Mekong Tourism Development Project - Manuscript

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The Use of Cooperative Agreements as a Tool to Underpin CommunityBased Ecotourism Development and Conservation in the Lao PDR Steven Schipani Senior Ecotourism Advisor, Lao National Tourism Administration sschipa@hotmail.com

Abstract Community-based ecotourism involves a complex range of stakeholders. These include indigenous communities, tour operators, tourists, and public sector tourism and heritage management authorities that often have differing priorities regarding economic development, community-participation and protection of cultural and natural resources. In the Lao People’s Democratic Republic (Lao PDR) community-based ecotourism development in and around the Lao protected area system is a major component of the country’s National Tourism Master Plan, the National Ecotourism Strategy and the National Biodiversity Strategy, which recognize local people’s right to carry out livelihood activities inside protected areas. This paper describes and provides examples of cooperative agreements that are being used as a tool to underpin the equitable participation of indigenous people in community-based ecotourism ventures and serve as a basis for local participation in the protection of the cultural and natural resources that are drawing a rapidly increasing number of international visitors to this emerging ecotourism destination.


Introduction: One of the keys to developing sustainable community-based ecotourism involves a harmonious and mutually beneficial relationship between complex stakeholders. These include indigenous communities, tour operators, tourists, and public sector tourism and heritage management authorities. Differing priorities may place these key stakeholders at odds with one another, resulting in conflicts as opposed to more productive engagement in win-win situations. For example, one the one hand there is the tour operator, concerned with profits and protection of their investment to develop a tour product. Local communities are usually happy to be included in ecotourism programs, if it is on their own terms and visitation does not lead to degradation of their culture. Tourists want a genuine experience that puts them in touch with nature and culture in pristine settings, and public sector management authorities are charged with monitoring the tourism industry and enforcing laws and regulations intended to protect the environment. These key stakeholders rarely sit down in a non-confrontational setting to discuss and document each others needs in terms of what is required to launch and sustain successful community-based ecotourism ventures. Although not limited to a developing country perspective, this paper provides two working examples of cooperative agreements that are being applied to support community-based ecotourism in the Lao People’s Democratic Republic (Lao PDR) and gives a brief overview of how they were created. Background: Lao PDR is situated in the center of the Greater Mekong Sub-region and retains vast tracts of forest in its network of 20 National Protected Areas that cover just over 13% of the country. There is rich ethnic diversity within the Lao population of approximately 6 million, with 49 officially recognized ethnic groups living in a country roughly the same size as France. Overall, Lao tourism is growing rapidly, with year-on-year growth averaging 25% over the past decade. In 2006 arrivals exceeded 1.3 million and generated US$ 173 million in foreign exchange1. This figure is equivalent to about 10% of the gross domestic product, and it is estimated that more than half of the value of the Lao tourism industry is derived from nature and culture-based activities2. In terms of political support for ecotourism and communitybased ecotourism, it is a major component of the country’s National Tourism Master Plan and the National Ecotourism Strategy and Action Plan. In Lao PDR, over 70% of international visitors express an interest to visit ethnic minority villages and engage in forest trekking, making ecotourism here as much people-based as it is nature-based3. Although the country has embraced ecotourism as one strategy to alleviate poverty and help conserve its natural and cultural heritage at the policy level, in practice, ecotourism is still not well understood by mainstream tour operators and regulatory authorities. This challenge is compounded by weak management of both tourism in general and the protected area system. For example, in the 222,400 square hectare Nam Ha National Protected Area, where the use of cooperative agreements was pioneered, 4 there are a total of only 10 civil servants and an annual budgetary allocation of less than US$ 2,000 dedicated to managing all tourism and protected area functions of the park.

1

Lao National Tourism Administration. 2006 Statistical Report on Tourism in Laos. Vientiane, Lao PDR. Bouttavong, S., Emerton, L., Kettavong, L., Manivong, S., Sivannavong, S. 2002 Lao PDR Biodiversity: Economic Assessment. Vientiane, Lao PDR: IUCN. 3 LNTA-ADB Mekong Tourism Development Project. 2006 Monitoring Report. Vientiane, Lao PDR. 4 See annex 1, Tripartite Memorandum of Understanding for Community-based Ecotourism in Luang Namtha, Lao PDR 2

The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


Not surprisingly, the lack of well-trained human resources, absence of common knowledge about ecotourism and weak regulatory systems is undermining the sustainability of nascent community-based ecotourism programs in some areas. One persistent problem is that tour operators and villagers often have no way of controlling how many companies or tourists have access to an area at any given time. This causes overcrowding at popular destinations, which diminishes the visitor’s experience and places unnecessary strain on the environment. While local communities are eager to receive visitors, tour groups are rarely given an orientation about the “do’s and don’ts” in villages, leading to cultural transgressions and misunderstandings between host and guests. Villagers may also lack bargaining power regarding the price of goods and services they provide for tour groups, resulting is a loss of economic and employment opportunities from tourism in their communities. On the supply side, tour companies are wary to invest in a new product unless they are give some degree of exclusivity over an area, lest their investments in infrastructure, training, community outreach, and marketing be usurped by competing and sometimes unscrupulous competitors. In areas where ecotourism programs operate, even inside protected area borders, laws prohibiting wildlife poaching and illegal logging are difficult to enforce because public sector management authorities are understaffed and under funded. There is also increasing competition for land resources from agro-forestry and mining concerns, sometimes in areas already earmarked for ecotourism development. To address these formidable challenges from the bottom up, officials from the Lao National Tourism Administration, protected area managers, tour operators and communities have developed and implemented a number of pilot cooperative agreements. These agreements clearly define diverse stakeholder roles and responsibilities as they relate to the operation of community-based ecotours and protection of the cultural and natural resources that underpin them. Two of the first working examples of such agreements are provided in the attachments to this document. Discussion: The process behind the development of the agreements was a straight forward series of meetings between villages, authorities and tour operators to co-draft and negotiate the content of each customized document. Conducting the meetings at the village level resulted in the greatest degree of local participation because it required tour company managers and civil servants to consult with villagers directly in their communities, eliciting lively discussions and exchange from all sides. A working draft of the agreements passed a final review between signatories, and was then co-signed by the concerned company, village leadership and relevant public agency. The content of agreements clearly defines everyone’s responsibility in operating and protecting the tour program’s tangible and intangible attractions, with articles on the provision of food and lodging, trail maintenance, waste management, permit fees, use of local guides, village fund allocations, training opportunities, monitoring, tourist education and orientation, and conflict resolution. Following implementation of cooperative agreements in Luang Namtha, a northern province that was the first to develop community-based ecotourism programs in Lao PDR, inbound tour operators and participating villages experienced a substantial increase in annual revenue. The Nam Ha Ecoguide Service, for example, grew revenues from US$ 31,745 in 2005 to US$ 56,940 in 2006. During the same period the branch office of Green Discovery Laos, another local inbound, increased revenue from US$ 18,108 to US$ 88,833. Approximately 25-30% of these figures pay for goods and services in participating villages. The public sector is benefiting from a corresponding increase in revenue from permits, taxes and concession fees, The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


and receives assistance from tour companies and communities to monitor tourism impacts and report illegal activities. One visible conservation benefit that has come about because of the agreements is that the threat of conversion of natural forest to cash crops has been averted in some areas because of an article that prohibit forest clearance along trekking trails. Lessons Learned: Although still too early to declare a definitive success for heritage conservation and poverty alleviation, one reason the agreements are proving effective is because many stakeholders were consulted and involved in their conception, creating localized ownership. Each party also has a vested financial interest in making the agreements work. Although the agreements are mainly self-enforced by the signatories, they are created within existing legal and regulatory frameworks, so the rule of law can be applied if the agreements are broken or disputes can not be settled amicably. For participating villages the clear and tangible benefits that include income generation, contributions to village funds, increased local employment, new training opportunities and better natural resource protection from outside exploitation are a strong incentive to honor them. Tour operators benefit from having an exclusive product, more security to invest in and develop an area, assistance from authorities to work with communities on advocacy and conflict resolution and also enjoy and added level of protection of the cultural and natural resources that are the unique selling proposition of their tours. Without this level of protection or exclusivity, it is very difficult to convince the private sector to commit to a long term investment, especially in community-based ecotourism programs that commonly have a long payback period and thin margins. The growing number of tourists seeking genuine ‘socially responsible’ tours benefit from these agreements because they can be assured their tour is benefiting local people, the environment and local culture. One other reason that the agreements are working in Lao PDR may be that because tourism is a relatively new economic sector here, there are not too many entrenched interests to overturn. This means ‘getting there first’ to develop profitable and highly publicized community-based ecotourism is an important ingredient for success if there are competing interests that aim to exploit an area with ecotourism potential. Conclusions: Cooperative agreements are one of a range of tools that can be used to underpin sustainable community-based ecotourism development and have been applied with early success in Lao PDR. To ensure that diverse stakeholders do not only concern themselves with chasing tourist dollars there must be articles concerned with protection of natural and cultural resources included as integral parts of the agreements. However, community-based ecotourism is only one part of an integrated livelihood and conservation strategy and will usually not provide adequate poverty reduction and heritage protection as a stand alone activity. It is essential to identify additional opportunities to diversify local economies and encourage the enforcement of heritage protection laws and regulations. The competing interests that community-based ecotourism is likely to encounter may have backing form powerful outside forces, therefore it is important to establish and promulgate the cooperative agreements early on among all level of government and the private sector, especially in areas where civil society is weak. To conclude, although this paper is based on specific experience in developing communitybased ecotourism in the Lao PDR, the benefits of local participation, equity and conservation of cultural and natural heritage are universal and should be and integral part of ecotourism programs no matter where they occur.

The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


Attachment 1: Tripartite Memorandum of Understanding for Community-based Ecotourism in Luang Namtha, Lao PDR Between The Luang Namtha Provincial Tourism Office, the Luang Namtha Provincial Division of Forestry and Green Discovery Tour Company Objectives: To ensure the development and management of a community-based ecotourism model that promotes the conservation of biodiversity, community participation and lessens poverty. This memorandum of understanding applies to tourism programs operated by Green Discovery Laos in Luang Namtha Province in partnership with local communities. In order to develop responsible tourism practices which benefit local communities, support conservation activities in the Nam Ha National Protected Area and which promote and support the development of sustainable tourism in Luang Namtha, Green Discovery, the Luang Namtha Division of Forestry and the Luang Namtha Provincial Tourism Office agree to cooperate with each other as follows: Roles and Responsibilities of Each Party Provincial Division of Forestry • Conduct biodiversity conservation education in concerned communities • Implement biodiversity conservation awareness campaigns • Enforcement of rules regulations regarding the use and management of the provincial and national forest • Monitor the status of biodiversity in designated tourism zones • Has the right to be consulted and to give approval for tourism activities within the protected area Provincial Tourism Office • Responsible tourism awareness education for local communities • Public awareness campaigns for the development of responsible tourism • Training and licensing of tour guides • Monitoring impacts of tourism • Development and implementation of a tourism management plan • Enforcement of rules and regulations regarding tourism Green Discovery Laos • Incorporate responsible tourism practices into tour programs • Inform guests on how to be a responsible tourist • Consult with the communities, the provincial tourism office and the provincial division of Forestry in preparation, development and management of community-based ecotourism programs The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


• • • • •

Participate and collaborate with the Division of Forestry and the Tourism office in monitoring and evaluation activities Market and promote Luang Namtha as a responsible travel/community-based ecotourism destination. Conduct tour programs in a manner which promotes biodiversity conservation, community participation, and lessens poverty Pay all taxes and fees as required Enter into business contracts with partner communities.

Specific Tasks Division of Forestry • Conduct regular biodiversity conservation education sessions with all villages in tourism areas. • Run regular biodiversity conservation public awareness campaigns: o Use radio, public address and local television to promulgate the importance of biodiversity conservation o Air a weekly 10 minute radio/television program about forestry news o At all entrances to markets, restaurants and government offices as well as in the bus stations, ports of entry and departure in all districts of the province, signs will be posted in Lao, English and Chinese announcing that the trade of wildlife is illegal and informing the reader of the relevant penalties o District and Provincial Forestry offices hold regular educational meetings about biodiversity conservation • Post signs along tourism routes in Lao and English • Evaluate and improve land allocation schemes • Develop soft patrol5 and biodiversity monitoring protocols and reporting systems for use by tourism guides and villagers • Ensure that there hard patrols6 on tourism trails once a month • Train tourism guides and concerned villagers in the use of soft patrol and biodiversity conservation monitoring protocols • Train tourism guides on natural history and its interpretation • Print and supply Green Discovery with trekking permits Provincial Tourism Office • Conduct tourism awareness workshops in concerned villages and with tourism businesses • Public information in Lao and English promoting responsible and sustainable tourism practices among the locals and tourists alike o Post posters in Lao and English o Air a 10 minute weekly news program on local television and/or radio on tourism news in Luang Namtha • Hold two trainings for provincial level guides - one in May and another in September • Assist local guides to receive training for national level guide licenses. • Hold monthly refresher sessions for local guides on guiding skills, natural and cultural interpretation, and community relations • Host monthly responsible tourism discussion forums to facilitate dialogue between 5

A soft patrol is a way to use tour guides and tourists to report on activities along the trails which does not entail enforcement activities 6 A hard patrol is a patrol which has the ability to enforce laws regulations and to issue fines to offenders. The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


• •

foreign donors, experts and the public and private sectors Collect baseline data and develop and implement tourism impact monitoring protocols in concerned villages Enter into agreements with concerned villages regarding their roles and responsibilities in protecting natural resources along tourism trails

Green Discovery Laos • Pay a trekking permit fee for each customer entering the Nam Ha Protected Area based on the amount determined by the Forestry Division • Sign business contracts with each concerned village which guarantees the village a fair price for their services, establishes the rights and responsibility of each of the signatories. • Conduct regular meetings with villagers to ensure the quality operation of tour programs in the village and to listen to the feedback of the villagers • Conduct regular meetings with the guides to ensure quality operations • Create a community-based tourism network through regular meetings and visits between villagers • Provide “soft patrol” reports to the Forestry Division from the information and data collected on each tour program • Conduct tours in a way that maximizes the benefit to the local economy and to the concerned villages • Provide information to guests on how to be an environmentally and culturally sensitive tourist before each and every trip • Cooperate with the Provincial Tourism office in collecting baseline and monitoring and evaluation data in the concerned villages • Promote Luang Namtha as an ecotourism destination on the company’s website and promotional literature • Within 3 years of signing this agreement have all tour programs in the Nam Ha NPA internationally certified as community-based ecotourism programs Evaluation Each May and September there will be a tripartite meeting to review and evaluate the implementation of this agreement

The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


Attachment 2: Agreement of Cooperation: For the Tiger Trails Xieng Ngern Nature Circuit between The Villages of Xieng Lom, Houay Yen, Houay Fai, Houay Nok, and Long Khut (later referred to as The Village) Tiger Trail Outdoor Adventures, Luang Prabang

(later referred to The Company)

Provincial Tourism Office, Luang Prabang

(later referred to as The PTO)

Luang Prabang Provincial Agriculture and Forestry Office (later referred to as PAFO)

OBJECTIVES GOAL 1 :

to develop a successful community based tourism business partnership, hereinafter called the ‘Xieng Ngern Nature Circuit’ (XNNC), that maximizes benefits to the people of Ban Xieng Lom, Houay Yen, Houay Fai, Houay Nok and Long Khut villages, and encourages active management of their tourism resources.

GOAL 2 :

to regulate access and use of the ‘Xieng Ngern Nature Circuit’ by tourists for natural and cultural conservation, and better services and experiences for the visitors.

GOAL 3:

to maximize income and employment for the villages through regular payments for services such as guiding, food, accommodation, handicrafts, transport, etc. and to raise public revenue for the Luang Prabang PTO, PAFO and Provincial Treasury through taxes, permit fees and concessions.

GOAL 4:

to offer a unique tourism product and gives Luang Prabang a new tourism highlight with positive effects for rural development and environmental conservation.

Article 1: Expected benefits for The Villages Expected Benefits for Ban Xieng Lom, Houay Yen, Houay Fai, Houay Nok and Long Khut include: 1) Income generation through tourism development, employment creation, and community based tour products 2) Receive training in tourism skills and hospitality 3) Regular financial support for community projects 4) Regular visits from guests through better promotion 5) Control of the number of clients using the area while maximizing profits 6) Cooperation from The Company on improving tourism in the villages

The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


Expected Benefits for The Company include: 1) Better possibilities for exclusive promotion of one specific area 2) Security for further investments and protection from copying 3) Help from the PTO, PAFO and NGO’s to introduce more sustainable practices and higher quality tours 4) Better reputation through sustainable cooperation and funding for villages Expected Benefits for the Districts and PTO include: 1) Revenue from a new and attractive tourist region, which will benefit the local economy and help fund management activities 2) Another tourist attraction for international and national markets to promote Luang Prabang 3) Personal contact and interaction with responsible stakeholders Expected Benefits for PAFO include: 1) Revenue from permit fees for exclusive use of the ‘Xieng Ngern Nature Circuit’, which can help fund management and conservation activities 2) Alternative livelihood activity for local villages that help to decrease swidden agriculture and unsustainable harvest of natural resources 3) Creation of village-based natural resource monitoring teams for on-site conservation and management Article 2: The selected area/villages for tour products and the included activities: 1) 2) 3) 4) 5)

Ban Xieng Lom Ban Houay Nok Ban Long Khut Ban Houay Fai Ban Houay Yen

Activities which will be conducted within the XNNC include: Trekking Tours and village visits with overnight stays (1-3 Days), Combination Tours with Biking, Trekking, Kayaking, Elephant Riding (1-3 Days)

Article 3: Rights and Responsibilities of The Company

See Annex for further information if marked with *

1) The right to promote the XNNC exclusively on national, international, provincial and district levels 2) The right to earn profits on tours after paying for services and materials provided by local people and The Village* 3) The right to report unauthorized activities and use of the specified areas to the authorities* 4) The right to hire or release employees and staff based on abilities and suitability for the job 5) The responsibility to pay funds into a Village Development Fund and pay for other services of The Villagers according to the reported number of clients*

The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


6) The responsibility to pay a US$1 fee per tourist into the ‘Nam Khan Watershed Conservation Fund’ to be managed by PAFO and the PTO 7) The responsibility to inform the tourists about the existing cooperation with signs and print media and the company’s name 8) The responsibility to create sufficient advertising materials in cooperation with supporting organizations and the PTO for local and international market 9) The responsibility to cooperate with the PTO for regular payments to The Villages to implement their planned improvements/projects* 10) The responsibility to recognize The Villages as a business partner that has a say in how tourism is conducted in the XNNC 11) The responsibility to purchase goods and services from villages to support the tours, including food, transport, use of local guides, handicrafts, and lodging, wherever possible 12) The responsibility to market tours to The Village and to ensure high quality services to tourists visiting The Village and region with trained and licensed guides 13) The responsibility to minimize cultural and environmental impacts in The Village and to assist the PTO and PAFO to monitor impacts on a periodic basis* 14) The responsibility to ensure a high level of safety on Company tours to The Village Article 4: Rights and Responsibilities of The Village 1) The right to earn wages by providing for the Company the services of guiding, cooking, housekeeping, lodge maintenance and hospitality * 2) The right to use funds from the Development Fund which is shared by the participating villages and communities in equal shares on a 6 month period to implement small-scale development projects 3) The right to earn income by providing available food and handicrafts which can be sold to tour groups and visitors 4) The right to receive training in the areas of guiding, cooking, housekeeping, lodge maintenance, conservation and hospitality from the NTA, PAFO, PTO and SNV 5) The right to earn additional income through reporting illegal visitors to the activity area which will add money to the Village Fund 6) The responsibility to not cut natural forest within 200 meters of trekking trails and streams/rivers 7) The responsibility not to hunt wildlife in the XNNC 8) The responsibility to prohibit non-Company guides from bringing tourists for day tours and for overnight stays in The Village 9) The responsibility to prohibit and report illegal activities of outsiders to the PTO and PAFO 10) The responsibility to provide labor or material for the construction of visitor lodging and facilities, as agreed prior to the start of such projects* 11) The responsibility to maintain the beauty of The Village and trekking trails, as well as to protect the local natural environment* 12) The responsibility to secure visitor facilities and lodges from damage and theft 13) The responsibility to inform the Company, Tourism Authority of any negative impacts on the community from the business and to recommend actions for minimizing such impacts * 14) The responsibility for ensuring that tourist lodges and equipment are regularly maintained and cleaned and that there are enough, blankets, mosquito nets and cooking equipment provided to support the tours The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


Article 5: Rights and Responsibilities of the PTO 1) The right to monitor payments into the Village Development Fund in cooperation with The Company and the Village 2) The right to assist in the decision about how the money should be used* 3) The right to require the Company and The Village to adopt specific measures to minimize negative impacts on local cultures and environment or to suspend tour operations should such measures not be adequately followed 4) The right to promote the new project and cooperation area as a new provincial tourist highlight 5) The right to utilize 50% of the Nam Khan Watershed Conservation Fund only for management and training activities of the XNNC 6) The responsibility to allow only The Company to operate tours to the XNNC* 7) The responsibility to control, report and fine the illegal use of the area or false representation of the project* 8) The responsibility to collect and forward the fines to the Village Fund and the Nam Khan Watershed Conservation Fund 9) The responsibility to assist in creating and promoting the partnership between the PTO, Company, and Villages at the local and national levels 10) The responsibility to inform other tour companies and illegal tour providers in Luang Prabang and on national levels about the partnership between the Villages, PTO, PAFO, and the Company* 11) The responsibility to support official training on guiding and hospitality to The Village * 12) The responsibility to mitigate any disputes or problems between The Company and The Village 13) The responsibility to periodically monitor for negative cultural and environmental impacts in The Village and surrounding environments during meetings with The Company, PAFO and The Villages Article 6: Specific rights and responsibilities of PAFO 1) The right to utilize 50% of the Nam Khan Watershed Conservation Fund only for management and conservation activities of the XNNC 2) The right to require the Company and The Villages to adopt specific measures to minimize negative impacts on the environment or to suspend tour operations should such measures not be adequately followed 3) The responsibility to monitor and assist the Villages in the XNNC with land and forest allocation and land-use in the area 4) The responsibility to assist the Villages with training and assistance to improve agricultural production and livelihood strategies 5) The responsibility to monitor and enforce laws related to hunting, fishing, and harvest of non-timber forest products Article 7: Specific role of other operating companies 1) Other companies can use the XNNC and resell the products to their clients with The Company’s permission 2) Other companies must pay an agreed price to The Company and let The Company operate the tour The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


3) Other company guides may accompany the group, but may not lead groups in the XNNC without Company guides 4) Bookings can be received only through the Operations Office of The Company 5) If other companies use the area without permission they will be fined and the revenue from fines will be accrued to The Village Fund and Nam Khan Watershed Fund, with payments made officially with receipts to the PTO (see also responsibilities of The PTO) ANNEX to the village contract (See articles marked with * above) * Article 3: Rights and Responsibilities of The Company 1.) Prices for services in the village where we stay overnight Price for Overnight stay Price for cooking gear or cooking assistance Price for additional village guide (if needed) Price for food, per person, per meal Price for transportation

______ Kip ______ Kip ______ Kip ______ Kip ______ Kip

2.) Unauthorized use of the XNNC by other companies will be reported to the Tourist Police and PTO. The offending company shall be fined _____$ per person as well as receive an official warning. The fine shall be shared between Village Fund and the Nam Khan Watershed Conservation Fund 3.) The number of clients shall be recorded by both The Company and The Village. The number of clients shall be controlled every month. US$2 per person per trip will be divided between Village Development Fund (US$ 1) and the Nam Khan Watershed Conservation Fund (US$ 1) 4.) The Village Fund may be disbursed every 6 months after a meeting between the PTO, PAFO, The Company and Village Representatives. The Village Fund may be used to finance the following, for example: labor work, construction work, water supplies, tourist infrastructure, and other improvements The Villages get equal shares of the fund for improvements that affect the whole community Cash payments to individuals are not possible 5.) Every year there shall be a meeting between PTO, PAFO, The Villages and The Company to monitor, adjust and modify the existing cooperation and the existing impacts. This meeting shall be financed with funds from the Nam Khan Watershed Conservation Fund * Article 4: Rights and Responsibilities of The Village 1.) Wages and Payments for villages for the following services Price for overnight stay per person Price for cooking gear or cooking assistance Price for additional village guide (if needed) Price for food, per person, per meal Price for transportation

______ Kip ______ Kip ______ Kip ______ Kip ______ Kip

8.) When the village improves its infrastructure or the tourist facilities, the Village will provide either free labor or free construction material. Other payments will be supported from the Village Fund 9.) The Village shall keep the village clean for the visitors and maintain the trails which are used by the visitors. The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


11.) The Villages shall report negative impacts through tourism to The Company, the PTO, and PAFO and offer ideas how to minimize these impacts. In the annual meeting there will be a report from The Villages * Article 5: Rights and Responsibilities of The PTO 1.) Decisions about use of the Village Fund shall be done in cooperation with The Village, The Company, PTO and PAFO. Every six months a meeting between The Village, The Company, PTO and PAFO will take place to decide on how to use the funds. The Village shall have the final say in use of these funds. 2.) The PTO grants exclusive rights to The Company to operate the XNNC 3.) The PTO will collect and forward revenue from fines in equal shares to the Village Fund and the Nam Khan Watershed Conservation Fund (see also article 7) 4.) The PTO and the NTA will inform national and international tour companies through meetings, seminars and print media about the existing exclusive Company rights to operate the XNNC 5.) The PTO, in cooperation with the supporting national and international organizations, will assist and support the Training of the staff that will work in the project area when able and necessary

The Use of Cooperative Agreements as a Tool to Underpin Community-Based Ecotourism Development and Conservation in the Lao PDR Steven Schipani, Global Ecotourism Conference, Oslo, Norway 2007


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