New Incentives Spark Growth for Nature-Based Tourism Investment in Lao PDR’s Forests

A new chapter in sustainable tourism is opening in the Lao People’s Democratic Republic (Lao PDR), where the Ministry of Agriculture and Forestry has announced fresh incentives for small-scale private investment in national parks and protected forest areas. The initiative, designed to encourage responsible tourism development, aims to attract investors who can help generate jobs, support conservation, and strengthen partnerships with local communities.

This forward-looking policy marks a major milestone in Lao PDR’s vision to make nature-based tourism a cornerstone of the nation’s economic and environmental future.

 

A Green Gateway for Investment in Laos

The new Decision on Tourism in Forest Areas, issued by the Ministry of Agriculture and Forestry, introduces practical incentives for investors interested in developing tourism projects within national parks and protected areas. These incentives focus on creating sustainable enterprises that blend economic opportunity with ecological protection.

Projects that align with community engagement, biodiversity conservation, and cultural preservation will receive priority support, ensuring that tourism growth remains both inclusive and environmentally responsible.

According to Kikeo Singnavong, Deputy Minister of Agriculture and Forestry, “Carefully regulated tourism development can bring great benefits in both employment and income generation for local people in forested areas, providing an economic incentive for them to conserve biodiversity and natural beauty.”

 

Supported by the World Bank’s Lao Landscapes and Livelihoods Project

This initiative is backed by a World Bank-financed business leveraging facility, which will guide and support private investors through technical assistance, training, and targeted financing.

The facility provides three key types of funding:

• Planning and Feasibility Grants – helping businesses prepare sustainable tourism development plans that align with environmental standards.
• Challenge Funds – targeting investments in priority areas that offer strong conservation and community benefits.
• Matching Funds – supporting product development, marketing, and infrastructure for tourism enterprises that meet national sustainability criteria.

Viengsamay Srithirath, World Bank Senior Country Officer for Lao PDR, highlighted that “companies can access funds and technical support to develop tourism that benefits local people through jobs while preserving the environment’s natural beauty.”

 

Opportunities Across Laos’s National Parks and Protected Areas

The Department of Forestry will open the application process to qualified micro, small, and medium-sized tourism enterprises (MSMEs) through prospectuses specific to eight protected areas across the country.

Investors can explore opportunities in:

• National Parks: Hin Nam No, Nam Et-Phou Louey, Nakai-Nam Theun, Phou Hin Poun, and Phou Khao Khouay.
• Protected Areas: Khoun Xe Nong Ma, Laving Lavern, and Yord Nam Mo-Phou Sam Soum.

These sites are known for their extraordinary biodiversity, limestone landscapes, and thriving ecosystems—ideal for eco-lodges, guided trekking, birdwatching, and community-based tourism ventures.

 

Nature-Based Tourism: A Pillar of Sustainable Growth

Nature-based tourism is already one of the fastest-growing sectors in Laos. The World Bank estimates that it could contribute up to 10 percent of GDP and 10 percent of employment in the near future.

By providing the right policy framework and financial incentives, the government is positioning the sector as a vital part of its National Socio-Economic Plan and National Green Growth Strategy.

In addition, the program aims to create job opportunities for 75,000 women, strengthening gender equity and social inclusion in rural areas.

Inthy Deuansavanh, President of the Lao Tourism Association, praised the move, noting that it opens “exciting investment opportunities that blend sustainable tourism, conservation, and community benefit in some of the most beautiful landscapes in Southeast Asia.”

 

Balancing Tourism, Conservation, and Community Development

By promoting sustainable, private sector–driven tourism, Lao PDR is demonstrating how environmental preservation and economic progress can go hand in hand.

Through this initiative, communities living near national parks will gain new employment opportunities, tourism operators will access technical guidance and financing, and visitors will experience authentic, eco-conscious adventures in one of Asia’s most biodiverse nations.

This balanced approach ensures that as tourism grows, so too does the protection of forests, wildlife, and the cultural heritage that makes Laos unique.

For more information, contact:
Ministry of Agriculture and Forestry, Lao PDR
Website: www.maf.gov.la
Email: info@maf.gov.la

World Bank Lao PDR
Website: www.worldbank.org/lao

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