According to the new Luang Prabang Hotel Market Update (download full report here) by leading hospitality consulting firm, C9 Hotelworks, a large-scale airport expansion and high-speed railway are major indicators of imminent change,

C9 Hotelworks managing director, Bill Barnett (pictured right), said a runway expansion capable of handling wide-body aircraft will open in 2013, and the following year a high-speed railway link to China will become operational.

Key research data showed 2010’s year-on-year growth in airport passenger arrivals of 14% tallied in at 77,978. Growth in average room rates and RevPAR compensated for a slight dip in market wide occupancy.

A slowdown in tourist arrivals was driven by two important source markets, Thailand and the UK, which declined 43% and 16% respectively. Political events and currency deprecation were reasons for this decline.

Recent developments on the ground include the opening of an 18-hole golf course by a Korean joint-venture company, which includes more phases for a 250-room hotel, and 100 upscale villas.

The existing hotel supply of 44 hotels will increase 16% by 2012. Two new branded properties from the Anantara portfolio are also in the pipeline.

As to the impact on what has largely been a sustained low impact tourism footprint during the last decade, Barnett said, “A short term identity crises looks inevitable as one chapter closes and another is set to begin.”

He added that  the next development cycle looked set to focus on growth for growth’s sake, which is at odds with the destination’s unique DNA.

“Airlift and rail access improvements will see the emergence of new opportunities for a wider range of hotel products due to an overall upward progression. I expect to see a new mid-scale hotel tier emerge as the broader market edges towards more reliance on volume.”

Photo above shows the 24-room Kiridara hotel with view of Luang Prabang’s Mount Phou Si