lao tourism industry

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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.

Information on Luang Prabang

Lao Ministry of Information, Culture and Tourism:

• Ecotourism Laos: World Heritage Sites
• Knoema: World Travel and Tourism  
• Economist Intelligence Unit: Laos Country Report  

Tourism in Laos

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

Revenues from tourism

All data for Laos in detail

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Developing Nature-Based Tourism as a Strategic Sector for Green Growth in Lao PDR

Watch video in Lao / ກົດ​ເບິ່ງ​ວິ​ດີ​ໂອ​ພາ​ສາ​ລາວ​ຢູ່​ທີ່ນີ້

Key Findings

Lao PDR is a country of stunning natural landscapes including spectacular limestone mountains, rainforests and waterfalls. Its lush nature and rich culture offer an opportunity to develop nature-based tourism, which can generate revenue, create green jobs and livelihood opportunities, and lay the groundwork for greener economic growth.

Lao PDR’s comparative advantage is its natural wealth

• In the next decade, nature-based tourism could grow in Laos from 4.3% of 2019 GDP and 3.5% of jobs to the global average of about 10% of GDP and 10% of jobs.
• This opportunity is based on developing quality nature-based tourism products that respond to international demand, and policies that enable responsible private investment and effective conservation.

Protected areas and biodiversity are an economic asset

• The wet evergreen forests, karst landscapes, and montane forest of Laos are home to internationally significant biodiversity.
• Fifteen percent of the country’s land area is set aside for biodiversity conservation in 23 national reserves. An additional 5 percent is in provincial or local reserves.
• Over 840,000 people in over 1200 villages are situated within or on the boundary of the 23 national reserves. Most of these villagers, from a range of ethnic groups, are dependent upon natural resources within these reserves for nutrition and livelihoods.

Tourism can create green jobs, a green recovery, and green growth

• Tourism has the potential to become the main foreign exchange earner, and nature-based tourism could eventually be the biggest rural employer in the country.
• Nature-based tourism development can lead to significant increases in overall income and poverty reduction in communities near or in protected areas. In one village near Dong Hau Sao National Protected Area, poverty fell from 39% to 26% due to a Lao nature-based tourism business that partnered with the community.
• Lao PDR can tap into a growing regional market. In 2018, tourism to Asia grew by 8%, and inter-Asian tourism grew by 10%. The Chinese, Thai, Vietnamese, and Malaysian markets have good potential for nature-based tourism in Lao PDR.

Nature-based tourism in Lao PDR has been hindered by low private investment and low public investment in natural attractions.

• Barriers to investment include a lack of basic services, weak legal frameworks and transparency, weak management and financing of protected areas, institutional capacity, and tourism products that do not always respond to demand.
• Investment in tourism is unlikely to increase unless the business environment is simplified.

Recommendations

Enable private investment in nature-based tourism by reducing barriers, streamlining regulations, and promoting innovation.

• Reduce barriers related to business investment overall, and particularly tourism businesses
• Establish regulations and procedures for tourism concessions in protected areas and other natural landscapes, with a focus on creating best practice concessions that support wildlife protection and village partnerships.
• Support marketing and promotion of a national nature-based tourism brand, while encouraging foreign investment and improving links between domestic and international businesses.
• Develop environmental impact assessment regulations tailored for the small businesses that underpin the Lao tourism industry.
• Encourage voluntary sustainability practices in the private sector through solutions like international certification.
• Provide vocational training on nature-based tourism innovation, market development, and hospitality, including training for local guides and accommodation providers.

Manage protected areas for sustainable tourism .

• Finalize master plans for national protected areas, nature-based tourism and ecotourism
• Enhance the skills of departments that manage protected areas, in particular concession management for tourism services
• Create tourism working groups for protected areas.
• Manage waste in nature-based tourism areas.
• Establish a transparent system for fees and use of revenues in and around protected areas, as well as an investment protection mechanism.
• Support financing of last mile tourism infrastructure and facilities in and around protected areas such as trails and other green infrastructure that can employ people.
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Travel & Tourism - Laos

• The Travel & Tourism market in Laos is expected to see a significant growth in revenue in the coming years.
• By 2024, revenue is projected to reach US$95.62m, with an annual growth rate (CAGR 2024-2028) of 6.88%.
• This growth is expected to result in a projected market volume of US$124.80m by 2028.
• in Laos' largest market in this industry is the Hotels market, which is expected to have a market volume of US$50.42m by 2024.
• The number of users is projected to reach 594.50k users by 2028, with a user penetration rate of 9.5% in 2024 and an expected increase to 10.8% by 2028.
• The average revenue per user (ARPU) is expected to be US$130.30.
• In terms of online sales, 68% of total revenue in the Travel & Tourism market in Laos is expected to be generated through online channels by 2028.
• It is worth noting that United States is expected to generate the most revenue in this market globally, with a projected revenue of US$199bn in 2024.
• Laos is becoming an increasingly popular destination for eco-tourism, with its stunning natural landscapes and sustainable travel options.

Key regions: Malaysia , Europe , Singapore , Vietnam , United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

• Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

out-of-scope

• Business trips
• Other forms of trips (e.g. excursions, etc.)

Travel & Tourism

• Vacation Rentals
• Package Holidays
• Analyst Opinion

The Travel & Tourism market in Laos has been experiencing steady growth in recent years, attracting a diverse range of travelers to explore its unique cultural and natural attractions. Customer preferences: Travelers in Laos are increasingly seeking authentic and immersive experiences, opting for eco-friendly and sustainable tourism activities. There is a growing interest in exploring off-the-beaten-path destinations, interacting with local communities, and participating in cultural exchanges. Additionally, wellness tourism is gaining popularity, with travelers looking for opportunities to rejuvenate in tranquil settings. Trends in the market: One notable trend in the Travel & Tourism market in Laos is the rise of experiential travel. Tourists are moving away from traditional sightseeing tours and are instead engaging in activities that allow them to connect with the local culture and environment on a deeper level. This shift has led to the emergence of community-based tourism initiatives and homestay experiences, providing visitors with a more authentic perspective of Laos. Local special circumstances: Laos's rich cultural heritage and stunning natural landscapes are key drivers of its tourism industry. The country's temples, such as the iconic Wat Phu in Champasak, and its picturesque waterfalls, like Kuang Si Falls near Luang Prabang, attract visitors from around the world. Additionally, the laid-back atmosphere and warm hospitality of the Laotian people contribute to the overall appeal of the destination. Underlying macroeconomic factors: The government of Laos has been actively promoting the development of its tourism sector as a means to drive economic growth and reduce poverty. Infrastructure improvements, such as the expansion of airports and roads, have made it easier for travelers to access different parts of the country. Furthermore, partnerships with neighboring countries and regional initiatives have helped to increase international arrivals to Laos, supporting the overall growth of the Travel & Tourism market.

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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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Corporate Social Responsibility Could Help Promote Lao PDR’s Tourism

October 26, 2023.

The town of Luang Prabang sits on the wide, muddy waters of the Mekong River, and is one of Lao PDR’s most famous tourist destinations. Visitors from around the world come to admire its golden temples and colonial buildings, and to enjoy the tropical mountains.

After a quiet period during COVID-19 pandemic, Lao PDR is witnessing a rapid return of tourists to the country. In the first 4 months of 2023, more than 1.1 million tourists flocked into Lao PDR and more are expected in the coming months. The country is getting ready for the Visit Laos Year 2024 to attract more tourists to Lao PDR. To welcome larger numbers of tourists sustainably, the country needs to do more on responsible tourism. 

At a local hotel in Luang Prabang, nearly two dozen members of the local tourism community met for a workshop in corporate social responsibility (CSR). Members of the UNDP-UNEP Poverty-Environment Action for Sustainable Development Goals (PEA4SDGs in Lao PDR) organized the event to raise awareness about corporate social responsibility practices. 

How CSR Can Help the Tourism Industry Flourish   

“I am willing to work on CSR as part of our business not only because I believe that it will bring more guests to us, which it will, but also because I believe in it for the sustainability of our company, culture and environment” said Ms. Alichith Phengsavanh, Manager of Maison Souvannaphoum Hotel, who joined the training event. 

Over the past decade, CSR has emerged as one of the most important global trends towards safe, equal, and sustainable working practices. It’s a system of practices that helps agencies, whether in business or government, act in a more conscientious manner. Businesses that follow CSR practices gain competitive advantages by attracting talent, gaining an ethical reputation, and growing their base of clients and supporters. 

In Lao PDR, PEA has been working to create a toolkit that will allow organizations to embed CSR in their business practices. One aspect is to build on the culture of generosity, which is a cornerstone of Lao culture especially as part of Buddhism — the national religion. Lao PDR is one of the few countries in the world where monks maintain daily alms round to collect food donations from supporting families, with the local delicacy of sticky rice being a favorite gift.

“The strong evidence of social giving among businesses through charitable projects could be seen as a strong foundation for more systematic CSR to take place across the tourism sector,” according to PEA staffers. 

Increasing CSR awareness in the tourism sector

The tourism industry needs the kind of boost delivered by CSR to help it recover from the impact of COVID travel bans. Before the pandemic, international visitors contributed to over 13% of GDP and the tourism sector employed 114,000 people. 

But since then, large numbers of people lost their jobs as businesses struggled to stay afloat. As part of an effort to support the recovery of such a key industry, PEA undertook a CSR baseline study on the tourism sector to dive deep into the issues affecting the industry. 

“Building on a previous report on CSR awareness in the tourism sector in Lao PDR, this study focuses on the CSR commitment and operationalization aspect of tourism businesses as well as the challenges they face in implementing CSR and mainstreaming it into their core businesses,” the study says. 

Researchers found that the concept of CSR is still nascent with limited understanding among the private sector. Indeed, observers at the training day in Luang Prabang remarked that one of the key takeaways for attendees was that CSR covers more than charitable giving.

“CSR is more about impact investing which creates larger and more impactful results for solving social and environmental issues,” group facilitators told attendees at the event. 

Another challenge facing CSR implementation is the lack of clear leadership from the business community. In fact, the study found “that only 30% of the locally-owned businesses had CSR aspects written into their vision/mission statements.”

Less than 50% of businesses surveyed had an appointed CSR officer, or a CSR designated liaison in their organizations. Those individuals who worked on CSR often did so on a part-time basis, and only 11% reported that they were able to implement CSR policies without resistance from their senior management.  Also, only 34% of Lao-owned businesses are setting aside money for CSR activities. 

PEA is also pursuing a multi-stakeholder approach. Quality CSR education could be disseminated in the business community via the Lao PDR National Chamber of Industry and Commerce (LNCCI), for example. The Government could take a more active role in raising awareness of the benefits of CSR for businesses who fulfill their responsibility towards the local community. They could introduce further incentives such as an award program, special certification, or tax incentives. 

At the end of a day of rich discussions at the Luang Prabang CSR training, attendees were summing up what they had gleaned. Attendees had their “CSR horizons” broadened via a process of sharing and learning about CSR projects from around the world. “Although CSR implementation in Lao PDR is progressing at a relatively slow pace, it is uplifting to learn that businesses are willing to engage in and take CSR further,” the team says. All that’s needed are supportive and relevant policies that will drive the engagement needed. 

The PEA global program helps policymakers draw on best practices from around the world to design development interventions that contribute to both poverty reduction and the preservation of the environment.  

To learn more, please contact:

Thome Xaisongkham, 

Programme Analyst, Natural Resources, Climate Change and Environment, UNDP Lao PDR

E-mail: [email protected]

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Lao News Agency

Tourist arrivals to Laos skyrocket

(KPL\VNA)  - After a quiet period due to the impact of the COVID-19 pandemic, the tourism industry in Laos is showing signs of rapid recovery, especially at the  ancient capital of Luang Prabang  - a World Cultural Heritage - in the northern region of the country.

According to Luang Prabang Department of Information, Culture and Tourism, the province welcomed more than 273,000 tourists in the first three months of this year, of whom 240,000 were foreign arrivals, earnings from tourism accounted for more than 157 million USD.

Tourism is one of the six important priorities in Laos' socio-economic development plan. In 2019, Laos welcomed more than 4.79 million international tourists and during post 2020, the industry was one of the three largest sources of foreign currency revenue of Laos besides electricity and mineral exports. However, the COVID-19 pandemic has almost paralysed the industry.

Don Xing Su, a popular tourist destination

4/19/2024 4:15:01 PM

(KPL) Ban Don Xing Su has become a new popular tourist destination in Vientiane yet many people don’t know where it is.

Pi Mai celebrators flock to Saravan’s Pakset

4/15/2024 11:18:31 AM

(KPL) Local people as well as domestic and foreign visitors flocked to a natural attraction Pakset in Vapi district, Saravan Province as people across the country are celebrating week-long Pi Mai Lao or Lao New Year B.E. 2567.

Phongsaly to organize Ethnic Food & Tea Festival to promote Visit Laos Year 2024

3/25/2024 3:36:48 PM

(KPL) Phongsaly, the northernmost province of Laos, has a population of about 200,000 people. The province borders China to the north and Vietnam to the east. Phou Fa has been revered by Phongsaly people.

Paklay trade fair opens

3/21/2024 2:11:47 PM

(KPL) A trade fair of 2024 Xayabuly Phavet Phikhon Festival was opened on March 20, in Paklay district Xayabuly province with the presence of Mr. Bounmanh Sermma, Deputy Party Secretary of Paklay District, its district leaders, business units, entrepreneurs and villagers.

Laos to hold cultural festival to attract visitors during Visit Laos Year

3/20/2024 9:51:28 AM

(KPL​) Laos will hold a cultural festival to show the richness of Lao culture, expecting to attract thousands of visitors as Laos steps up efforts to welcome more domestic and international tourists during Visit Laos Year 2024.

ຂ່າວ KPL Laos News

Almost 1.3 Million Tourists Visited Laos in 2022

Laos recorded close to 1.3 million tourists visiting the country between January and December last year.

The Ministry of Information, Culture and Tourism reported that 1,294,338 people visited Laos in 2022.

Most international visitors were from Thailand, Vietnam, China, South Korea, and the United States.

The number of tourists increased after the country reopened its borders with the number of international tourists rising from 36,006 in May to 175,419 people in June, according to the report.

The country welcomed 731,754 visitors from Thailand, 359,721 from Vietnam, 45,573 from China, 26,008 from South Korea, and 18,447 from the US.

Laos has  set a goal of attracting 1.4 million international tourists in 2023  with revenue from the tourism sector estimated to reach USD 340 million.

With the Lao Thiao Lao domestic tourism campaign continuing in 2023, the government of Laos hopes to continue attracting domestic tourists as well as visitors from abroad.

Last month, Laos was listed by Traveller, an Australian online publication, as  one of the 25 hottest destinations in 2023 .

Source: https://laotiantimes.com/2023/02/16/almost-1-3-million-tourists-visited-laos-in-2022/

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