RISING demand from new source markets and the entry of more international branded hotels could help the former royal capital of Laos deliver on its potential as a cultural destination, reveals new research from C9 Hotelworks.
In Luang Prabang, Accor’s rebranding of Hotel De La Paix Luang Prabang and the 3 Nagas Luang Prabang under its Sofitel and MGallery brands respectively, as well as Aqua Expeditions’ launch of a luxury Mekong cruise to Vietnam and Cambodia will take place by year-end. Anantara Luang Prabang will open in August 2016.
Combined, they are expected to boost destination marketing and generate incremental international demand for the market, said Bill Barnett, managing director of C9 Hotelworks and author of the Luang Prabang: Hotel Market Update report.
“As in most cases the private sector will boost the destination with hotel brands, inducing more demand,” he told TTG Asia e-Daily.
Historically Luang Prabang has failed to cash in on its cultural cachet when compared with competing markets such as Siem Reap. But while more international hotels and cruises could help tip the scales in the destination’s favour, it is not a given.
“The key challenge is to see the destination develop from a seasonable trend into a more mainstream market,” he said. “Additionally more demand generators are required to keep visitors returning and avoid being a ‘one-trick pony’, where there is the constant need to develop new visitors.”
Last year’s completion of a new terminal and extended runway at Luang Prabang International Airport helped support a 16 per cent rise in international arrivals to 342,557 for financial year 2013/14 and a five per cent increase in star-rated room supply, which now accounts for more than one-third of all registered accommodation units.
Growth came predominantly from traditional source markets such as Scandinavia, Switzerland, the Netherlands, New Zealand and Russia, but also newer markets including Latin America.
However, muted airlift and high operating costs for carriers dampened the positive impact of airport improvements on arrivals.
