IN BRIEF

In mid-2024, the Lao National Assembly introduced the Law on Tourism (Amended) No. 63/NA, dated July 1, 2024. This law establishes principles, regulations, and oversight measures to ensure the quality and sustainability of tourism activities across the country. Its goal is to promote Laos as a modern and competitive travel destination while preserving its rich natural, cultural, and historical heritage. The law also aims to foster international tourism links, strengthen regional cooperation, and contribute to economic growth in a sustainable and environmentally friendly manner.1

Under this law, tourism services are categorized into three distinct types2:

  1. 1. Land-based tourism: Activities such as trekking, rock climbing, zip-lining, and cave exploration.
  2. 2. Water-based tourism: Boating, kayaking, lifebuoy floating, diving, and rafting.
  3. 3. Aerial tourism: Experiences like hot air balloon rides, paramotor flights, and skydiving.

KEY TAKEAWAYS

  1. A. Business Requirements and Qualifications
    To legally operate a tourism business in Laos, individuals or companies must fulfill the following criteria3

      1. 1. Be a registered business entity under Lao PDR laws.
      2. 2. Maintain an office with adequate facilities and equipment.
      3. 3. Employ full-time or part-time tourism staff licensed by the Department of Tourism Business Management (Ministry of Information, Culture, and Tourism).
      4. 4. Develop a detailed tourism program with transparent pricing.
      5. 5. Open a deposit account at a commercial bank.
      6. 6. Meet the minimum capital investment required for each type of tourism business4:
        1. • Outbound Tour Operator: 1,500,000,000 LAK
        2. • Travel Agency: 1,000,000,000 LAK
        3. • Inbound Tour Operator: 500,000,000 LAK
        4. • Specific Area Tour Operator: 100,000,000 LAK
    2. Foreign investors interested in the tourism sector must contribute at least 30% of the registered capital upfront. If this capital is not deposited following the issuance of the Enterprise Registration Certificate by the Ministry of Industry and Commerce, authorities may deny the license to operate the tourism business in Laos5.

1Article 1 of Law on Tourism (Amended) No. 63/NA, dated July 1, 2024
2Article 61 (New) of Law on Tourism (Amended) No. 63/NA, dated July 1, 2024; Each type of tour guide service is defined in separate regulations
3Article 28 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022
4Article 36 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022
5Article 35 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022

  1. B. Processing Time and Fees
  • • Processing Time: 9 working days6
  • • Service & Certificate Fees: 2,050,000 LAK7
  1. C. Business License Validity & Renewal
    A tourism business license in Laos is a lifetime authorization. However, businesses must renew their certification every two years to continue operations. This ensures compliance with evolving regulations and quality standards in the tourism industry8.

FINAL THOUGHTS

With its breathtaking landscapes, rich cultural heritage, and growing tourism industry, Laos presents an exciting opportunity for investors and entrepreneurs. By adhering to the legal framework and meeting operational requirements, businesses can contribute to a thriving tourism sector while reaping significant financial rewards. Whether you’re looking to launch an adventure tour company, a luxury travel agency, or a niche cultural tourism business, Laos offers a promising and dynamic market to explore.

For businesses eager to dive into this thriving tourism business, ILAW LAOS offers expert legal counsel to navigate the complex regulatory landscape. ILAW LAOS is a one-stop service for legal consultation, providing a comprehensive range of services tailored for the tourism businesses. Our expertise includes:

  • • Company Setup
  • • Tourism License Application
  • • Direct-Sale Business Licenses
  • • Contract Negotiation e.g. insurance, service agreement, employment agreement

We ensure your business stays compliant and competitive, helping you seize opportunities without legal hurdles. Partner with us, and let’s grow your business in Laos’s evolving tourism businesses.

AUTHOR

  • • Tanadee Pantumkomon, Partner; and
  • • Viphavanh Syharath, Associate
    • They can be reach at ilawlaos@ilawasia.com

6Article 27 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022
7Official Website: Business Operating Licenses | License to operate Tour Operator
8Article 32 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022