Laos Shifts Tourism Licensing Powers to Provincial, District Authorities

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Laos is revising how tourism business licences are issued and enforced, dividing responsibilities among central, provincial, and district authorities, Minister of Information, Culture and Tourism Suanesavanh Vignaket said at the National Assembly meeting on 7 October.

The Ministry will retain control over foreign-invested tourism businesses and international tour operators, according to Suanesavanh. It will also oversee national tour-guide badges, temporary guest-reception certificates, and the registration of tour-group leaders. The ministry can suspend or revoke licences when businesses break the law.

Provincial tourism departments will handle most tourism businesses operating within their jurisdictions, while district and city offices will oversee accommodation businesses, including guesthouses and homestays, and other businesses with registered capital of LAK 1 billion (USD 44,500) or less, subject to the limits of their authority.

The new arrangements are intended to clarify which authorities are responsible for licensing and inspecting businesses. Departments must also coordinate with higher-level authorities when issuing licences, although the precise reporting requirements vary by licence type.

Crackdown on ‘Zero-Dollar’ Tourism

The licensing changes come as the ministry works with the wildlife conservation society to tackle “zero-dollar” tourism and wildlife-related offences.

These tours typically attract visitors with very cheap packages before directing them to selected shops, restaurants, or other businesses where tour operators earn commissions.

The model can leave local businesses with a smaller share of tourist spending, particularly when visitors pay through overseas platforms such as WeChat or Alipay.

Authorities are increasing information-sharing and inspections at tourism businesses, high-risk locations, and border crossings. Tour operators and guides involved in wildlife-related offences may have their licences suspended or revoked, face fines, or be prosecuted.

The measures are intended to curb abuses in the tourism sector and ensure more of the money visitors spend reaches local businesses and communities.

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