Southeast Asia Information Port (www.dnyxxg.com) reports that, leveraging the connectivity advantages of the China-Laos Railway and the series of celebrations marking the 65th anniversary of the establishment of diplomatic relations between Laos and China, Laos' tourism industry is experiencing a period of accelerated recovery. It is projected to attract 5 to 6 million international tourists in 2026, including an additional 2 million from China. As one of the core pillars of Laos' economy, tourism is driving economic development to local areas, creating jobs and boosting productivity.
Looking back at its development, before the COVID-19 pandemic, Laos received nearly 5 million foreign tourists annually, including over 1 million from China, generating nearly US$700 million in tourism revenue, surpassing other sectors such as agriculture. After Laos reopened in 2022, coupled with the benefits of the China-Laos Railway opening in 2021, tourist numbers have continued to rebound. As of February 2026, the China-Laos Railway, having been in operation for over four years, has transported over 66 million passengers, with 12.17 million of those passengers traveling through the Lao section. In terms of freight, the Lao section has transported 16 million tons of cargo, significantly reducing transportation costs and time. It has become a "golden link" for Laos' economy and tourism, generating over US$2.6 billion in foreign exchange earnings for the country.
Laos's tourism appeal stems not only from its core resources such as World Heritage sites, the magnificent scenery along the Mekong River, its unique culture, and French colonial architecture, but also from its high cost-effectiveness—budget travel with daily expenses controllable at US$17-25. Combined with its tranquil atmosphere and authentic cultural experiences, it has been recognized as one of the top global travel destinations for 2026 by Inside Traveller and ASEANAll. Duncan Greenfield-Tucker, founder of the global travel information website, commented, "Laos is one of Southeast Asia's most hidden gems." At the 12th National Congress of the Lao People's Revolutionary Party, tourism was included in the 2026-2030 Five-Year Socio-Economic Development Plan, ranking it alongside sustainable green development and digital transformation as a priority. The government has set long-term goals: to attract 22 million international tourists and 11 million domestic tourists over the next five years, generating an estimated $8 billion and $5 billion in revenue respectively. To strengthen support, Laos will expand its railway network, initiating construction of the Lao-Vietnam railway (from Khammouane Province to the Vietnamese border) this year, studying the feasibility of the Vientiane-Pakse railway, improving connectivity with the China-Thailand railway, and developing a regional logistics hub.
The Asian Development Bank predicts that Laos' economy will grow by 4.0% in 2026, with tourism and logistics becoming the core growth drivers. Laos is currently attracting high-end tourists by improving its infrastructure and optimizing service standards. At the same time, it is leveraging the China-Laos Railway to connect tourism resources along the route. "Traveling between China and Laos by train" has become a new trend in cross-border tourism, helping Laos steadily move towards becoming a "regional tourism hub" and an "international super tourism destination".
