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Friday, September 12, 2025
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Back in Business: How Tourists Are Reviving Laos’ Hotels, Restaurants, Communities

This Week

After years of pandemic-induced quiet, Laos is seeing its hotels fill up, restaurants reopen, and communities come back to life, thanks to a new wave of returning international tourists.

According to official data, Laos welcomed more than 2.3 million tourists in the first half of the year of 2025. The surge in visitors is giving a much-needed boost to the country’s hospitality sector, which struggled during and for years after the COVID-19 pandemic. 

From boutique hotels in Luang Prabang to riverside restaurants in Vientiane, businesses are reopening, restaffing, and reimagining the experience for today’s traveler.

Laos is also gaining international attention. In its annual ranking, Lonely Planet placed the country fourth on its list of the Top 30 Best Places to Visit in 2025. 

The guide highlights the country’s affordability and accessibility, particularly with the introduction of a sustainable high-speed rail, as well as must-see destinations such as VangVieng, Vientiane’s Pha That Luang, and the UNESCO World Heritage town of Luang Prabang.

But beyond easier access and affordability, visitors say what keeps them coming back is something more personal: the peaceful vibe, warm hospitality, and authentic cultural experiences.

Local Businesses Stepping Up

Hotels and restaurants are rising to meet renewed demand.

“There are not many tourists this year, but more than last year. Some return because our hotel is located in town, and they said they were impressed with our service,” said Vone Vilayvanh, an assistant hotel manager in Luang Prabang.

Vone says part of the charm comes from staying true to the local culture.

“Most hotels here are designed to reflect the town’s historic atmosphere. Guests can truly experience the uniqueness of how local people live,” Vone said.

Many hotels in Luang Prabang offer more than comfort, they create an environment where history and daily Lao life come together. 

Vone believes this cultural touch makes the town stand out and remain memorable among travellers.

Despite positive signs of recovery, challenges remain. Many hoteliers recognize the need to keep evolving. 

With competition rising, there’s a push to offer more immersive experiences, such as Lao cooking classes, handicraft workshops, and guided cultural tours.

“The numbers alone cannot guarantee sustainability. We need to improve further, and increasing our online presence is one of our main goals,” Vone said.

With more hotels, both local and international, competing for visitors, many are looking to step up their game. That means adding new kinds of experiences, from cooking classes to handicraft workshops

“We don’t provide these activities yet, but they will be added in the future,” she noted.

Restaurants are also adapting. In Luang Prabang, riverside eateries are creating cultural tasting menus and hosting Lao-themed evenings to attract and engage international guests.

Yet, tourists are also supporting local street vendors and artisans by buying Lao specialties like Sai Oua (herbal sausage), Kai Pen (dried riverweed), and homemade chili paste. 

“Local people can earn an income from selling their goods, and tourists love the products they buy,” Vone said.

Tourists Leave Impressed, Return for More

A 35-year-old Swiss visitor, Jack, who is visiting Vientiane for the second time, said he finds the city peaceful compared to other Southeast Asian capitals such as Bangkok or Hanoi.

“I love it here. It’s not noisy like other cities. After this, I plan to go to Vang Vieng. My friend recommended trying the fire balloon,” Jack said.

He added that Laos is an affordable country with a wide variety of delicious foods 

“My favorite is papaya salad. It’s a little spicy, but I can handle it,” he said.

First-time visitors also praised the country’s calm and friendly atmosphere. An Italian couple from Rome, Nicolas and Alexandra, who are spending two weeks in Vientiane and have been to Luang Prabang before, said the country feels completely different from their homeland.

“In Italy, people honk a lot and shout in the streets. It’s very noisy, different from here which is quiet, and we’d love to come back if we have the chance,” Nicolas said.

The couple also complimented service in Lao hotels but suggested improvements in areas such as garden landscaping and swimming pool decoration.

“Everything is good, but it would be better if they could enhance the outdoor environment for tourists,” Alexandra added.

With more than 5 million visitors in 2024, and even higher numbers projected for this year, Laos is on the path to a sustainable tourism revival. The challenge now is to build on that momentum, with better infrastructure, more diverse offerings, and strong digital outreach.

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