Laos has relaxed investment regulations for foreign investors into the tourism industry by allowing them to control 100 per cent stake in three, four, and five-star hotels and 70 per cent stake in travel companies.
The new rules on investment are designed to encourage cooperation with foreign businesses and stimulate sustainable development in tourism, and 10 other priority industries, Thailand’s The Nation newspaper reported.
“The strong point for investing in Laos is that the country is safe and has political stability. It is also rich in natural resources, and its labour costs are still low, with a minimum wage of 50,000 kip [$6] a day,” Sounh Manivong, Director-General of the Tourism Development Department of the Laotian Ministry of Information, Culture and Tourism, said.
Tourism contributes around 9 per cent to the Lao GDP and is regarded as a key industry in poverty reduction. The country received 2.4 million visitors in the first nine months of 2012, marking a 12 per cent increase year-on-year. Arrivals are expected to hit 2.9 million in 2012 and grow to five million by 2020.
By ARNO MAIERBRUGGER
SOURCE / Investvine