The industry is the country's primary hard currency earner and generates many jobs, thus helping economic development and improving people's living conditions.

The number of foreign visitors to Laos increases every year. The country welcomed 1.1 million foreign visitors and earned 146 million USD from tourism in 2005. In 1990, Laos welcomed only 14,000 foreign arrivals. The country has so far this year welcomed 146,000 visitors, including 85,000 foreigners, to the ancient capital city of Luang Phrabang, a world heritage site, a year-on-year increase 6 percent.

The government has invested in tourist service quality improvements, expanding and developing new tourist sites and restoring world heritage sites such as Wat Phu in southern Champassak province.

The country has also signed agreements to enhance cooperation and expand travel tours between Viet Nam's central provinces, the Lao capital of Vientiane and its ancient capital city of Luang Phrabang, and Thailand's northeast provinces, attracting more foreign visitors.

Laos boasts more than 1,000 identified tourism sites, including 580 eco-tourism and natural locations.