Ongoing opportunities for luxury hotel growth: economist
Ongoing opportunities for luxury hotel growth: economist
Continuing growth in visitor numbers to Laos will open up investment opportunities for luxury hotels over the next two to three years, according to a leading economist.
Senior economist at the National Economic Research Institute, Dr Leeber Leebouapao, said yesterday that various grades of hotels are being built across the country but the majority are targeting high-end tourists with luxury services.
Laos has beautiful scenery, strong preservation of culture and traditions, and diverse ethnic groups and these factors are believed to help attract high-end visitors to the country.
Consequently, Laos can increase the number of luxury hotels to attract and serve those tourists coupled with destination promotional campaigns.
In 2014, Laos had 419 hotels and 1,788 guesthouses and resorts but only four five-star hotels in Vientiane, according to a Tourism Development Department report.
Meanwhile, the nation received 4.3 million visitors in 2015, an increase of 4 percent with tourist numbers expected to reach 4.7 million by the end of this year.
Around 70 percent of tourists came from within the region, especially Thailand, while the other 30 percent were from Europe, America, Japan, Republic of Korea, Australia, Africa and the Middle East.
The growth in tourist numbers and its economic benefits will help drive investment expansion and fuel further accommodation construction such as five star hotels.
An official from the Hotel and Restaurant Association, who asked not to be named, said that in 2014 hotel construction grew by around 20 percent across the country.
The burgeoning number of hotels and restaurants in Laos can thank the growth in tourist arrivals for supporting the tourism industry.
However, the authorities said it was difficult predict hotel construction growth this year as some projects, especially in Vientiane, had been delayed for various reasons.
Nevertheless, work on both large and small developments was expected to resume by the end of this year, and if everything goes to plan there will be more new hotels going up next year.
