions;
            all of the other sites were mainly natural attractions, with very little cultural
            attractions available.
   (vi)     Although the cave currently has no flow of tourists, it is due to have an
            extremely healthy flow of tourists once the road is opened in 2010, having
            a higher flow of tourists passing by than, perhaps, any other area
            surveyed.
   (vii)    For the domestic market, the cave has already proven to be a good
            attraction, attracting 4-5,000 visitors last Pii Mai. Caves are a very popular
            and proven tourism attraction type in Vientiane Province. This attraction
            could be an alterative to other caves in Vang Vieng, which require an
            overnight stay in Vang Vieng.
   (viii)   The village has already shown a good deal of initiative, creating a trail up
            to cave, making steps inside the cave, and inviting tourists to visit the cave
            last Pii Mai. However, the village is in need of help to ensure that the cave
            is properly managed and the natural values of the cave and surrounding
            forest are protected. The village also needs help in creating proper
            systems to generate income from the cave and to ensure that such
            benefits are fairly distributed.
   (ix)     The developments necessary do not require inputs that the provincial and
            district tourism authorities do not have the capacity to supply. In fact,
            district and provincial authorities already have a great deal of experience
            in developing caves in Vang Vieng and can use Ban Nathong in Vang
            Vieng as a model for cave management and benefit distribution.
   (x)      The two villages have already agreed to jointly manage the cave and
            share the benefits from tourism that it provides. The government has
            already expressed interest in creating a conservation area to include the
            cave and the forest surrounding it.

3.3.4 Bokeo Province: Nam Fa Hot Spring and Ecotourism Activities
Three CBT sites were surveyed in Bokeo Province: Nam Fa Village, Nam Yawn
Waterfall, and Meuang Meung Tea Tree Forests. The Nam Fa Village area was


                                                                                          17
selected due to its large variety of potential products—trekking, rafting, and one-day
ethnic village touring—and strong interest on the part of both the private sector and
government for development as a tourism site.

Nam Fa Village is located approximately 50 kilometers away the main centre of
tourism in Bokeo Province, Houayxai Town. Although it currently has no tourism, it
has potential as a site that can be the starting point for a host of ecotourism activities,
including rafting down the Nam Keung River, trekking to the peaks of Phou Pha
Daeng and Phou Nya Kha moutains, homestay and natural hot spring bathing in Nam
Fa Village, and ethnic village visits along the route to Nam Fa. Nam Fa and Nam
Dtee villages are target villages for poverty reduction by the government; they are
also of great interest to tour companies for tourism development.

The Nam Fa Hot Spring and Ecotourism Activities was chosen as the main CBT site
for Bokeo Province for the following reasons:
    (i)    There are a few ethnic villages located along the route to the hot spring of
           Nam Fa, which itself is located nearby a very poor village, Nam Fa Village.
           All of the villages have potential to benefit from tourism; Nam Fa has the
           highest potential, as there are a few activities that can be done in or
           started from there.
    (ii)   The trip to Nam Fa Village poses no safety issues. Ecotourism activities
           around Nam Fa also do not pose any particular safety issues that are not
           common to ecotourism.
    (iii)  There is a trail to the area where the hot spring bath is planned to be built
           that can be accessed by tractors. The village itself is accessible by a road
           that is about 20 km from the main paved road. This road needs to be
           improved and is planned to be improved by the government by 2010.
           Access to the site is better than access to the trekking area and tea tree
           forest in Meuang Meung. Access to the Nam Yawn Waterfall is slightly
           better than access to Nam Fa, as it is shorter and in better condition.
    (iv)   Nam Fa and Nam Dtee villages are the poorest villages surveyed in
           Bokeo. The villages are two of the six priority villages for poverty
           alleviation in Ton Pheung District. Of Nam Fa village‘s 79 households, 31
           are poor.
    (v)    Nam Fa has a good mix of cultural and natural attractions. The area is
           culturally rich and unique to Bokeo Province, with Black Lahu (Meusser
           Dam) in Nam Fa, White Lahu in Nam Tee, Tai Dam in Don Yorn, and Tai
           Lue in Mai Pattana.
    (vi)   Only one of three sites had any flow of visitors. Nam Fa does not have any
           flow of visitors, however, it is not terribly far from the main staging point
           and it is close to the main road, which has a flow of tourists.
    (vii)  Although not any one attraction at Nam Fa is a major attraction, the
           combined value of all attractions—hot spring, homestay, cultural villages,
           rafting and trekking—is significant. Ethnic village tourism is a proven
           tourism attraction; there is also proven value for trekking products in
           nearby provinces. The Golden Triangle is another attraction that is
           interesting to tourists that can be promoted through treks to Phou Pha
           Daeng.
    (viii) Nam Fa Village is in great need of capacity building of all types in order to
           alleviate poverty. Tourism development would be an addition to the efforts
           to build the capacity of the village in pursuit of pulling itself out of poverty.
    (ix)   The developments necessary do not require inputs that the provincial and
           district tourism authorities do not have the capacity to supply. However, to
           ensure adequate promotion and tourist visitation, efforts need to be made



                                                                                         18
            in conjunction with the private sector, which has already expressed
            interest in the area.
   (x)      The government has expressed interest in creating a conservation area
            around the hot spring and waterfall.
   (xi)     The village was quite shy when interviewed; however, during surveys they
            expressed a lot of interest in participating in tourism and having tourists
            visit them.
   (xii)    Fees for recovering project investment costs and maintaining
            infrastructure could be collected easily from visitors visiting the hot spring
            baths. Treks and rafting trips could also have such a fee inclusive in the
            tour package price.
   (xiii)   No relocation of any families would be necessary for any of the
            developments, as the bath would be located on public grounds.
   (xiv)    No relocation of any ethnic families would be necessary for any of the
            proposed developments.
   (xv)     There would be no significant environmental impacts from the
            developments. The hot spring bath, which is the only concern, would
            require simply collection of the hot spring water in a pipe and transporting
            it by natural gravity to the bath area.

3.3.5 Oudomxay Province: Nam Kat Waterfall
Three CBT sites were surveyed in Oudomxay Province: Nam Kat Waterfall, Chom
Ong Cave, and Mok Vaen Tea Tree forest. The Nam Kat Waterfall was chosen as the
main site for development in Oudomxay Province, due to its strong natural attraction
value and its interest to both domestic tourists and international tourists.

The waterfall and the Nam Kat Provincial Protected Forest offer a great half- or one-
day activity for international tourists with limited time and for local people looking for a
quick getaway on the weekend. The waterfall currently has a steady flow of weekend
tourists and should see a larger number of international visitors with improved road
access, which would reduce the costs and time to visit the site. Currently, villagers
receive no income from the site, as no systems have yet been put into place to sell
entrance tickets or food to visitors. There are also waste management issues that
need to be addressed in order to safeguard its natural beauty. Hence, development of
the site, by way of improving access and building the village‘s capacity to benefit from
the site as well as manage it sustainably, is needed.

The Chom Ong Cave should also receive project support. The survey team believes
that the cave is one of the most interesting caves in the country, and coupled with the
rich cultural value of Chom Ong Village, this attraction should undoubtedly be
supported. Much of the infrastructure, training and promotion have already been put
in place by the provincial tourism department and DED. However, there remains one
major access problem, namely six kilometers of road leading to the village that is
extremely dangerous and impassable by car or even motorcycle for six months per
year during the rainy season. Hence, the survey team, in agreement with local
officials, supports the improvement of this road, provided cost sharing by the
province.

The Nam Kat Waterfall was chosen as the main CBT site for Oudomxay Province for
the following reasons:
    (i)     The gateway to the waterfall is Ban Faen, an ethnic Khmu Ou Village.
            Access to the village and waterfall is quite easy from Oudomxay town,
            which is the main staging point in the province. Access to the site is easier
            than the other two sites surveyed.



                                                                                         19
(ii)     There are no safety issues in visiting the waterfall. The access road to the
         site is quite safe, the walking trail is safe, and in case of any emergency,
         the site is close to medical facilities in town.
(iii)    The distance from the village to the waterfall is 15 km on a dirt road. The
         road has been improved, and with additional improvements of four water
         crossings, access will be very good. Project investment in the bridge
         crossings will greatly improve access to the site and increase tourist
         numbers greatly. Access to the other two sites is quite a bit more difficult.
         The six kilometers of road leading to Chom Ong village should also be
         supported by the project.
(iv)     Although both the villages of the other two sites, Mok Vaen and Chom
         Ong, are poorer than Ban Faen, the village does have a large number of
         poor families, 28, which could benefit greatly from development of the
         waterfall.
(v)      The natural beauty of Nam Kat is excellent and can help support
         environmental education and appreciation in the province and the country.
         The village also has some strong cultural values of the Khmu ethnic
         tradition that can be promoted to and appreciated by visitors.
(vi)     Nam Kat has the highest number of visitors compared with the other two
         sites surveyed. The village reports that there are approximately 40
         domestic tourists per week visiting the waterfall. With improvements of
         access, this number should increase greatly by making it accessible all-
         year-round and reducing the cost for international travelers, who must hire
         a tuk tuk to reach the site.
(vii)    Waterfalls and picnic sites are very popular attraction types with domestic
         tourists, making the site appropriate to develop for the domestic market.
         For the international market, one-day excursions around Oudomxay town
         have proven to be saleable, making this a good choice for attracting the
         international market. The other two sites surveyed were more limited in the
         markets to which they would be suitable.
(viii)   One of the obvious problems with Nam Kat is the village‘s low capacity to
         manage and take advantage of tourism at the waterfall. Hence, the project
         could make a large impact in helping to generate income from tourism to
         the village. Chom Ong has already received capacity building trainings
         and is not in need of such training as much as Ban Faen.
(ix)     The necessary actions for developing the waterfall are quite simple and
         could easily be implemented by local authorities. Improved road access,
         i.e. river crossings, simple trail improvement and signage and a
         management system need to be created.
(x)      The area around the waterfall is already a provincial protected forest. The
         government would like to support the village, and four other villages in the
         surrounding area, to be responsible for managing and maintaining the
         forest and waterfall; in this regard, the government is willing to allow the
         villages to collect fees and use a large portion of the collected fees for
         management of the area. Hence, the government and villages are
         prepared to create a co-management arrangement of the site.
(xi)     The village expressed an interest during interviews to manage the site and
         learn how they can benefit from it economically.
(xii)    It would be quite straightforward to collect fees from tourists from a ticket
         booth that could be constructed at the village in order to help recover
         costs from project investment. All tourists must pass through the village,
         along one road, to get to the waterfall.
(xiii)   No relocation of any families would be necessary for any other
         developments.



                                                                                   20
   (xiv)   No relocation of any ethnic families would be necessary for any of the
           proposed developments.
   (xv)    There would be no significant environmental impacts from the
           developments. In contrary, the project would work to set up a system for
           minimizing waste and other impacts on the site, which currently has no
           such systems in place. Small scale infrastructure developments would
           have little, if any, environmental impacts on the site.

3.3.6 Houaphanh Province: Viengthong Hot Spring
Four CBT sites were surveyed in Houaphanh Province: Viengthong Hot Spring, Tad
Saloei Waterfall, Nameuang Hot Spring, and Tad Nam Noua Waterfall. Of the four
sites surveyed, the Viengthong Hot Spring presents the most unique attraction for
Houaphanh Province and offers the greatest potential as a major tourism attraction.
The Viengthong Hot Spring has very high potential to become the country‘s best
natural hot spring due to its very strong flow of extremely hot water and surrounding
natural beauty of a large protected forest. The district has managed to protect the hot
spring from the low-end development that is typically seen at hot springs elsewhere in
Lao PDR and, thus, remains a perfect site to create a model hot spring that others
can follow. In contrast, one of the other sites surveyed, the Nameuang Hot Spring,
has already been developed in such a way that has created a very unattractive and
low-value product. The two other sites surveyed, Tad Saloei and Tad Nam Noua, are
both waterfalls that cannot compete with other major waterfalls in the country as
major tourist attractions and, therefore do not have as much potential as the
Viengthong Hot Spring

The Viengthong Hot Spring is located in Viengthong District, one of the 47 poorest
districts in the Lao PDR, about half way between Luang Prabang and Sam Neua. The
location is very strategic in that most tourists traveling by bus are forced to stay a
night in Viengthong and would likely visit the spring in the evening if it were to have
proper infrastructure. It is easily accessible from the main road and located
conveniently near four villages, which are jointly responsible for taking care of the
forest surrounding it. The spring has a public bathing area that is used by villagers in
the cold season. The four villages have a combined 276 households of which 127 are
poor, composed of various ethnic groups including Hmong, Tai Daeng, Yao and Lao
Loum.

The Viengthong Hot Spring was chosen as the main CBT site for Houaphanh
Province for the following reasons:
   (i)     The hot spring is surrounded by a cluster of four villages that are
           responsible for managing the protected forest, and many at least eight
           more villages that use the hot spring for bathing in the cold season.
   (ii)    The activity of visiting the hot spring is very safe and poses no safety risks.
           The hot spring has been kept in good condition, and with proper planning
           and development it can remain a clean and safe hot spring for bathing.
   (iii)   The hot spring is very easy to get to and offers no additional transportation
           costs or extra time for tourists to visit. Nearly all tourists visiting the
           Viengxay Caves invariably will travel by road to/from Luang Prabang and,
           thus, must pass through Viengthong. The spring is located practically in
           town and can even be reached by foot from the central market. The road
           to the spring is in perfect condition for all vehicles as well.
   (iv)    Viengthong is one of the poorest 47 districts in Lao PDR. The four villages
           responsible for maintaining the forest around the spring have a high rate
           of poverty of nearly half of all of the 276 households.
   (v)     The natural beauty of the spring is excellent and is an important site for
           protection. The hot spring is also at the gateway to the Nam Et-Phou Loey


                                                                                       21
             NPA, which is an important area for protecting endangered Tigers and
             other wildlife. Inclusion of the hot spring into the overall plan of natural
             resource protection is a priority. The site also has the added cultural
             attraction of diverse ethnic people in the surrounding villages, which have
             Hmong, Yao, Tai Daeng, Khmu and Lao Loum people. Textiles, music,
             food, natural medicines and other local products can potentially be
             promoted to visitors passing through as well.
    (vi)     Viengthong has a steady flow of visitors, domestic and international,
             passing though. Lao people traveling between and Luang Prabang and
             Sam Neua pas by every day, as do international tourists during the tourist
             season. As Luang Prabang is the starting and/or ending point for nearly all
             tours to Houaphanh Province, nearly all tourists pass through Viengthong.
    (vii)    Hot springs are a tourist attraction that haven proven to be of interest in
             Houaphan Province. They are attractive to tourists of all ages and
             nationalities. They are attractive to domestic, regional and international
             tourists alike. They are also revisited by people more than once, making
             them are very saleable product.
    (viii)   The district and villages have protected the hot spring and have not given
             it out as a concession. They see the value of the hot spring and would like
             to develop it in an appropriate fashion. However, they need capacity
             building to understand how to develop the hot spring according to
             international standards. Local people also need capacity building to
             improve their ability to earn income from the many tourists passing
             through.
    (ix)     The necessary actions for developing the hot spring are quite simple and
             could easily be implemented by local authorities. With project support,
             infrastructure can be put in place and authorities in co-management with
             villages can manage the site.
    (x)      The government and villages already have a co-management
             arrangement of the site. The government has agreed to continue this
             model and allow the villages to earn income from the hot spring.
    (xi)     The villages expressed high interest in managing the hot spring for tourists
             and co-managing it with authorities.
    (xii)    It would be very easy to collect fees from tourists using the hot spring and
             using this money to maintain the area.
    (xiii)   No relocation of any families would be necessary for any other
             developments.
    (xiv)    No relocation of any ethnic families would be necessary for any of the
             proposed developments.
    (xv)     There would be no significant environmental impacts from the
             developments. In contrary, the project would work to set up a system for
             minimizing waste and other impacts on the site, which currently has no
             such systems in place. Small-scale infrastructure developments would
             have little, if any, environmental impacts on the site if done correctly.

3.3.7 Sayabouly Province: Pha Xang Mountain Trekking, Boating and
      Homestay
Only one main CBT site was surveyed in Sayabouly Province, the Pha Xang
Mountain area. This site was chosen by the government as the sole site for survey
due to its variety of cultural, natural and historical attractions, its potential to alleviate
poverty and its relatively good access and close proximity to Sayabouly town. The
Pha Xang Mountains can be seen from Sayabouly town and stretch from the north to
the south of the province. The area selected for tourism development is
approximately 20-25km from town and can be potentially reached by car, motorcycle,
bicycle or boat. There are a variety of attractions found in the area including ethnic


                                                                                           22
Khmu, Hmong, Yao and Lao Loum Villages; trekking among impressive mountain
landscapes; a host of caves some of which were used as military bases during the
war; boat rides down the Nam Phoui, Nam Hoong, and Mekong rivers; a medicinal
plant forest and natural shrimp spring; traditional gold mining practices; and
homestays in traditional villages.

The Pha Xang Mountain area qualifies as a good site for CBT development by the
project for the following reasons:
    (i)      There is a cluster of villages in the area would stand to benefit from it,
             including Ban Pha Xang, Ban Naxam, Ban Nam Hoong, Ban Nathang,
             and Ban Keo.
    (ii)     There are no major risks in relation to safety with developing tourism in the
             area, according to local officials.
    (iii)    Access to the area is quite easy from Sayabouly town. Access can be
             done by bicycle, motorcycle, car, public truck, and boat.
    (iv)     Four villages surveyed all have poor families that could be targeted by and
             benefited from the project. Ban Keo, the most remote village and the
             target for homestays and caving trips, is a relatively low-income village in
             the area could be helped greatly by the project.
    (v)      The Pha Xang area has a strong mix of natural, cultural and historical
             attractions. Natural attractions include the backdrop of the Pha Xang
             Mountains, a natural shrimp pool, 18 caves, 2 waterfalls, and 3 rivers.
             Cultural attractions include ethnic Khmu, Hmong, Yao and Lao Loum
             villages and a medicinal plant plantation. Caves used by the military for
             training and hiding during the revolution are the main historical attraction.
    (vi)     Although the area currently has no tourists, Sayabouly town is expected to
             have an increase in tourists once the roads between the Lao-Thai border
             at Nam Ngeum, Sayabouly town and Luang Prabang are improved by the
             end of 2010. Tourists passing through Sayabouly town will be looking for
             1-2 day programs to break up their travel.
    (vii)    The potential activities of boating, rafting, homestays, bicycling, and
             trekking are all proven attractions in other provinces around the country
             and should be able to attract tourists to Sayabouly.
    (viii) Due to the fact that Sayabouly Province currently has very little tourism, all
             potential actors in developing CBT in Pha Xang, including villagers, the
             private sector and government authorities, are in need of capacity building
             and assistance to create a model for tourism development in the province.
    (ix)     The necessary actions for developing CBT in the Pha Xang area are quite
             simple and could easily be implemented by local authorities. The model is
             quite typical for Lao P.D.R with much experience and lessons learned
             readily available to aid authorities in the development process.
    (x)      Although there is no co-management agreement in place to manage
             attractions in the area, the provincial tourism department has said that it is
             willing to develop such management agreements that would protect the
             area‘s important natural and cultural heritage.
    (xi)     The villages expressed high interest in developing tourism in cooperation
             with local authorities and the project.
    (xii)    It would be very easy to collect fees from tourists visiting the caves in Pha
             Xang area in order to create a fund to protect them.
    (xiii) No relocation of any families would be necessary for any other
             developments.
    (xiv) No relocation of any ethnic families would be necessary for any of the
             proposed developments.
    (xv)     There would be no significant environmental impacts from the
             developments. In contrary, the project would work to set up a system for


                                                                                        23
           minimizing waste and other impacts on the site, which currently has no
           such systems in place. Small-scale infrastructure developments would
           have little, if any, environmental impacts on the site if done correctly.

3.4 Rationale for Selection and Brief Description of Selected Supply Chain Sites
     and Products

For more detailed descriptions refer to Appendices A and B.

3.4.1 Champasak Province: Ban Hinsou Palm Sugar
Only one main Supply Chain site was surveyed in Champasak Province, Ban Hinsou
on Khong Island. The site was chosen for Supply Chain due to its appealing and easy
to sell product and potential to bring about family participation of men and women in
the Palm Sugar production. It has easy access to scenic views of rice fields, low hills
and traditional lifestyle of Lao Loum. Besides palm sugar, Ban Hinsou also produces
traditional towels (pakama) and skirts (sin). Ban Hinsou is well known throughout the
area for its sugar palm so promoting it to the local market is not difficult.

The village has 173 families, with a total of 958 and 447 women. The main
occupations of the villagers are rice production, sugar production, and production of
traditional towels (pakama) and skirts (sin). Sixteen families produce palm sugar, with
an estimated 64 people in total. Men are responsible for collecting the palm juice from
the treetops and processing the sugar, while women are responsible for packaging
the sugar cubes in dried palm leaves. Of the total 173 families, one family is reported
as being poor, meaning that it does not have enough food for the year.

The Ban Hinsou Palm Sugar qualifies as a good site for Supply Chain development
by the project for the following reasons:
    (i)    There is a cluster of villages in the area would stand to benefit from
           expanded production.
    (ii)   There are no major risks in relation to safety with developing tourism in the
           area.
    (iii)  Access to the area is quite easy from the centre (Ban Kang). It can be
           done by bicycle, motorcycle, car and public truck.
    (iv)   It is estimated that the 16 families who produce palm sugar are on the low
           end of the village‘s economic spectrum, as it is an undesirable job by
           those with other options. Hence, the implications for poverty reduction are
           positive, as increased production and rises in sales to tourists would
           benefit directly poor families who have no alternatives to work in other
           sectors.
    (v)    The Ban Hinsou area has a mix of natural and cultural attractions. Natural
           attractions include rice fields and Sugar Palm trees.
    (vi)   The area is already visited by tourists and can become part of a larger
           tourism network site around Khong Island.
    (vii)  The potential activities of observing and joining villagers produce Sugar
           Palm could be of interest to tourists.
    (viii) Champasak Province is already a main tourist destination for Lao P.D.R,
           to promote Ban Hinsou
    (ix)   The villagers expressed high interest in developing tourism in cooperation
           with local authorities and the project.
    (x)    No relocation of any families would be necessary for any other
           developments.
    (xi)   No relocation of any ethnic families would be necessary for any of the
           proposed developments.



                                                                                     24
   (xii)   There would be no significant environmental impacts from the
           developments. In contrary, the project would work to set up a system for
           minimizing waste and other impacts on the site, which currently has no
           such systems in place. Small-scale infrastructure developments would
           have little, if any, environmental impacts on the site if done correctly.

3.4.2 Salavanh Province: Ban Houay Houn Textiles
Two Supply Chain sites were surveyed in Salavanh Province: Ban Vanggnao Coffee
and Ban Houay Houn Textiles in Lao-Ngam district. Of the two sites surveyed, Ban
Houay Houn Katu Textiles has product uniqueness and existing village capacity to
participate in expansion of a tourism related supply chain. Ban Houay Houn is a
government appointed ―cultural village‖ where villagers conserve their Katu weaving
and display textiles at a shop in front of the village. The village receives tourists that
come and buy textiles occasionally. The textiles are popular among foreigners and it
is reported some Japanese tourists have come to the village to study how to weave
Katu textiles.

Ban Houay Houn is a Katu village located in Lao-Ngam district about 60 km from the
centre (Salavanh downtown) and 30 km from Tad Lo waterfall, a major tourist
attraction of Salavanh. The village has 100 families, with a population of 710 people,
including 356 women. Of the 100 families, one family is reported as being poor,
meaning that it does not have enough food for the year because there is no man to
do farming for the family. Around twenty five (40) families produce textiles, with an
estimated 125 people, however most women can weave. In vicinity of the village,
there are two villages of Ban Naxay Noy and Ban On Bang that can also produce
textiles.

The Ban Houay Houn textiles qualify as a good site for Supply Chain development by
the project for the following reasons:
    (i)     There is a cluster of villages in the area would stand to benefit from
            expanded production, including Ban Naxay Noy and Ban On Bang.
    (ii)    There are no major risks in relation to safety with developing tourism in the
            area.
    (iii)   Access to the area is quite easy from Salavanh town. It can be done by
            bicycle, motorcycle and car.
    (iv)    In the vicinity of Ban Houay Houn, poor families in Ban Naxay Noy and
            Ban On Bang could benefited from an expanded supply chain. From the
            rapid survey, these two villages seem poorer than Ban Houay Houn.
    (v)     Although, Ban Houay Houn does not have natural attractions closed by, it
            can be a stopover to and fromTad Lo, a major tourist attraction in
            Salavanh. Tad Lo is 30. km away from the village.
    (vi)    There are tourists already visiting Ban Houay Houn.
    (vii)   The Houay Houn skirts are consistently popular with tourists and Lao
            consumers when shown at trade fairs.
    (viii) Villagers already know how to weave but need help with marketing,
            managing, costing, negotiating and networking with local authorities and
            the private sector.
    (ix)    The provincial tourism department authorities can work cooperatively with
            Houay Houn villagers and the private sector to implement the project. The
            basic skill they need is management, marketing and team work.
    (x)     The villagers expressed high interest in developing supply chain product in
            cooperation with local authorities and the project.
    (xi)    It would be very easy to collect fees from tourists visiting Ban Houay Houn
            in order to create a fund to protect them since the village and textiles is
            already well known.


                                                                                       25
   (xii)    No relocation of any families would be necessary for any other
            developments.
   (xiii)   No relocation of any ethnic families would be necessary for any of the
            proposed developments.
   (xiv)    There would be no significant environmental impacts from the
            developments. In contrary, the project would work to set up a system for
            minimizing waste and other impacts on the site, which currently has no
            such systems in place. Small-scale infrastructure developments would
            have little, if any, environmental impacts on the site if done correctly.

3.4.3 Vientiane Province: Khmu & Yao Handicrafts
Seven Supply Chain sites were surveyed in Vientiane Province: Ban Viengxai
Textiles, Ban Phone Su Textiles and Ban Phone Sung Textiles, Vang Vieng district;
Ban Houay San Textiles and Ban Thong Meut Bamboo Weaving, Kasi district; Ban
Nong Ped/Ban Na Seng Textiles, Meuang Feuang district and Ban Phone Basket
Weaving, Phonehong district. Of all seven sites, Ban Houay San Yao Embroidery and
Ban Thong Meut Khmu Bamboo Weaving most represent ethnic identity and have
potential to develop in line with the project‘s pro-poor tourism approach.

Ban Houay San is a Yao village and it is 2 km from the Koun Lang cave where a
Khmu village, Ban Thong Meut is located nearby. The female villagers of Houay San
embroider a small amount of Yao textiles and sell them to a merchant in Sayabouly
province. The male villagers in Thong Meut weave bamboo into baskets, hats and
fish traps. Currently, Ban Thong Meut has not sold their handicrafts anywhere. The
two villages will offer a variety of products to tourists who may visit Koun Lang Cave.
It is expected that the cave would receive more tourists if the new road to Nan district,
Luang Prabang is finished in 2013.

Ban Houay San has 38 families, with 209 people (97 women). Around twelve (12)
families embroider, with an estimated 25 female embroiders, whereas Ban Thong
Meut has 300 families. In developing tourism related supply chain products, 91 poor
people and 18 poor households would benefit directly from the project.

The Khmu & Yao Handicrafts qualify as good sites for Supply Chain development for
the following reasons:
    (i)     Ban Houay San and Ban Thong Meut are close to one another and have a
            variety of attractions
    (ii)    There are no major risks in relation to safety with developing tourism in the
            area.
    (iii)   Travel to the villages is currently on a dirt road, but with the completion of
            the new road to Luang Prabang in 2013, it will be paved with easy access.
    (iv)    Houay San and Thong Meut were the poorest villages surveyed in
            Vientiane Province, with 18 poor families and just 15 of the total 265
            households having more than enough income to subsist.
    (v)     The two villages are located at the entrance road to Koun Lang cave.
    (vi)    There are domestic tourists visiting Koun Lang cave during Lao New Year.
            The Yao and Khmu handicrafts can be sold along with food and drinks at
            thgis time.
    (vii)   The Yao handicrafts are only sold to a merchant in Sayabouly who is in
            fact the niece of a producer. The Khmu handicrafts are made for home
            used only. Thus production exisits but there is a need to expnd markets.
    (viii) Houay San and Thong Meut villagers need strong capacity building in
            production, design and marketing.
    (ix)    The provincial tourism department authorities can work cooperatively with
            the villagers and the private sector to implement the project.


                                                                                       26
   (x)      Although, villagers have no experience in selling handicrafts directly to a
            number of middlemen and tourists, they expressed high interest in
            developing supply chain product in cooperation with local authorities and
            the project.
   (xi)     No relocation of any families would be necessary for any other
            developments.
   (xii)    No relocation of any ethnic families would be necessary for any of the
            proposed developments.
   (xiii)   There would be no significant environmental impacts from the
            developments. In contrary, the project would work to set up a system for
            minimizing waste and other impacts on the site, which currently has no
            such systems in place. Small-scale infrastructure developments would
            have little, if any, environmental impacts on the site if done correctly.

3.4.4 Bokeo Province: Ban Tor Lae Tea & Honey
Six Supply Chain sites were surveyed in Bokeo Province: Ban Nam Tee Textiles, Ton
Peung district, Ban Don Ngern Silk Weaving, Ban Mai Pattana Embroidery and Ban
Sidonxai Textiles, Ban Nam Geung Gao, Houayxai district and Ban Tor Lae Tea &
Honey, Meung district. Among the six sites, Ban Tor Lae Tea & Honey features most
appealing tourism related supply chain products. Most importantly, with proper value
adding, Tea & Honey is probably the most profitable product for villagers: they can
generate quick income because consumer products sell faster than textiles and can
be sold to both local Laotians and tourists. The products are different from other
provinces in the north that mostly offer textiles.

Tor Lae is about 6 km. away from the city centre (Meuang district) and easily
accessed on a gravel road and links to Yaka Mountain. Ban Tor Lae is not far from
Xiang Dao villages, which borders Myanmar. While close to the district center,
reaching Meuang Meuang from Houay Xay takes more than 1 hour by truck.

The Villagers pick natural-grown tea and raise bees to produce honey that is mostly
sold at the local market in Meuang district and villages nearby. Besides, tea and
honey, they produce traditional cotton bags (Tung Yarm), shirts and pants. The
income from Tea and Honey can help 52 poor families in the village. The village has
54 families, with 165 people (77 women). Meung District has 28 villages that contain
20% of all poor households in Bokeo Province.

The Ban Tor Lae Tea & Honey qualifies as a good site for Supply Chain development
by the project for the following reasons:
    (i)    There is a cluster of villages in the area that would stand to benefit,
           including Ban Poungpha, Ban Houay Tad and Ban Jom Jaeng.
    (ii)   There are no major risks in relation to safety with developing tourism in the
           area, according to local officials.
    (iii)  Access to the area is quite easy from Meuang town. It can be done by
           bicycle, motorcycle and car.
    (iv)   The project development will generate income for over 52 poor families or
           229 people in Ban Tor Lae. In the vicinity of Ban Tor Lae, situated Ban
           Poungpha, Ban Houay Tad and Ban Jom Jaeng where poor families could
           later be included ina the supply chain. These villages produce tea and
           honey also.
    (v)    Ban Tor Lae is close to Ban Poungpha, a starting point for trekking to
           Yaka Mountain and not far from the village is Ban Xiang Dao, a border
           village to Myanmar. If tourists come to trekking and visiting the border,
           they can stop by Ban Tor Lae.



                                                                                     27
   (vi)     Although currently there are no tourists visiting Ban Tor Lae, if the
            products are promoted alongside trekking and border-town visiting, Ban
            Tor Lae will be of interest to tourists. The village offers a variety of White
            Lahu attractions: ethnic way of life, cotton textiles, tea and honey.
   (vii)    Tea and Honey of Ban Tor Lae is already in demand in the market in
            Meuang district and among villagers nearby.
   (viii)   Ban Tor Lae villagers need to enhance their business skills and work
            cooperatively with the public and private sector in promoting the products.
   (ix)     The provincial tourism department authorities can work cooperatively with
            Tor Lae villagers and the private sector to implement the project. The
            basic skill training they need is management, marketing and team work.
   (x)      The villagers expressed high interest in developing supply chain product in
            cooperation with local authorities and the project.
   (xi)     No relocation of any families would be necessary for any other
            developments.
   (xii)    No relocation of any ethnic families would be necessary for any of the
            proposed developments.
   (xiii)   There would be no significant environmental impacts from the
            developments. In contrary, the project would work to set up a system for
            minimizing waste and other impacts on the site, which currently has no
            such systems in place. Small-scale infrastructure developments would
            have little, if any, environmental impacts on the site if done correctly.

3.4.5 Oudomxay Province: Ban Yor Pottery
Five Supply Chain sites were surveyed in Oudomxay Province: Ban Kat Whisky, Ban
Pung Hieng Textiles, Ban Homxay Textiles, Xay district; Ban Yor Pottery, Beng
district and Ban Sibounheung, Houn district. Ban Yor Pottery was chosen for Supply
Chain development due to its unique product and enthusiasm of villagers to enhance
production capacity. Ban Yor Pottery has been well-known among Laotians in
Oudomxay; however, its quality has not been improved to be durable and leak-proof.
The village is on the way to Pak Beng on R2 Road, a famous tourist attraction in
northern Lao PDR where a night market has been constructed. If Ban Yor Pottery is
developed, it could supply different kinds of interesting pottery to tourists visiting Pak
Beng and the night market and also supply landscape design retailers in Luang
Prabang, Bokeo and other provinces.

Ban Yor is a Tai Leu village producing flower pots, jars and cooking pots. Of the 167
families, four families are reported as being poor. Seven families, with an estimated 6
men and 15 women or a total 21 people, produce pottery. Men are responsible for
soil digging and bringing the soil to the production area, while women are responsible
for carving soil into bars and shaping pottery.

The Ban Yor Pottery qualifies as a good site for Supply Chain development for the
following reasons:
     (i)    There is a cluster of villages in the area that would benefit, including Ban
            Malai, Ban Xiang Lae and Ban Pang Deau.
     (ii)   There are no major risks in relation to safety with developing tourism in the
            area.
     (iii)  Access to the area is quite easy from Oudomxay town. It can be done by
            bicycle, motorcycle, public truck and car.
     (iv)   There are 21 people producing pottery, if production is expanded, it will
            create more jobs for those living in poverty in the village and nearby. In
            the vicinity of Ban Yor, situated Malai, Ban Xiang Lae and Ban Pang Deau
            there are many poor families that could benefit from the project.



                                                                                       28
   (v)      Ban Yor is located 10 km. away from Tad Nam Chae waterfall. The
            waterfall had already been survey by the provincial tourism department.
   (vi)     There have been many study tours from Thailand and development
            organizations e.g. DED to the village.
   (vii)    At one time, the Department of Commerce and Industry ordered 2,000
            units of pottery from Ban Yor, but it could not supply the department with
            that amount. The production capacity of Ban Yor Pottery is still limited
            because of its kiln design.
   (viii)   Ban Yor villagers need strong capacity building in quality pottery
            production and marketing. The local authorities e.g. the Department of
            Commerce and Industry and provincial tourism department authorities
            require green business management skill.
   (ix)     The provincial tourism department authorities can work cooperatively with
            Ban Yor villagers, the Land Department, the Department of Commerce
            and Industry and the private sector to implement the project. The basic
            skill needed is management, marketing and team work.
   (x)      The villagers expressed high interest in developing supply chain product in
            cooperation with local authorities and the project.
   (xi)     Collecting the entrance fee to Ban Yor Pottery can easily be done, if the
            facilities are in place. It can be reserved as a pottery fund.
   (xii)    No relocation of any families would be necessary for any other
            developments.
   (xiii)   No relocation of any ethnic families would be necessary for any of the
            proposed developments.
   (xiv)    There would be no significant environmental impacts from the
            developments. In contrary, the project would work to set up a system for
            minimizing waste and other impacts on the site, which currently has no
            such systems in place. Small-scale infrastructure developments would
            have little, if any, environmental impacts on the site if done correctly.

3.4.6 Houaphanh Province: Ban Saloei Textiles
Two Supply Chain sites were surveyed in Houaphanh Province: Ban Houakang Fruits
& Vegetables and Ban Saloei Textiles in Sam Neua district. Between the two sites
surveyed, Ban Saleoi Textiles has the most unique product.

Ban Saloei is a Lao Pong village about 40 km away from Sam Neua and 10 km. from
Saloei waterfall. In the vicinity is Nasala, Phone Xay, Thabong and Houay Sad
villages. The village has 178 families/168 households, with 952 people (497 women).
There are eighteen poor families. Around seventy five (75) families with an estimated
230 women produce textiles. In one year, around one thousand skirts (sins) from
Saloei village are sold to buyers (from Savannakhet). For Sayabouly and Luang
Prabang, the products are sold 4-5 times a year to retailers/wholesalers. Besides
local buyers, skirts are sold to tourists visiting Tad Saloei in Pii Mai Lao.

The Ban Saloei textiles qualify as a good site for Supply Chain development for the
following reasons:
     (i)    There is a cluster of villages in the area that would stand to benefit,
            including Nasala, Phone Xay, Thabong and Houay Sad villages.
     (ii)   There are no major risks in relation to safety with developing tourism in the
            area
     (iii)  Access to the area is quite easy from Sam Neua town. It can be done by
            bicycle, motorcycle and car.
     (iv)   In the vicinity of Saloei is Nasala, Phone Xay, Thabong and Houay Sad
            where poor families could benefit from the project. The villages already
            weave textiles for Ban Saloei when Saloei can not meet orders.


                                                                                      29
   (v)      There are some tourists visiting Ban Saloei after or before seeing Tad
            Saloei.
   (vi)     The most saleable textiles of Ban Saloei is skirts (sins). They are sold to
            traders in Savannakhet, Sayabouly and Luang Prabang.
   (vii)    All potential stakeholders of department of Industry and Commerce,
            provincial tourism authorities and the private sector need to enhance their
            capacity in management and marketing. The villagers need to improve
            their production skill to stabilise textiles‘ quality.
   (viii)   The provincial tourism department authorities can work cooperatively with
            Saloei villagers and the private sector to implement the project. The basic
            skills they need are management, marketing and team work.
   (ix)     The villagers expressed high interest in developing supply chain product in
            cooperation with local authorities and the project.
   (x)      It would be very easy to collect fees from tourists visiting nearby Ban
            Saloei waterfall.
   (xi)     No relocation of any families would be necessary for any other
            developments.
   (xii)    No relocation of any ethnic families would be necessary for any of the
            proposed developments.
   (xiii)   There would be no significant environmental impacts from the
            developments. In contrary, the project would work to set up a system for
            minimizing waste and other impacts on the site, which currently has no
            such systems in place. Small-scale infrastructure developments would
            have little, if any, environmental impacts on the site if done correctly.

3.4.7 Sayabouly Province: Ban Viengkeo Textiles
Only one main Supply Chain site was surveyed in Sayabouly Province, Ban
Viengkeo, Hongsa district. The site was chosen due to its distinctive Tai Leu textiles.
Ban Viengkeo also has two traditional, original, Tai Leu houses that are attractive to
tourists and valuable built heritage. The village is 42 km from Meuang Ngern district,
which borders to Nan, Thailand. Traveling to Hongsa is a picturesque route from
Luang Prabang, but currenly a long journey of more than 5 hours.

Near Viengkeo is Nasan, Champa and Yai villages. Viengkeo has 252 families with
1,052 people (429 women). 3 families or 15 people are reported as being poor.

Around eighty (80) families with an estimated 200 women produce textiles.
Occasionally, textiles are sold to tourists on site, in 2008, 100 tourists visited Ban
Viengkeo. They came for elephant riding and many many more will come for the
elephant festival in February 2010. Apart from tourists, the textiles are sold to buyers
in Nan province and resold to international tourists and Thais in Thailand. Hongsa‘s
textiles are alos prominent in Luang Pravbang‘s night market and Vientiane.

Ban Viengkeo Textiles qualify as a good site for Supply Chain development for the
following reasons:
     (i)    There is a cluster of villages in the area would stand to benefit from it,
            including Nasan, Champa and Yai villages.
     (ii)   There are no major risks in relation to safety with developing tourism in the
            area.
     (iii)  Ban Viengkeo has around 15 people who live below poverty line. In the
            vicinity of Ban Viengkeo there is also Ban Nasan, Ban Champa and Ban
            Yai where many poor families could benefited from the project. The
            villages already assist Ban Viengkeo to meet large orders when they
            occur.



                                                                                      30
    (iv)      Once every three years the Elephant Festival is held in Ban Viengkeo.
              This festival is held every year in Sayaboury in alternating locations. It is
              an excellent opportunity to make on-site or local handicraft sales.
    (v)       There are some tourists visiting Ban Viengkeo already.
    (vi)      The village has some linkages to traders in Thailand and Laos.
    (vii)     The village needs assistance with quality control, marketing, managemant,
              costing and negotiating with traders.
    (viii)    The provincial tourism department authorities can work cooperatively with
              Viengkeo villagers and the private sector to implement the project.
    (ix)      The villagers expressed high interest in developing supply chain product in
              cooperation with local authorities and the project.
    (x)       No relocation of any families would be necessary for any other
              developments.
    (xi)      No relocation of any ethnic families would be necessary for any of the
              proposed developments.
    (xii)     There would be no significant environmental impacts from the
              developments. In contrary, the project would work to set up a system for
              minimizing waste and other impacts on the site, which currently has no
              such systems in place. Small-scale infrastructure developments would
              have little, if any, environmental impacts on the site if done correctly.

3.5 Compliance with Selection and Evaluation Criteria

3.5.1 Priority CBT Site Compliance with Pro-Poor and Environmental Screening
Checklists: Issues Identified and Proposed Mitigation Measures

Pro-poor Checklist: Overall, the CBT sites chosen comply with the pro-poor
screening checklist, as demonstrated in the table below. There is only one major
issue that all sites do not comply with and which needs to be addressed by all CBT
development plans. None of the CBT sites have adequate solid waste and
wastewater management infrastructure to accommodate tourism development. This
is an issue that affects the entire country and thus cannot be attributed as a
deficiency specific to the sites. The issue must be addressed, however, to ensure that
tourism development is both sustainable and a model for the country and the region.
It is recommended that a plan for solid waste and wastewater management at each
site be formed and appropriate dumping facilities constructed by the project. Such
waste management systems should address issues with waste management in the
nearest district or provincial town or the nearest largest village enclave to ensure that
waste management at the site is linked to a larger waste management system.

Table 4: Pro-poor Screening Checklist for Selected CBT Sites
Y = Yes, N = No, P = Criterion partially met
Selection Criteria
                                                                 San Done Trek & Guides




                                                                                                                                                                          Pha Xang Boat Rides &
                                                                                                                                                  Viengthong Hot Spring
                                            Hang Khone Bridge,




                                                                                                          Nam Fa Hot Spring



                                                                                                                              Nam Kat Waterfall
                                                                                          Koun LangCave
                                            Boats




                                                                                                                                                                          Trek




1. The site and existing/proposed tourism     Y                         P                     P                Y                   Y                     Y                   Y
developments area reasonably safe
2. The site is readily accessible from a      Y                         Y                     Y                Y                   Y                     Y                   Y



                                                                                                                                                                          31
major tourism gateway

3. There is an existing and fast-growing       Y   Y   N       Y      Y       Y      P
flow of tourists in the nearby gateway point
4. The site is in need of enhanced             Y   Y   Y       Y      Y       Y      Y
conservation and protection
5. There is an existing public sector site     Y   Y   Y       Y      Y       Y      N
management unit in place
6. The proposed intervention does not          Y   Y   Y       Y      Y       Y      Y
conflict with existing development plans
7. Local men and women express interest        Y   Y   Y       Y      Y       Y      Y
in working in the tourism sector
8. Local community stakeholders at the site    Y   Y   Y       Y      Y       Y      Y
support tourism development
9. Tourism development requires no             Y   Y   Y       Y      Y       Y      Y
significant land acquisition or resettlement
10. The proposed tourism intervention can      Y   Y   Y       Y      Y       Y      Y
be implemented by the related public
agencies, local community, and
development partners
11. Private sector tour operators have         Y   Y   N       Y      Y       Y      N
strong interest in promoting the area
12. Cost recovery mechanisms for recurring     Y   Y   Y       Y      Y       Y      Y
operating costs can be put in place
13. Solid waste and wastewater                 N   N   N       N      N       N      N
management infrastructure is adequate
14. The site has a large number of persons     Y   Y   Y       Y      Y       Y      Y
living below the poverty line
15. There is a good mix of natural and/or      Y   Y   Y       Y      Y       Y      Y
cultural tourism resources that area
interesting to tourists
16. Production of a product or service in a    Y   Y   Y       Y      Y       Y      Y
village (or cluster of villages) that is in
demand by tourists can be enhanced by
introducing a targeted Supply Chain
intervention

Environmental Checklist: Overall, the CBT developments proposed by the project
will have little significant environmental impacts, as the interventions and resulting
tourism activities are small-scale and do not entail any major changes to the
environments. In fact, the programs are aimed at creating low-impact tourism that
protects the natural attractions and minimizes major developments or augmentations
to them. However, the most likely impact arising from the project is the generation of
solid waste and wastewater. This issue needs to be addressed at all CBT sites, as
there are currently no proper waste management systems and facilities available.
Another potential environmental issue that is common to all sites is over-visitation by
tourists. Each site should have a plan for how many tourists it can accommodate, per
day and/or per group, and how to manage flows of tourists in and out of sites. This is
especially important for the Hang Khone dolphin-watching site where the growing
number of boat trips and visitors to see the dolphins can have greater and great
negative impact on the dolphins‘ health without proper planning and regulations.




                                                                                    32
Table 5: Environmental Checklist for CBT Sites
H = High Impact; M=Moderate Impact; L=Low Impact; N=Negligible
Will the proposed intervention . . .




                                                                           San Done Trek & Guides




                                                                                                                                                             Viengthong Hot Spring


                                                                                                                                                                                     Pha Xang Boat Trip &
                                                      Hang Khone Bridge,




                                                                                                                     Nam Fa Hot Spring


                                                                                                                                         Nam Kat Waterfall
                                                                                                    Koun Lang Cave
                                                      Boats




                                                                                                                                                                                     Trek
cause significant land disturbance, soil erosion,         L                           L                    L                N                     L                   N                 N
instability or landslide
reduce local and wider catchments area water             N                          N                     N                   L                 N                       L               N
quality from disturbance to drainage patterns,
dams, sedimentation, rabidity, or the excess
demand for supply
cause loss of downstream beneficial uses                 N                          N                     N                   L                 N                     N                 N
adversely impact upon geological or                      N                            L                    L                  L                 N                       L               N
geomorphologic features, particularly those of
known local, national or international
conservation significance
result in significant vegetation loss from clearing      N                          N                     N                 N                     L                   N                 N
or indirect impacts. Particularly species and
communities of known local, national or
international conservation significance
adversely impact upon local and transient                 L                         N                     N                 N                   N                     N                 N
(those species whose range may include the
project site) fauna species, particularly those of
known local, national or international
conservation significance
introduce pests, weeds or disease                        N                          N                     N                 N                   N                     N                 N
increase the frequency and intensity of fire             N                            L                    L                  L                   L                   N                 N
result in contamination of the immediate and/or           L                         N                     N                   L                   L                   N                 N
broader environment, from the storage or use of
chemicals
generate emissions which may cause                        L                         N                     N                 N                     L                   N                 N
atmospheric/environmental impacts and human
health impacts at a local or larger scale,
including carbon dioxide and other emissions
that contribute to global warming
generate excessive waste from construction               M                            L                  M                    L                   L                   N                 N
and/or ongoing maintenance and operational
processes
result in visitor numbers beyond the perceived           M                            L                  M                  N                     L                     L                L
carrying capacity of the site
result in a significant increase in noise and/or          L                           L                    L                N                   N                     N                 N
vibration
result in unnatural lighting effects that may            N                          N                    M                  N                   N                     N                 N
impact upon flora and fauna, or deplete the
sense of naturalness of the area
result in the fragmentation of an otherwise              N                          N                      L                N                   N                     N                 N
‗intact‘ natural landscape




                                                                                                                                                                                     33
3.5.2 Priority Supply Chain Site Compliance with Pro-Poor and Environmental
Screening Checklists: Issues Identified and Proposed Mitigation Measures

Pro-poor Checklist: Overall, the chosen Supply Chain (SC) sites comply with the
pro-poor screening checklist, as demonstrated in the table below. There is only one
major issue that all sites do not comply with and which needs to be addressed by all
SC development plans. None of the SC sites have adequate solid waste and
wastewater management infrastructures to accommodate tourism development or
production of noxious chemicals or waste materials. This is an issue that affects the
entire country and thus cannot be attributed as a deficiency specific to the sites. The
issue must be addressed, however, to ensure that tourism related supply chain
development is both sustainable and a model for the country and the region. It is
recommended that a plan for solid waste and wastewater management at each site
be formed and appropriate dumping facilities constructed by the project. Such waste
management systems should address issues with waste management in the nearest
district or provincial town or the nearest largest village enclave to ensure that waste
management at the site is linked to a larger waste management system when
possible.

Table 6: Pro-poor Screening Checklist for Selected Supply Chain Sites
Y = Yes, N = No, P = Criterion partially met
Selection Criteria




                                                                                                                              Ban Tor Lae Tea & Honey
                                                                           Ban Houay Houn Textiles


                                                                                                     Khmu & Yao Handicrafts
                                                   Ban Hinsou Palm Sugar




                                                                                                                                                                                                Ban Viengkeo Textiles
                                                                                                                                                                          Ban Saloei Textiles
                                                                                                                                                        Ban Yor Pottery

1. The site and existing/proposed tourism          Y                                 Y                         P                        Y                      P                  Y                      Y
developments area reasonably safe
2. The site is readily accessible from a major              Y                        Y                         Y                        Y                      Y                  Y                      Y
tourism gateway
3. There is an existing and fast-growing flow of            Y                        Y                        N                         N                      Y                  Y                      P
tourists in the nearby gateway point
4. The site is in need of enhanced conservation             Y                        Y                         Y                        Y                      Y                  Y                      Y
and protection
5. There is an existing public sector site                  N                        Y                        N                         N                      Y                  Y                      Y
management unit in place
6. The proposed intervention does not conflict              Y                        Y                         Y                        Y                      Y                  Y                      Y
with existing development plans
7. Local men and women express interest in                  Y                        Y                         Y                        Y                      Y                  Y                      Y
working in the tourism sector
8. Local community stakeholders at the site                 Y                        Y                         Y                        Y                      Y                  Y                      Y
support tourism development
9. Tourism development requires no significant              Y                        Y                         Y                        Y                      Y                  Y                      Y
land acquisition or resettlement
10. The proposed tourism intervention can be                Y                        Y                         Y                        Y                      Y                  Y                      Y
implemented by the related public agencies,
local community, and development partners
11. Private sector tour operators have strong               P                        Y                        N                         Y                      P                  P                      Y
interest in promoting the area
12. Cost recovery mechanisms for recurring                  Y                        Y                         Y                        Y                      Y                  Y                      Y
operating costs can be put in place
13. Solid waste and wastewater management                   N                        N                        N                         N                     N                   N                      N



                                                                                                                                                                                                34
infrastructure is adequate
14. The site has a large number of persons              Y          Y                           Y                             Y                                         Y                          Y                          Y
living below the poverty line
15. There is a good mix of natural and/or               Y          Y                           Y                             Y                                         Y                          Y                          Y
cultural tourism resources that area interesting
to tourists
16. Production of a product or service in a             Y          Y                           Y                             Y                                         Y                          Y                          Y
village (or cluster of villages) that is in demand
by tourists can be enhanced by introducing a
targeted Supply Chain intervention

Environmental Checklist: The main environmental issues associated with SC sites
involve the use of chemical dyes to produce textiles and improper facilites to treat and
dispose of waste products from agriculture and handicraft production. While the
project does not forsee significant impacts (table 6) it will promote efficient use of
natural resources, value adding, and proper disposal of waste.

Table 6: Environmental Checklist for SC Sites
H = High Impact; M=Moderate Impact; L=Low Impact; N=Negligible
Will the proposed intervention . . .




                                                                                                                                                      Ban Tor Lae Tea & Honey
                                                                                                   Ban Houay Houn Textiles

                                                                                                                             Khmu & Yao Handicrafts
                                                                       Ban Hinsou Palm Sugar




                                                                                                                                                                                                                             Ban Viengkeo Textiles
                                                                                                                                                                                                      Ban Saloei Textiles
                                                                                                                                                                                Ban Yor Pottery
cause significant land disturbance, soil erosion, instability or       N                           N                         N                        N                          L                    N                      N
landslide
reduce local and wider catchments area water quality from              N                           N                         N                         L                        N                     N                      N
disturbance to drainage patterns, dams, sedimentation,
rabidity, or the excess demand for supply
cause loss of downstream beneficial uses                               N                           N                         N                         L                        N                     N                      N
adversely impact upon geological or geomorphologic                     N                           N                         N                        N                          L                    N                      N
features, particularly those of known local, national or
international conservation significance
result in significant vegetation loss from clearing or indirect        N                           N                         N                        N                          L                    N                      N
impacts. Particularly species and communities of known local,
national or international conservation significance
adversely impact upon local and transient (those species               N                           N                         N                        N                         N                     N                      N
whose range may include the project site) fauna species,
particularly those of known local, national or international
conservation significance
introduce pests, weeds or disease                                      N                           N                         N                        N                         N                     N                      N
increase the frequency and intensity of fire                           N                           N                         N                        N                          L                    N                      N
result in contamination of the immediate and/or broader                N                            L                        N                        N                          L                     L                      L
environment, from the storage or use of chemicals
generate emissions which may cause                                      L                           L                         L                        L                        M                      L                      L
atmospheric/environmental impacts and human health
impacts at a local or larger scale, including carbon dioxide
and other emissions that contribute to global warming
generate excessive waste from construction and/or ongoing              N                           N                         N                        N                         M                     N                      N
maintenance and operational processes
result in visitor numbers beyond the perceived carrying                 L                           L                         L                       M                          L                     L                      L
capacity of the site
result in a significant increase in noise and/or vibration             N                           N                         N                        N                          L                    N                      N



                                                                                                                                                                                                                            35
result in unnatural lighting effects that may impact upon flora   N   N   N   N   M   N    N
and fauna, or deplete the sense of naturalness of the area
result in the fragmentation of an otherwise ‗intact‘ natural      N   N   N   N   L   N    N
landscape



4 Results of Market Surveys
According to the Lao National Tourism Administration‘s 2008 Statistical Report on
Tourism in Lao P.D.R, the typical international tourist stays an average of 6.5 days
and has an average daily expenditure of USD60. The top three interests of tourists
are nature (70%), culture (68%), and temples and monuments (55%). The majority of
tourists travel by land (68%); stay in guesthouses (68%); and are between the ages
of 20-39 (56%). Nearly all tourists visit Vientiane Capital (90%), and nearly three
quarters, or 65%, visit Luang Prabang. The next three most popular provinces are
Vientiane Province (30%), Champasak (25%), Luang Namtha (18%). Very few people
visit Lao PDR only; most people travel to or from Thailand (70%, with some visiting
Cambodia, China or Vietnam (35%). Of the total 1,736,787 visitors in 2008, 22% were
international and 78% regional. The top generating regional market is by far Thailand,
which has 51% of the total share of tourists in Lao PDR. The top seven foreign
markets are USA, France, UK, Japan, Australia, Germany and Canada. However, it
should be noted that both the American and French markets are inflated by family
visits. The three months with the highest number of international arrivals are January,
February, and May, while the three months with the lowest numbers are August,
September, and October.


4.1 Results of CBT market surveys
The results of provincial visitors surveys will be reported in the project’s baseline
report, to be published in December 2009.

4.2 Results of Supply Chain Product Market Surveys
Overall, each product has different elements of 4 Ps (Product, Price, Place and
Promotion) depending on how far the product has been developed into a saleable
item. Most are sold and managed as an informal family business by villagers, in non-
systematic manner. Most of the production relies on external supplies: when supply
cost increases, producers have to pay more to buy raw material but can not easily
increase selling price. This reduces the profit they should gain. Regarding markets,
most products have two: international tourists and local tourists/buyers, but for some
products produced in the provinces that border Thailand they are sold to Thais
traders.

For promotion, some products (e.g. Ban Houay Houn Textiles) have been showcased
in the national festivals and trade fairs but their has not been follow-up, consistent
orders from buyers. Promoting Lao handicrafts is one of the concerns of the Lao
government and the Lao Handicraft Association (LHA) sometimes gathers handicrafts
wholesalers and retailers to exhibit their products in overseas trade fairs. However,
according to some participants LHA levies a 7-10% sales commission or fee on all
sales made at these events resulting in limited participation or olnly participation by
influential companies that can avoid paying this commission. It is therefore important
that the project assists to maintain transparency in selecting the type of handicrafts
producers who really represent poor community.

4.2.1 Market Surveys for Ban Hinsou Palm Sugar

Production


                                                                                          36
Sixteen families produce palm sugar, with an estimated 64 people. Men are
responsible for collecting the palm juice from the treetops and processing the sugar,
while women are responsible for packaging the sugar cubes in dried palm leaves.
Production by one single producer is ten kilograms per day, or roughly 300 kilos per
month (13 trees are tapped per day). Production is done for seven months per year
from November to May; total yearly production is estimated at 33,600 kilos.

Price
The price for palm sugar is two-tiered: sugar is sold to local buyers (three buyers) at
7,000 kip per kilo, while sugar sold to tourists goes for 15,000 kip per kilo. Products
sold to tourists include juice, which goes for 10,000 kip for two liters, and packages of
sugar cubes that are sold for 20,000 kip (this includes 10 packets of 10 cubes each).
Over the previous years production has not increased, but price has increased.

Place
    Tourists: they visit Hinsou to buy palm sugar products by car in tour groups,
      while a few tourists visit on their own by bicycle or motorcycle.
    Local markets: sugar that is sold to local buyers is resold in local markets
      throughout the province. The palm beer company and farmers‘ products
      retailing store both previously bought palm sugar and juice from the village;
      however, both have stopped buying because they have not been able to sell
      the products.

Promotion
There is a recommendation in the Rough Guide guidebook to visit ‗Ban Siw‘ to taste
the palm sugar juice, but there is no mention of it in the Lonely Planet.

SWOT
Strengths                                      Weaknesses
     A unique product                             Difficult to expand because local
     Part of Champasak‘s cultural heritage          demand is not high
     Already promoted in tourism books
        and selling
Opportunities                                  Threats
     Can be promoted to larger tourism             Young people may choose not to
        network on Don Khong                           learn this trade because other trades
     Can be sold at other tourist                     pay more and are easier
        destination markets such as Khone
        Pha Pheng

4.2.2 Market Surveys for Ban Houay Houn Textiles

Production
Around twenty five (40) families produce textiles, with an estimated 125 people,
however most women can weave. Production by one single producer is 4 skirts a
month since she needs to help her family on rice and vegetable plantation. The total
monthly production of the village is about 100 pieces (skirts). The textiles are
produced when villagers are free from rice and vegetable plantation. However, the
amount of production could be increased from 100 pieces a month to over 150 since
125 people do the weaving. On average, the village sells 50 skirts per month. The
villagers buy cotton thread and plastic beads from Vietnamese and Thai vendors in a
market in Pakse.
Price
The price for skirts is two-tiered: typical skirts sold to local people in nearby villages is
60,000-10,000 kip, while skirts sold to tourists cost from 150,000-500,000 kip.



                                                                                          37
Place
    Tourists: products sold to tourists include scarves and skirts. Most tourists
      come to the village in group by vans or buses during high-season. A few years
      ago a Japanese students came to practice weaving for 20 days, but the
      weaving training discontinued.
    Local Markets: skirts that sold to local people are meant for wearing, but
      sometimes they are resold in nearby villages e.g. On Bang and Naxai Noy
      villages. The owner of Tim guesthouse in Tad Lo plans to sell some at his stall
      around Tad Lo.

Promotion
With assistance of Ministry of Information and Culture, the textiles were publicized on
Lao Star channel and a province radio program in 2008 and 2009. There is a
prominent sign advertising Ban Houay Houn textiles and a display stall in front of the
village.

SWOT
Strengths                                    Weaknesses
     A unique product                          Lack of cooperative business mind
     Part of Southern Lao‘s cultural           Depending on imported supplies
        heritage
     Already promoted by local agencies
        and known among some tourists
     Located in weaving cluster
Opportunities                                Threats
     Can be sold at Tad Lo                       Without business cooperation Ban
     Can generate income to nearby                  Houay Houn textiles may not be able
        villages                                     to compete with other villages that
     Appealing to local trading agencies            weave textiles such as Ban Toumlan
        e.g. LHA


4.2.3 Market Surveys for Khmu & Yao Handicrafts at Tham Khoun Lang

Khmu Bamboo Weaving (Ban Thong Meut)
Production
The Bamboo weaving is done occasionally when villagers are free from their farming
routine. The villagers also weave bamboo into glutinous rice container, basket and
wooden tray used for dishes placing (Pakao). According to a typical producer, 2
glutinous rice containers can be finished in 1 day. The bamboo that used for weaving
is found in the nearby forest.

Price
Most products are made to use at home only and not sold.

Place
Most products are made to use at home only, therefore, they are not sold anywhere.
According to a typical producer, he is shy to take his products to a market and sell
them. He is afraid that nobody will buy his products.

Promotion
The Khmu Bamboo Weaving of Ban Thong Meut has not yet been promoted in any
sorts of media.




                                                                                      38
SWOT
Strengths                                   Weaknesses
     Part of ethnic cultural heritage          Lack of business mind
     Located in tourism cluster                Production is done when villagers
                                                  feel like

Opportunities                               Threats
    Can be sold at Koun Lang Cave               Product patterns may not draw
    Can generate income poor families              tourists‘ attention comparing to the
                                                    product of Ban Phone located in
                                                    Vang Vieng


Yao Embroidery (Ban Houay San)
Production
Around twelve (12) families embroider, with an estimated 25 people, however most
women have this and weaving skills. Production by one single producer is one piece
of 12-inch embroidered fabric a month since she needs to help her family on rice
farming and livestock. The total monthly production of the village is about 25 pieces,
provided that all of them embroider. If a woman really embroiders, she can embroider
4 pieces of fabric a month. In one year, a typical producer can make one pair of Yao
trousers, which could actually be finished within 3-4 months. The amount of
production can be increased from one piece a month to over 25 since 25 people can
embroider. Currently, obtaining production supplies is very easy and production
informal. If a woman has many orders she distributes them to other villagers based
on pattern-work.

Price
The price of 12-inch embroidery fabric is 60.000 kip. A pair of Yao trousers costs
720,000 kip.

Place
As per a typical producer, orders comes from a reltative in (her niece) in Sayabouly
who resells the fabric made into bags and pillow cases in Thailand.

Promotion
The Yao Embroidery of Ban Houay San has not yet been promoted in any sort of
media.

SWOT
Strengths                                   Weaknesses
     A unique product                          Small production capacity
     Part of ethnic cultural heritage          Lack of business concept
     Easily accessed from a natural            Depends on one market
        attraction

Opportunities                               Threats
    Located alongside a new road to Nan         The new road might provide more
       district, Luang Prabang                      chances for tourists to purchase
    Can be sold at Koun Lang Cave and              quality Yao textiles in Luang Prabang
       alongside the new road




                                                                                           39
4.2.4 Market Surveys for Ban Tor Lae Tea & Honey

Production
Among the two products, honey generates more income for villagers. There are 150
hives (gon) producing honey in the village; one unit makes around 5 bottles of honey
per season. One bottle consists of 750 ml. The honey units are dotted out all over
Ban Tor Lae. There are three nearby villages that sell honey e.g. Poungpha, Hoauy
Thad and Jom Jang. Tor Lae produces most of it. Honey is best cultivated in summer
(April-May). It is collected once a week and 6 months a year. There are 5-6 families
or around 20 people own the land where tea trees are located. Although they grew
naturally, those 6 families have stewardship over their tea picking areas.

Price
The honey is priced at 20,000-25,000 kip per one bottle and the bee‘s wax is sold at
74,400 kip per kg. It can be sold all year round. For tea; 1 kilo of single leaf sells at
5,000 kip per kilo, 2-leave is sold for 4,000 kip. The total tea income is around
160,000 per month.

Place
    Both products are sold at a market in Meung district and to villagers nearby.
      Tor Lae villagers only sell their products when they want money. The use
      bamboo containers to package thier products before sale.
    Tea was formerly sold to a Lao factory situated in the village. The owner
      bought only raw tea leaves and had them neatly packed in Oudomxay
      province then resold throughout Laos. The factory stopped operating in
      February 2009.

Promotion
    The tea and honey of Ban Tor Lae are well known to local people that live
     near the village and Meuang district.
    Currently, Ban Tor Lae products have not yet been promoted in any sort of
     media.

SWOT
Strengths                                       Weaknesses
     Variety of White Lahu products                Lack of production enthusiasm; they
     By nature, White Lahu is business               only make and sell when they feel
        minded                                        like
     Inward supplies                               Tea production machine belongs to
                                                      Lao/Chinese investors In the
                                                      beginning, tour companies may not
                                                      add Ban Tor Lae in their programs
                                                      because they may not believe that
                                                      Honey & Tea appeals to international
                                                      tourists

Opportunities                                   Threats
    Can be sold to tourists and local               Loss of forest
       buyers who seek to experience                 Competion from other producers
       natural products and ethnic lifestyles
    Consumer products sell fast
    Differentiate Bokeo province from the
       textiles cluster in northern Lao P.D.R




                                                                                       40
4.2.5 Market Surveys for Ban Yor Pottery

Production
Around seven families, with an estimated 6 men and 15 women produce pottery. Men
are responsible for soil digging and bringing the soil to the production area, while
women are responsible for carving soil into bars. The carving into different forms of
pottery is done by men and women. Production by one single producer depends on
the size of the product. A big vase needs 3 days to finish, while a small jar requires
only a day. The villagers can produce 400 pots per year provided that one traditional
kiln can fire 200 pieces. However, the village does not have a permanent kiln; the
traditional eathen kiln would is constructed for a one time firing. Without a permanent
kiln the village cannot handle a great deal of orders. Ban Yor received technical
assistance on basic carving from EGA in 2003 and a trainer from Luang Prabang but
the pottery products are still low quality.

Price
The price of a pottery varies on size and type: a whisky container or a pot cost 20.000
kip and a flower pot is priced at 5,000 kip.

Place
    Tourists: study tours to the village occasionally buy pottery.
    Local Markets: based on orders and seasonal on-site and local

Promotion
    Currently, Ban Yor Pottery has not yet been promoted in any sort of media.

    SWOT
Strengths                                      Weaknesses
     Uniqueness product                           Poor quality pottery: no leak proof
     Inward supplies
     Ethnic identity

Opportunities                                  Threats
    Can be sold to tourists and local              The earthen utensils can be replaced
       buyers                                          with stainless utensils if the quality is
    Differentiate Oudomxay province                   poor
       from the textiles cluster in northern
       Lao P.D.R

4.2.6 Market Surveys for Ban Saloei Textiles

Production
Around seventy five (75) families with an estimated 230 women produce textiles.
Production by one single producer is 30 cotton or 8-10 silk skirts per month. The
textiles are mainly produced when villagers are free from rice farming from January -
April.The weaving technique is similar to other villages that weave textiles, but
advanced Mud Mee technique is found here. Villagers buy silk and cotton threads
from a market in Sam Neua. The Chinese or Vietnamese cotton thread costs 30,000
kip per kilogram, while silk thread costs 200,000 kip/kg.

Price
The prices of skirts range from 20,000-80,000 kip per piece for a cotton skirt while a
silk skirt is priced from 90,000-400,000 kip.




                                                                                             41
Place
    Tourists: skirts are sold to tourist visiting Tad Saloei. In 2008, more than 100
      tourists visited the waterfall during Pii Mai Lao. When villagers knew that
      tourist came to Tad Saloei, they brought along the skirts to sell at the
      waterfall.
    Local Markets: skirts are sold to buyers in the village who bought the products
      1-3 times a month at full payment upon receipt of goods. Each time around 20
      skirts are sold. The textiles are resold to retailers/wholesalers in Vientiane,
      Luang Prabang and Xieng Khouang.

Promotion
Ban Saloei textiles are not yet been promoted in any printed media, but Tad Saloei
waterfall is publicized in the Lonely Planet guidebook.

SWOT
Strengths                                    Weaknesses
     Typical Houaphanh design                   Lack of quality concerned mind
     Weavers can produce a variety of           Depending on outward supply
        design if patterns are provided
     Part of Northern Lao‘s cultural
        heritage

Opportunities                                Threats
    Can be sold at Tad Saloei                    Quality textiles of other villages in
    Can generate income to nearby                   Houaphanh might be more popular
       villages
    Strong cooperation of local
       community

4.2.7 Market Surveys for Ban ViengkeoTextiles

Production
Around eighty (80) families with an estimated 200 women produce textiles. The
production by one single producer per month is 10 table cloths, 120 meters of cotton
fabrics, 15 scarves or 45 1-meter silk fabrics. The textiles are mostly produced from
January – April on traditional looms when villagers are free from rice farming.
Producers buy cotton threads from a market in Meuang Ngern border. The village
raises some silkworms and buys some silk thread. A weaving group has not yet been
formed, but the textiles production is organized through the Lao Women Association
in the village

Price
The cost of textiles ranges from 55,000-80,000 kip for a cotton table cloth to 50,000
kip for a meter of silk. Scarves are typically about 30,000 kip.

Place
    Tourists: occasionally, textiles are sold to tourists on site. In 2008 100 tourists
      visited Ban Viengkeo. They came for elephant riding and also bought textiles.
    Viengkeo textiles can be found in the night market in Luang Prabang and
      Vientiane.
    Border Market: textiles are sold to buyers in Nan province. The textiles are
      sold 4 times a month: every Saturday the buyer bought 50 pieces of skirts.

Promotion



                                                                                           42
Ban Viengkeo has been publicized in Lonely Planet guidebook as a village that has
old houses built with padauk (a radish-orange tropical hardwood sometimes called
―Asian rosewood‖

SWOT
Strengths                                    Weaknesses
     Typical Tai Leu design                     Lack of business initiative
     Weavers can produce a variety of           Depending on outward supply
        design if patterns are provided
     Part of Northern Lao‘s cultural
        heritage

Opportunities                                Threats
    Can be sold at Elephant Festival in          Loss of weaving skills and local
       the village                                   knowledge



5   Poverty Indicators – Provincial and District Overviews

According to the National Growth and Poverty Eradication Strategy (NGPES), the
main causes for poverty include livestock disease, lack of land, pests, soil depletion,
opium addition, lack of credit, too many children, lack of education, poor health and
lack of health facilities, lack of roads, and natural disasters. The priority causes of
poverty vary according to each region. The top causes in the north are livestock
disease and lack of access to productive land; in the central villagers report small
land area, pests, lack of credit and too many children; in the east poor land allocation
that leads to shortened fallow cycles and degraded soils; and in the south natural
disasters such as flooding and drought. The issues related to poverty as identified by
the NPGES that can be appropriately targeted by tourism include lack of finance, lack
of training and self-esteem, lack of market knowledge, lack of labor, lack of
competitive advantage and lack of gender equality.

Tourism development can be targeted to alleviate poverty. By providing a source of
income to individuals and by creating a village fund from tourism revenues,
community-based tourism can improve access to credit and help poor individuals with
rising costs for products. By providing training and experience in managing tourism
and providing tourism services, tourism can help to improve self-esteem and improve
villagers‘ understanding of the market and commerce. By promoting the unique
attractions and skills of select rural communities, tourism can increase a community‘s
comparative advantage in services to offset lack of advantages in agricultural
production. Furthermore, through awareness building and training of women and
ethnic minorities, tourism promote gender balance and inclusion of low-income
minority groups.

The NGPES identifies the 47 poorest districts in Lao PDR. Of these districts, 29 are
located in the seven provinces targeted by the project. Houaphanh has seven of the
poorest district districts, Oudomxay six, Bokeo four, and Champasak, Salavanh,
Sayabouly and Vientiane each with three. Ten of these 29 districts were included in
surveys for CBT and supply chain products, including Ton Peung and Meung districts
in Bokeo Province; Viengthong, Xamtay, and Viengxay in Houaphanh; Hongsa and
Sayabouly in Sayabouly; Pakbeng and Beng in Oudomxay; and Feuang in Vientiane.
Of these ten districts where surveys were done, all but one, Feuang District in
Vientiane, were selected as sites for CBT and supply chain development.




                                                                                      43
For the purpose of identifying poor people and poor families to target, the project
uses data provided by village authorities on the number of poor families. The
definition of poor is a family that does not have enough food or resources to sustain it.
The Lao words used at the village level to describe poor families are kaup kua tuk
nyak and kaup kua ti kat keuan. All villages surveyed understood this definition and
had data readily available, which indicates this method of self-reporting is, in general,
reliable. This measure allows the project to also be able to target the poor of the poor
in every village, as it is the villagers themselves stating who in their village is the
poorest. Income was not used by the project as a poverty indicator due to variations
in calculation methods and uncertainty expressed by most village authorities in
providing this statistic.


6   Review of Gender Issues Regarding CBT and Supply Chain Interventions

6.1 Review of Gender Issues Regarding CBT Interventions
Typically at CBT sites in Lao PDR the main activities performed by women are
cooking, homestay service, traditional performance and handicraft production. The
project should continue to encourage women to participate in these activities. Guiding
is a service that very few women participate in (by their own preference) at the village
level. With more encouragement and agreements with tour companies to allow two
women guides to work together (most women village-based guides will not go alone)
participation by women as guides could be improved dramatically. Women rarely
participate in the overall management and decision-making about tourism at the
village level. This is due to the fact that such management and decision-making is
usually done by the village administration unit, which is predominately male
throughout the country. This is an area where gender balance should receive
attention by the project; as such decision-making bodies directly affect women. This
issue can, perhaps, be solved by creating a separate management committee for
tourism different from the village administration unit to include both women and men
from each tourism service group. Typically, transportation services such as boats,
elephants and tractors are operated exclusively by men. This gender imbalance is
likely a result of common division of labor and is unlikely to be changed by project
activities.

6.2 Review of Gender Issues Regarding Supply Chain Interventions
For centuries, producing handicrafts been performed by men and women to
supplement household income. With textiles, women take the leading role in most
production processes, for instance, gathering raw materials, cutting/spinning threads,
designing, weaving, selling and managing finances. In some Supply Chain sites, the
handicrafts production is organized by the Lao Women Union, which has designated
responsibilities to members to carry out handicrafts development. In another sites, a
woman who has connection with traders acts as a focal point to facilitate production,
management and selling. In the sites surveyed, most men have the mindset that
weaving textiles is women‘s work because men are meant to do hard work. In fact,
weaving textiles is hard work, which needs a lot of patience. For other types of
handicraft production, for example, alm sugar, pottery and tea & honey, men take part
in the production process and loosely assign some work to women.

In Lao PDR most women help husbands in rice farming, livestock raising and taking
care of children and in thier free time weave textiles or produce other sorts of
handicrafts to help support their families. The problem is that with large domestic
workloads, including time-consuming child-care, many women simply do not have
enough spare time to produce handicrafts commercially. One way to address this in
the mid to long term is to support family planning, which is often requested by rural


                                                                                      44
women. The work load of women can be shared with their husbands by having men
more deeply involved in handicrafts production process, for example material
sourcing and marketing if they are unableto perform the more technical skills at first.


7   Main Risks Identified and Mitigation Measures

7.1 Main Risks and Mitigation Measures to CBT Products
Risks to CBT development are considered for each specific site/product. A short
description of potential risks for investment in and development of CBT at each site
and suggested mitigation measures are listed below. Although there are many risks
related to each product, and to tourism in general in Lao PDR for that matter, this
assessment focuses on the highest priority risk for each site; risks are limited to those
that the project can potentially minimize by its own actions. Risks that are completely
out of control of the project, such as natural disasters and global economic
downturns, are not mentioned here.

7.1.1 Risks to Hang Khone 4000 Islands Community-based Ecotourism Site
The largest risk to Hang Khone tourism is that the dolphin population becomes too
low or even extinct. This would obviously cause a major downfall, if not complete
disappearance, of tourism at Hang Khone. Current threats to the dolphins include a
planned dam nearby, bad fishing practices (e.g. using explosives), and uncontrolled
boating in the area. There are mitigation measures in place to curtail the bad fishing
practices and uncontrolled boating; cross-border cooperation meetings between Lao
and Cambodian villages to discuss and agree upon measures to limit these activities
have been initiated. Regarding the dam, WWF is supporting the government to find
an alternative dam technology that would minimize impacts to the dolphins. STDP
should require that the local, provincial and national government institutions support
all of these initiatives in order to safeguard the dolphins and the project‘s investment
in at Hang Khone. WWF should be included in project activities related to
management and conservation of the dolphin

7.1.2 Risks to the Ban Sanone Trek and Tad Lo Guide Service Unit
The main risk related to the Ban Sanone Trek and Ta Lo Guide Service Unit is that
the private sector and local guides cannot agree upon how to operate a guide service
or inbound tour operation, hence no commercial enterprise is available to sell the
tourf. The former guide service collapsed over one year ago and remains non-
operational at this time. The collapse was due to coordination issues and cohesion
among the guides, guesthouses and tourism authorities. Finding a solution to this
problem will not be easy. It is important that this issue be tackled immediately and
that input and potential solutions come from the private sector and guides
themselves. Should the solution be a government-imposed, top-down solution, it may
not work. All options must be considered, even the possibility of there not being a
public-private guide service, but rather a completely private sector entity such as a
guesthouse or small tour operator running the tours.

7.1.3 Risks to Koun Lang Cave
The Koun Lang Cave currently has no tourists and will not have any until the road
between Luang Prabang and Vang Vieng is completed. Although the risk of the road
not being constructed is not great, it does pose the largest risk to this product.
Without the road completed, the cave will receive only modest numbers of tourists. It
is recommended that this point be communicated to authorities to get a clear picture
of when the road will be completed and assurance that it will be completed early
enough for project activities to take effect. Should the road be completed towards the



                                                                                      45
end of the 5-year project cycle, activities such as training will likely a weak impact as
villagers and project staff will have no time to monitor and improve quality of services.

7.1.4 Risks to Nam Fa Ecotourism Activities
The main risk to the Nam Fa Ecotourism site is the viability of the product itself. This
was the best of the three products surveyed; however, it is still not clear if it is a
strong enough attraction to produce the needed visitor volume to sustain itself.
Private sector involvement is the key to the viability of this site. Tour companies
interviewed endorsed this as the site to develop by the project; however, the level of
commitment of the private sector to selling these programs is yet to be seen. Finding
a tour company with the ability to sell adventure tours, e.g. rafting and trekking, will be
the most important element to the success or failure of this product. The provincial
tourism department has expressed a desire to create a guide service unit to sell this
tour. This would limit private sector involvement and commitment and perhaps stifle
the entrepreneurship and ownership necessary to sell this product. All options should
be considered and selection of an appropriate business model is one of the first
activities before going forward.

7.1.5 Risks to the Nam Kat Waterfall
The main risk to the Nam Kat Waterfall is poor management and lack of zoning.
Currently, the village does nothing to manage the site. The village is located quite far
away from the waterfall, which makes it inconvenient to manage it and keep it clean.
There are also many villages surrounding the protected area that are integral to
protecting it. In order to make this protected forest an attraction of a national or
international standard, these villages will all need to put in a lot of effort to help
protect the forest and bring back wildlife populations. There have also been proposals
to assign concessions of land near and around the waterfall for a resort. Such a
concession, if not sensitively designed, would potentially negatively impact the site‘s
natural attraction value and undermine the project‘s efforts to provide benefits to local
people. It is therefore recommended that a comprehensive management and zoning
plan be created for the waterfall early on to ensure that such negative developments
are not allowed to occur and that local villages in the area provide forest protection in
order to raise the attraction value of the waterfall to a national or international natural
park standard.

7.1.6 Risks to the Viengthong Hot Spring
The main risk to the Viengthong Hot Spring is development according to a flawed
design. No hot spring in Lao PDR has yet to be developed to a standard that is
attractive to international tourists. Hot springs developed for tourists in Lao PDR are
typically dirty and unhygienic and uncomfortable and difficult to bathe in. It is
important that the project invests time and resources resources to create a solid plan
for developing the hot spring that draws on experiences and examples from other
countries with well-developed hot springs.

7.1.7 Risks to the Pha Xang Area Ecotourism Destination
The main issue with the Pha Xang area ecotourism destination is making it
accessible for typical tourists. It is possible that the private sector could sell this as a
package tour. It is also possible that the tourists could travel ther independently. All
ideas for finding the best way to sell this trip, either through tour companies or to
backpackers, must be researched. Currently, Sayabouly Province has the lowest
number of international tourists among any northern Lao province. Finding a solution
to this problem will not be easy. A lot of trial and error must be performed to find out
what works. The project must be patient and try not to follow formulas used in other
provinces.



                                                                                         46
7.2    Main Risks Related to Supply Chain Products and Proposed Mitigation
       Measures
In line with CBT, risks to Supply Chain development are considered for each specific
site/product. A short description of potential risks for investment in and development
of Supply Chain at each site and suggested mitigation measures are listed below.
Although there are many risks related to each product, and to tourism in general in
Lao PDR for that matter, this assessment focuses on the highest priority risk for each
site; risks are limited to those that the project can potentially minimize by its own
actions. Risks that are completely out of control of the project, such as natural
disasters and global economic downturns, are not mentioned here; as such
information is of little use to project managers.

In general, the main risk for all products is a continuing loss of local knowledge of
production methods among the younger generation and quality control issues. There
is also a need to find stable markets for all products.

7.2.1 Risks to Ban Hinsou Palm Sugar
The main risk to Ban Hinsou Palm Sugar is low demand in local markets as locals opt
for processed sugar. Another risk is the reluctance of the younger generation to carry
on Palm Sugar production because it requires hard working and patience. The low
local demand can be tackled by promoting palm sugar in typical southern Lao sweets.
The Ministry of Information and Culture can help in promoting indigenous sweets in
different media. Selling the product to tourists visiting Don Khong is another option to
provide income to Palm Sugar producer. The provincial tourism department should
initiate a FAM trip for travel agencies and media to see Palm Sugar production and
put the Palm Sugar production in their tour programs. On conserving Palm Sugar
production, Ministry of Education can add Palm tree tapping in their vocational
curriculum.

7.2.2 Risks to Houay Houn Textiles
The main risk to Houay Houn Textiles is lacking of business skills and knowledge of
commerce. In Ban Houay Houn Textiles are already well-known in local markets and
among some tourists, but producers prefer selling medium-quality textiles in low
numbers at high price to tourists only. Sales to international tourists in the village
does not take place often, compared to sales opportunities that exist in the local
market to Lao people who wish to buy products regularly for personal use or resell
them to wholesalers and retailers. In producers‘ mind they may not understand the
concept of business capital and management: if they frequently sell textiles in large
amount to local markets, they will gain money to manage and run textiles production
consistenly. There is a need for basic business and marketing skills training to
encourage more steady production and sales to keep the weaving tradition alive here.

7.2.3 Risks to Khmu & Yao Handicrafts
The risk to Khmu & Yao Handicrafts relate to the completion of the road between
Luang Prabang and Vang Vieng and the current lack of knowledge about local
products produced here. Local producers are purchasing more and more factory-
produced goods and the younger generation is not learning how to produce baskets
and embroidery. Once the new road opens more and more consumer goods will flood
the area, making it even less likely youth will continue making handicrafts unless a
viable market can be found for them.

7.2.4 Risks to Ban Tor Lae Tea & Honey
The main risk to Ban Tor Lae Tea is forest encroachment at the natural tea garden
and loss of forest cover where bees can forage. Currently, tea is grown naturally,
thus, villagers just pick the tea from the areas they can access. In order to tackle this


                                                                                      47
problem, the project needs to help the village secure land tenure and develop harvest
guidelines for the tea garden. Another possible risk is that tea processing equipment
currently belongs to a local merchant so the project will need to work out how it will
work with the merchant or local people to add vale and raise income for the village
without causing conflict.

The main risk to honey is unstable quality and quantity of honey which causes
consumers to lose confidence in the product. Currently, bees are raised naturally and
production is unstable. In order to expand the markets to guesthouses, hotels,
restaurants on regular basis, the quantity must be increased and normalized.

7.2.5 Risks to Ban Yor Pottery
The major risk to Ban Yor Pottery is quality of pottery. Currently the pottery is not leak
proof: when water is put in at the first time, it will leak out, but after using it for 2-3
times, the leaking stops. Issues of quality control and normalizing production must be
addressed. Without steady markets the skill may not be transferred to youth. There is
also a risk the scenic landscape around the village will be degraded unless a plan
and regulations are created that designate where clay pits may be constructed.

7.2.6 Risks to Ban Saloei Textiles
The main risk to Ban Saloei Textiles is unstable quantity and quality. Currently, there
are growing complaints about product quality and while weavers are aware of the
problem, demand for lower-quality has them very busy producing large amounts of
textiles. Unless the village provides products for many market segments, they may
lose the higher end, value added buyers, therefore it is urgent that the project
introduces them to quality control in order to maintain their existing client base and
diversify.

7.2.7 Risks to Ban Viengkeo Textiles
The main risk to Ban Viengkeo Textiles is the dependency on supply of thread from
Thailand. It is understandable that Thai traders request producers to use Thai thread
to weave in order to meet their clients‘ demand and ensure availability of raw
materials, however, producers should try to use more local cotton. This problem can
be tackled by promoting local cotton production and helping to form market linkages.
Here we see raw materials being mostly outsourced, so knowledge of production
techniques lost. Without promotion of higher value added products produced from
local organic cotton, weaving may be the next thing to disappear from this area.


8     Priority CBT and Supply Chain Site Development Concepts

8.1    CBT Site Development Concepts

8.1.1 Hang Khone 4000 Islands Community-based Ecotourism Site
Activity Types   Boating, dolphin watching, homestay, camping, hiking, fishing,
                 local food, bicycle riding
Priority Market  Free independent travelers interested in tourism programs that
                 benefit local people and the environment
Secondary Market Small groups of tourists, such as student groups or specialty
                 tour company groups, who are interested in an educational
                 experience in contrast to the backpacker experience

The concept for the Hang Khone Community-based Ecotourism Site is to create a
model for community-based ecotourism on Don Det/Don Khone that uses natural and
cultural tourism to support the conservation of natural and cultural resources


                                                                                        48
sustainably and to spread the benefits from tourism to low-income households. CBT
in Hang Khone will provide an alternative to backpacker tourism found throughout
Don Det/Don Khone in such a way that benefits the natural environment, promotes
local culture without imposing Western influences, and brings positive monetary and
non-monetary benefits to local people.

Boat trips from Hang Khone to visit dolphins will have both an educational and
conservation value by providing important information about the dolphins and
including fees that will benefit villages that are responsible for protecting the dolphins.
Boat trips will observe a strict safety standard and strict environmental standards as a
model for other boat associations in the region to follow. A watchtower will be built on
the mountaintop of the Hang Khone forest conservation area, providing sweeping
views of the southern end of the Mekong Islands and Cambodia. A new bike trail will
be created to Khone Yuak Island, by connecting the small island to the main island by
a suspension bridge—the first of its kind in the 4,000 Islands. A plan for developing
the small island in an ecologically sensitive manner will be written in order to attract
private investment for an ecolodge and a restaurant while maintaining its natural
landscape. Most low-income families in Hang Khone currently live on Khone Yuak;
hence, the plan will be designed to ensure that such families are included in all
private sector developments. Homestay in the village will also be promoted as an
alternative accommodation to the backpacker scene on the other end of the island.
Ban Hang Sadam will be included as part of the ecotourism activities as the location
for lunch stops during boat tours to see the dolphins; here tourists will enjoy a local
meal prepared by low-income families. Tourists will also have the option to camp
overnight on Hang Sadam in the public forest situated along the banks of the Mekong
River. Fishing trips with local fishermen from Hang Khone and Hang Sadam will be
developed to provide an additional, more experiential activity that promotes local
culture and creates an additional source of income for families not included in the
boat association.

Proposed Activities
    Planning:
         o A management and investment plan for Don Khone Yuak that ensures
             that the island is developed so that local people receive benefits and
             that tourism is not overdeveloped and takes measures to protect the
             environment and landscape.
         o A management and investment plan for developing eco-
             accommodation in Ban Hang Sadam in order to benefit local people
             and dolphin conservation.
    Infrastructure:
         o A suspension bridge to Don Khone Yuak.
         o A trail and view point tower atop the forested conservation area.
         o Toilets for homestay families
         o A toilet and water facility for camping site at Ban Hang Sadam
    Training:
         o Homestay training
         o Training for restaurant owners to improve services
         o Training to improve boat safety and service
         o Chicken raising training to help improve chicken production.
         o Cooking training and campsite management training at Ban Hang
             Sadam
    Development Fund:
         o A fund from tourism revenues to help support village development will
             be created.



                                                                                        49
          o A fund from boat trips to support dolphin conservation.
      Marketing and Promotion:
          o Signage to the village and other important locations around the island
             to make manage tourist flows, provide cultural and environmental
             information and enhance the tourist experience.
          o A fold-out sustainable tourism brochure guide to Don Det/Don Khone
             that highlights ways in which tourists can help local people, adhere to
             cultural norms, and support protection of the environment. The
             brochure will highlight activities of the model Hang Khone CBT village.

8.1.2 Ban Sanone Trek and Tad Lo Guide Service Unit
Activity Types   Overnight trekking, extended homestay, one-day village
                 excursions, shopping at traditional ethnic night market
Priority Market  Free independent ecotourists who are interested in trekking
                 programs to ethnic villages that benefit local people
Secondary Market Tad Lo overnight visitors looking for one-day activities and
                 activities in the evening

The Sanone Trek will be developed as a model CBT trek that the private sector and
tourism authorities in the Tad Lo area and the southern provinces can learn from and
follow; this model will take into the cultural, environmental and socio-economic
uniqueness of the south, comparable with model trekking areas in the north such as
Luang Namtha. The trek will benefit both Sanone and Kanouane villages by including
village guides, snacks and a gift from Sanone Village and lunch and activities with
school children in Kanouane Village. The trek will create provide revenues to support
small-scale village development activities or micro credit. An extended homestay
and/or overnight trek to Kanouane village and/or other nearby villages will be
developed for those tourists or small educational groups interested in learning about
and participating in village agricultural systems. Activities may include helping families
to prepare rice fields and plantations, livestock raising, and fish farming.

The program will also assist the Tad Lo Guide Service Unit to create a quality guide
service that is a model for village-private sector cooperation and for providing quality
tour services. Low-income people from Ban Senvang will be included in guide training
in order to create a sustainable pool of local guides. A visitor information centre and
handicraft sales centre will be built at Tad Lo in order to promote both CBT tours and
a wide selection of local handicrafts from the area. Improvements to the local market
will also be made in order to support the sale of unique ethnic products and to create
a night market that will attract tourists to stay overnight.

Proposed Activities
    Planning & Regulations:
         o A plan to create a natural waterfall park at Tad Lo in order to protect it
             from over-development and the negative impacts of tourism.
         o Regulations and guidelines to manage community-based tourism in
             the Tad Lo area and Salavanh Province that ensures benefits to
             villages and minimizes negative impacts on local cultures.
    Infrastructure:
         o Information and handicraft centre at Tad Lo
         o Toilets in Kanouan village
         o Toilets in Kanthong village
         o Signage to major village tourism attractions in Tad Lo area to create
             walking, bicycle and motorcycle touring routes
         o Improvements to the local market to create ethnic night market



                                                                                       50
      Training:
          o Tourism Awareness: All villages along the trek and in Tad Lo will
              receive tourism awareness training to help them understand how to
              minimize negative tourism impacts and maximize their cumulative
              benefits from tourism.
          o Guide Training: Guides from Ban Senvang will be trained in guiding
              techniques as well as language skills to create a team of 5-10 highly
              qualified trekking guides who will work from the visitor centre and/or a
              local tour company.
          o Village Guide Training: Village guides from Sanone and Kanouan
              villages will be trained.
          o Cooking: Poor families in Kanouan and Kanthong villages will be
              trained to provide local and international food to tourists.
          o Homestay: The poorest families of Kanthong village will be trained in
              homestay service.
          o Community-based Ecotourism Training for the Private Sector:
              The private sector will be given the opportunity to learn about CBT and
              upgrade their skills.
      Marketing:
          o A guide to the Tad Lo area and Salavanh Province highlighting the
              Sanone trek, the Tad Lo waterfall park, the night market, handicrafts,
              touring routes and other community-based tourism activities
              throughout the province.

8.1.3 Koun Lang Cave
Activity Types   Caving, picnicking, handicraft shopping, nature walks, rest stop
Priority Market  Domestic tourists or regular citizens traveling between Vientiane
                 and Luang Prabang
Secondary Market Small groups of international and regional tourists traveling by
                 private vehicle

The Koun Lang Cave will be developed as the main attraction and stop-off point for
tourists, both domestic and international, traveling along the new Route 13 bypass
between Luang Prabang, Vang Vieng and Vientiane, taking over Kasi as the main
stop for tourists. The cave will be promoted as a substitute to visiting caves in Vang
Vieng for visitors who either have limited time or no interest in visiting the backpacker
haven of Vang Vieng. The forest below the cave will be created as a picnic area
where local people will provide both local and international foods. The Houay San
and Thong Meut will also earn income by collecting entrance tickets to the cave,
collecting parking fees, and renting out helmets and headlamps, and selling ethnic
Khmu and Yao handicrafts. Local guides will be available to groups who require
interpretation and assistance. The model for managing the cave and spreading the
benefits will be based on the experience of Ban Nathong in Vang Vieng, requiring full
participation of village residents and maximizing the benefits to all. A conservation
area will be created to include the old growth jungle that encompasses the cave and
nature trail in order to create a model for tourism development and environmental
protection.

Proposed Activities
    Planning & Regulations:
         o A conservation area for the cave and surrounding old growth forest will
            be created to ensure that the natural beauty of the area is protected.
         o A site management plan for the area will be written with participation
            from the village, officials and private sector tour companies‘ to ensure



                                                                                      51
            that local people benefit from the site and that it is preserved and not
            negatively impacted by tourism.
   Infrastructure:
        o Improve access road: The access road to the cave must be improved
            to allow for non-four wheel drive cars
        o Parking lot: A parking lot at the entrance will be constructed that will
            allow vehicles to flow to and from the site without creating congestion
            and with a parking structure that keeps them out of the sun.
        o Trail improvement: The trail leading up to the cave will be improved
            to make it as easy as possible, including steps and handrails the entire
            way as well as footbridges at stream crossings.
        o Informational signboards at the entrance to the walking trail and at
            the entrance to the cave will be constructed to educate tourists about
            the site. Trees and other natural attractions along the walking trail will
            also be labeled in Lao and English to increase the educational value of
            the site.
        o Ticket Booth and Food & Beverage Sales Area: A ticket booth will
            be located at the entrance to the site. This will also be the area to get a
            local guide or rent a headlamp.
        o Picnic Area: A picnic area will be created just inside the forest so that
            picnickers can enjoy the forest shade, yet not too deep in that it will
            create negative impacts. This site will be managed by the village to
            ensure that tourists do not dispose of waste improperly. The picnic
            area will have a toilet, a washroom and running water. A separate
            small trash dump area will be constructed.
        o Inside the cave: Stairs and ladders will be reconstructed to allow for
            safe and easy access inside the cave. Solar lighting will be installed in
            most of the rooms to enhance the viewing experience and increase
            safety.
        o Street signs: Large signs along the highway before both entrances to
            the village and at the entrance to the access road will be constructed
            to promote the site.
   Training:
        o Tourism Awareness: Houay San and Thong Meut villages will learn
            from the experiences, both good and bad, of villages in Vang Vieng in
            order to build awareness and understanding of how to deal with
            tourists and develop tourism sustainably.
        o Guide Training: Tour company guides will be trained and familiarized
            with the cave and village, including do‘s and don‘ts, interpretation of
            geologic features, and coordination with villagers.
        o Village Guide Training: A group of ten villagers will be trained in
            guiding techniques and interpretation of the cave, the forest and ethnic
            village attributes.
        o Cooking: A group of ten villagers will be taught how to prepare a
            variety of snacks and lunch dishes for sale to tourists at the site or in
            homestay.
        o Safety: Villagers will be taught how to take care of visitors in the event
            of an accident and how to minimize the chance of accidents.
        o Transportation: Villagers will receive training on how to improve
            tractors to make them comfortable and safe in order to send tourists
            from the main road to the start of the walking trail.
        o Handicrafts and Souvenirs: Villagers will learn how to produce
            appropriate handicrafts and souvenirs for sale at the cave.
   Marketing:



                                                                                    52
           o   Fam Trips for local tour operators.
           o   Fam trips for guidebook writers and regional/international tour
               operators
           o   Handbook to the cave will be written and produced, which can also be
               sold as a souvenir to tourists.
           o   A website or webpages on www.ecotourismlaos.com and other public
               sites will be created for Vientiane Province, which will promote Koun
               Lang Cave and all other CBT sites in the province.
           o   A brochure that details the cave and promotes other CBT sites in
               Vientiane Province will be produced and given for free in Vientiane
               Capital, Vang Vieng and Luang Prabang.

8.1.4 Nam Fa Ecotourism Activities
Activity Types   Trekking and camping, rafting, biking, one-day cultural village
                 tour, and homestay
Priority Market  Free independent travelers looking for adventurous activities
                 and a village experience
Secondary Market Group tourists interested in a one-day cultural excursion

Ban Nam Fa Village is located 51 km north of Houayxai in Ton Peung District. The
village is a Black Lahu village and is one of the poorest villages in the province. The
village will be developed as the starting point for treks and camping trips to Phou Pha
Daeng and Phou Nya Kha mountains, which both have panoramic views of the
Golden Triangle. Adventure tourists will also have the opportunity to raft down the
Nam Keung River starting from Nam Fa. Rafting, trekking and camping can be
marketed as an alternative community-based ecotour to the Gibbon Experience,
which is operating at maximum levels. A one-day cultural village and handicraft tour
to visit the ethnic Black Lahu, White Lahu, Tai Dam and Tai Lue villages of Nam Fa,
Nam Tee, Don Ngern and Mai Pattana will be packaged for group tourists or
independent travelers looking for a one-day activity from Houayxai..

Treks and rafting trips will be operated in partnership with tour companies, with
oversight and coordination from the provincial tourism department. Tour companies
will sell one-day cultural tours as well in coordination with the provincial tourism
department to ensure that guidelines for low impact, suitable travel are imbedded in
the program. Developing ecotourism in the Nam Fa area will used as a model for
using tourism to alleviate poverty Bokeo.

Proposed Activities
    Private Sector Partnership:
         o Survey of trekking to Phou Pha Daeng and/or Phou Nya Kha with
            private sector tour companies.
         o Survey of rafting from Nam Fa village down the Nam Keung with
            private sector tour companies.
         o Survey of one-day cultural tours with private sector tour companies.
         o Selection of private sector tour companies and agreement on
            responsibilities of private sector tour companies in operating trekking
            tours, rafting tours and cultural tours, including details on marketing
            responsibilities and guidelines on village inclusion in tours.
    Planning & Regulations:
         o Guidelines for managing and spreading benefits from tourism in the
            village.
         o Guidelines for low impact trekking on Phou Pha Daeng/Phou Nya Kha
            and rafting on the Nam Keung.



                                                                                    53
      Infrastructure:
           o Village information centre and Lahu ethnic display: Construct an
               open visitor centre in Nam Fa village where tourists can get a guide or
               book a homestay. The centre should have displays of the Lahu ethnic
               group, the surrounding area‘s natural and agricultural environment and
               village history and livelihoods. Handicrafts and food can be promoted
               or sold from the centre, as well.
           o Handicraft sales centres in Nam Tee, Don Ngern and Mai Pattana
               villages will be built to promote sales of ethnic handicrafts and inform
               tourists about cultural traits of each unique ethnic group and village.
           o Trekking Trail: Cut a good trekking trail to Phou Pha Daeng and Ban
               Lao Louang or Ban Panna, and to Phou Nya Kha for overnight
               camping trips to Meuang Meung. Create camping sites on each trail at
               scenic locations where the Golden Triangle or other unique attractions
               can be viewed on sunrise or sunset.
           o Toilets for homestay: Toilets for a select group of homestay families
               should be built to enable families to host tourists.
           o Street signs: Signs directing tourists along the route to Nam Fa and at
               stops to visit cultural villages will be constructed. Signs to other major
               tourism sites along roads in Bokeo can also be included to create a
               theme for one-day tour routes starting from Houayxai.
      Training:
           o Tourism Awareness: Nam Fa and select villages along the route to
               Nam Fa should receive awareness training to prepare them for the
               good and the bad of tourism and empower them to maximize their
               benefits from tourism.
           o Guide Training: Guides from Houayxai town will be trained in
               interpretation of and sensitive coordination with ethnic villages in the
               surrounding area. Trekking and rafting training, as well as training in
               low impact tourism should also be provided.
           o Village Guide Training: A group of ten villagers will be trained in
               guiding and camping techniques for taking tourists and treks in
               surrounding mountains.
           o Cooking: A group of ten villagers from each village will be taught how
               to prepare a variety of snacks and lunch dishes for sale to tourists at
               each village.
           o Homestay: A group of ten to twenty families in Nam Fa will be taught
               how to provide homestay services to tourists.
           o Handicrafts and Souvenirs: Villagers will learn how to produce
               appropriate handicrafts and souvenirs for sale.
      Marketing:
           o Fam Trips for local tour operators.
           o Fam trips for guidebook writers and regional/international tour
               operators
           o A brochure and map detailing activities at Nam Fa, which also
               promotes other CBT activities in Bokeo Province.
           o A website or webpages for Bokeo Province
           o Sponsor the Lao national ethnic games to promote the ethnic diversity
               of Bokeo Province.

8.1.5 Nam Kat Waterfall
Activity Types   Picnicking, nature appreciation, hiking, camping
Priority Market  Weekend domestic tourists
Secondary Market International tourists with one day to spend in Oudomxay



                                                                                      54
The Nam Kat Waterfall and Houa Nam Kat Conservation Area will be developed to
allow easy access by domestic and foreign tourists. Nam Kat will become a model for
sustainable management of a natural attraction for domestic tourists, managing waste
and the flow of visitors to area. Villagers will be allowed to sell entrance tickets from a
ticket office conveniently located at the edge of the village. It will be designed to
improve villagers‘ abilities to benefit from the waterfall and to manage it sustainably.
Here the villagers will also sell food, drinks and handicrafts. The village will be
responsible for keeping the site clean regularly and enforcing the rules of the
protected area. A portion of fees collected from tourists will be shared with other
villages that are part of the conservation protection plan. Information at the site will be
created to increase environmental awareness about the waterfall and forest for both
domestic and foreign visitors. An extended walking trail and camping area will be
created to increase the number of activities possible at the site and encourage
visitors, both domestic and foreign, to spend more time at the site and purchase more
goods and services from the village.

Proposed Activities
    Infrastructure:
         o Culverts at four main river crossings along the road
         o Foot bridges at two stream crossings along walking trail to the
             waterfall
         o Ticket office at exit of the village en route to the waterfall, with a
             barrier or gate to make it clear to tourists to stop and purchase a ticket
         o Sales area with roof for selling snacks and drinks at the entrance to
             the walking trail
         o Informational signs at the entrance to the walking trail and along the
             trail to interpret the forest, the waterfall and other natural attractions
         o Viewing platform set against the mountainside for viewing the
             waterfall, with stairs to allow for people of all ages and abilities to enjoy
             the waterfall view. The platform should not intrude on or block any part
             of the waterfall view or the natural beauty of the site.
         o Waste Dump will ensure proper disposal of waste collected at the site.
             The dump should not be inside the protected area.
         o Camping site and extended walking trail loop should be created to
             allow for longer trips, educational tours and low-impact camping.
    Planning & Regulations:
         o Management plan and regulations for the waterfall that detail how
             villagers will manage the area, keep it clean and spread its economic
             benefits within the village and with other villages responsible forest
             protection. The plan will detail where cars are to be parked, where
             tourists can and cannot eat, where villagers can and cannot sell food,
             and zones for non-development, low-impact development and
             commercial development.
    Training:
         o Tourism Awareness: Villagers of Ban Faen will receive awareness
             training to prepare for handling the positive and negative aspects of
             tourism and to empower them to benefit from tourism.
         o Management Training will be provided to villagers involved in daily
             management of the waterfall.
         o Food preparation training will be provided to a group of villagers
             interested in selling snacks and food to tourists in order to generate
             income from the site.




                                                                                        55
           o Handicraft training will identify handicrafts and souvenirs that the
             village can produce and sell to tourists.
          o Village Guide Training will teach local guides how to interpret the
             forest, lead educational tour groups and manage camping trips.
      Marketing:
          o Fam Trips for local tour operators, local guesthouses and hotels.
          o A brochure and map detailing activities in Oudomxay Province
             highlighting one-day activities around Xay town, including the Nam Kat
             Waterfall.
          o Updates to provincial information and website.

8.1.6 Viengthong Hot Spring
Activity Types   Hot spring bathing, traditional massage, sauna, purchase of
                 traditional medicines, natural foods and textiles, ethnic cultural
                 music programs in the evening
Priority Market  All domestic and international tourists passing through
                 Viengthong
Secondary Market All other people passing through Viengthong

The Viengthong Hot Spring will be developed as the first model hot spring in Lao
PDR, which takes special advantage of the surrounding natural environment and
cultural resources. Both public and private bathing areas will be constructed, and an
area for local people will created that allows them to continue using the spring for
free. A ticket office at the front will have some information about the spring and sell
natural soaps, natural medicines, locally woven towels and clothing, and other local
products. Massage and sauna will be available at the site to create the complete
natural spa experience. All of these services will be provided by low-income people
from the four nearby villages, who will be trained by the project in management,
cleaning, traditional massage and production and packaging of local products. The
area around the spring will be protected by a barrier, which will be designed in
keeping with the natural landscape, in order to keep out trash, manage visitor flows,
and keep small children and animals from falling into the boiling hot water. A fund
from the hot spring ticket sales will be used for infrastructure and site maintenance
and to support small-scale community development projects. The forest surrounding
the hot spring will be used to educate school children about conservation by through
a ‗school forest‘ program.

The hot spring will be promoted as one of the main attractions of Viengthong and
Houaphanh, in conjunction with wildlife viewing and trekking in the Nam Et-Phou
Loey NPA. The project will also support villagers to put on evening cultural programs,
as well as selling local foods and handicrafts along the road, in order to broaden the
tourism experience in Viengthong and increase local benefits.

Proposed Activities
    Infrastructure:
         o Baths: Public and private baths will be created in keeping with the
             natural landscape in such a way that maximizes bathing enjoyment
             and hygiene. An area for local people to bathe for free will also be
             created.
         o Fence: A barrier around the hot spring will be created to minimize
             waste at the site, ensure tourists purchase a ticket to enter, and to
             keep children from falling into the boiling hot water.
         o Ticket and information office: An office at the front of the site will be
             built and managed to sell entrance tickets and local products that are



                                                                                    56
              useful to bathing and health. Information about the geological
              formation of the hot spring will also be posted.
          o Sauna and massage area will offer traditional Lao massage and
              herbal sauna using local herbs collected from the jungle
          o Bathroom and changing rooms: An area for changing clothes and
              using toilets will be built to ensure culturally appropriate bathing and to
              maintain cleanliness.
      Planning & Regulations:
          o Management plan and regulations: A management plan for the site
              will be created in cooperation with district and village authorities that
              maps out how the site will be managed and how benefits will be
              distributed. The plan will also describe how the site should and should
              not be developed.
      Training:
          o Hot Spring Planning and Management Training for Officials:
              Officials will be taught about how hot springs should be developed and
              managed at international standards.
          o Tourism Awareness: Villagers in the four villages will receive
              awareness training to prepare them for the positive and negative
              impacts of tourism and to empower them to benefit from tourism.
          o Management Training will be provided to villagers involved in daily
              management of the hot spring.
          o Massage Training: 10-20 villagers will be trained in traditional
              massage techniques. They will be employed at the site and by private
              sector guesthouses.
          o Handicraft development: Local people will learn how to design
              appropriate handicrafts for sale at the hot spring, including local
              towels, soaps, and traditional medicines.
          o Cultural program development training will be provided to local
              people in order to develop evening cultural programs for tourists, such
              as traditional music, song, dance and storytelling.

      Marketing:
          o Marketing materials for Viengthong District and Houaphanh Province
             will be created to market the hot spring as one of the main attractions
             in the province
          o An opening day/week for the hot spring will invite key hotel and spa
             owners and experts from Luang Prabang and around the region and
             media to enjoy the site in conjunction with tours to other sites in
             Houaphanh.
          o A fam trip to Houaphanh Province that includes activities at
             Viengthong will promote the hot spring as an essential part to all tour
             packages to Houaphanh Province.

8.1.7 Pha Xang Area Ecotourism
Activity Types   Boating, trekking, mountain biking, rafting, caving, medicinal
                 plantation tour, gold mining
Priority Market  Backpackers looking for a unique alternative cultural and natural
                 tourism experience far away from the crowds of Vang Vieng and
                 Luang Prabang
Secondary Market Tourists passing between Hongsa and Luang Prabang looking
                 for a one-day activity




                                                                                      57
The Pha Xang area will be developed as the main area for tourism activities starting
from Sayabouly town for tourists who are either looking for a do-it-yourself ecotourism
activity far away from the crowds of Luang Prabang and Vang Vieng or for tourists
passing between Hongsa and Luang Prabang looking for a half- or one-day
excursion. Tourists will have many options to choose from. Mountain bikes, which will
be available for rent from guesthouses and the provincial tourism department, can be
ridden out to Nathang and Keo villages for an overnight homestay and caving with
village guides. Tourists can then choose to either return by bike or put their bikes in a
long-tail boat, go down the Nam Phui and Namkong rivers to Pak Hoong, from where
they can ride back to town. They can also choose to do this trip by combination of
foot with vehicle transfer to and from the village starting points. For tourists looking for
one-day options, there are the traditional medicinal plant forest, which will be
developed with interpretation signs and brochures, a natural shrimp pool and gold
mining (panning) at Pak Hoong village. This tour can be done alone or with a guide.
For the adventurous, tourists will be able to ride a raft with a village guide from
Naxam village to Pak Hoong for a half-day trip. All activities will include local food,
local guides, local souvenirs and local homestays to ensure benefits to low-income
people. Entrance to caves will require a local guide and entrance fee, which will
support upkeep and create a fund for small-scale village development. To encourage
more tourists to stay overnight in Sayabouly, a night market will be created in
Sayabouly town, which will promote local food and goods.

Proposed Activities
    Infrastructure:
         o Medicinal plantation ticket booth and interpretational displays: A
             ticket office will be created to ensure that the medicinal plantation has
             revenue from tourism. Interpretational displays will be created to
             enhance the experience.
         o Toilets for homestay families and rest stops: Toilets will be
             constructed in Keo and Nathang village homestay families. Public
             toilets will be constructed at key sites and villages along the Pha Xang
             tour route.
         o Night market: A night market in Sayabouly town will be organized to
             promote local products and provide a lively nighttime environment for
             local people and tourists to enjoy.
         o Lights and stairs will be installed in main caves in the Pha Xang area
             to enhance the visual experience and improve safety.
         o Trail improvement: Trails leading to caves will be improved so that
             access is easy and safe.
         o Signs will be made along the Pha Xang tourism route to make do-it-
             yourself tours possible and enjoyable
    Planning & Regulations:
         o Management plan and regulations: A management plan for the site
             will be created in cooperation with district and village authorities to
             determine how the site will be managed and how benefits will be
             distributed.
    Training:
         o Tourism Awareness: Villagers in the four villages will receive
             awareness training to prepare them for the positive and negative
             impacts of tourism and to empower them to benefit from tourism.
         o Management Training will be provided to villagers involved in daily
             management tourism at each village and site.
         o Guide Training will be provided to village guides from each village to
             lead rafting tours, boat tours, cave tours and walking tours.



                                                                                         58
              o  Handicraft development: Local people will learn how to design
                 appropriate handicrafts for sale at key villages.
              o Cultural program development training will be provided to local
                 people in order to develop evening cultural programs, such as
                 traditional music, song, dance and storytelling.
              o Massage Training: 10 villagers will be trained in traditional massage
                 techniques from each homestay village (Keo and Nathang).
          Marketing:
              o Marketing materials for Sayabouly Province will be created to market
                 the all tourism attractions including Pha Xang.
              o Fam Trips for local tour operators, local guesthouses and hotels.
              o A brochure and map detailing activities in Oudomxay Province
                 highlighting one-day activities around Xay town, including the Nam Kat
                 Waterfall.
              o Website

8.2       Priority Supply Chain Development Concepts

8.2.1 Traditional Palm Sugar production on Don Khong
Activity Types     Taking part in Palm Sugar making, tasting and buying
Priority Market    Free independent travelers interested in tourism programs that
                   benefit local people and the environment
Secondary Market Small groups of educational tourists, such as student groups or
                   specialty tour company groups, who are interested in an
                   educational experience in contrast to the backpacker
                   experience.
                   Groups of Laotian students to learn traditional way of life and
                   making Palm sugar

The concept for the Traditional Palm Sugar production is to sustain the indigenous
career and way of life. In addition, it provides tourists traveling to Don Khone a
chance to taste a local food product and an alternative relaxed tour program. The
alternative tour program to see palm sugar production will provide an alternative to
backpacker tourism found throughout Don Det/Don Khone in such a way that benefits
the natural environment, promotes local culture without imposing Western influences,
and brings positive monetary and non-monetary benefits to local people. For Lao
youth, it will promote knowledge of Palm Sugar and local knowledge. In producing
Palm Sugar, one needs to be patience and eager to go through time consuming
production process. This will provide a good lesson learn for young generation to
apply in their life.

Trips to Ban Hinsou to see and join the simple process of palm sugar making e.g.
putting liquid palm nectar in a bamboo container before it is bolied down to make
sugar will be interesting for both local and international tourists, who will be goven the
opportunity to purchase the raw sugar directly from producers.

Proposed Activities
    Planning:
         o A management and investment plan for developing an easy walking
            trail, toilet and signage for tourists to see Palm Sugar Production at
            selected Palm Sugar producer homes/palm groves.
         o A management and small amount of investment on traditional
            equipment for Palm Sugar Production.




                                                                                       59
           o   A plan to select Palm Sugar producers‘ homes to demonstrate Palm
               Sugar production process to tourists.
      Infrastructure:
           o An easy walking/biking trail for tourists.
           o Toilets for tourists on Don Khong Island.
           o Signage to the village and other important locations around the island
               to manage the tourists flow.
           o Signage in the village to direct tourists to selected Palm Sugar
               producer‘s homes.
           o Producers should be encouraged to provide chairs and tables for
               tourists at their home where sales take place, as well as provide a
               basic level of hygiene when serving juice and sugar.
      Training
           o Customer service and hygiene.
           o Packaging training using local materials.
           o Training to improve small business management.
           o Training to improve selling skills.
           o The project should support a vocational training of palm tree tapping
               and sugar production to ensure that young people carry on the
               traditional career.
           o Guide Training: A group of ten villagers will be trained in guiding
               techniques and interpretation of the Palm Sugar and village attributes.

      Marketing and Promotion:
          o Lao and English interpretation information explaining history and
             importance of Palm Sugar to Lao cuisine; information on what type of
             cooking palm sugar and juice are used for. The signs will be displayed
             in the main demonstration area, which are near selected producer‘s
             homes.
          o Simple packaging that is cheap and easily reproduced witth labels.
             This will help promote the product, increase sales on site and in
             markets, and will help educate customers about the product
          o Fam Trips inviting Ministry of Information and Culture, local schools,
             international media based in Lao P.D.R and travel agencies.
          o A poster or foldout brochure detailing the Khong Island tour route with
             specific highlights about Hinsou palm sugar and textile production
             should be produced and posted in all local guesthouses and hotels. It
             should also be posted on a common Lao tourism websites.

8.2.2 Ban Houay Houn Textiles
Activity Types   Simple textiles weaving, Learning traditional Katu Lifestyles,
                 Textiles shopping. More trade with potential middlemen.
Priority Market  Backpackers interested in alternative tour of southern Lao ethic
                 lifestyles and educational travelers wish to explore authentic
                 Katu textiles.
Secondary Market Lao students and Lao merchants.

Ban Houay Houn Textiles will be developed as part of a tourism network with with
Tad Lo and as a model for Supply Chain development. The village will be an ideal
place for tourists who are eager to learn about history of Katu textiles weaving and try
out weaving techniques. It is one of the ways to conserve the southern Lao heritage
through tourism. The village will organize weaving classes and receive assistance to
document traditional weaving techniques and local knowledge.




                                                                                     60
For Supply Chain development related to trading, Ban Houay Houn‘s textiles are well-
known and production process is already in place. To expand the market, Ban Houay
Houn needs a more linkages with traders and some design and quality control
assistance.

Proposed Activities
    Planning & Regulations:
         o A management plan for the development of Ban Houay Houn Textiles
             Centre.
         o A plan to connect Ban Houay Houn with Department of Commerce
             and Industry, Ministry of Information and Culture and Lao Handicraft
             Association.
         o A plan to select Ban Houay Houn producers‘ homes to show
             production process to visitors and tourists.
         o A detailed plan on what aspect of Katu ethnic wisdom will be gathered
             from Houay Houn‘s elderly.
         o A detailed plan to initiate cotton growing and natural bead making.
         o Regulations: a plan will be created for the establishment of a
             development fund and organization of a weaving group. This will be
             done incorporation with district and village authorities to determine
             how the centre will be managed and how benefits will be distributed.
    Infrastructure:
         o A Simple Display Shop: The simple display shop will be upgraded
             from the existing one located right in front of the village. In the display
             shop, interpretation information of the importance of Houay Houn
             Textiles to Katu ethnic and Katu ethnic wisdom will be placed. The
             information will be written in Lao and English. It will also sell Houay
             Houn textiles.
         o Trail Improvement: Easy walking trails for visitors to walk around the
             village and see each process of textiles production will be constructed
             to replace muddy trails.
         o Signage: In the village, signage will be made to direct tourists to
             selected Houay Houn Textiles producer‘s homes to experience textiles
             production process and simple weaving.
         o Toilets: toilets will be built at Ban Houay Houn.
    Development Fund:
         o A small ―tax‖ on textile sales will be collected and saved up in the
             development fund to operate the centre and use in village
             development activities.
    Producing Manuals & Research:
         o A Katu ethnic wisdom book will be produced and placed at the display
             shop and perhaps at a central library in Vientiane.
         o The guidelines of basic management, green business and team work
             will be made available for Houay Houn‘s textiles producers to learn.
    Training:
         o Green Business Awareness/Related Trade Regulations: Ban
             Houay Houn textiles producers will receive awareness trainings on
             green business including the use of natural material and related trade
             regulations to support their textiles production.
         o Team Work Training will be provided to villagers and related public
             sector authorities involved in cooperatively managing and promoting
             Houay Houn textiles.




                                                                                     61
           o Marketing Training covers 4Ps (Product: quality control/design,
             packaging; Price: cost, competitive cost; Place: channels to market the
             product; Promotion: what tools will be used to market the product).
          o Guide Training: A group of ten villagers will be trained in guiding
             techniques and interpretation of Katu textiles and ethnic village
             attributes.
          o Textiles Weaver Guide Training: A group of 5 producers will be
             trained to show tourists how to weave a simple textile while visiting the
             village.
      Marketing:
          o Interpretation signs provide history and importance of Houay Houn
             Textiles and information on the Katu ethnic group.
          o Simple packaging and a logo that reflects the ethnic identity and name
             of producers will be created to advertise the textiles.
          o Fam Trips inviting Ministry of Information and Culture, local schools,
             press and local tour operators.
          o Trade Fam Trips inviting Department of Commerce and Industry and
             potential traders.
          o A poster or foldout brochure detailing Ban Houay Houn textiles tour
             route should be produced and posted in all local guesthouses and
             hotels. It should also be posted on a common website for tourism, e.g.,
             (www.ecotourismlaos.com).
          o Attend trade fairs organized by Department of Commerce and Industry
             or Lao Handicraft Association.

8.2.3 Khmu & Yao Handicrafts at Koun Lang Cave
Activity Types   Handicrafts shopping, Learn Khmu & Yao lifestyles, Rest stop
Priority Market  Domestic tourists or regular citizens traveling between Vientiane
                 and Luang Prabang.
Secondary Market Small groups of international and regional tourists traveling by
                 private vehicle.

Along with CBET development at Koun Lang Cave, Khmu handicrafts of Ban Thong
Meut and Yao Embroidery of Ban Houay San will be developed and promoted – sold
on site and linked to markets in Luang Prabang & Vientiane. Ban Thong Meut and
Ban Houay San will offer tourists small handicrafts souvenirs representing Khmu and
Yao identities. However, the development model for these two villages will be more
than just a rest stop and selling Khmu and Yao handicrafts to tourists visiting Koun
Lang Cave; it will conserve Khmu and Yao ethnic identities through the creation of
books that gathered Khmu and Yao wisdom. The ethnic wisdom will be translated into
interpretation information that will be exhibited at a display shop. The Khmu and Yao
books will also be shown at the display shop and perhaps a central library in
Vientiane.

Proposed Activities
    Planning:
         o A plan for the development, marketing & promotion of Khmu and Yao
             Handicrafts
         o A detailed plan on what aspect of Khmu and Yao ethnic wisdom will be
             gathered in the villages.
    Infrastructure:
         o A Display Shop/Local Market: The display shop will be located near
             the cave‘s parking/service area. It will show and sell visitors authentic
             Khmu and Yao handicrafts. The interpretation information of



                                                                                   62
              handicrafts production process will also be shown in the shop. To
              educate local and international tourists about Khmu and Yao ethnic
              wisdom, the ethnic wisdom books will be available here as well.
          o Signage: Based on the CBT development plan, signage directional
              and information signs will be erected.
      Training:
          o Supply Chain Guide Training: A group of ten villagers from each
              village will be trained in guiding techniques and interpretation of the
              ethnic handicrafts.
          o Basic Marketing Technique: Producers will learn simple techniques f
              how to link with potential markets and find out what kind of handicrafts
              will meet market demands.
          o Basic Sales Techniques: A group of villagers who will sell handicrafts
              to tourists will be trained on selling techniques.
          o Green Business Awareness: Handicrafts producers and authorities
              concerned will be trained in doing business in a way that will not harm
              environment and generate mutual benefit to all parties. The 4Ps
              concepts will also be added in Green Business Training.
          o Team Work Training will be provided to villagers and related public
              sector authorities involved.
      Essential Document Producing:
          o The Khmu and Yao ethnic wisdom books will be produced and placed
              at a display shop and perhaps at a central library in Vientiane.
      Marketing:
          o Fam Trips for local tour operators and press.
          o Fam trips for guidebook writers and regional/international tour
              operators.
          o Information about Khmu and Yao handicrafts will be in guidebooks and
              brochures.
          o Website promotion of Koun Lang Cave and Khmu and Yao
              Handicrafts.

8.2.4 Ban Tor Lae Tea & Honey
Activity Types    Learning White Lahu village lifestyles, Tasting natural Tea &
                  Honey, Local products shopping, A one-day tour.
Priority Market   Free independent travelers looking for an ethnic experience.
Secondary Market Group tourists interested in a one-day ethnic excursion and local
                  markets of hotel, guesthouse and restaurant in Bokeo and other
                  provinces in northern Laos and Thailand.

Tea and Honey from Ban Tor Lae will be promoted as a local, natural product. Target
markets will be Lao and international tourists and people living in Bokeo and Luang
Namtha. The village will receive assistance in packaging, quality control and to
establish links with traders. Similar to other supply chain products of this project, the
idea of conserving ethnic identity will be translated into production of book
documenting White Lahu traditional knowledge.

 Proposed Activities
    Planning & Regulations:
         o Management plan and regulations: A management plan for the tea
            garden will be created in cooperation with district and village
            authorities. It will detail land use and harvest regulations. A plan for
            how sale of the products (tea and honey) will be managed and how
            benefits will be distributed will be made seperately.



                                                                                      63
           o Establishment of producers groups and associated regulations
      Infrastructure:
           o A simple display shop: The simple display shop will be constructed
               at the entrance of the village. Tea and honey of Ban Tor Lae and
               nearby villages will be sold at the shop. In the display shop,
               interpretation information of White Lahu‘s way of life and ethnic
               wisdom will be exhibited. The information will be written in Lao and
               English.
           o Signage: In the village signage will be made to direct tourists to
               selected Tor Lae Tea and Honey producer‘s homes to see production
               process.
           o Toilets: toilets for tourists will be built at Ban Tor Lae.
      Development Fund:
           o A small share of revenue from tourism will be collected and saved up
               in the development fund to use in village development activities.
      Essential Document Producing:
           o A White Lahu ethnic wisdom book will be produced and placed at the
               display shop, in main tourism centers and perhaps at a central library
               in Vientiane.
      Training:
           o Green Business Awareness: Ban Tor Lae tea & honey producers will
               receive awareness trainings on green business including the sense to
               conserve forests in order to sustain their tea and honey production.
           o Team Work Training will be provided to villagers and related public
               sector authorities involved in cooperatively managing and promoting
               Tor Lae tea and honey.
           o Marketing Training covers 4Ps (Product: quality control/design,
               packaging; Price: cost, competitive cost; Place: channels to market the
               product; Promotion: what tools will be used to market the product).
           o Guide Training: A group of ten villagers will be trained in guiding
               techniques and interpretation of White Lahu products and ethnic
               village attributes.
      Marketing:
           o A simple package featuring White Lahu villagers picking tea and
               cultivating honey as the logo. It should show producer contact
               information and expiry date.
           o Fam Trips for local tour operators and travel related operators of hotel,
               guesthouses and restaurants in Bokeo and other provinces in northern
               Laos.
           o Fam tours for traders
           o Fam trips for guidebook writers and regional/international tour
               operators.
           o A brochure and map detailing products of Ban Tor Lae will be
               produced.
           o Website promotion

8.2.5 Ban Yor Pottery
Activity Types    Simple pottery carving, Learning Tai Leu Lifestyles, Pottery
                  shopping.
Priority Market   Weekend domestic tourists/students and the night market in Pak
                  Beng and local middlemen.
Secondary Market International tourists with one day to spend in Oudomxay and
                  tourists traveling from Pak Beng.




                                                                                   64
Ban Yor Pottery will be developed to revitalize pottery making in Ban Yor and
produce more income for villagers. It will allow domestic and foreign tourists to learn
about the art of pottery making. The Supply Chain development is designed to
improve quality of the product and villagers‘ abilities to benefit from pottery making.
The designation of areas to mine clay will help protect the scenic landscape. Similar
to other supply chain products of this project, the idea of conserving ethnic identity
will be entail research and production of a Tai Leu local-wisdom book. It will contain
information on the history and ethnic wisdom and lifestyles of Tai Leu in Ban Yor.

Proposed Activities
    Planning & Regulations:
         o Management Plan and Regulations: A plan will be drafted to
             manage and spread benefits from pottery selling to tourists and
             merchants. The Land Department of Oudomxay will work with
             provincial tourism department to designate an area for mining clay.
         o A Soil Quality Survey: The soil quality survey will be done by a
             pottery expert to identify what should be improved or added to the
             pottery production process.
    Infrastructure:
         o Signage will be made to direct tourists to see each step of the pottery
             process and learn about pottery making in the village.
         o A Simple Kiln: The project will assist villagers to build a simple kiln by
             using local material. An expert in planning the kiln making will map out
             the kiln‘s location and design. The pollution control mitigation of noise,
             heat and smoke including waste management will be written.
         o Toilets will be built.
         o A simple display shop: The simple display shop will be constructed
             at the entrance of the village. The various products of Ban Yor pottery
             will be sold there. In the display shop, interpretation information of Tai
             Leu‘s way of life and ethnic wisdom will be exhibited. The information
             will be written in Lao and English.
    Training:
         o Green Business Awareness/Related Trade Regulations: Ban Yor
             pottery producers will receive awareness trainings on green business
             including how to sustainable use natural materials and develop trade
             regulations to sustain their production.
         o Team Work Training will be provided to villagers and related public
             sector authorities involved in cooperatively managing and promoting
             Ban Yor Pottery.
         o Marketing Training covers 4Ps (Product: quality control/design,
             packaging; Price: cost, competitive cost; Place: channels to market the
             product; Promotion: what tools will be used to market the product).
         o Guide Training: A group of ten villagers will be trained in guiding
             techniques and interpretation of Tai Leu pottery and ethnic village
             attributes.
         o Easy Pottery Making Guide Training: A group of 5 producers will be
             trained to teach tourists about pottery making when they visit the
             village.
    Marketing:
         o Fam Trips for local tour operators, press, department of Commerce
             and Industry, potential buyers in Luang Prabang and Pak Beng‘s night
             market.
         o A brochure and map detailing Ban Yor pottery and a one-day tour.
         o Updates to provincial information and website.



                                                                                    65
           o   A simple logo with contact information.

8.2.6 Ban Saloei Textiles
Activity Types    Learning Lao Pong Lifestyles, textiles shopping. More trade with
                  local traders for villagers. Visit to waterfall
Priority Market   International tourists, domestic tourists including traders.
Secondary Market Small group of international tourists passing through northern
                  Lao

Ban Saloei Textiles will be developed to improve the quality of cotton and silk textiles.
It will allowed Ban Saloei and other nearby villages to move their products up-market.
The Supply Chain development program will enhance ability of villagers to manage
textiles business in systematic manner. Currently, the product is sold to traders for
low prices, with improved designs and quality it could be sold in large volume to
traders, wholesalers and retailers. Rgading village based tourism, Ban Saloei is an
interesting Lao Pong village that has a nice, easily accessable waterfall. The waterfall
will be developed with a local market to provide and outlet for on-site sales, and the
project will work with traders to try and find wider markets for Saloei textiles.

Proposed Activities
    Planning & Regulations:
         o A plan to develop the waterfall and sales opportunities
         o A plan to select Ban Saloei producers‘ homes to show production
             process to visitors and tourists. .
         o A detailed plan to increase production of raw materials i.e., cotton and
             silk.
         o Regulations: a management plan will be created for the
             establishment of a development fund. It will be done incorporation
             with district and village authorities that draw out how the textiles
             association will be managed and how benefits will be distributed.
    Infrastructure:
         o A Simple Display Shop: The simple display shop will be constructed
             near the waterfall parking/service area. In the display shop,
             interpretation information on Ban Saloei Textiles and the Lao Pong
             ethnic group and local knowledge will be on display. The information
             will be written in Lao and English.
         o Signage: Signage will be constructed to direct tourists to selected
             Saloei Textiles producer‘s homes to experience textiles production
             process. Signage will also be installed at the waterfall.
         o Toilets: toilets for tourists will be built at the waterfall service center.
    Development Fund:
         o A portion of entrance fees (waterfall) and a small tax on textile sales
             will be used to finance a village fund.
    Essential Document Producing:
         o A Lao Pong ethnic wisdom book will be produced and placed at the
             display shop and perhaps at a central library in Vientiane.
         o The manuals of basic management, green business and team work
             will be made available for Saloei‘s textiles producers to learn.
    Training:
         o Green Business Awareness/Related Trade Regulations: Ban
             Saloei textiles producers will receive awareness trainings on green
             business including the use of natural material and related trade
             regulations to sustain their textiles production.




                                                                                      66
           o Team Work Training will be provided to villagers and related public
             sector authorities involved in cooperatively managing and promoting
             Saloei textiles.
          o Marketing Training covers 4Ps (Product: quality control/design,
             packaging; Price: cost, competitive cost; Place: channels to market the
             product; Promotion: what tools will be used to market the product).
          o Guide Training: A group of ten villagers will be trained in guiding
             techniques and interpretation of Saloei textiles, ethnic village attributes
             and environment around the watefall.
      Marketing:
          o Interpretation signs on site.
          o A logo and packaging with contacts of producers.
          o Fam Trips inviting Ministry of Information and Culture, local schools,
             press and local tour operators
          o Trade Fam Trips inviting Department of Commerce and Industry and
             traders.
          o Attend trade fairs that organized by Department of Commerce and
             Industry or Lao Handicraft Association.


8.2.7 Ban Viengkeo Textiles
Activity Types   Elephant riding, learning about Tai Leu lifestyles, textile
                 shopping. More trade with traders.
Priority Market  Backpackers looking for a unique alternative cultural tourism
                 experience far away from the crowds of Vang Vieng and Luang
                 Prabang.
Secondary Market Tourists passing between Hongsa and Luang Prabang looking
                 for a one-day activity. Local middlemen and some middlemen
                 from Nan province, Thailand

Textiles and elephant riding will be promoted in Ban Viengkeo as a combination CBT
site and supply chain village. Along with the traditional textiles, Tai Lueway of life will
be interpreted to tourists by using existed Tai Leu houses in the village. The village is
already known to some tourists as the place they can learn about Tai Leu culture.
Ban Viengkeo is located in Hongsa province where the Elephant Festival is held,
therefore, it is able to capture tourists who want to explore cultural aspect of the
village. It is important to conserve those two Tai Leu houses in the village as it could
be a centre for learning Tai Leu culture for both foreigners and locals. The project will
work with traders to find markets for Viengkeo textiles, and as with other supply chain
products publications on history and ethnic wisdom will be produced.

Proposed Activities
    Planning & Regulations:
         o A plan to select Ban Viengkeo producers‘ homes to show production
             process to visitors and tourists.
         o A detailed plan on what aspect of Tai Leu ethnic wisdom will be
             gathered in Ban Viengkeo
         o Regulations:
                  Establishment and management of a village fund .
                  A management plan to conserve the two Tai Leu houses, the
                    plan will be written in cooperation with district officers from
                    Department of Information and Culture, Land Department and
                    most importantly village authorities and the homeowners.
    Infrastructure:



                                                                                        67
       o   A Simple Display Shop: The simple display shop will be installed in
           one Tai Leu house (if possible). There, interpretation information of
           Ban Viengkeo Textiles and Tai Leu ethnic and Tai Leu ethnic wisdom
           will be placed. The information will be written in Lao and English
       o Signage: In the village, signage will be made to direct tourists to
           selected Viengkeo Textiles producer‘s homes to experience textiles
           production process .
       o Toilets: toilets for tourists will be built at Ban Viengkeo.
   Development Fund:
       o A portion of income from tourism will be collected and saved up in the
           development fund to operate the textiles association and use in village
           development activities.
   Essential Document Producing:
       o A Tai Leu ethnic wisdom book, including one on raising elephants, will
           be produced and placed at the display shop and perhaps at a central
           library in Vientiane.
       o The guidelines of basic management, green business and team work
           will be made available for Viengkeo‘s textile producers to learn.
   Training:
       o Green Business Awareness/Related Trade Regulations: Ban
           Viengkeo textiles producers will receive awareness trainings on green
           business including the use of natural material and related trade
           regulations to sustain their textiles production.
       o Team Work Training will be provided to villagers and related public
           sector authorities involved in cooperatively managing and promoting
           textiles and CBT tours.
       o Marketing Training covers 4Ps (Product: quality control/design,
           packaging; Price: cost, competitive cost; Place: channels to market the
           product; Promotion: what tools will be used to market the product)
       o Guide Training: A group of ten villagers will be trained in guiding
           techniques and interpretation of textiles and ethnic village attributes.
       o Easy Textiles Weaving Guide Training: A group of 5 producers will
           be trained in training tourists about easy textiles weaving when they
           visit the village.
   Marketing:
       o Ban Viengkeo‘s details will be included in marketing materials that will
           be created to promote Sayabouly.
       o Website/webpages
       o Interpretation signs provide history and importance of Viengkeo
           Textiles and elephants to Tai Leu ethnic, the signs will be displayed at
           related spot e.g. a textiles display shop or selected producers‘ homes.
       o A logo and packaging that represents ethnic identity and contacts of
           producers.
       o Fam Trips inviting Ministry of Information and Culture, local schools,
           press and local tour operators. The representatives of TAT Northern
           region, Thailand and tour operators in Nan and Loei provinces,
           Thailand should also be invited.
       o Trade Fam Trips inviting Department of Commerce and Industry and
           potential traders and representatives from Nan, Prae and Loei,
           Chamber of Commerce, Thailand.
       o Attend trade fairs that organized by Department of Commerce and
           Industry or Lao Handicraft Association.




                                                                                68
9 Proposed Activities and Output Targets
Proposed activities and output targets for the GMS-STDP will reflect the
recommendations in this report and appear in the 5-year, Implementation Plan of the
Project to be published in December 2009.


10 Beneficiaries

10.1 CBT Beneficiaries
There are twenty-one communities in seven provinces that the project is targeting as
primary beneficiaries, with a total of 11,565 people and 2,048 households and 1,878
poor people and 322 poor households. These potential direct beneficiaries may
include men, women, youth and ethnic minority groups who will gain employment,
income and skills as a result of project activities in the fields of guiding, food and
beverage, hospitality, transportation and tourism attraction management. There are
also expected to be indirect beneficiaries as a result of project activities, including
those who benefit economically from increased tourism traffic and commerce. These
people may include, for example, guesthouse and hotel owners, raw food producers,
and public transportation providers. Below is a description of target direct
beneficiaries by project with details regarding how the poor are to be included.

10.1.1 Beneficiaries of the Hang Khone 4000 Islands Ecotourism Site
Hang Khone village is the main target community, and Hang Sadam is the secondary
target community for this product. Of the 266 people and 46 households, the project
expects that the 25 families currently part of the boat association will benefit by
increased boat trips and higher value boat trips. Other families will benefit by
increased sales of food to tourists, provision of fishing trip tour services, a village fund
and expanded opportunities to open small, private tourism businesses on Khone
Yuak and the main village. The five poor families in the village, who reportedly live on
Khone Yuak Island, will be included as potential homestay homes, fishing trip
providers, and employees in any private sector businesses opened on Khone Yuak.

Hang Sadam‘s potential direct beneficiaries are 527 people and 96 households. The
actual benefits will depend on private sector investment into eco-accommodation on
the island, which the project will support by creating a development plan, and creation
of a fund from dolphin watching boat trips. The three poor families will be targeted by
being included as cooks for lunch provided to tours groups visiting the dolphins and
as managers of the campsite.

10.1.2 Beneficiaries of the Sanone Trek and Tad Lo Guide Service
The Sanone trek and Tad Lo Guide Service includes three main villages with a total
of 2,827 people and 476 households who are all potential beneficiaries. In Ban
Sanone, the project will target all 8 poor families by training them as guides and to
provide snacks to trekkers. In Kanouane Village, the project will target all 10 poor
households by training them as cooks for lunch, as guides and as homestay families
for long-term educational tour groups. In Ban Senvang near Tad Lo, the project will
target the 27 poor families by training them as tour guides, by including them in the
night market as local product sellers and as sellers of handicrafts at the visitor centre.

10.1.3 Beneficiaries of the Koun Lang Cave
The Koun Lang Cave has two target communities, Ban Houay San and Ban Thong
Meut, with a total of 1,336 people and 265 households that are potential direct
beneficiaries. The project will target the 18 poor families by training them to sell food
to tourists, rent out headlamps, and sell tickets, work as guides, and sell handicrafts.
Of course, other people in the village may also benefit from these activities depending


                                                                                         69
on volume of visitors, but the project will help the village set up a village development
fund to ensure that all benefit from the site will be used in the village‘s activities.

10.1.4 Beneficiaries of the Nam Fa Trekking, Rafting and Ethnic Village Tour
The Nam Fa Trekking, Rafting and Ethnic Village Tour area includes four target
communities, Nam Fa, Nam Tee, Don Ngern and Mai Pattana, with a total of 1,543
people and 290 households. Nam Fa‘s 31 poor families will be targeted by the project
by training them as trekking guides, rafting guides, homestay families and providers
of handicrafts and snacks. There are three poor families in each of the other three
villages, (a total of nine poor families); they will be targeted by the project as
providers of handicrafts and snacks at the village handicraft centers that will be built
in each village.

10.1.5 Beneficiaries of the Nam Kat Waterfall
Ban Faen is the sole community that will benefit directly from the project and has 574
people and 96 families. The project will target the village‘s 28 poor families by
including in all aspects of management and services, including selling tickets, keeping
the site clean, protecting the forest and wildlife, selling handicrafts and food, and
guiding tours and camping trips. The village as a whole will benefit from village
development funds generated by entrance ticket fees.

10.1.6 Beneficiaries of the Viengthong Hot Spring
There are four main communities that are direct target beneficiaries of the Viengthong
Hot Spring—That Hiem, Samphanthong, Meuang Hin, and Naphone—with a total of
1,539 people and 276 households. There are a total of 127 poor families in the four
villages. Although it may be difficult to include all poor families, the project will attempt
to include as many as possible by splitting them up into different service groups and
training them accordingly. Service groups include ticket sales, grounds cleaning, bath
tub management, bathroom cleaning, production and sales of soaps, production and
sales of towels and clothing, production and sales of herbal medicine, massage
service, and sauna service, management, and finance.

10.1.7 Beneficiaries of the Pha Xang Area Ecotourism Site
The Pha Xang Area has four targeted communities—Keo, Nathang, Pak Hoong and
Pha Xang villages—with a total of 2,079 people and 374 families. In Ban Keo, the
three poor families will be targeted and trained as guides for caving and homestay
homes. In Nathang village, the project will target the two poor families by training
them as guides for caving and food providers. In Pak Hoong, the 13 poor families will
be trained to teach tourists how to pan for gold and will be assisted to provide boat
services to Ban Keo. The three poor families in Pha Xang village will be trained to
provide snacks and handicrafts to tourists.

10.2 Beneficiaries of Supply Chain Product Development

There are eight4 communities in seven provinces that the project is targeting as
primary beneficiaries, with a total of approximately 5,855 people, 1,128 households
and 465 poor people in 98 poor households. These potential direct beneficiaries
include women, youth, men and ethnic minority groups who will gain employment,
income and skills as a result of project activities in the fields of (green) business-
oriented handicrafts producing, guiding, hospitality, hospitality, and cultural tourism
attraction management. There are also expected to be indirect beneficiaries as a
result of project activities, including those who benefit economically by increases of

4
    There are more communities that supply either labor or raw materials to those eight communities.




                                                                                                       70
tourists and by supplying raw materials. These people may include, for example,
guesthouse and hotel owners, food producers, and public transportation providers.
Other beneficiaries are handicraft traders and operators of retail markets and shops.
Below is a description of target direct beneficiaries by project with details regarding
how the poor are to be included.


10.2.1 Beneficiaries of Ban Hinsou Palm Sugar
Ban Hinsou Palm Sugar has one target community, Ban Hinsou, with a total of 958
people and 173 households that are potential direct beneficiaries. Although, there is
only one poor family at Ban Hinsou, there are sixteen families producing palm sugar -
a labor intensive low income job. The project will target palm sugar producers to
standardize the product by making it hygienic, tasteful and appealing and add value
to it. They project will train them to sell Palm Sugar to tourists and improve palm
sugar packaging. They will also be trained in how to train other villagers to become
palm tree tappers. The activities of palm sugar selling, palm sugar producing and
palm tree tapping will gradually draw in a number of tourists, stimulating on-site sales.
Linkages to traders will ensure a wider market, leading to more employment and
income for villagers.

10.2.2 Beneficiaries of Ban Houay Houn Textiles
Ban Houay Houn is a large community with a total of 710 people in100 households
that are potential direct beneficiaries from increased sales of textiles. There is also
On Bang and Naxai Noy villages located nearby Ban Houay Houn. The two villages
will also take part in labor supply and sell textiles, which will generate income for the
poor in those two villages. In Ban Houay Houn, there is one poor family that will be
targeted by the project by either training them how to weave or assisting them and
other villagers cultivate cotton. There 125 people or 40 families producing textiles at
Ban Houay Houn.

10.2.3 Beneficiaries of Khmu & Yao Handicrafts
The two target communities of Ban Houay San and Ban Thong Meut with a total of
1,336 people and 265 households will benefit from increased basked and embroidery
sales, sales of food and beverages and a share of cave entrance fees. The project
will target the 18 poor families by training them to sell handicrafts to tourists and work
as guides. They will be trained in pattern and product design, marketing, servicing
and hospitality. The project will help the village set up a village development fund to
ensure that all benefit from the site will be used in the village‘s activities.

10.2.4 Beneficiaries of Ban Tor Lae Tea & Honey
Ban Tor Lae has a total of 165 people and 37 households that will directly benefit
from increased sales of tea and honey, as all families participate in one or both of
these activities. The project will target 52 poor families by training them to sell tea
and honey to tourists and work as guides. They will be trained in quality control,
packaging, marketing, servicing and hospitality. The project will also train them green-
business management concept, which will help them trade with confidence on mutual
benefit ground with middlemen. The income from both tourism and trading will help
Ban Tor Lae to sustain their tea and honey business. If successful in Ban Tor Lae,
the project will expand to Poungpha, Hoauy Thad and Jom Jang.

10.2.5 Beneficiaries of Ban Yor Pottery
There is one main target community, Ban Yor, with a total of 682 people and 133
households. The project will target 5 poor families and 21 producers by training them
in product quality control, marketing, packaging, design, and guiding. The village will



                                                                                       71
increase income from pottery sales and including the possibility of selling pottery-
making tours to tourists.

10.2.6 Beneficiaries of Ban Saloei Textiles
Ban Saloei has a total of 952 people and 168 households that are potential direct
beneficiaries of the project. 18 poor households and 75 textile producing families will
be initially targeted.       The project will train them to focus on quality
improvement/assurance. They will be trained in guiding, tourist servicing, marketing,
packaging and patterning. They will gain income from handicrafts selling to tourists
and traders. Once a model is developed in Saloei, it will be expanded to Thapong,
Houay Sad and Phonexay villages.

10.2.1 Beneficiaries of Ban Viengkeo Textiles
Ban Viengkeo has a total population of 1,052 people in 252 households. The project
will target 3 poor families and 80 families that produce textiles. Other villagers will
benefit training, product quality control, marketing, packaging and design training.
Most income will come from textile sales, but elephant-riding will also be promoted.
Once a model is developed in Viengkeo, it will be expanded to Nasan, Champa and
Yai villages.




                                                                                      72
List of Available Appendices
Appendix A: Field Survey Notes – CBT Sites

Appendix B: Field Survey Notes – Supply Chain Sites

Appendix C: List of People Interviewed During Field Surveys

Appendix D: Environmental Checklist for all Proposed Sites

Appendix E: Pro-poor Checklist for all Proposed Sites

Appendix F: CBT Attraction Scoring by Province

Appendix G: Baseline Data for CBT Sites Surveyed

Appendix H: Potential CBT Sales Outlets by Product

Appendix I: Supply-Chain Market Survey Contacts

Appendix J: Handicraft Training Institutions in Thailand

Appendix K: Proposed Provincial CBT & SC Activity Plans 2009 – 2013




                                                                      73

				
DOCUMENT INFO