The Lao government, along with stakeholders in the tourism sector, is increasing efforts to elevate tourism standards with the aim of attracting more visitors to the country.

During a meeting held on 13 February to review the Ministry of Information, Culture and Tourism’s achievements in 2023 and outline plans for 2024, Lao Deputy Prime Minister Kikeo Khaykhamphithoune urged collaboration between the public and private sectors to enhance tourist attractions, visitor amenities, and services provided by hotels and restaurants.

Emphasizing the importance of quality services, Deputy PM Kikeo stressed the need for diversification of tourism products, with a focus on activities that showcase the cultural richness of Laos’ ethnic groups, as well as the promotion of agritourism.

Deputy PM Kikeo also raised awareness of existing challenges in Lao tourism, especially issues with many tourism aspects that lack coordination and do not generate significant revenue for the government.

On the other hand, Lao local residents have also urged the government to enhance road conditions across the country to facilitate better access for visitors to reach tourist destinations.

Despite challenges, progress has been made over the past year in the development, management, and promotion of various forms of tourism, including natural, historical, cultural, and agricultural tourism. Infrastructure and facilities in some areas have also been upgraded to connect more effectively with local facilities.

This year, many tourism-related businesses across Laos have also shown dedication to improving services to meet ASEAN tourism standards. On 13 February,  Lao tourism business operators were honored for meeting the standards set by ASEAN across three categories. Notably, the awards included 45 recognitions for the ASEAN Green Hotel Standard, 6 awards for the ASEAN MICE Venue Standards, and 1 award for ASEAN Sustainable Tourism.

Additionally, during the recent ASEAN Tourism Forum (ATF) in Vientiane Capital in late January, Laos was also honored with 20 ASEAN Tourism Standard Awards, out of the total 192 awards given to entities across the bloc.

During the ATF, government officials and industry representatives from ASEAN nations also gathered to explore strategies for promoting sustainable tourism, leveraging social media for marketing purposes, and tapping into the potential of adventure tourism.

To further boost the tourism sector, the Lao government has also launched the Visit Laos Year 2024 campaign, with many provinces and local villages set to welcome visitors from around the world to discover the country’s wonders.

With ambitious targets set by the Ministry of Information, Culture, and Tourism, Laos aims to welcome over 6 million domestic and international tourists in 2024.

Source: https://laotiantimes.com/2024/02/19/efforts-underway-to-enhance-tourism-standards-in-laos/

The Lao government has pledged to complete its Sustainable Development Goals (SDG) and carry the nation out of the Least Developed Country (LDC) status by 2026, with efforts focusing on human resources development, economic regulation, and poverty reduction.

Lao Minister of Planning and Investment Khamjane​ Vongphosy made the vow on 14 February​  during a press conference following the 2023 Round Table Implementation​ Meeting, where the focus was on accelerating the implementation of the 9th Five-Year National Socio-economic Development Plan.

The Five-Year plan focuses on economic growth, with aims to improve human resources by ensuring improved quality of the educational system from early childhood, prioritizing green development, boosting productive sectors, such as crops, livestock, forest and fisheries and improving living standards. The plan also prepares for Laos’ graduation from Least Developed Country status.

The Lao government is also pushing to reduce urban-rural development disparities, eliminate violence against women and children, reduce poverty, and enhance domestic business competitiveness by improving the business environment.

To support these initiatives, the government will implement appropriate financial strategies and strengthen disaster prevention and control operations. This includes improving early warning systems, conducting risk studies, and supporting high-risk communities to enhance preparedness for extreme weather events.

Minister Khamjane also emphasized the importance of collaboration, stating that the Ministry of Planning and Investment will coordinate with other authorities to follow up on suggested guidelines for successful implementation. This collaborative approach is seen as essential for achieving the SDGs and LDC graduation..

While factors such as an economic slump and high inflation project a downward trend for the country, the Lao government is continuing to implement the 9th Five-Year Socio-Economic plan, as part of the broader goal to achieve the SDGs and graduate from the LDC status.

Source: https://laotiantimes.com/2024/02/16/laos-vows-to-graduate-from-least-developed-country-by-2026/

The Ministry of Finance announced a new regulation on mandatory tax payments for all digital shopping platforms in its latest notice, released on 14 February.

The notice classifies digital platform shopping websites into three groups: registered enterprises in the Value-Added Tax (VAT) system, micro-enterprises, and revenue-generating individuals, legal entities, and organizations.

Under the new regulations, enterprises registered with the VAT system must include their taxpayer identification number and VAT certificate in their advertisements for selling goods and services through e-commerce channels. They must also inform users whenever VAT is collected.

Microenterprises, however, are not required to inform users when collecting tax but must display their taxpayer identification number in their advertising. 

VAT-registered enterprises, microenterprises, as well as revenue-generating individuals, legal entities, and organizations must provide information on the purchase of digital products, services, and every electronic commerce activity. Only VAT-registered enterprises are required to connect their electronic information to the Tax Revenue Information Management System (TaxRIS).

The TaxRIS system is a government investment aimed at modernizing revenue collection. It aligns with the strategic plan to make tax payments easier for taxpayers, ensure all taxes are accounted for in the state budget, and enhance transparency. 

Furthermore, all three e-commerce groups must manually submit their revenue tax, VAT, profit tax, salary tax, and other taxes through the government’s website. Additionally, they must maintain accounting according to the system prescribed by the Law on Accounting Management and submit proper documentation to receive an annual tax payment certificate.

The notice also instructs the Tax Department nationwide to streamline procedures for the three groups. This includes facilitating the issuance of taxpayer identification numbers to individuals, legal entities, or organizations that conduct electronic commerce to access the TaxRIS system fully.

Failure to comply with the new regulations may result in warnings, fines, legal action, or even the platform’s shutdown.

The Ministry’s new regulations aim to enhance tax compliance among digital shopping platforms in Laos. These measures, including the integration of taxpayer identification numbers and VAT certificates in advertisements, reflect the government’s commitment to modernizing revenue collection and ensuring transparency in e-commerce transactions.

Source: https://laotiantimes.com/2024/02/20/lao-government-rolls-out-new-tax-regulations-on-e-commerce/

The Japanese government joined various partners to launch a project aimed at empowering coffee farmers in two districts of Luang Prabang Province on 15 February. This initiative will bolster farmer’s production and marketing efforts while promoting access to and understanding of essential nutrition.

The Cocreation of Food Security for Farmers with Economic Empowerment with Japan (COFFEE-JAPAN) is a project funded by the Government of Japan with approximately USD 1 million, which will be undertaken in collaboration between the Ministry of Agriculture and Forestry, the United Nations World Food Programme, Saka no Tochu, a Japanese private company active in Laos, and Saffron Coffee, a Lao fair-trade coffee company.

The project targets eight villages in Luang Prabang’s Phonxai and Vieng Kham districts. Over a duration of 30 months, 300 smallholder producers and their families will benefit directly from knowledge and resources to improve and increase their production while enhancing their nutrition awareness. The coffee produced will be exported to the Japanese market. The partners aim to create a replicable model of incorporating nutrition into the coffee value chain.

“Coffee, as a cash crop, has a high potential to create economic opportunities for people. However, there is a dearth in high-quality internationally marketable coffee, as farmers in northern areas of the country have limited skills to cultivate it for the demands of international markets. We are thankful for support from Japan and the collaboration between a broad range of actors to create more income for coffee farmers, while ensuring they learn about nutrition and have access to healthy food,” said Siriphone Souphanthong, Vice-Governor of Luang Prabang Province.

“Over several decades, Japan has been continuously supporting the development of the agriculture and forestry sectors in Laos, including the partnership with WFP. Taking the great opportunities of the 50th year of Japan-ASEAN Friendship and Cooperation last year, Laos’ ASEAN chairmanship this year, and the upcoming celebration of 70 years of diplomatic relations between Japan and Laos next year, we are delighted to support this initiative, hoping to contribute to stabilizing and improving rural incomes, while ensuring food security and improving nutrition,” said Kenichi Kobayashi, Ambassador of Japan to Laos.

“At Saka no Tochu, we believe that in the production of coffee, numerous social issues exist, and addressing them rather than turning away is crucial for the future of a 21st-century business. We aim to provide training and infrastructure to farmers, which will benefit their whole village, with the ultimate goal of a better life for all in the community. Through our activities, we plan to increase the volume of coffee that will be available for export, to target specifically the market of small and medium roasters in Japan,” said Mr. Kunihiko Ono, Founder and CEO of Saka no Tochu.

“Our primary goal at WFP is to allow families to access a diversified diet that meets their needs. Nutrition education will create awareness in the communities about the needs at different stages in life, while the increased income from coffee production will allow farmers buy the food they don’t already produce. COFFEE-JAPAN is an innovative public-private partnership with a sustainable people-centred approach, integrating export-grade coffee production, capacity building and nutrition awareness to empower communities and drive positive change,” said Marc-André Prost, WFP Representative and Country Director.

Source: https://laotiantimes.com/2024/02/16/laos-japan-join-forces-to-boost-coffee-production/

Houaphanh province is set to upgrade Nong Khang airport to international status to boost tourism and economic development across the province, Governor Khampheng Saysompheng announced during a government meeting in Vientiane on 26-27 December, 2023.

The provincial government’s plan aims to facilitate direct international flights to Houaphanh, attracting foreign tourists and business investments in the region.

Currently constrained by challenging road access, the airport primarily serves small domestic flights, necessitating a three-kilometer runway extension for larger aircraft.

To accommodate the anticipated influx of tourists in 2024 as part of the Visit Laos campaign, the province plans to also improve local infrastructure, including roads, hotels, and restaurants. 

Nong Khang Airport’s expansion aligns with the national development plans of the Department of Civil Aviation and the Ministry of Public Works and Transport. This move also supports Laos’ ambition to become a regional hub for land and air connections.

Built to meet International Civil Aviation Organization standards, the airport can currently handle 100,000 passengers annually, mainly on small ATR72 (Regional Transport Aircraft 72) and MA-60 aircraft with 70–100 seats. It operates domestic flights between Vientiane Capital and Houaphanh Province by Lao Airlines and Lao Skyway.

Nong Khang Airport, constructed under the Build-Operate-Transfer model, commenced operations in 2013. Funded and built by a Vietnamese company, the airport was officially handed over to provincial authorities in May 2023.

The airport represents a significant milestone in Laos-Vietnam cooperation, fulfilling long-awaited expectations for growth in Houaphanh. The airport also serves as a vital trade gateway between Laos and Vietnam, contributing substantially to cross-border trade and symbolizing the enduring friendship between the two nations.

Source: https://laotiantimes.com/2024/01/02/70552/

Laos was known to be one of the safest countries in Southeast Asia, but things seem to have taken a slightly different turn in recent years. With an increasing influx of foreign visitors, a rising concern about the country’s crime rate has emerged, echoing through various voices on social media.

“The country is on its way to promote the Visit Lao Year campaign, but thieves and robbers are walking freely. I haven’t heard a single news story saying that the authorities have arrested any of these wrongdoers,” a Facebook user commented on a post about a recent robbery case.

As the country enters the Visit Lao Year Campaign 2024, a series of incidents in Vang Vieng, Vientiane Province, have prompted social media users to call for immediate attention to safety concerns.

On 2 January, a male French tourist fell victim to a robbery as he was cycling around town with his family. Two assailants on a motorbike targeted the family, making off with a bag containing USD 157.6, a camera, four passports, and two ATM cards.

Prompt reporting by the hotel where the family was staying failed to lead to the apprehension of the perpetrators, who are still at large. The tourists, highlighting the crucial need to recover their passports, have ignited an ongoing investigation into the incident.

On the following day, another incident occurred in Vang Vieng, culminating in the tragic death of a Korean national. The tourist was driving a buggy when the vehicle lost control, flipped over, and tragically resulted in a fatal accident.

Concerns flooded social media as users pointed fingers at the poorly maintained roads in the district, holding them accountable for the unfortunate event. One Facebook user added,

“Vang Vieng’s main revenue comes from tourism, but, seriously, they have to improve the quality of the roads more.”

“There has to be some guides in place that tell the tourists about the speed they should be driving vehicles on certain roads in Vang Vieng to prevent this kind of accident from happening,” wrote another user.

The timing of these events, back-to-back, in a region heavily reliant on tourism, has sparked calls for increased security measures and improved infrastructure.

While the concerns remain, Vientiane Province has set its sights on an ambitious tourism goal for 2024, with the aim of drawing in 1 million visitors.

In 2023, the province welcomed 800,000 international and domestic visitors, with Vang Vieng district alone welcoming over 600,000 tourists, while Feuang district also saw a peak in popularity.

With Visit Laos Year 2024 on the run, Vang Vieng district currently boasts over 150 accommodation options, providing capacity for at least 13,000 guests per day.

However, after the recent incidents, tourists and locals alike are urging authorities to not only apprehend wrongdoers responsible for crimes but also invest in road quality and implement measures to guide tourists on safe driving practices. As tourism remains one of the primary sources of revenue in Laos, the need for comprehensive measures to safeguard visitors has never been more apparent.

Additional reporting by Chono Lapuekou

Source: https://laotiantimes.com/2024/01/04/social-media-users-call-for-boost-in-safety-measures-amidst-tourism-growth/

As news of the fee hike spreads, the travel community awaits further clarification, casting uncertainty on the success of “Visit Lao Year 20224.”

According to the notice, the price hike is set to take effect from 1 March, affecting a total of six notorious tourist spots in the province, including Kuang Si Waterfall, Luang Prabang Museum, Sae Waterfall, Xiengthong Temple, Mount Phousi, and Ting Cave. The reason behind the new adjustment is not addressed in the announcement.

While the surge in prices for local residents has seen a modest increase, for international tourists, most of the prices have doubled.

The situation has sparked controversy, polarizing social media users into two factions. A considerable number are openly criticizing the move, labeling it “counterproductive.” This group asserts that the focus should be on simplifying travel logistics rather than adding complexity. On the flip side, there is a group of users that sees the change as a pragmatic strategy, citing the country’s escalating inflation rate as a factor justifying the decision.

“It’s ironic how the government aims to attract international tourists but ends up increasing prices significantly,” one Facebook user who disagreed with the decision commented.

 “Given the current high inflation rate and the depreciation of our currency, I believe the price increase is reasonable,” said another user who found the change appropriate.

The most recent inflation report released by the Lao Statistics Bureau indicates that the inflation rate in December 2023 was limited to 24.4 percent, marking a significant decline from the 40.30 percent recorded in January of the same year. Despite this considerable decrease, a number of residents remain skeptical about the accuracy of the inflation reports, as the cost of goods continues to remain high, comparable to the levels seen during the period of elevated inflation.

Apart from the price hike, the majority also raised concern about the state of the roads in some of the tourist spots, especially the ones that lead to the Kuang SI waterfall, noting that instead of focusing on increasing the entry fee, the province should also put their effort into repairing the roads that have long been deteriorated.

Last year’s Logistics Capacity Assessments (LCA) revealed that only 28 percent of the country’s roads are paved, with over 60 percent of national roads in poor or bad condition. To tackle this issue, the government aims to improve technical standards and expand the number of weighing stations countrywide. Currently, there are only 14 operational weighing stations, serving as checkpoints to monitor heavily loaded trucks and ensure they comply with weight limits.

Despite all the longstanding challenges, Luang Prabang managed to attract a total of 779,811 visitors in the first nine months of 2023 compared to the same period in the previous year, with domestic tourists accounting for 177,596 of the total figures. With its ambitious five-year goal, Luang Prabang is aiming to draw 4 million visitors by 2025. From 2021 until June 2023, around 1.1 million tourists visited the province.

Source: https://laotiantimes.com/2024/01/15/concerns-rise-as-luang-prabang-tourism-faces-entry-fee-surge/

With an ambitious lineup of over 40 activities, Luang Prabang has set a target of welcoming more than 1.7 million tourists. The province anticipates tourist spending exceeding USD 900 million, with a specific goal of attracting at least 1.4 million international visitors.

Boasting attractions like the Phou Si Stupa, Xieng Thong temple, Sae waterfall, Kuangsi waterfall, and a traditional night market, the UNESCO World Heritage Site has become a cultural haven. However, challenges emerge, including the disappearance of traditional structures in the protected old quarter due to new developments, over-tourism concerns, and the potential adverse effects of the new Luang Prabang hydropower dam.

A local government employee expressed concerns, highlighting a deviation from UNESCO guidelines, as reported by Nikkei Asia. The province faces a critical juncture in preserving its cultural and historical legacy amid the burgeoning tourism industry.

In 2023, Luang Prabang experienced a significant surge in visitors, welcoming over one million tourists—a 91.49 percent rise compared to 2022. This surge contributed to an estimated USD 560 million, drawing over 760,000 international visitors to the province.

This year, among the standout events planned are the Lighted Boat Festival, a Cultural and Tourism Week in collaboration with northwest provinces and Ho Chi Minh City in Vietnam, a traditional food festival, a captivating handicraft exhibition, and engaging demonstrations showcasing the province’s unique customs.

Other events encompass a traditional music contest, a cycle race, the Boat Racing Festival, and the Lat Khang Kong fair, as unveiled by Deputy Governor Bounleum Manivong of Luang Prabang province on 15 January. Various districts in the province will also host tourist-centric events, each offering unique cultural experiences, from traditional festivals and exhibitions to boat races and a fireworks festival.

Source: https://laotiantimes.com/2024/01/17/luang-prabang-targets-1-7-million-tourists-amid-heritage-preservation-concerns/

“I believe Laos is the best country to visit in the world right now!” declared Anthony Bolzonello, a freelance travel journalist who has visited 107 countries and is one of 16 Australians in the Travelers’ Century Club.

Bolzonello regarded Laos as one of the world’s best-value locations, offering numerous experiences without breaking the bank—especially when compared to living in Australia. The benefits include being able to spend roughly USD 20 on a night out and free access to the country’s natural surroundings.

The Australian journalist labeled Luang Prabang, Vang Vieng, and Vientiane Capital as “highly walkable” and “budget-friendly refuges” where daily life can cost less than USD 50.

But, according to Bolzonello, Laos has more than just its striking nature and reputation for low-cost living; the country is also recognized for its diverse selection of delicious food. The Australian journalist expressed his passion for Lao traditional food at a family-run restaurant in Vang Vieng, where one can indulge in affordable and sumptuous meals. “Chicken sandwich, 10 succulent skewers, a crisp cucumber salad, a freshly squeezed lemon and mint juice, and a Pepsi, all for USD 12 — a testament to the town’s culinary allure and affordability.”

Bolzonello also praised the Laos-China railway as an affordable solution for travel across the country. As of 5 December 2023, over 100,000 people have traveled between Laos and China using the railway since its launch in late 2021.

With the ongoing Visit Lao Year 2024 campaign, Laos is aiming to draw more than 2.7 million international tourists and generate USD 401 million. The campaign includes 79 events, consisting of 14 national-level and 65 local events.

Bolzonello enthusiastically supports Laos, going beyond the typical travel story. He describes it as a captivating and affordable destination that not only offers beautiful landscapes but also delights the senses and makes exploration easy.

Source: https://laotiantimes.com/2024/01/18/australian-media-names-laos-the-top-budget-friendly-paradise/

This shift in preference comes in the wake of Thailand’s decision to ease visa restrictions for Indian travelers starting 10 November 2023 until 10 May this year, making Bangkok the number one destination for outbound Indian travelers over the past year.

The number of Indian tourists in Thailand rose to 1.5 million in December 2023 after the free-visa policy came into effect, exceeding the target number of 1.4 million set by the Tourism Authority of Thailand (TAT) last year. Thanks to the exemption, Thailand has since managed to draw approximately 4,000-5,550 daily Indian arrivals.

The surge in tourist arrivals from India also extended beyond Thailand’s main municipality of Bangkok to beachside provinces such as Pattaya, which saw an ascent from fifth to third place in the rankings, according to digital travel platform Agoda.

Krishna Rathi, the Country Director for India, Sri Lanka, and the Maldives at Agoda, emphasized the transformative impact of relaxed visa norms on India’s outbound travel scene. He noted, “The relaxation of visa norms seems to be an accelerator for India’s outbound travel landscape. More and more destinations are recognizing India’s potential as a key source market. With Bangkok now leading over Dubai, and Pattaya rising in the ranks, it’s clear that Southeast Asia’s allure is growing stronger.”

“The fact that many of these destinations can now be visited without having to worry about the paperwork will likely encourage even more Indian travelers to go abroad and explore.”

Following the surge of arriving tourists from countries in the region, other countries in the Asia-Pacific (APAC) region have announced potential changes that could lead to further relaxations. China, for instance, has unveiled a visa-free corridor with Thailand, along with visa-free travel windows for visitors from France, Germany, Italy, Malaysia, Switzerland, Spain, and the Netherlands.

While Laos may not be included in the ranking, the country has managed to attract a substantial number of tourists, with 9,198 Indian visitors recorded during the period from January to September 2023. This year, the country is aiming to attract a total of more than 2.7 million international tourists and generate USD 401 million with its Visit Laos Year 2024 campaign.

The growing trend of tourist arrivals to Southeast Asian countries highlights the region as a hotspot for global tourism, driven in part by strategic visa policies that facilitate easier travel for visitors from key markets, including India.

Source: https://laotiantimes.com/2024/01/22/bangkok-becomes-top-destination-for-indian-travelers-following-visa-exemptions/