Exploring Solutions for Laos' Tourism Challenges and the Implementation of Notification No.2721/MoLSW on Welfare and Labour Policie

This month, EuroCham Laos had the opportunity to participate in two crucial discussions addressing tourism industry challenges and salary regulations for employees in Laos. The meetings highlight efforts to support economic growth and ensure fair labor practices across the country.

Exploring Solutions for Laos' Tourism Challenges: Highlights from the Working Group Meeting

On September 17, 2024, EuroCham Laos joined the Private Sector Working Group on Tourism Sector meeting organized by the Lao National Chamber of Commerce and Industry (LNCCI), which acts as the secretariat for the Lao Business Forum (LBF). Ms Mingngakham Pangnasak, EuroCham's External Relations Officer, attended the meeting chaired by Mr Inthy Deuansavanh, Deputy Working Group Leader for the Tourism Sector of LBF. The meeting was attended by esteemed representatives from several chambers, associations, hotels, restaurants, tour companies, and airlines.

The purpose of the meeting was to discuss progress in addressing business challenges within the tourism sector, with a particular focus on advancing the establishment of the Tourism Marketing Promotion Chamber.

The discussion focused on the proposals submitted to the Ministry of Information, Culture and Tourism (MOICT) and the Ministry of Public Security regarding the implementation of digital online payment

systems for approving tour companies that facilitate tourist entry into the country. The change has the potential to save both time and costs at the border.

Additionally, suggestions from the private sector were put forth for the MOICT and the Ministry of Public Works and Transport (MPWT) to allow motorbike and bicycle caravans to enter Laos without requiring approval through a tour company. The meeting also included discussions on managing tourism sites effectively by the adoption of a national masterplan.

Moreover, the conversation included the Visa Policy and Duration of Stay in Lao PDR for Target Group Tourists during Lao Tourism Year 2024. The new directive is poised to attract a larger number of international tourists by streamlining entry processes and extending the duration of stays.

In accordance with the visa policy implemented for targeted tourists dated June 26, 2024 (No. 29/MOICT), tourists holding passports from the following countries can apply for a multi-entry visa at the Embassy or Consulate of Lao PDR in their respective countries:

Australia, New Zealand, United States, Canada, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, England.

For those applying for a visa at the border or through an e-Visa, tourists from the specified countries will be granted a one-time visa entry in accordance with existing regulations, with an extension of the length of stay from 30 days to 60 days. Additionally, tourists from eight countries - Denmark, Norway, Sweden, Finland, Austria, Belgium, Spain, and Greece will benefit from a visa exemption for a single entry without a visa sticker in their passport, allowing them to stay in Laos for 15 days.

The changes represent a proactive step towards revitalizing tourism in Laos. By addressing previous barriers to entry and extending the duration of stays for international tourists, Laos is setting the stage for a successful tourism year ahead. The policy, effective from July 1, 2024, will remain in effect until December 31, 2024.

The outcomes of the meeting will also be presented and discussed at the Lao Business Forum (LBF) in March 2025.

Implementation of the notification No.2721/MoLSW on salary, wage payment, and other policies for workers in Lao PDR

On September 19, 2024, EuroCham Laos participated in a dissemination meeting regarding notification No. 2721 issued on 13 August 2024, which refers to the directive from the Ministry of Labour and Social Welfare (MoLSW) addressing policies and regulations related to labor and employee salaries in Lao PDR.

The meeting, organized by the Lao National Chamber of Commerce and Industry (LNCCI) in collaboration with the MoLSW, informed the participants on the procedures that employers should follow when compensating their employees across all sectors. According to the notification, entities that determine

and agree on salaries and benefits for their employees in foreign currency but pay in LAK must use an exchange rate that is no less than the rate issued by a relevant commercial bank within the three working days prior to calculating the LAK salary and benefit amounts.

The next step involves translating this notification into English by LNCCI.

As part of the ongoing public-private dialogue with the Government of Laos, LNCCI, and other relevant stakeholders, EuroCham is pleased to engage in productive discussions with the Government of Lao PDR.