Thai Airasia Leading Charge As Access Eases

Luang Prabang: The tourism industry of Luang Prabang is getting a major boost now that Laotian officials have come to realise that greater access to foreign airlines can be a catalyst for robust growth.

The launch of Thai AirAsia's daily flight from Bangkok to Luang Prabang on March 24 ushered in a new era for the serene old Laotian royal city whose air access was heavily restricted.

The arrival of no-frills TAA, which waited almost eight years to get a final green light, signals a change in Laos's aviation policy as it opens the country's closely guarded skies to foreign airlines, particularly low-cost carriers (LCCs).

Luang Prabang, a Unesco World Heritage Site, is the first city in the landlocked state served by LCCs, which are expected to become a major driver for an economy almost entirely dependent on international tourist arrivals.

Tourism growth has long been hampered by limited availability of overseas flights, most of which originate in Bangkok, and the exorbitant airfares charged by the few existing operators such as state-owned Lao Airlines.

The Laotian government had been reluctant to let more foreign airlines operate flights to Luang Prabang, mainly to protect the tiny flag carrier from competition.

Luang Prabang's travel and hospitality industries have pointed to flight availability and high airfares as hindrances to growth during the low season, from May to September, when hotel occupancy can run as low as 40%.

"Luang Prabang simply does not have enough incoming flights, and we have been campaigning for the Laotian authorities to address the issue by opening up the skies," said Pablo Barruti, general manager of Sofitel Luang Prabang, which runs a chain of small high-end hotels in the city.

Soudaphone Khomthavong, the deputy director in charge of tourism at the Information, Culture and Tourism Department in Luang Prabang province, acknowledged the problems but would not dwell on past directives.

According to Mr Barruti, TAA's arrival is a welcome start as various international carriers line up to begin regular flights.

Singapore's SilkAir is working to commence scheduled flights from the island republic to Luang Prabang as soon as July, while HK Express, a Hong Kong LCC, wants to launch a Hong Kong-Luang Prabang service later this year.

Meanwhile, Lao Airlines plans to step up connections with Luang Prabang by opening new routes to Incheon in South Korea and Chengdu in China, as well as Singapore-Vientiane-Luang Prabang, Ms Soudaphone said.

Luang Prabang is now served by five daily flights from Bangkok: two flights per day by Bangkok Airways, one flight per day by Thai Airways International, one per day by Lao Airlines and one daily flight daily by TAA.

Lao Airlines also runs a regular daily flight from Chiang Mai to Luang Prabang.

In addition, Luang Prabang is connected by Vietnam Airlines flights from Hanoi and Siem Reap.

ML Bovornovadep Devakula, director of business development at TAA, estimated that TAA's flights, operated by a 180-seat Airbus A320 jet, would bring in 100,000 passengers to Luang Prabang, or 50,000 in terms of arrivals, between April and December.

The Thai-educated Ms Soudaphone said greater air access could drive a 20% rise in international arrivals to Luang Prabang this year to top 600,000.

Last year, the city received 12% more arrivals to reach 450,000, about the size of the whole of Luang Prabang province's population, she said.

Ms Soudaphone sees the government's target of 700,000 arrivals to Luang Prabang by 2020 as likely to come sooner, perhaps as early as 2017.

Source:
courtesy of BANGKOK POST

by Boonsong Kositchotethana

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