Yula.la News

It’s 2021 and the borders remain closed for the land-locked gemstone, Lao PDR. As known, Covid-19 has greatly impacted the tourism industry throughout Laos. In the past decade, tourism was skyrocketing as more international tourists and backpackers set their eyes on Southeast Asia while adding Laos to their routes. From 2016 to 2019 there was an increase from 4.23 million to 4.79 million tourists – In high seasons, Europeans, Australians, Koreans, Chinese, and Americans would flood the borders to Laos before or after traveling Thailand, Cambodia, and Vietnam. In 2020, Laos tourism declined to an estimation of .98 million people.  With tourism halted across the world – the industry has declined and shifted its focus from attracting international consumers to winning over the domestic market. 

Laos has initiated a five-year plan to transform the tourism industry with an ambitious goal of gaining $3.8 million USD from the time frame of 2021 – 2025 with expectations for over 15 million tourists. Although this present situation with borders closed due to Covid-19, more than half of tourism businesses closed, and skeleton staff teams to continue operations – there is still the future filled with possibilities to make the tourist industry boom once more when the borders open. The reason being? Laos-China Railway is still underway, the newly opened Vientiane – Vang Vieng expressway, and ongoing sustainable infrastructure development projects are expected to attract more tourists throughout Laos.

Before the pandemic, international tourists mainly resorted to minivans, sleeper buses, motorbikes, and domestic airlines to travel the country. From Vientiane to Vang Vieng the route took roughly three to four hours, but now it only takes one hour with the new expressway. By focusing on the infrastructure, Laos will be able to send tourists and goods around the country much quicker, safer, and smoother than before. With major investments in infrastructure development, more tourists, both international and domestic alike, will be attracted to tourist attractions throughout the country – creating more opportunities for hotels, resorts, restaurants, shops, and more.  

Luang Prabang, situated in the northern mountains of Laos has been one of the main tourist locations in Southeast Asia where the economy has dropped. With once, over 400 guesthouses and more than 95 hotels/resorts the pandemic has affected over 80% of the market. Although many businesses have closed down, others have focused on renovations, cutting down on operational costs, and shifting marketing strategies to attract the local market. In 2020, Luang Prabang had around 247,000 visitors with 50% being domestic tourists.

During this period, the government and tourism-related businesses are reinventing and creating innovative plans to create a sustainable tourism industry. “Lao Thiao Lao” (Lao Visit Laos) is the leading campaign, initiated by the government, to promote sustainable tourism for the domestic market” (South China Morning post). You can follow their Facebook page with ongoing promotions here. The strategy aims to promote tourism activities for the local market and so far its been quite successful. Several provinces reported an increase in domestic tourism since the campaign started such as Luang Prabang, Oudomxay, Vang Vieng, and Champassak.

Despite the overall decline in tourism, there are many exciting initiatives to look forward to for the future of tourism in Laos and once the borders are open again – Laos will be ready.

Sources (1, 2)