Tourism Booms in Luang Prabang, But Can It Lift All of Laos Out of Poverty?
An unprecedented surge in tourism is transforming Luang Prabang, Laos’ ancient capital, into an economic bright spot and prompting experts to ask: can the rest of the country follow its path to prosperity, or will deep structural challenges hold back broader progress? The city’s experience offers lessons not only for Laos but also for neighboring countries like Thailand, where tourism’s impact on development is increasingly debated.
In just a few years, Luang Prabang has witnessed an economic renaissance. As recently as 2012, its central Sisavangvong Road saw only a smattering of foreign backpackers and tourist amenities were sparse. Fast forward to 2025, and the picture has changed dramatically. According to official figures, the city saw a stunning 162% increase in visitors year over year as of April 2025, with the Lonely Planet crowning it Asia’s top travel destination for 2025 (DW). Handicraft markets now line vibrant alleyways, quirky bars spill onto once-quiet streets, and international travelers fill hotels and restaurants that now serve global clientele.