Assessment of the Current Situation of the Tourism Market in Luang Prabang Province

market signals. Enterprises that adapt to the market will survive and vice versa will be eliminated. However, they still tend to link together to create strength to attract tourists, especially cooperation in building and organizing tourism programs, welcoming and serving tourists. Especially the connection between travel agents, travel businesses with tourism service providers inside and outside the province. Therefore, their interdependence increases.

Market supply is limited in quantity and fixed in nature. This is because the supply capacity is limited in location and capacity, and on the other hand, it requires large investment capital, so market supply is difficult to change when there are fluctuations in demand, prices and other impacts. Meanwhile, the supply of tourism products from tourism resources is not easy to produce and reproduce at a location or a business, so the creation of products is limited.

Supply requires large investment capital, so every year, the amount of investment capital in the Luang Prabang market increases. These capital sources are focused on building tourism infrastructure systems, building tourist areas with tourism products, goods, and services based on the province's tourism resources. These capital sources come from both the State and domestic and foreign tourism businesses.

3.2.2.5. International linkages on tourism market

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The tourism market has been initially connected . Tourism has been expanding cooperation with many international tourism organizations such as: UN-WTO, PATA, ASEANTA,... and actively participating in tourism development cooperation programs such as: Mekong sub-region development program; expanding and cooperating in the East-West corridor; Mekong River tourism cooperation with other rivers,...

Overall, the tourism industry has signed tourism cooperation agreements with other countries, has relationships with thousands of international tourism businesses and opened representative offices in key markets, in which Luang Prabang always plays an active role.

Investment in tourism is expanded . Enterprises focus on diversifying and improving product quality. Currently, the province has 78 companies and organizations providing tourism services with a total investment capital of 178,791,480,014 LAK to invest in building tourist areas, hotels, opening new tour routes in Luang Pra Bang such as: Maison Souvannaphoum Hotel, Santi Resort & SPA, Aucient Luang Pra bang Hotel, Me khong Rever view Hotel, The Chang Heritage Hotel, Luang Pra bang Travel & tour, Xieng thong Travel & tour, Lao discovery tour, etc. At the same time, new projects are being implemented such as: historical, cultural and natural tourism areas in districts such as: Phu Khun, Nam Bac, Pac Xeng, Muong Ngoi, Chom Phet,...

In addition, the Department of Information, Culture and Tourism of the city and districts in the province also organized a survey of Luang Prabang road to exploit the advantages of road tours departing from Luang Prabang through the northern provinces with many valuable historical, cultural and natural relics. The province has strengthened tourism cooperation with other provinces through signing tourism cooperation programs with the provinces: Hua Phan, Xay Nha Bu Ly, Xieng Khouang, Bo Keo, Vientiane capital, etc.

Develop and promote the province's tourism industry . Actively participate in domestic and international tourism fairs and festivals such as the "990th Anniversary of Thang Long - Hanoi" Tourism Festival; international trade and tourism fairs (ITB) in Singapore, Khun Minh (China), Ha Long, Quang Ninh province, (Vietnam); "Thousand Doc Phai" in Loi province (Thailand); in Xon district (Korea) and the ASEAN conservation tourism association in Pac Xe district, Champasak province.

Cooperate and link tourism centers in the province, domestically and internationally with Lao provinces such as: Vientiane capital, Vientiane province, Xieng Khouang, Hua Phan, Xay Nha Bu Ly,... and countries such as: Vietnam, China, Thailand, Cambodia,...

Regarding international cooperation in tourism product development, Luang Prabang organized a delegation of tourism officials to survey the Trans-Asia route (Laos, Thailand, Cambodia, Vietnam), connecting 4 countries to 1 destination. After the

Survey, there are some businesses opening short-term tours by road from Luang Prabang to Nghe An, Hanoi, Dien Bien Phu, Hue (Vietnam), Luang Prabang - Xieng Mai, Loi (Thailand), Luang Prabang - Xieng Hung, Khun Minh (China); air route Luang Prabang - Xieng Mai, Bang Koc (Thailand); Luang Prabang - Hanoi, ... Receiving technical support from the WTO; developing the type of conference, fair, incentive, exhibition (MICE) tourism, organizing for WTO experts to survey the current status of human resources, facilities, exchange with industry management staff, businesses that are strong in MICE will have specific fairs for the Luang Prabang tourism industry in shaping the development of the MICE type.

3.3. ASSESSMENT OF THE CURRENT SITUATION OF TOURISM MARKET IN LUONG PRA BANG PROVINCE

3.3.1. Results of tourism market development and causes

3.3.1.1. Results achieved

First, market size

With the results of expansion and the participation and assistance of international organizations in the region and the world, in recent times, the tourism center of Luang Prabang province has attracted more and more tourists from all over the world to participate in tourism in the Asia - Pacific region such as: in 2005, there were 79,000,000 international tourists to ASEAN countries; in 2013, it increased to 90,200,000 people and increased by 11% compared to 2012. Of which, tourists traveling in Malaysia

25,700,000 people, Thailand 26,700,000 people, Singapore 15,500,000 people, Vietnam 7,600,000 people,... and Laos 3,700,000 people [9, p.26].

The tourism market plays a role in the socio-economic development of the country, encouraging and protecting the natural landscape, history, culture and traditional customs of Laos in general and the ethnic groups in particular. Since the promulgation of the Tourism Law in 2005, tourism has become a modern industry with the fastest growth. In 2005, the number of international tourists to Laos was 1,095,315, in 2010 it was 2,513,028, in 2015 it was

4,684,429 visitors and 4,239,047 visitors in 2016. Bringing in revenue

Imports reached 146,770,074 USD in 2005; 381,669,031 USD in 2010;

725,365,681 USD in 2015 and 724,191,957 USD in 2016. 2016

The country has 542 hotels, 2,452 motels and resorts, 2,969 restaurants and 365 entertainment areas [9, pp.9, 21, 26].

For Luang Prabang Province In 2010, there were tourists visiting

326,496 visitors, of which 216,864 were international tourists; in 2015, there were 607,584 visitors, of which 445,872 were international tourists; and in the period 2016 - 2017, there were 643,319 visitors, of which 469,586 were international tourists [9, p.19].

The tourism market in Luang Prabang province has developed significantly in recent years. The formation and development of TTDL has created new developments for the market in general and in Luang Prabang province in particular.

The basic elements of tourism in Luang Prabang province are forming and developing quite synchronously.

The demand on the tourism market is increasing, creating a mutually beneficial relationship between localities where there are tourism resources, tourism businesses and tourists. For tourists, tourism is the temporary movement and stay outside their usual place of residence. Tourism brings satisfaction and contentment because they enjoy a useful time, meeting the needs of entertainment, rest, visit, ...

The supply of tourism products in the local market is developing in a more quality and diverse direction. The number of tourism products sold on the market is increasing and bringing significant benefits. The tourism product suppliers have many solutions to capture the market and expand market share. Most of the enterprises are small and medium-sized but they are trying to invest in improving the quality of tourism products and services, especially the quality of accommodation facilities is improved, and additional services are increasing. The number of attractive tourist destinations is increasing. The system of technical facilities for tourism business and infrastructure is increasingly expanded and improved.

Prices of goods and tourism services are gradually formed according to market rules, without direct intervention from state management agencies.

According to the assessment, the quality and price of tourism products as they are now are relatively attractive to tourists. Some international tourists stated that the reason they chose Laos in general and Luang Prabang province in particular as a vacation destination in the near future is the low price of goods and services. Competition is a factor promoting the development of the market, gradually eliminating the monopoly factor in the possession of resource values, towards a perfectly competitive market. Enterprises cooperate to bring the best tourism products and services to tourists.

Second, the quality and international competitiveness of the tourism market

Among businesses, in addition to cooperation, there is also a tendency for increasingly fierce competition as businesses apply measures to attract customers and consume more goods and services to achieve the goal of maximum profit. Businesses constantly improve their prestige and reputation; create conditions to serve customers most conveniently, quickly with high quality. Due to the high efficiency in tourism business, it has attracted many organizations and individuals to invest, thanks to which the quality of tourism products is increasingly high and competition is increasingly fierce.

Price competition among businesses, especially travel agencies, is quite common. Travel agencies that send customers often lower the price of travel products when necessary, then force the price down on Luang Prabang travel agencies. Therefore, the profit margin of travel agencies in Luang Prabang province is relatively low due to price pressure from foreign travel agencies or agents. A foreign travel agency often sends customers to a domestic company to get the best price. Meanwhile, there is almost no unified cooperation among domestic businesses.

To compete, businesses have different pricing policies according to season, number of customers and target audience. For each target audience, they are oriented to use different pricing policies for each type of tourism product. When pricing, it is based on the following bases: production and consumption costs of products, factors affecting price formation such as market demand, ability to

competitiveness of enterprises, perceived value of consumers, exchange rate relations between enterprises. Seasonal price discrimination mainly from service providers who discount prices outside the season. Price discrimination by number of guests based on cost. Enterprises tend to sell low prices to large groups of tourists to encourage them to use the service. Package tours are sold at a lump sum price including the price of all goods and services incurred during the tour. Usually this price must be less than the total price of goods and services if purchased separately or tourists are not able to calculate in detail the elements that make up the lump sum price.

Competing by quality is also the method that businesses in Luang Prabang are implementing. In recent years, the amount of capital invested by businesses has been not small, at the same time, they also attach importance to improving the quality of human resources with high professional requirements, including the team of tour guides. From there, the quality of goods and services is improved, and demand also increases accordingly.

Doing business on the tourism market has the province's advantage in terms of tourism resources. To control the monopoly of this limited resource, the state management agency in Luang Prabang often regulates the entrance ticket price to tourist attractions so that businesses do not arbitrarily increase ticket prices. At the same time, it forms a Management Board in areas and points that attract many visitors to control trading activities and protect the interests of tourists and travel agents. Due to the nature of the tourism market, it is very difficult to move towards a perfectly competitive market, and it requires the influence of state management agencies. Therefore, in Luang Prabang, inspection, examination and supervision in the market are highly valued in order to eliminate unhealthy competition, which damages the image of the destination. The phenomenon of making fake statues and fake pagodas in Luang Prabang no longer exists.

Third, the contribution of the tourism market to the economy

- The development of Luong Pra Bang Tourism Center has initially exploited tourism potential, contributing to the socio-economic development of the province and localities.

The tourism resources of Luang Prabang are exploited to create increasingly diverse and rich tourism products. The preservation and restoration of historical and cultural relics are paid attention to; the landscape and ecological environment are protected. Exploiting tourism resources promotes the development of economic sectors, fundamentally changing the face of tourist destinations. The number of visitors to Luang Prabang increases, both international and domestic tourists.

- The development of the tourism market promotes economic restructuring. Thanks to the investment of the State, the province, and enterprises in the tourism market in developing infrastructure, technical facilities for tourism, and in the restoration and development of tourism resources, it has stimulated the development of other economic sectors in the province. The increasingly expanded and improved technical facilities in tourism have contributed to changing the face of many districts, promoting strong economic restructuring of sectors and regions, and accelerating the urbanization process in Luang Prabang.

- Developing tourism has created many jobs, promoting the development of the labor market. Within 5 years, from 2011 - 2015, it attracted nearly 96,461 direct workers, in 2015 alone it attracted nearly 65,067 workers, an increase of nearly 163 times compared to 2011. This is an average increase higher than the growth rate nationwide and in many provinces. In addition, there are indirect workers participating in tourism activities in the market.

- The tourism market in the area has developed and attracted large investment capital, especially in recent years. In recent years, investment capital in the market has also grown rapidly. The number of investment projects, total investment capital, and investment sectors have all increased rapidly and stably. Some projects have been profitable right from the start. These capital sources have been used for the right purposes. The investment structure has gradually shifted to building modern accommodation facilities, developing infrastructure for tourist areas, entertainment facilities, promoting and developing tourism human resources. Since 2010, many large-scale tourism projects of domestic and foreign enterprises have invested in the province. In 2017, there were 94 projects with a total estimated investment capital of 178,791 billion LAK.

3.3.1.2. Causes of the results

Firstly, the State builds a system of policies and laws in the tourism sector, forming a legal framework for regulating tourism such as: Foreign Investment Law, Domestic Investment Law, Tourism Law. The General Department of Tourism builds a strategy for developing Lao tourism until 2025 and 2030, investment programs for developing infrastructure for tourism, regional development planning projects, tourism centers, etc. For Luang Prabang province, the Government has recognized it as one of many national thematic tourist areas in the country. These documents have created legal conditions for Luang Prabang to build a tourism development plan suitable to its characteristics and put forward many policies and strategies for tourism development, improving the province's competitiveness and investment environment.

Second, the correctness and creativity in the socio-economic development policy in Laos. After 30 years of innovation and development, the economic, political and social situation in the country and in Luang Prabang province has been stable. The transportation system has been increasingly expanded, and travel conditions have been favorable. In addition, the State has implemented a 40-hour work week and increased annual holidays, which have contributed significantly to increasing demand for domestic tourism. The economy has shifted from a centrally planned mechanism to a socialist-oriented market mechanism and international economic integration, which has stimulated investment and encouraged creativity to strive for legitimate enrichment of all economic sectors in society.

Third, the level of education and income of all people is increasingly improved. Economic development, improving the quality of life of the people, increasing income leads to expanding spending ability and stimulating the need to travel to relieve stress at work and escape from familiar living environments or polluted, noisy environments. This is an important motivation for potential customers to officially participate in tourism. The ability to pay for tourism services is increased, the number of domestic tourists using high-end services is increasing. The need to visit, research and explore nature, history, medical tourism, resorts, etc. is gradually becoming an essential need.

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