A colourful street lined with traditional Lao-style buildings in Luang Prabang, a UNESCO World Heritage town. –Photo Phonepaseuth

Laos shines as Southeast Asia’s top budget travel destination

Laos has earned the top spot as the most affordable country to visit in Southeast Asia, according to a recent feature in Time Out magazine.
The article positions Laos as a favourite among travellers seeking cultural depth, natural beauty and warm hospitality, without the hefty price tag. The average daily cost for visitors is just £12, (US$15.97) covering accommodation, food and transport.
Travel writer Ms Lola Méndez, who has spent five years exploring the region, praised Laos for its exceptional value. From the peaceful streets of Luang Prabang to the riverside buzz of Vientiane, she found that budget-conscious travellers can enjoy a rich and rewarding experience.
In key destinations such as Luang Prabang and Vientiane, hostel beds are available from just £3 a night. In Vangvieng, prices drop as low as £1.50. Street food favourites such as sticky rice and grilled pork cost around 80 pence, and a cold Beerlao can be enjoyed for under £1.
Many attractions are free or inexpensive. A visit to the stunning Kuang Si Falls costs only £2.30, with the ticket including access to the Bear Rescue Centre.
Travelling between major towns is equally affordable, with buses and minivans typically priced below £4.50.
Travel writers also mention the Laos-China Railway, which offers a second-class ticket from Vientiane to Vangvieng for around £6. Motorbike rentals start from £4.70 per day, giving travellers the freedom to explore off the beaten track.
In comparison, Time Out lists Vietnam and Cambodia as the next most affordable destinations, with average daily travel budgets of £15. Thailand and Indonesia follow, with higher average costs of £24 and £19 per day respectively.
Laos’ growing reputation as a travel gem has been reinforced by international recognition. The US-based CNN recently included Laos in its list of 23 best destinations to visit, while National Geographic selected the country among 25 breathtaking places to explore.
British newspaper The Telegraph also ranked Laos among 20 special destinations to visit in 2023.
In a separate report by the Travel and Tour World website, based on research from Canadian financial platform HelloSafe, Laos was ranked the world’s most budget-friendly destination for 2025, with average daily costs estimated at just £12.30.
Tourism data from the Ministry of Culture and Tourism supports this growing interest.
More than 1.2 million international visitors arrived in Laos during the first three months of this year, up 11 percent compared to the same period in 2024. This generated over US$426 million in revenue.
Domestic tourism also surged, with more than 1.4 million Lao travellers recorded in the same period, an increase of 98.6 percent, bringing in over US$237 million.
As the world discovers Laos, its charm, affordability and authentic experiences are proving more appealing than ever for travellers near and far.

By Times Reporters
 (Latest Update August 7, 2025)