Regions and Countries

	Table of Contents
p. 13 of 20 BACK | NEXT I. Introduction II. Background and Rationale III. Economic and Social Trends IV. Program Review - Lessons Learned V. Strategic Directions of the GMS Program for 2001-2003 VI. Sector Properties and Proposed Program for 2001-2003 A. Transport B. Energy C. Telecommunications D. Tourism E. Environment F. Human Resource Development G. Trade H. Investment VII. ADB's Operational Program VIII. Coordination with Donor Agencies and Regional Institutions IX. Cofinancing and Catalyzing External Resources

GMS Assistance Plan : VI. Sector Properties and Proposed Program for 2001-2003

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D. Tourism

82. The GMS is rich in natural, cultural, and historical resources that provide enormous potential for tourism development. The subregion's cultural heritage and varied natural geography make it a desirable single tourism destination. The GMS countries recognize the important role of tourism in terms of generating foreign exchange and contributing to economic growth and employment. For example, in 1999, tourism was the top foreign exchange earner in Lao PDR, and accounted for four percent of GDP in Viet Nam. Since 1982, tourism has been Thailand's largest source of foreign exchange earnings; in 1998, tourism accounted for approximately 5.4 percent of GDP. In Cambodia, tourism was a major factor in the country's economic recovery in 1999.

83. Subregional tourism programs¹⁵ are progressing well with the active participation of the GMS National Tourism Organizations (NTOs) and support of ADB, the Pacific Asia Travel Association (PATA), and other donor agencies. GMS Tourism Working Group’s (TWG's) ongoing and continuing programs on destination marketing, and subregional events are proceeding, with the assistance and coordination of the PATA and the Agency for Coordinating Mekong Tourism Activities (AMTA), respectively. The Tourism Authority of Thailand (TAT), in close collaboration with AMTA, has supported the preparation of a tourism marketing strategy for the GMS; a study of north-south tourism flows in the Subregion; an assessment of village-based tourism; as well as production of a GMS tourism promotional video, tourist map, and travel guide. ADB has provided regional technical assistance grants for two training of trainors programs, and planning and feasibility studies on Mekong/Lancang River tourism infrastructure development.

84. In view of the substantial progress achieved in the tourism sector under the GMS Program, the key strategic challenge over the medium term is to strengthen the institutional basis for sustaining subregional cooperation over the long term. With the assistance of ADB, TWG has initiated a Review of Progress and Future Directions of GMS Tourism Sector Initiatives. The TWG is exploring ways to enhance the ownership by the GMS NTOs of the cooperative program, and strengthen and expand the role of AMTA to make it a professional regional marketing agency for the GMS, an organizer of subregional tourism events, and a facilitator of subregional tourism projects. ADB assistance has been requested to help build the necessary capacities for AMTA.

85. During the period 2001-2003, ADB will continue to support the holding of the Mekong Tourism Forum given the Forum's proven effectiveness in publicizing the GMS as a single tourism destination, and in influencing GMS governments to adopt policies that are conducive to the growth of tourism. In the area of tourism infrastructure, the lending pipeline for 2002 includes one investment project for each of the five GMS countries with a total amount of $40 million. The ongoing TA for Mekong/Lancang River Tourism Infrastructure Development¹⁶ will identify the project components, most likely in complementary physical infrastructure projects. By investing in this project, ADB would catalyze private sector participation in the development of tourism infrastructure in the six priority tourism segments along the Mekong River.

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