The Asian Development Bank (ADB) said Thursday it is providing 20 million U.S. dollars for the development of tourism in the Greater Mekong Subregion (GMS) to help create more job opportunities while protecting the environment and residents there.
The project will benefit nine provinces in Lao People's Democratic Republic and five provinces in Vietnam, which were selected for their high tourism potential and poverty rates, the Manila-based lender said in a statement.
ADB will provide a 10 million-dollar loan to Vietnam and a 10 million-dollar grant to Lao People's Democratic Republic to cover most of the project cost of 21.98 million dollars.
The project will support the construction of handicraft markets, viewing points and roads among other facilities and infrastructures, according to the statement.
The project will promote strong and fair partnerships among local governments and communities and the private sector in developing, operating, and maintaining community tourism facilities, ADB said.
In 2007, the subregion received 25.6 million international tourists, generating 18.85 billion dollars in earnings and providing employment to 3.74 million people. From 1995 to 2007, international tourist arrivals to the subregion rose at a yearly average rate of 8.12 percent, more than twice the world average.
"The contribution of tourism to the GMS economy has increased significantly in the past decade, creating new opportunities for economic growth and poverty reduction," said Alfredo Perdiguero, Senior Economist of ADB's Southeast Asia Department.
But the fast and unmanaged pace of tourism expansion has prevented many poor from reaping the benefits and limited development to just a few destinations, ADB said.
New opportunities resulting from the development of transport corridors have also not been fully tapped, while small- and medium- sized businesses have not been able to provide the quality of service demanded by tourists.
Furthermore, the public sector has been unable to ensure the sustainable growth of the sector, while preserving the natural, cultural and urban heritage, which are under threat. The project is expected to contribute to heritage conservation through the development of sustainable tourism that will benefit the poor.
The Greater Mekong Subregion is composed of countries sharing the Mekong River, including Cambodia, China, Lao People's Democratic Republic, Myanmar, Thailand and Vietnam.
(Xinhua News Agency October 17, 2008)
