The Poverty Reduction Capacity of Nature‐Based Tourism in Lao PDR—A Social Accounting Matrix (SAM) Study

ABSTRACT This study investigates the distributional impact of nature‐based tourism (NBT) revenues on relative incomes and poverty incidence by employing a SAM model in a village adjacent to a protected natural area in Lao PDR. The findings suggest that while community‐based tourism (CBT) benefits both poor and non‐poor households, indicating the potential for lifting some poor households out of poverty, particularly when they are directly involved in tourism, it also exacerbates income inequality between the wealthiest quintile and the rest. Furthermore, qualitative data underscores variations in the benefits derived from commercial natural resource exploitation when local communities collaborate with a private sector company, as opposed to managing initiatives independently. These findings hold significant implications for government policymakers seeking to determine the most effective strategies for promoting NBT to foster economic growth, poverty alleviation and natural resource conservation in underserved rural areas.