New development activities are underway at the Boten Specific Economic Zone on the Lao-Chinese border in Luang Namtha province after the government amended a concession agreement with partnering Chinese companies last month.
Under the new agreement, the Chinese developers have changed their focus of activity from a casino to a commercial centre and tourism operation, increasing investment capital from US$130 million to US$500 million.
Director of Luang Namtha provincial Department of Information, Culture and Tourism, Mr Sivilay Pankeo, told Vientiane Times yesterday that the new developments include the construction of a supermarket, demarcation of the zone and improving management.
“Since the casino closed, the number of tourists has slumped from between 2,000 and 3,000 per day to about 100 people at present,” Mr Sivilay said.
When the casino was open, about 6,000 people worked in the zone but now the figure has plummeted to less than 1,000 people.
“I think it could take several years for the zone to attract tourists again once the new development is complete,” he said.
When the casino closed down last year, Hong Kong Fuk Hing Travel Entertainment Group Ltd sold an 85 percent share of its equity to Yunnan Hai Cheng Industrial Group Stock Co., Ltd, keeping only a 15 percent stake in the project.
With a concession period of 99 years, the new developer plans to transform the zone into a regional commerce and tourism centre, building a 4-star hotel, golf course, amusement park, and supermarket.
They also plan to run tours to waterfalls and local villages, and other destinations in nearby protected areas.
Boten was established as a special economic zone in 2002-03 under a Prime Ministerial decree relating to border trade zones.
The project has now been redesignated as a Specific Economic Zone on a total area of 1,640 hectares.
The development saw the remote region of Boten transformed into an urban area with new roads, electricity and water, hotels and other facilities built to attract investment in the zone.
But the government encountered some security issues under the 2003 concession agreement and decided to amend the concession agreement with the developer to exclude the casino.
The amendment of the agreement will also allow the Lao authorities to oversee the management of security issues, while the zone management board will focus on financial affairs.
Minister of Information, Culture and Tourism Prof. Dr Bosengkham Vongdara visited the Boten Specific Economic Zone on Saturday to view the progress of the project, particularly the activities relating to culture and tourism.
Laos currently has fewer than 10 Special and Specific Economic Zones, including Savan-Seno, Golden Triangle and Phoukhyo.
More than 40 such zones are planned by the government, with 25 expected to be built by 2020
