Laos Named World’s Most Budget-Friendly Travel Destination for 2025

Laos has earned the top spot as the world’s most budget-friendly destination for 2025, according to a recent ranking by Travel and Tour World (TTW). The study analyzed travel expenses across 131 countries and found that visitors to Laos spend an average of just £12.30 (approximately $15.60 USD) per day, covering accommodation, meals, and local transportation.

This low daily cost places Laos ahead of other popular Southeast Asian travel hotspots such as Thailand and Indonesia, offering travelers an affordable yet culturally rich experience.

Kazakhstan and Rwanda followed Laos on the list, with average daily costs of £15.10 and £16.60 respectively. The study highlights these destinations for offering significant value without compromising on travel experiences.

Laos, often referred to as Southeast Asia’s hidden gem, continues to captivate international visitors with its blend of natural beauty, historical heritage, and affordability. The ancient city of Luang Prabang, a UNESCO World Heritage Site, is a major draw. Known for its serene atmosphere and ornate Buddhist temples, Luang Prabang has been frequently spotlighted in global travel rankings.

The capital, Vientiane, also draws large numbers of tourists, especially to the That Luang stupa, a national symbol and revered religious monument. Nature lovers are lured by the mighty Mekong River, scenic waterfalls, mysterious caves, and lush coffee plantations that dot the countryside.

In addition to its budget-friendly appeal, Laos is gaining global recognition for responsible tourism and effective visitor management. Luang Prabang recently secured third place in the 2025 Green Destinations Top 100 Story Awards in the “Destination Management” category. The award recognized efforts in inclusive tourism development and sustainable visitor practices.

The international acclaim doesn’t stop there. In 2023, TIME Magazine listed Luang Prabang among the 50 greatest places in the world to visit, praising its “turquoise waterfalls, sunset cruises, and timeless charm.” Most recently, Lonely Planet ranked Luang Prabang first among Asia’s top 22 destinations for 2025.

Tourism is playing an increasingly vital role in Laos’ economy. According to the Ministry of Information, Culture and Tourism, the country welcomed over 4.1 million international visitors in 2024, a 21% increase from the previous year. This influx generated more than US$1 billion in tourism revenue.

Looking ahead, the Lao government is targeting at least 4.3 million international visitors in 2025, expecting tourism spending to again exceed US$1 billion, with the average tourist staying around 10 days.

Efforts are also being directed at strengthening domestic tourism, with a target of 4.1 million trips by Lao citizens, projected to generate US$678 million based on an average stay of three days.

With growing recognition, rich cultural offerings, and unmatched affordability, Laos is firmly positioning itself as one of the world’s most rewarding destinations for budget-conscious travelers.

Top Tourist Places to Visit in Laos

1. Luang Prabang
   A UNESCO World Heritage Site, Luang Prabang is famous for its well-preserved architecture, beautiful Buddhist temples, and serene atmosphere. Don’t miss the morning alms-giving ceremony and the stunning Kuang Si Waterfalls nearby.
2. Vientiane
   The capital city of Laos offers a mix of traditional temples and French colonial buildings. Key spots include Pha That Luang (the golden stupa), Patuxai Victory Monument, and the peaceful Mekong River waterfront.
3. Plain of Jars
   An archaeological mystery, this vast plain scattered with thousands of giant stone jars dates back to the Iron Age. It’s one of Laos’ most fascinating historical sites located near Phonsavan.
4. Vang Vieng
   Known for its stunning karst limestone mountains, caves, and the Nam Song River, Vang Vieng is a popular spot for outdoor activities such as tubing, kayaking, hiking, and cave exploration.
5. Si Phan Don (Four Thousand Islands)
   Located in the south near the Cambodian border, this archipelago offers a peaceful rural vibe, with waterfalls, river dolphins, and traditional island villages to explore.
6. Wat Phu (Vat Phou)
   An ancient Khmer temple complex situated in southern Laos, Wat Phu is a UNESCO World Heritage site offering historical ruins and beautiful mountain views.
7. Tham Kong Lo Cave
   A spectacular 7-km long limestone cave in central Laos that you can explore by boat, featuring impressive stalactites and stalagmites.
8. Nong Khiaw
   A charming riverside village surrounded by dramatic limestone cliffs, perfect for trekking, cycling, and enjoying quiet natural beauty.

Team maverick.