Laos named the most affordable travel destination in Southeast Asia – Here’s what to expect

Backpackers relax by the turquoise Kuang Si Falls in Laos, one of Southeast Asia’s most affordable and stunning travel spots.

In a region where daily budgets can swing from bargain to blowout, Laos has quietly emerged as Southeast Asia’s most affordable travel destination – and the rest of the world is starting to notice.

The accolade comes from Time Out Magazine, which ranked Laos above its neighbours for offering genuine cultural experiences, sweeping landscapes and warm hospitality without the price tag that’s creeping up elsewhere in the region.

A Rare Sweet Spot: Low Prices, High Experiences

Backpackers have long whispered about Laos as a place where money stretches further than you’d expect. Now, those whispers are turning into headlines.

A dorm bed in Luang Prabang or Vientiane can be had for as little as £3 (approximately Rs 353) a night. In Vang Vieng, it drops to £1.50 (approximately Rs 176.5). On the streets, steaming portions of sticky rice with grilled pork cost under £1 (approximately Rs 117.7), and a cold bottle of Beerlao won’t set you back much more.

Many of the country’s star attractions are either free or just a couple of pounds to enter. The turquoise cascades of Kuang Si Falls cost around £2.30 (approximately Rs 270.75) to visit – a ticket that also grants access to the Bear Rescue Centre.

Getting Around Without Breaking the Bank

The frugality extends to transport. Travelling between cities on local buses and minivans typically costs under £4.50 (approximately Rs 529.74). The relatively new Laos–China Railway links Vientiane to Vang Vieng for around £6 in second class. For those wanting to roam freely, motorbike rentals start at £4.70 (approximately Rs 553.28) per day.

Global Praise and Growing Numbers

Laos’ reputation isn’t just a traveller’s anecdote. A separate ranking from Travel and Tour World, backed by research from Canadian financial platform HelloSafe, has declared it the most budget-friendly destination in the world for 2025.

The recognition appears to be paying off. According to figures from the Vientiane Times, more than 1.2 million international visitors arrived in the first three months of 2025 – an 11% jump on the same period last year – generating over $426 million in tourism revenue. Domestic travel has also surged, with 1.4 million Lao tourists recorded in the same period, nearly doubling last year’s figure and contributing an extra $237 million.

Why Now Is the Time to Go
For all its newfound attention, Laos still feels unhurried. Its riverside cafés, saffron-robed monks, and misty mountain roads remain largely untouched by the mass-tourism machine. But with rising international interest, the balance between budget travel and booming tourism may not last forever.

For now, though, it’s still possible to drift down the Mekong, cycle through quiet villages, and explore ancient temples – all while spending a fraction of what you might elsewhere in Southeast Asia.