Laos has been recognised as the most affordable country to visit in Southeast Asia, according to a recent feature in Time Out magazine cited by Vientiane Times, which praised the nation for its combination of cultural richness, natural beauty and warm hospitality – all at a remarkably low cost.

With an average daily spend of just $15.97, including accommodation, food and transport, Laos has emerged as a firm favourite among cost-conscious travellers seeking authentic experiences without breaking the bank.

Accommodation prices remain strikingly low. Hostel beds in Luang Prabang and Vientiane can be found from as little as a few dollars a night, while in the backpacker hotspot of Vangvieng, prices drop to just $2. Popular street food, such as sticky rice and grilled pork, typically costs around $1.

Attractions are also highly affordable as is travel between major towns via bus or minivan while the Laos-China Railway provides a second-class ticket between Vientiane and Vangvieng for roughly $8. For those seeking more independence, motorbike rentals start at around $6 a day.

In comparison, Time Out ranked Vietnam and Cambodia as the next most budget-friendly destinations in Southeast Asia, with similar average daily expenses while Thailand and Indonesia followed, with only slightly higher costs of $32 and $25 respectively.

Laos' reputation as a hidden gem continues to grow with increasing international recognition. US-based CNN recently included Laos in its list of 23 best destinations to visit, while National Geographic highlighted the country among 25 breathtaking places to explore. In the UK, The Telegraph placed Laos among 20 standout destinations for travel in 2023.

A separate ranking by Travel and Tour World, drawing on research from Canadian financial platform HelloSafe, named Laos the most budget-friendly destination in the world for 2025.

Official tourism data supports the growing appeal. According to Vientiane Times, The Ministry of Culture and Tourism reported that over 1.2mn international visitors travelled to Laos in the first three months of 2025, marking an 11% increase compared to the same period in 2024. The surge generated over $426mn in revenue. Domestic tourism also flourished, with more than 1.4mn Lao travellers recorded—up by nearly 99% year-on-year—bringing in an additional $237mn.