Nine provinces in Laos and five provinces in Vietnam, which have high property rates and tourism potential, were chosen for the programme.

Heritage conservation through the development of sustainable tourism will benefit the poor through the programme, according to ADB.

The fast and unmanaged pace of tourism expansion, however, has prevented many of the poor from reaping any of the benefits and has limited the development to just a few destinations, said Alfredo Perdiguero, senior economist of ADB’s Southeast Asia Department.

Tourism opportunities had not been fully tapped although new transport corridors have been created. Small and medium-sized businesses have not been able to provide the quality of service demanded by tourists, he said.

He said the public sector had been unable to ensure sustainable growth while preserving natural, cultural and urban heritage, all of which were under threat.

The programme areas form part of a priority zone under the GMS tourism sector strategy for 2006-2015.

According to a press release, ADB will provide a US$10 million loan to Vietnam and a US$10 million grant to Laos to cover most of the project’s cost of US$21.98 million.

Vietnam will contribute US$1.11 million and Laos US$870,000 to complete the funding requirements.