In July, Laos announced new visa exemptions to attract tourists from nine countries: Austria, Belgium, Denmark, China, Norway, Spain, Sweden, Finland, and Greece. Citizens of these nations can now visit Laos for up to 15 days without a visa.
Additionally, travelers from these countries can apply for a multiple-entry visa, extending their stay from 30 to 60 days. Thai visitors using a “Border Pass” or “Temporary Border Pass” can now stay in Laos for up to ten days, an increase from the previous three-day limit.
Tourism as a Growth Driver
Tourism was a major contributor to Laos’ economy before the pandemic, accounting for 12% of the GDP. Since reopening its borders to international travelers in April 2022, the tourism sector has been slowly recovering. The introduction of new routes on the Lao-China Railway, connecting Kunming in China to Vientiane in Laos, has further supported this recovery.
The government aims to welcome 4.6 million foreign visitors this year. So far, over 1 million visitors have arrived in the first three months of 2024.
Impact of the Lao-China Railway
The Lao-China Railway, which opened in December 2021, has significantly boosted Laos’ tourism sector. The 414-kilometer line connects Vientiane with Boten on the Laos-China border. This US$6 billion project, part of China’s Belt and Road Initiative, represents one-third of Laos’ GDP and strengthens the bilateral ties between the two nations.
In 2023, the railway facilitated approximately 110,962 cross-border passenger trips, including 55,532 inbound and 55,430 outbound passengers. It also handled a total of 4.22 million tons of freight.
Upgrading Tourism Standards
To attract more visitors, Laos is working to improve tourism standards. Efforts include enhancing amenities and services in hotels and restaurants, investing in infrastructure, and repairing roads. Training programs for tour operators are being implemented to improve service quality and reduce the presence of illegal foreign tour guides. These programs combine classroom learning with practical field exercises.
Conclusion
The new visa policies, the strategic impact of the Lao-China Railway, and ongoing upgrades to tourism infrastructure are all set to improve Laos’ tourism sector. With the goal of 4.6 million foreign visitors this year, these initiatives are essential for sustaining growth and ensuring tourism remains a significant contributor to Laos’ economy.