Published on
September 13, 2025
The Lao People’s Democratic Republic (PDR) has launched a groundbreaking programme to encourage nature-based tourism in an effort to foster sustainable tourism while protecting its natural resources. The Lao Ministry of Agriculture and Environment announced the new decision, which aims to protect the nation’s distinctive biodiversity while promoting private sector investment in national parks and protected areas.
The law establishes the framework for modest investments in tourism initiatives in Laos’ wooded areas, which will improve job opportunities and guarantee that the local communities profit monetarily from their natural surroundings. This project aims to combine economic growth and environmental preservation, offering an example of how tourism can be used as a sustainable tool.
Government Strategy: A Step Toward Green Growth
The Lao government is intent on positioning nature-based tourism as a central pillar in its broader National Socio-Economic Plan. This strategic decision is also closely aligned with the National Green Growth Strategy, which sets ambitious targets for sustainable development. By encouraging the private sector to take part in tourism development, Laos hopes to secure long-term economic growth while fostering environmental stewardship.
The regulation incentivises small-scale private investment, particularly through projects that can directly benefit local communities. The intention is to create a framework where jobs are generated, local economies thrive, and the environment is safeguarded for future generations. This approach is expected to play a crucial role in developing the tourism sector in an environmentally responsible manner.
The Role of the World Bank in Supporting Tourism Development
The World Bank is playing a pivotal role in supporting this initiative through its financial backing and advisory services. A key component of the project is the business leveraging facility, which aims to attract micro, small, and medium enterprises (MSMEs) to invest in tourism development within Laos’ national parks and protected areas.
This facility provides MSMEs with the financial support needed to develop nature-based tourism products. It also offers training to companies on the specific requirements of nature-based tourism, helping them understand the importance of sustainable practices. Furthermore, funding is available for small-scale public infrastructure improvements, marketing, and tourism product development.
The Lao Landscapes and Livelihoods project, supported by the World Bank, is central to the initiative. The project provides financing in three key areas: feasibility and planning work, challenge funds for priority investments, and matching funds for product development and marketing. These financing options ensure that even small enterprises have the resources necessary to enter the tourism market and succeed in a competitive environment.
Designated National Parks and Protected Areas
To facilitate this initiative, Laos has identified several national parks and protected areas for tourism development. These areas, which are rich in biodiversity and natural beauty, are prime candidates for ecotourism. The following protected areas are included in the scheme:
Hin Nam No National ParkNam Et-Phou Louey National ParkNakai-Nam Theun National ParkPhou Hin Poun National Biodiversity Conservation AreaPhou Khao Khouay National Protected AreaKhoun Xe Nong Ma Protected AreaLaving Lavern Protected AreaYord Nam Mo-Phou Sam Soum Protected Area
These national parks and protected areas are among the most biodiverse and ecologically significant sites in the region. By promoting tourism in these areas, the Lao government hopes to raise awareness about the value of conservation while allowing visitors to experience the natural beauty of Laos.
The initiative allows tourism businesses to develop products and services that align with the management plans, guidelines, and regulations for each protected area. To ensure that tourism development is carried out responsibly, companies must adhere to these standards and contribute to the conservation goals of the parks and protected areas.
Job Creation and Economic Impact
One of the key outcomes expected from this nature-based tourism initiative is the creation of jobs, particularly for women. With an estimated 75,000 women expected to benefit from the tourism sector, this initiative is not just about economic growth—it’s about empowering local communities and creating equitable opportunities for all.
Nature-based tourism in Laos is set to generate significant employment in rural areas, where opportunities are often limited. Jobs will be created not only in the tourism sector itself—such as in hospitality, guiding services, and park management—but also in related industries like transportation and retail. Furthermore, local businesses will have the chance to partner with tourism ventures, creating a multiplier effect across various sectors of the economy.
The World Bank estimates that nature-based tourism could contribute up to 10% of Laos’ Gross Domestic Product (GDP) and account for around 10% of jobs in the country. This substantial economic contribution underscores the potential of ecotourism to serve as a catalyst for long-term economic growth and development.
Biodiversity Conservation: Protecting Laos’ Natural Heritage
In addition to economic benefits, the promotion of nature-based tourism in Laos’ protected areas is expected to play a crucial role in the conservation of the country’s rich biodiversity. Laos is home to a wealth of flora and fauna, many of which are found nowhere else on Earth. By linking conservation efforts with economic incentives, the government aims to ensure that the natural environment is preserved while benefiting local communities.
Tourism, when done responsibly, can act as a powerful tool for conservation. Visitors will be encouraged to engage with the natural environment in a way that respects the local ecosystem, ensuring that the attractions of these national parks and protected areas remain intact for future generations. The regulation also includes provisions for environmental education and awareness, helping both locals and tourists understand the importance of sustainable tourism practices.
A Win-Win for Laos’ Economy and Environment
The new initiative from the Lao PDR is a positive step toward sustainable development, which aims to balance environmental protection with economic growth. Laos is establishing a model for other countries looking to strike a balance between the needs of development and the preservation of the planet’s biodiversity by making use of its natural resources and encouraging responsible tourism.
The World Bank and the Lao government are collaborating to make sure that nature-based tourism develops into a prosperous sector that helps the environment and the economy through focused investments, financial assistance, and educational programmes. In addition to bolstering the expansion of Laos’ tourism industry, the success of this project will help preserve one of Southeast Asia’s most biodiverse countries in the long run.
