Vientiane Unveils Comprehensive Tourism Development Strategy to Boost Economy

Vientiane Charts New Course for Tourism Growth

Vientiane, the capital of the Lao People's Democratic Republic, has officially unveiled a comprehensive strategy aimed at strengthening its tourism sector, expanding accommodation capacity, and generating increased income for local businesses. The initiative was presented during the 10th ordinary session of the fourth legislature of the Vientiane People's Council on December 16. Ms. Viengphone Keokounsy, Head of the Department of Culture and Tourism, addressed questions from council members regarding the ambitious plans.

The department is actively collaborating with central authorities to promote tourism and attract visitors, with a particular focus on monitoring and inspecting hospitality establishments to ensure high service standards and fair pricing.

Key Pillars of the Development Strategy

The newly outlined strategy encompasses several key areas designed to transform Vientiane into a more attractive and sustainable tourist destination:

• Sustainable Tourism and Technology Integration: The government has announced plans to boost tourism under the theme 'Vientiane's Sustainable Tourism,' aiming to incorporate innovative technologies into tourism management and create new attractions. This project involves a collaboration between the Department of Information, Culture, and Tourism of Vientiane Capital and Packon Company Limited from Thailand, formalized by a Memorandum of Understanding (MOU) signed on January 28.
• Infrastructure Enhancement: Significant improvements are planned for the city's infrastructure, including water and clean energy management, reliable electricity and oil supplies, and efficient water management systems for drinking water, drainage, and wastewater treatment. Communication technologies, such as 5G networks and expanded Wi-Fi coverage, will also be advanced to improve city services and safety. Further upgrades will target road construction, traffic management, transportation systems, waste management, and flood control.
• Accommodation Expansion: Vientiane is experiencing a 'hotel fever,' with more than 550 new chain hotel rooms expected to open in 2024, and nearly 400 more by 2025. Brands like Radisson RED and DoubleTree by Hilton are set to establish a presence, adding to the existing approximately 10,000 rooms. Additionally, the Avani+ Lanexang Vientiane is slated to open in 2026, further boosting modern accommodation options.
• Attraction Development and Diversification: Efforts will focus on developing new attractions along the Mekong River and at That Luang Lake. This includes upgrading the night market along the river, creating pedestrian-friendly walking streets, and enhancing other popular tourist sites. Vientiane currently boasts 89 recognized tourist sites, comprising 44 cultural sites, 26 natural sites, and 17 historical sites, alongside nine national-level heritage sites.

Fostering Local Economic Benefits

The strategy places a strong emphasis on increasing income for local businesses and communities. Village- and community-based tourism is expanding, with local communities actively involved in site management and revenue collection at national heritage sites such as Wat Sisaket, Wat Nong Khamsen, and Wat Palelay. The development of night tourism, linked to markets like Khuadin Market, clean agricultural tourism, and the promotion of shops selling Lao-made products and souvenirs are also priorities. Tourism companies will be encouraged to develop tour programs that are closely linked with local production and service businesses to ensure broader economic benefits.

Broader National Tourism Context

These local initiatives align with broader national efforts to boost tourism. Laos has been intensifying its efforts to promote sustainable growth, experiencing a significant surge in visitors. The 'Visit Laos Year 2024' campaign, launched in November 2023, aimed to attract 2.7 million foreign tourists and generate USD 401 million in revenue. The country welcomed over 4.12 million international visitors in 2024, generating more than USD 1 billion in tourism revenue. For 2025, tourist arrivals are forecast to reach 2.9 million, generating an income of USD 434 million. The Ministry of Information, Culture and Tourism is also preparing for the second 'Visit Laos-China Year' to attract more Chinese tourists.