Overview
The tourism industry in Laos is developing rapidly, with several five-star resorts opening during Laos’s ASEAN Chair year in 2024. In 2024, more than 4.1 million foreign visitors travelled to Laos, an increase of 21 percent over 2023, generating over $1 billion in revenue according to the Ministry of Information, Culture and Tourism. 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. According to the World Bank, the services sector, which accounts for about one-third of GDP, grew by an estimated 5 percent in 2024, supported by recovery in tourism, hospitality, transport, and logistics. Tourism revenues rose to $1.4 billion, up from $1 billion in 2023 and $935 million in 2019, supported by higher spending per visitor and longer stays. Domestic tourism also saw strong growth in 2024, with trips more than doubling to 3.9 million, from 1.9 million in 2023. Tourism sector growth may represent opportunities for U.S. companies seeking to export booking systems and other hospitality sector applications.
Resources
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