Not Vietnam or Thailand. At Rs 1,414 per day, another country is the cheapest travel destination in southeast Asia

Southeast Asia has long been a favorite region for Indian travelers seeking affordable international holidays. While countries like Thailand, Vietnam, Cambodia, and Indonesia have traditionally been considered budget-friendly, recent reports highlight Laos as the most economical option for 2025.

Laos Tops the Affordability Chart

According to a recent Time Out magazine report, Laos stands out as the cheapest travel destination in Southeast Asia with an average daily expense of only £12 (around Rs 1,414). This modest budget covers accommodation, food, and transportation — allowing travelers to enjoy rich experiences without overspending.

This recognition aligns with a global ranking by Travel and Tour World, backed by research from the Canadian financial platform HelloSafe, which named Laos the world’s most budget-friendly country to visit in 2025.

What Makes Laos So Affordable?

Travel costs in Laos remain remarkably low across the board. Accommodation options such as hostel beds in popular tourist hubs like Luang Prabang and Vientiane can be found starting from £3 (Rs 353) per night, with even cheaper options in Vang Vieng at approximately £1.50 (Rs 176). Street food is widely accessible and inexpensive; a plate of sticky rice with grilled pork can cost less than £1 (Rs 117).

Local transport, including buses and minivans connecting major cities, is priced below £4.50 (Rs 529), while renting a motorbike for a day costs around £4.70 (Rs 553). The newly opened Laos–China Railway offers a scenic and affordable route between Vientiane and Vang Vieng at approximately £6 (Rs 706).

Entry fees for popular tourist sites are also budget-friendly. For instance, visiting Kuang Si Falls and the adjacent Bear Rescue Centre costs just about £2.30 (Rs 270), making sightseeing accessible to most travelers.

Quiet Destination with Growing Popularity

Laos is often described as a serene and less commercialized alternative to the busier tourist hotspots in the region. Its unhurried pace, natural beauty — including rivers, mountains, and waterfalls — and genuine cultural experiences appeal to travelers seeking something off the beaten path. According to the Vientiane Times, international arrivals in Laos increased by 11% in the first quarter of 2025 compared to the previous year, with over 1.2 million visitors generating $426 million in tourism revenue. Domestic tourism is also on the rise, with nearly double the local trips recorded in the same period.

While Vietnam and Cambodia remain affordable with daily travel budgets around £15 (Rs 1,768), and Malaysia and Indonesia slightly higher at approximately £19 (Rs 2,239), Laos offers unmatched value at £12 per day. Thailand, traditionally known for its budget travel appeal, comes in at around £24 (Rs 2,829), making Laos notably cheaper.

Why Travelers Should Consider Laos in 2025

For budget-conscious travelers seeking authentic cultural immersion, Laos presents an ideal choice. It offers a combination of affordability, scenic landscapes, and warm hospitality that is increasingly rare as tourism expands across Southeast Asia. Whether exploring ancient temples, enjoying street food, or taking leisurely river rides on the Mekong, visitors can experience much more in Laos without stretching their budgets.

As international recognition grows, Laos remains a standout destination for those looking to maximize their travel experience while keeping costs low. For anyone planning a trip to Southeast Asia this year, Laos is worth serious consideration as the region’s most affordable and enriching travel option.