laos tourism economy

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The tourism industry in Laos is developing rapidly, with several five-star resorts open or expected to open in the coming years. The major tourist destination is the world heritage site and ancient capital of Luang Prabang, but other areas including Champasak province and Vang Vieng also attract visitors, especially Chinese and Korean tourists.  Tourism’s relative share of GDP averaged 12.5 percent from 2016-1019, before the onset of the COVID-19 global pandemic.  Since Laos reopened its borders to international tourists in April 2022, the industry has seen a slow but steady recovery, buoyed by the new passenger routes on the Lao-China Railway running from Kunming in the PRC to Vientiane in Laos. Since December 2021, the Lao-China Railway has carried over 701,600 passengers between stations inside Laos. Tourism and travel contributions to GDP have not yet been tallied for 2022 or 2023, but over 1.67 million tourists visited Laos between January and June 2023, compared to only one million tourists between January and September 2022.

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Laos' tourism-driven economic recovery hinges on China

New cross-border railway brings in Chinese money, and concerns about influence

VIENTIANE -- Laos' economy is recovering from a pandemic slump as the opening of a passenger railway link with China helps bring back tourists, but the country risks becoming more reliant on its northern neighbor as a result.

In April, the Asian Development Bank (ADB) revised the 2023 real GDP growth rate forecast for Laos to 4%, an upgrade of 0.5 percentage point and 1.7 points higher than 2022. The growth rate had reached 4.7% in 2019, before the pandemic. The economy shrank in 2020 before expanding at the 2% range in 2021 and 2022.

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IMF says exports, tourism will spur Laos’ economic growth by 4%

Revenue from tourism, foreign investment and exports will help Laos’ struggling economy grow by 4% in 2024, the International Monetary Fund said in a forecast.

But that won’t be enough to counter the continuing high inflation rates – more than 25% – that have put many Laotians on the edge of poverty, several Laotians told Radio Free Asia.

“People in rural areas are still looking for food from forested areas,” a Saravane province resident said. “They don’t have the money to buy food in the market. They only buy the necessities.”

If the government can’t get inflation under control, no one will benefit from economic growth, a Xieng Khouang province resident said.

“People are getting poorer by the day,” he said. “They live paycheck to paycheck. Most products and merchandise sold in the markets are imported.”

The Asian Development Bank also predicted this month that the Lao economy would expand by 4% next year. It said last month that the country would grow by 3.7 percent in 2023.

But an ADB official told RFA that the rate of inflation would remain at 28% year over year – the same as it was in 2023.

Price controls, wage increases

Inflation has soared to as much as 40% in recent years following a depreciation in the Lao currency and declines in foreign investment.

Earlier this year, Lao authorities imposed price controls on basic necessities such as pork, rice and natural gas. The government has also raised the minimum wage several times since 2022 to address the cost of living crisis.

Last week, Lao Prime Minister Prime Minister Sonexay Siphandone acknowledged at a conference in Vientiane that the economy has been sluggish due to high debt levels, inflation, high gasoline prices and several other factors. 

But economic growth in Laos will strengthen as tourism, exports and service industries recover from the COVID-19 pandemic, and as investment from neighboring Thailand, China and Vietnam resumes, according to the ADB official.

The IMF forecast was released on Oct. 18, but an updated prediction should be available next month, once officials look at more export and tourism data.

“One issue is that the currency is still fluctuating,” an IMF representative told RFA on Friday. “That needs to be fixed quickly if they want the macroeconomy to stabilize.”

The government must also entice more foreign investment, motivate locals to increase their export-oriented production and lower the amount of import if it wants more consistent growth, he said.

Translated by Sidney Khotpanya. Edited by Matt Reed.

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Poverty Reduction, the Private Sector, and Tourism in Mainland Southeast Asia pp 127–143 Cite as

Laos: Background, Economic Conditions, and Tourism

• Scott Hipsher 2  
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Laos PDR is a fascinating landlocked and sparsely populated country with close cultural, linguistic, and religious ties with its neighbor Thailand. The first major political entity to arise in modern-day Laos was Lan Xang, which controlled much of Mainland Southeast Asia. After the fall of the Lan Xang Kingdom, the region fell into a period of political fragmentation, followed by an era of indirect control by the Thais before being incorporated into France’s Indochinese colonial sphere of influence. Shortly after gaining its independence, the country got caught up in the regional struggle between the forces of Communism and the forces opposed to Communism, with the result of the Communist forces coming out on top in the country’s civil war. The country remains under control of a government controlled by a handful of members of the Communist Party and while the country’s relatively small population is quite poor by international standards, the country has seen respectable economic growth over the past years driven to some extent by increases in foreign investment and tourism, although foreign aid continues to be a major component of the nation’s economy. The government has developed close political relations with China, while the tourism sector has seen steady growth in recent years and is expected to continue to grow into the foreseeable future.

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Hipsher, S. (2017). Laos: Background, Economic Conditions, and Tourism. In: Poverty Reduction, the Private Sector, and Tourism in Mainland Southeast Asia. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-5948-3_6

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Post-Covid-19 Economic and Health Recovery in Laos

Photo: Mladen Antono/AFP/Getty Images

Table of Contents

Report by Daniel F. Runde , Romina Bandura , and Shannon McKeown

Published January 19, 2022

Available Downloads

• Download the CSIS Brief 1224kb
• The Lao economy was hit especially hard by the Covid-19 pandemic and is likely to see slower GDP growth rates for 2022. The informal sector and small businesses have fared the worst and will require greater capital to recover financially.
• While the Lao government was able to vaccinate 50 percent of the population by the end of 2021, it will need to address pervasive healthcare infrastructure issues and improve access to rural areas to inoculate the rest of the population and prevent further disease outbreaks.
• Opportunities have emerged for greater digitization in the economic and education sectors, which could help propel recovery efforts further and generate more sustained economic growth for Laos going forward.

The Covid-19 pandemic has disrupted people’s livelihoods and tested healthcare systems around the world, and Laos is no exception. Its economy was hit particularly hard given its reliance on tourism, trade, and services. The country’s GDP growth is unlikely to reach pre-Covid-19 levels soon: while the World Bank predicts a 4.5 percent GDP growth rate for 2022, this remains well below pre-pandemic rates, which ranged from 6 to 8 percent for most of the past decade. The pandemic has also exacerbated structural problems in the Lao healthcare sector, which warrants investment and reform. As the Lao government shifts from a “zero Covid-19” policy to “living with Covid-19,” the United States and other donors can accompany these efforts by supporting small businesses and investing in long-term resilience in the healthcare sector.

As the Lao government shifts from a “zero Covid-19” policy to “living with Covid-19,” the United States and other donors can accompany these efforts by supporting small businesses and investing in long-term resilience in the healthcare sector.

Economic and Health Impacts of Covid-19

As the Covid-19 pandemic unfolded, the Lao government implemented the country’s first national lockdown on April 1, 2020 (after its first Covid-19 case was detected on March 24, 2020 ), followed by a second lockdown on April 22, 2021. The government established the National Taskforce Committee for Covid-19 Prevention and Control to coordinate response efforts, including implementing social distancing, providing testing, conducting surveillance, and imposing restrictions. The Ministry of Health built Emergency Operations Centers in each province to provide hospital, surveillance, and testing services. In the long term, to prevent future outbreaks and buttress the health sector, the government also endorsed the National Covid-19 Preparedness and Response Strategic Plan 2020–2025. As a result of these efforts, in 2020 Laos had the lowest number of all Covid-19 cases in the Association of Southeast Asian Nations (ASEAN) and one of the lowest in Asia. As of January 12, 2022, there have been just over 122,241 confirmed Covid-19 cases and 471 deaths in Laos since the start of the pandemic, according to the World Health Organization (WHO)—most of which are part of the country’s most recent outbreak.

Successive lockdowns impacted the population’s ability to make a living and access healthcare services. As a result, many households experienced a loss of income and increased food insecurity. A WHO-administered study revealed that nearly 50 percent of families surveyed reduced their spending on food or their food consumption.

Economically, Laos had its slowest GDP growth rate in 30 years as a result of the pandemic. Tax revenue fell by 37.6 percent by November 2020, while public debt increased to 69 percent of GDP, mainly due to infrastructure projects. Both Moody’s and Fitch Ratings downgraded the country’s sovereign credit rating in August 2020, constraining its financing opportunities. The country’s dominant sectors—tourism, handicrafts, and manufacturing—witnessed significant loss in revenue, exacerbated by the fact that Laos is a landlocked country. Some tourist destinations lost over 70 percent of revenue between March and June 2020; the handicrafts sector is expected to contract by 60 percent; and the manufacturing industry had a growth decline from 6.7 percent in 2019 to 5.8 percent in 2020. These sectors are predominantly female , and thus the pandemic has had a disproportionately negative impact on Lao women. In addition, a significant share of the Lao workforce is engaged in informal work, making them more vulnerable to economic shocks. A 2017 survey of the Lao labor force found that, out of 1.8 million employed individuals, about 1.5 million (83 percent) were in an informal working situation.

At the same time, over half of all micro, small, and medium-sized enterprises (MSMEs)—which provide roughly a third of Lao households’ income—experienced a fall in revenue. The United Nations predicts that over 70 percent of Lao MSMEs will not survive without economic improvement in the next six months. Furthermore, the unemployment rate increased to 25 percent in July 2020, and over 200,000 migrant workers (the majority of whom are female) returned to Laos, leading to a loss of between $125 and $136 million in remittances. The Lao National Chamber of Commerce and Industry (LNCCI) estimates that businesses in Laos will need one and a half years to recover from the 2020 lockdown—and two more years from the 2021 one.

Covid-19 also impacted the Lao government’s ability to provide basic services such as education and healthcare. Even before the pandemic, the health system struggled with limited government funding, outdated infrastructure, and a lack of qualified medical personnel. The pandemic strained the already weakened system and derailed progress of other vaccinations, such as for measles, diphtheria, and polio.

Today, many Lao citizens are weary of extended lockdowns, and the government is struggling to balance public health priorities against the need to allow economic activities to resume unfettered. At the same time, the government of Laos has limited fiscal space to offer citizens and businesses relief from the economic effects of the pandemic. The government primarily relied on deferrals on tax obligations , which unfortunately further reduces its ability to raise revenue and provide public services. The Ministry of Labor and Social Welfare also provided supplies to 4,500 returned migrant workers to offset their families’ loss of remittances, made possible by a grant from the International Labor Organization (ILO).

The Road to Recovery

While significant obstacles to economic recovery remain, there have been positive developments in recent months. The government has announced that creating “quality and productive” jobs is at the top of its agenda, particularly in the agriculture and tourism sectors. Laos also released its 9th National Socio-Economic Development Plan (2021–2025) and a new Agricultural Development Strategy (ADS 2025), which aims to boost food security, economic growth, industrialization, and modernization through sustainable agriculture. The ADS 2025 has four main targets: increasing agricultural production, improving quality to enhance agricultural competitiveness, enforcing standards and regulations, and guaranteeing food security. The strategy also includes a plan to encourage domestic and foreign investment in large-scale projects.

Agriculture was one of the industries least hurt by the pandemic—in fact, the sector absorbed 10 percent of workers who had been laid off in manufacturing and trade—and will be a key driver of Laos’s economic recovery. Electricity, mining, and manufacturing exports have also begun to rebound since the trade slowdown last year, and new mining licenses and earnings from electricity exports are expected to facilitate recovery. The Lao economy is expected to grow 3.6 percent in 2021, which is lower than in previous years but still an increase from earlier estimates.

Bilateral and multilateral partners have accompanied the government of Laos on its path to recovery. The U.S. Agency for International Development (USAID) announced a $2 million grant to support vaccine rollout in September 2021, provided $600,000 in medical equipment in March 2021, and has donated over 1 million Johnson & Johnson vaccines through the Covid-19 Vaccines Global Access (COVAX) initiative (see textbox). USAID has particularly focused on helping Laos achieve universal healthcare access, focusing on vulnerable populations.

In addition to healthcare support, USAID has implemented long-term programs to encourage economic reform, strengthen the rule of law, promote environmental and biodiversity conservation, and expand access to health and education. During the Indo-Pacific Business Forum in October 2021, the United States also held a Laos-specific forum with the LNCCI and the Ministry of Industry and Commerce on how increased digitization could support recovery from Covid-19, especially among MSMEs.

Multilateral institutions are also very active in the health and economic space in Laos. The United Nations provides support to Laos via its Covid-19 Response and Recovery Fund . The Asian Development Bank approved a $20 million loan in May 2020 for the Lao health sector to purchase personal protective equipment (PPE), lab equipment, and testing kits, and $9 billion via the Asia Pacific Vaccine Access (APVAX) facility , although the government of Laos has yet to access it. Laos received significant aid to address recent measles, diphtheria, and polio outbreaks , as well as endemic tuberculosis, malaria, and HIV. In November 2020, the Global Fund to Fight AIDS, Tuberculosis, and Malaria announced a co-financing agreement with the World Bank to invest $36 million toward achieving universal health coverage in Laos by 2025. Prior to the Covid-19 pandemic, the WHO partnered with the Lao Ministry of Health to launch a cholera vaccination campaign after major floods in 2018.

Development partners have also provided economic and legal support for agriculture, green tourism, e-commerce, and human-trafficking prevention initiatives. The World Bank and the Lao government agreed to scale up a USAID-backed Competitiveness and Trade Project in October 2021 to help businesses recover from the effects of the pandemic; the World Bank will provide an additional $6.5 million grant to complement the government’s provision of relief to vulnerable firms. The World Bank and ILO also initiated business-loan options and encouraged the Lao government to expand tax exemptions to support the economic recovery.

Laos’s Vaccination Progress

Laos does not produce Covid-19 vaccines domestically and has mainly relied on donations to vaccinate its population. The country receives vaccine shipments both through bilateral partners (such as China and Russia ) and through the COVAX facility , which began operations on March 20, 2021. Among the brands of vaccines distributed are Pfizer–BioNTech, Johnson & Johnson, Oxford–AstraZeneca, Sinopharm, and Sputnik. Since the beginning of the pandemic, USAID and the U.S. Centers for Disease Control and Prevention have together provided Laos nearly $10 million in vaccines and cold-chain storage supplies to support the fight against Covid-19.

As of January 12, 2022, 51 percent of the population is fully vaccinated and 63 percent of the population has received at least one dose. While 87 percent of Lao have indicated their willingness to be vaccinated, there is still some lingering distrust of Covid-19 vaccines. New social media campaigns have sprung up to counter misinformation and promote vaccination, particularly among Lao youth.

Covid-19 Recovery: Opportunities for U.S. Engagement

As the Lao government, multilateral stakeholders, and the international donor community work together to reach vaccine targets, there are several areas where the United States can engage to help the country recover from the pandemic. On the health front, because Laos is a small country of 7 million, it would be relatively easy for the United States to ramp up donations of quality Covid-19 vaccines in the coming year. This would result in a quick win for the United States and help build trust among the Lao population. In the medium term, the “living with Covid-19” policy will give the United States the opportunity to support the healthcare system through increased testing, booster shots, and greater human resources.

On the economic front, there is an opportunity to help the economy and businesses become more resilient , including by developing new agricultural value chains, diversifying the energy mix, and building MSME capacity in digitalization. Similarly, the World Bank has recommended that Laos move forward with business reforms and trade facilitation, including by “increasing the ease of doing business, lowering transport and logistics costs, and supporting improved product quality.”

U.S.-Led Vaccine Diplomacy

U.S. assistance with vaccinations, which has garnered a positive reception, can serve as a building block for future bilateral engagement with Laos. The United States should continue to help the Lao government with vaccine delivery, targeting the most vulnerable groups who have yet to receive a dose. The country’s urban areas have higher vaccination rates compared to rural areas, which are less accessible and less interconnected. To bridge this urban-rural vaccine divide, USAID could work with local partners to support mobile vaccination teams in rural areas. USAID could also work with local partners to combat disinformation and vaccine hesitancy, which will continue to be important as the government works to achieve its 2021 vaccination target.

U.S. assistance with vaccinations, which has garnered a positive reception, can serve as a building block for future bilateral engagement with Laos.

Laos is also behind in its routine healthcare and is not likely to meet its vaccination targets of 90–95 percent for many of the most common communicable diseases. Covid-19 responses clearly crowded out the sector’s already limited financial and human resources, while society-wide containment measures added to the challenge of accessing or providing healthcare. USAID should use its comparative advantage in this field to help the Lao government fully resume routine vaccinations.

Supporting Healthcare Infrastructure

The Lao healthcare sector, already lacking many services and depending strongly on assistance, has been very reliant on donations of vaccines and equipment. While Laos has been able to distribute these donations, there is still a gap in testing capacity, medical supplies, and human resources—as well as the absence of a solid coordination mechanism among ministries and levels of government. These critical constraints are further exacerbated by the weaker capacities at the sub-national level.

Improvements to Laos’s healthcare infrastructure will make it easier to properly store and distribute Covid-19 vaccines. USAID should continue to support efforts to strengthen the country’s cold-chain system and logistics capacity so the country is more prepared for vaccine delivery in the future. These investments will allow the health system to administer the vaccines in a highly efficient manner. Mobile clinics could serve as pop-up vaccination sites in less accessible areas and as future points of healthcare for rural and low-income communities. In the longer term, as the pandemic becomes a part of life and the Lao government adopts a “living with Covid-19” policy, the government will need to plan for vaccine costs (and associated recurring costs) in a more sustainable way.

Financing MSMEs

To recover from the pandemic, people also need jobs to support their livelihoods. MSMEs, the backbone of economic activity in Laos, were the worst hit by Covid-19. Many of these MSMEs are in the tourism sector, which is likely to revive as the rate of vaccination improves and the country begins to open, presenting an opportunity to bolster economic output. Yet additional financing is necessary to support the economic recovery of MSMEs.

The Lao banking sector is currently not providing much capital to small businesses, impeding their ability to grow and pay off debt. Similarly, aid from the government is both very low in volume and tends to target larger businesses. MSMEs will need greater access to finance and debt-relief mechanisms to help promote a sustainable economic recovery. Moreover, there should be more credit facilities offering de-risked lending to non-traditional businesses that might not have the full capital to guarantee their loans. USAID’s comparative advantage in working with the private sector and supplying loan-portfolio guarantees through its Development Finance Corporation could help secure funding and investment for MSME recovery efforts in Laos.

Expanding Digital Connectivity

At the same time, the pandemic has highlighted the need for the government, individuals, and firms to digitize. Currently, only 39 percent of the population of Laos has access to the internet. Furthermore, MSMEs in Laos are largely “offline,” with only about 4 percent of businesses reporting use of information technology, and only 9 percent having access to loans and other sources of financing. Costs remain comparatively high, which has discouraged new mobile and broadband-internet subscriptions.

“COVID has had an enormous impact on the Lao economy and Small and Medium Enterprises. It has accelerated efforts by businesses to digitize. Banks have launched digital services to enable flexible payment arrangements for their customers.” – President of LNCCI, Mr. Oudet Souvannavong

This lack of digital access has disproportionately hurt students in remote areas, as well as

students with disabilities. There is also a severe lack of teachers and limited capacity to adapt to online learning.

USAID’s first-ever digital strategy , launched in 2020, presents an opportunity to expand digital capacity for Lao MSMEs, make e-commerce more inclusive, and make broadband access cheaper and more widespread. This strategy lays out how the agency will adapt its operations to the digital age, focusing on promoting the responsible use of digital technology abroad and providing technical assistance to strengthen open, interoperable, reliable, and secure digital infrastructure. USAID’s efforts also aim to advance and reinforce democratic norms, principles, and forms of governance in the digital ecosystem. This makes the agency well positioned to support the construction of digital platforms and the further digitization of existing economic sectors in Laos.

Daniel F. Runde is senior vice president, director of the Project on Prosperity and Development and Americas Program, and holds the William A. Schreyer Chair in Global Analysis at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Romina Bandura is a senior fellow with the CSIS Project on Prosperity and Development and Project on U.S. Leadership in Development. Shannon McKeown is a research assistant with the CSIS Project on Prosperity and Development.

This brief is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of CSIS and do not necessarily reflect the views of USAID or the United States government.

CSIS Briefs are produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. Its research is nonpartisan and nonproprietary. CSIS does not take specific policy positions. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s).

© 2022 by the Center for Strategic and International Studies. All rights reserved.

Daniel F. Runde

Romina Bandura

Shannon mckeown, programs & projects.

Tourism in Laos 

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Tourism in Laos is big business for the nation. But what is the appeal of this tourist destination and how is tourism managed here? Read on to find out…

Tourism in Laos

Laos, with its serene landscapes and timeless traditions, remains one of Southeast Asia’s most untouched treasures. Nestled amidst rugged mountains and the meandering Mekong River, this country offers a retreat into a world where ancient temples meet natural wonders. In this article, we’ll journey through the diverse attractions and cultural experiences that make tourism in Laos a truly unique and enchanting voyage.

Geography of Laos

Laos is a landlocked country located in Southeast Asia, bordered by Myanmar to the northwest, China to the northeast, Vietnam to the east, Cambodia to the south, and Thailand to the west. It covers an area of approximately 236,800 square kilometres and has a population of around 7 million people.

The topography of Laos is characterised by high mountains, plateaus, and valleys. The Mekong River, one of the longest rivers in the world, runs through the western and southern parts of the country and serves as a major transportation route. The river valley is home to the majority of Laos’ population and the country’s capital city, Vientiane.

The northern part of Laos is dominated by the Annamite Range, a chain of mountains that forms the border with Vietnam. The highest peak in Laos, Phou Bia, is located in this region. The central part of the country is a plateau, which includes the Plain of Jars, a unique archaeological site where hundreds of large stone jars are scattered across the landscape.

The southern part of Laos is characterised by the Mekong River and its numerous tributaries, which form a vast network of wetlands, forests, and rice fields. This region is home to several national parks, including the Xe Pian National Protected Area and the Dong Phou Vieng National Biodiversity Conservation Area, which are important habitats for a variety of endangered species.

Overall, Laos is a country with diverse and stunning natural landscapes, from rugged mountains to lush river valleys, and is home to a rich cultural heritage that reflects the country’s complex history and ethnic diversity.

The tourism industry in Laos

Laos is a country with great potential for tourism, offering a unique blend of natural beauty, cultural diversity, and historical significance. The tourism industry in Laos has been growing steadily in recent years, with the country receiving around 4.6 million visitors in 2019, compared to 1.8 million in 2010.

One of the main attractions for tourists in Laos is its stunning natural scenery, which includes rugged mountains, cascading waterfalls, and lush forests. The country’s numerous national parks, such as the Nam Ha National Protected Area and the Phou Hin Poun National Biodiversity Conservation Area, offer opportunities for hiking, trekking, and wildlife watching.

Laos also has a rich cultural heritage, with over 100 ethnic groups living in the country, each with their own unique customs, traditions, and beliefs. The country’s many temples, such as the famous Wat Xieng Thong in Luang Prabang, offer visitors a glimpse into Laos’ rich Buddhist history and architecture.

Other popular tourist activities in Laos include river cruises on the Mekong River, visiting traditional handicraft villages, such as the silk weaving village of Vang Vieng, and exploring the country’s historical sites, such as the Plain of Jars.

The tourism industry in Laos is relatively underdeveloped compared to its neighbours, but the government is actively promoting the sector and investing in infrastructure to attract more visitors. However, there are still challenges to be addressed, such as improving transportation links and ensuring sustainable development of tourism activities to protect the country’s natural and cultural resources.

Overall, Laos is a country with great potential for tourism, offering visitors a unique and authentic travel experience that is both enriching and memorable.

Statistics about tourism in Laos

Here are a few key statistics about tourism in Laos:

• In 2019, Laos received approximately 4.6 million international tourist arrivals, which was a 9% increase from the previous year.
• The largest source markets for tourists to Laos in 2019 were Thailand, Vietnam, China, South Korea, and Japan.
• Tourism contributed around 10% of Laos’ GDP in 2019, generating approximately $861 million in revenue.
• The tourism industry in Laos employed around 150,000 people in 2019, representing approximately 2.4% of the country’s total employment.
• The average length of stay for international visitors to Laos was around 8 days in 2019.
• The most visited destinations in Laos in 2019 were Luang Prabang, Vientiane, and Champasak.
• The most popular tourist activities in Laos in 2019 were sightseeing and cultural activities, followed by nature and adventure activities.
• The average daily expenditure of international visitors to Laos was around $125 in 2019.
• The majority of accommodation options in Laos are budget guesthouses and mid-range hotels, with limited availability of luxury hotels.
• The government of Laos has set a target of attracting 5 million international visitors annually by 2025, and is investing in infrastructure and tourism development to achieve this goal.

Tourist attractions in Laos 

Laos has a variety of popular tourist attractions, ranging from natural wonders to cultural and historical sites. Here are some of the most popular tourist attractions in Laos:

• Luang Prabang: This UNESCO World Heritage Site is a charming town located in the northern part of Laos. Luang Prabang is known for its well-preserved architecture, colourful temples, and beautiful natural scenery. The town is also famous for its night market, which offers a wide range of local handicrafts and souvenirs.
• Vang Vieng: This small town in central Laos is known for its stunning karst mountains and beautiful natural scenery. Visitors to Vang Vieng can enjoy activities such as kayaking, caving, and rock climbing, as well as exploring the town’s many caves and waterfalls.
• Plain of Jars: This archaeological site is located in the northeastern part of Laos and features hundreds of giant stone jars scattered across the landscape. The jars are believed to have been used in ancient funerary practices, but their true purpose remains a mystery.
• Wat Phu: This Khmer temple complex is located in the southern part of Laos and dates back to the 5th century. The temple is dedicated to the Hindu god Shiva and features a series of beautiful carvings and sculptures.
• Mekong River: The Mekong River is one of the most iconic natural landmarks in Laos, and visitors can enjoy boat tours along the river, as well as visiting traditional fishing villages and exploring the many small islands along the way.
• Kuang Si Falls: This stunning waterfall is located just outside Luang Prabang and features turquoise blue pools that are perfect for swimming. Visitors can also take a short hike to the top of the waterfall for panoramic views of the surrounding landscape.
• Bolaven Plateau: This highland region in southern Laos is known for its stunning natural scenery, including waterfalls, coffee plantations, and hill tribe villages. Visitors can enjoy hiking, cycling, and motorbike tours through the area.
• That Luang: This gold-covered Buddhist stupa is one of the most important religious sites in Laos and is located in the capital city of Vientiane. The stupa is believed to contain a relic of the Buddha and is surrounded by a complex of temples and shrines.

These are just a few of the many popular tourist attractions in Laos, which offer visitors a unique and authentic travel experience that is both enriching and memorable.

Most popular types of tourism in Laos

Laos offers a variety of tourism activities that cater to different interests and preferences. Here are some of the most popular types of tourism in Laos:

• Cultural tourism: Laos has a rich cultural heritage that is reflected in its numerous temples, historical sites, and traditional festivals. Visitors can explore the ancient capital city of Luang Prabang, which is known for its well-preserved architecture and colourful temples, or visit the Plain of Jars, an archaeological site that features hundreds of giant stone jars scattered across the landscape. Traditional festivals, such as the Boun Bang Fai rocket festival and the Boun That Luang festival, also offer visitors an opportunity to experience the unique culture and traditions of Laos.
• Nature and adventure tourism: Laos is known for its stunning natural scenery, including lush rainforests, beautiful waterfalls, and scenic rivers. Visitors can enjoy a range of outdoor activities, such as trekking, kayaking, caving, and rock climbing, in places like Vang Vieng, the Bolaven Plateau, and the Nam Ha National Protected Area.
• Ecotourism: Laos has a wealth of biodiversity and is home to numerous species of flora and fauna, some of which are endangered. Visitors can explore the country’s diverse ecosystems, such as the Nam Et-Phou Louey National Protected Area, and participate in activities such as wildlife spotting, bird watching, and eco-friendly tours.
• Community-based tourism: Community-based tourism is a growing trend in Laos, as it offers visitors an opportunity to experience the local way of life and support sustainable development in rural communities. Visitors can stay in homestays or guesthouses run by local families, participate in traditional activities such as rice farming and weaving, and learn about local customs and traditions.
• Spiritual tourism: Buddhism is the dominant religion in Laos, and the country is home to numerous temples and monasteries. Visitors can participate in meditation retreats, attend religious ceremonies, and learn about the Buddhist way of life at places like Wat Phu, That Luang, and the Buddha Park.

These are just a few examples of the types of tourism that are popular in Laos, and visitors can find a range of activities and experiences that suit their interests and preferences.

Economic impacts of tourism in Laos

Tourism is an important sector of the economy in Laos, contributing significantly to the country’s GDP, job creation, and foreign exchange earnings. Here are some of the economic impacts of tourism in Laos:

• GDP contribution: According to the World Travel and Tourism Council (WTTC), the direct contribution of tourism to Laos’ GDP was 2.2% in 2019. However, when the indirect and induced impacts are taken into account, the total contribution of tourism to GDP was estimated to be around 8.2%.
• Job creation: Tourism is a major employer in Laos, particularly in the service sector. According to the WTTC, the travel and tourism sector in Laos directly supported 165,000 jobs in 2019, which represents around 2.9% of total employment in the country. When the indirect and induced impacts are considered, tourism is estimated to have supported around 550,000 jobs, or around 9.6% of total employment.
• Foreign exchange earnings: Tourism is a significant source of foreign exchange earnings for Laos, with international visitors spending money on accommodation, food, transportation, and souvenirs. According to the Ministry of Information, Culture, and Tourism, international tourism receipts in Laos reached $904 million in 2019, representing around 6.3% of total exports.
• Regional development: Tourism has the potential to support regional development in Laos, particularly in rural areas. Community-based tourism initiatives and homestays, for example, can provide income opportunities for local communities and support the preservation of cultural heritage and the environment.
• Infrastructure development: The growth of tourism in Laos has also led to the development of infrastructure such as airports, roads, and hotels, which can have positive spillover effects on other sectors of the economy.

However, it’s important to note that tourism can also have negative economic impacts, such as increasing the cost of living for locals, creating wealth disparities, and contributing to environmental degradation if not managed sustainably. Therefore, it’s essential to ensure that tourism development is sustainable and benefits all stakeholders, including local communities and the environment.

Social impacts of tourism in Laos

Tourism can have both positive and negative social impacts on the host communities in Laos. Here are some examples of the social impacts of tourism in Laos:

Positive impacts:

• Cultural exchange and preservation: Tourism provides an opportunity for visitors to learn about the local culture, traditions, and way of life, and for locals to share their knowledge and experiences. This can help promote cultural exchange and understanding, and also support the preservation of cultural heritage.
• Job creation and income generation: Tourism can create employment opportunities for locals, particularly in the service sector. This can help to reduce poverty and improve the standard of living in local communities.
• Community development: Tourism can also contribute to community development, particularly in rural areas, by providing income opportunities and supporting the development of local infrastructure and services such as homestays, restaurants, and transportation.
• Environmental conservation: Tourism can create incentives for the conservation of natural and cultural resources, particularly when it is designed to promote sustainable tourism practices and responsible tourism behaviour.

Negative impacts:

• Culture change and erosion: Mass tourism can lead to the commercialization of culture and the erosion of local traditions and customs, as locals may alter their behaviour or traditions to cater to tourist demands.
• Social inequality: Tourism can create income disparities and wealth gaps between locals and tourism businesses, particularly when multinational corporations or foreign investors dominate the industry.
• Social problems: Tourism can lead to an increase in social problems, such as crime, drug use, and prostitution, particularly in areas where the industry is poorly regulated.
• Overcrowding: The high volume of tourists can lead to overcrowding and the degradation of natural and cultural resources, particularly in sensitive ecosystems and heritage sites.

Therefore, it is important to promote sustainable tourism practices and responsible tourism behaviour to mitigate negative social impacts and ensure that tourism benefits all stakeholders, including local communities.

Environmental impacts of tourism in Laos 

Tourism can have significant environmental impacts, both positive and negative, on the host communities and natural ecosystems in Laos. Here are some examples of the environmental impacts of tourism in Laos:

• Environmental awareness and conservation: Tourism can create incentives for the conservation of natural resources and the protection of wildlife and ecosystems, particularly when it is designed to promote sustainable tourism practices and responsible tourism behaviour.
• Natural resource management: Tourism in Laos can contribute to better management of natural resources such as water, land, and forests, particularly in areas where tourism is the main economic activity.
• Conservation financing: Tourism can generate revenues for the conservation of natural and cultural resources, particularly through entry fees, taxes, and donations.
• Alternative livelihoods: Tourism in Laos can provide alternative livelihood opportunities for local communities, reducing pressures on natural resources, such as fishing or hunting.
• Pollution: Tourism in Laos can contribute to air, water, and soil pollution, particularly when the infrastructure and services are poorly regulated, and when the waste management systems are inadequate.
• Resource depletion: Overuse of natural resources such as water, energy, and land can lead to depletion, particularly in areas with high tourist density.
• Habitat degradation: Tourism in Laos can lead to habitat degradation and fragmentation, particularly when it involves the construction of hotels, roads, and other infrastructure in sensitive ecosystems.
• Wildlife disturbance: Tourism in Laos can disrupt natural habitats and wildlife, particularly when tourists engage in activities such as wildlife watching or hiking.

Therefore, it is important to promote sustainable tourism practices and responsible tourism behaviour to mitigate negative environmental impacts and ensure that tourism benefits all stakeholders, including local communities and the environment. This can be achieved through measures such as minimising waste, reducing energy consumption, promoting conservation, and supporting local economies.

FAQ’s for tourism in Laos 

Now that we know a bit more about tourism in Laos, lets finish off this article by answering some of the most frequently asked questions on this topic:

Do I need a visa to enter Laos as a tourist?

Yes, tourists from most countries will need a visa to enter Laos. The cost and length of the visa will depend on the country of origin and the length of stay.

What is the best time to visit Laos?

The best time to visit Laos is between November and February, when the weather is cool and dry. However, this is also the peak tourist season, so expect higher prices and crowds.

Is Laos a safe destination for tourists?

Laos is generally considered a safe destination for tourists. However, tourists should exercise caution, particularly when it comes to petty crime and road safety.

What is the local currency in Laos?

The local currency in Laos is the Lao kip (LAK). However, US dollars and Thai baht are also widely accepted in tourist areas.

What are the must-see tourist attractions in Laos?

Some of the must-see tourist attractions in Laos include Luang Prabang, the Plain of Jars, Vientiane, and the Kuang Si Waterfall.

What are the popular outdoor activities in Laos?

Some of the popular outdoor activities in Laos include trekking, kayaking, caving, and rock climbing.

Is English widely spoken in Laos?

English is not widely spoken in Laos, particularly outside of tourist areas. However, many locals in the tourism industry will have some basic English skills.

What is the local cuisine in Laos?

The local cuisine in Laos is characterised by its use of fresh herbs, vegetables, and spices. Some popular dishes include laap (a spicy meat or fish salad), khao soi (noodles in a coconut curry soup), and sticky rice.

What is the dress code for visiting temples in Laos?

Visitors to temples in Laos should dress modestly, covering their shoulders and knees. It is also customary to remove shoes before entering a temple.

How can I get around in Laos?

Tourists can get around in Laos by bus, tuk-tuk, taxi, or private transportation. Domestic flights and boat trips are also available for longer distances. However, note that road conditions can be poor and traffic can be chaotic, particularly in urban areas.

Tourism in Laos: To conclude

Laos, a hidden jewel of Southeast Asia, weaves together untouched landscapes with deep-rooted traditions. From the serene Mekong riverbanks to ancient temple spires, it offers a retreat into a world less travelled. As interest in tourism in Laos grows, travellers depart with memories of a land where time seems to pause, promising an allure that resonates long after the journey ends.

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Tourism in Laos

Development of the tourism sector in laos from 1995 to 2020.

Revenues from tourism

All data for Laos in detail

Tourism industry fuels economic growth in Laos

• 5 June 2018
• tourism fuels economic growth in Laos

The Lao tourism industry is not only playing a significant role in boosting economic growth, but is also creating a huge number of job opportunities for local people, experts have noted. 

The United Nations’ World Travel and Tourism Council unveiled its latest report recently, which indicated that tourism has directly resulted in 114,000 jobs being created in Laos. This is expected to rise to 121,000 jobs in 2028, which will represent about 3 per cent of total employment.

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Laos Tourism Revenue Growth

• Laos Tourism Revenue dropped 77.2 % YoY in Dec 2020, compared with an increase of 15.3 % YoY in the previous year
• Laos Tourism Revenue Growth rate data is updated yearly, available from Dec 1992 to Dec 2020
• The data reached an all-time high of 227.3 % in Dec 1995 and a record low of -77.2 % in Dec 2020

View Laos's Tourism Revenue Growth from 1992 to 2020 in the chart:

What was Laos's Tourism Revenue Growth in 2020?

Laos Tourism Revenue dropped 77.2 % YoY in Dec 2020, compared with an increase of 15.3 % YoY in the previous year See the table below for more data.

Tourism Revenue Growth by Country Comparison

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Laos - Statistics & Facts

A small landlocked country in Southeast Asia, Laos is home to a total population of nearly seven million people. Bordering China, Vietnam, Cambodia, Thailand, and Burma, the country has lagged behind its neighbors in development. Laos is a socialist country, with high government expenditure . Its main import and export partners are regional, but it is in the process of opening up further. Laos is trying to promote development by becoming more friendly to businesses. Over the past decade, the t otal tax rate as a percentage of profits for medium sized businesses has fallen by roughly ten percentage points, and the time required to start a business has decreased by nearly half. This has led to increasing capital formation . It is also relying on increasing official development assistance since the financial crisis around 2008. The Laotian people are rather poor. The country’s per capita gross domestic product continues to lag behind that of Asia’s more developed economies, but it claims more wealth than most of its neighbors. The distribution of employment signals a move away from the agricultural sector towards the services sector, commensurate with the worldwide trend and driven by development. The increase in industry can largely be attributed to the growth of textile industry. Life expectancy at birth is also increasing, suggesting an improvement in medical care. In spite of the country’s setbacks, it is making inroads into modern technical society. Fixed broadband subscriptions have grown significantly over the past few years. However, the vast majority of internet traffic in Laos still passes through mobile phones. An increasing number of registered sellers on Alibaba , the Chinese e-commerce platform, underscores the country’s economic relationships with its largest neighbor. For those that believe that Asia will continue to grow in influence in the coming decades, Laos is a country to watch. This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text. Show more Aaron O'Neill Research expert covering historical data Get in touch with us now Published by Aaron O'Neill , Dec 21, 2023

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Laos: Total population from 2018 to 2028 (in million inhabitants)

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Laos: Life expectancy at birth from 2011 to 2021

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Laos: Death rate from 2011 to 2021 (in deaths per 1,000 inhabitants)

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Laos: Infant mortality rate from 2011 to 2021 (in deaths per 1,000 live births)

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• Basic Statistic Laos: Share in global GDP adjusted for PPP 2028
• Basic Statistic Share of economic sectors in GDP in Laos 2022
• Basic Statistic Employment by economic sector in Laos 2021
• Basic Statistic Unemployment rate in Laos 2023
• Basic Statistic Youth unemployment rate in Laos in 2023
• Basic Statistic Inflation rate in Laos 2028
• Premium Statistic Import of goods to Laos 2022
• Premium Statistic Import of commodities to Laos 2022
• Basic Statistic Most important import partners of Laos 2019
• Premium Statistic Export of goods from Laos 2022
• Premium Statistic Export of commodities from Laos 2022
• Basic Statistic Most important export partner countries for Laos in 2021
• Premium Statistic Trade balance of goods of Laos 2022

Gross domestic product (GDP) in Laos 2028

Laos: Gross domestic product (GDP) in current prices from 1988 to 2028 (in billion U.S. dollars)

Laos: Gross domestic product (GDP) per capita in current prices from 1988 to 2028 (in U.S. dollars)

Gross domestic product (GDP) growth rate in Laos 2028

Laos: Growth rate of real gross domestic product (GDP) from 2018 to 2028 (compared to the previous year)

Laos: Share in global GDP adjusted for PPP 2028

Laos: Share in global gross domestic product (GDP) adjusted for Purchasing Power Parity (PPP) from 2018 to 2028

Share of economic sectors in GDP in Laos 2022

Laos: Share of economic sectors in gross domestic product (GDP) from 2012 to 2022

Employment by economic sector in Laos 2021

Laos: Distribution of employment by economic sector from 2011 to 2021

Unemployment rate in Laos 2023

Laos: Unemployment rate from 2004 to 2023

Youth unemployment rate in Laos in 2023

Laos: Youth unemployment rate from 2004 to 2023

Inflation rate in Laos 2028

Laos: Inflation rate from 1988 to 2028 (compared to the previous year)

Import of goods to Laos 2022

Laos: Import of goods from 2012 to 2022 (in billion U.S. dollars)

Import of commodities to Laos 2022

Laos: Import of commodities in 2022 (in million U.S. dollars)

Most important import partners of Laos 2019

Laos: Main import partners in 2019

Export of goods from Laos 2022

Laos: Export of goods from 2012 to 2022 (in billion U.S. dollars)

Export of commodities from Laos 2022

Laos: Export of commodities in 2022 (in million U.S. dollars)

Most important export partner countries for Laos in 2021

Laos: Main export partners in 2021

Trade balance of goods of Laos 2022

Laos: Trade balance of goods from 2012 to 2022 (in billion U.S. dollars)

National finances

• Premium Statistic National debt of Laos 2028
• Basic Statistic National debt of Laos in relation to gross domestic product (GDP) 2028
• Basic Statistic Ratio of government expenditure to gross domestic product (GDP) in Laos 2028
• Basic Statistic Laos' budget balance in relation to GDP 2028

National debt of Laos 2028

Laos: National debt from 2018 to 2028 (in billion U.S. dollars)

National debt of Laos in relation to gross domestic product (GDP) 2028

Laos: National debt in relation to gross domestic product (GDP) from 2018 to 2028

Ratio of government expenditure to gross domestic product (GDP) in Laos 2028

Laos: Ratio of government expenditure to gross domestic product (GDP) from 2018 to 2028

Laos' budget balance in relation to GDP 2028

Laos: Budget balance between 2018 to 2028 in relation to GDP

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Tourism industry  fuels economic growth in Laos

The Lao tourism industry is not only playing a significant role in boosting economic growth, but is also creating a huge number of job opportunities for local people, experts have noted. 

The United Nations’ World Travel and Tourism Council unveiled its latest report recently, which indicated that tourism has directly resulted in 114,000 jobs being created in Laos. This is expected to rise to 121,000 jobs in 2028, which will represent about 3 per cent of total employment. As a whole, tourism and related services have generated more than 385,000 jobs in the country, helping to improve per-capita income for the Lao people, particularly the poor. The country’s deputy minister of information, culture and tourism, Ounthuang Khaophanh, said recently that tourism was one of the top five income earners for Laos, driving economic growth and contributing to poverty alleviation.  In addition, tourism has resulted in the improvement of services and infrastructure including roads, as well as the construction of new hotels, restaurants, airports and other facilities. According to a report in The Asean Post, improving the tourism sector will certainly help the country gain much needed additional revenue. “The growth of the tourism sector would also be key in developing tourist related infrastructure such as airports and road links,” stated The Asean Post. In 2017, the total contribution from travel and tourism to Laos’ gross domestic product (GDP) was around US$2 billion (Bt64 billion), which accounted for 13.7 per cent of total GDP. This figure is expected to rise to US$3.3 billion by 2028. Given that tourism plays a significant role for the Lao economy, the government launched the “Visit Laos Year 2018” campaign to attract more tourists. All provinces are holding activities as part of a nationwide effort to bring at least 5 million tourists to the country and generate revenue of about US$900 million.    The government expects that tourist arrivals will exceed 6 million by 2020 and generate income in excess of US$993 million, as well as creating more job opportunities. Although Laos is a small country with a population of just 6.5 million people, the Asian nation is one of the fastest growing economies in East Asia and the Pacific according to the World Bank, recording an average growth rate of about 7 per cent per year.

Improving Laos has fascinating tourist attractions in all provinces, ranging from areas of natural beauty to cultural and historical sites. However, the main challenge for the nation’s tourism industry is the lack of road access to many of these sites. Over past decades the government has invested a huge amount in improving tourist sites and road access and facilitating investment by the private sector in the tourism industry, all with the goal of boosting tourist numbers. But the government is aware that even more money needs to be pumped into infrastructure development to further boost tourism growth and the continued growth of the Lao economy.

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In a bid to enhance international tourism in Laos, the government has reached out to countries across the world, extending invitations for their support of “Visit Laos Year 2024.” This nationwide tourism campaign seeks to draw more visitors, ultimately contributing to Laos’ economic growth.

With this objective in mind, the country is specifically focusing on its Chinese neighbors, capitalizing on their geographical proximity and the recently developed transportation infrastructure connecting the two nations.

The plea was made during a meeting on 7 December in Vientiane Capital that focused on fostering Laos-China tourism collaboration, aligning with the Belt and Road Initiative’s objectives.

Director General of the Tourism Marketing Department, Ministry of Information, Culture, and Tourism, Khom Douangchantha, emphasized the growing influx of Chinese tourists and encouraged Chinese businesses to offer tailored Lao tourism programs for a successful Visit Laos Year 2024.

The inauguration of the Laos-China railway has not only enhanced travel options but also fostered reciprocal visits between Laos and China. This development has also enticed visitors from various other countries across the region.

Additionally, major airlines like Lao Airlines and China Eastern Airlines now provide direct flights connecting key cities in both nations, such as Vientiane Capital in Laos and Guangzhou, as well as Kunming in China.

The Lao government has further sought support on a global scale, focusing not only on China but also on neighboring countries like Thailand and Vietnam. In the first nine months of 2023, tourists from these nations claimed the top two spots among international visitors to Laos.

With nearly 1 million Thai tourists already having visited Laos during this period, the numbers are poised to soar in the coming years. The anticipated launch of the first train service connecting Nong Khai station to the newly built Vientiane (Khamsavath) station in 2024 is expected to significantly amplify cross-border tourism.

Laos also aims to attract more visitors from neighboring Vietnam. In a strategic move, Lao Airlines recently signed up for a partnership with Vietjet , Vietnam’s top low-cost airline, to enhance cooperation in passenger and cargo travel. The collaboration was initiated in early December, and Vietjet plans to introduce a direct flight route between Vientiane Capital and Ho Chi Minh City, featuring four weekly flights starting in February 2024.

To cater to both domestic and international tourists, the Lao government is actively pushing for improvements in hotel accommodations, tourism resources, products, transportation, and medical facilities, prioritizing quality, safety, and visitor satisfaction.

Visit Laos Year 2024 stands as a comprehensive tourism promotion initiative, highlighting the country’s cultural, historical, and natural wonders. The Ministry of Information, Culture, and Tourism, in collaboration with provinces nationwide, has curated a diverse calendar of 79 events, featuring 14 national-level and 65 local events. Tourists can leverage this calendar to plan their visits.

Anticipated as a catalyst for economic growth, Visit Laos Year 2024 is expected to attract 2.7 million foreign visitors and generate USD 401 million in revenue, according to the Ministry of Information, Culture, and Tourism. The government envisions widespread benefits, particularly for businesses in the tourism sector.

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