Published on
September 18, 2025
Tourism has long been a cornerstone of the Laotian economy, accounting for more than 10% of the country’s GDP prior to the COVID-19 pandemic and sustaining hundreds of thousands of jobs. As a Least Developed Country, Laos depends heavily on tourism as a vital source of income and employment. The pandemic, however, disrupted this sector dramatically, causing widespread business closures, rising poverty levels, and a significant setback for local communities reliant on travel and hospitality.
The backbone of Laos’ tourism industry consists of micro, small, and medium-sized enterprises (MSMEs), which represent nearly 99.8% of all businesses in the country. Despite their prevalence, these enterprises face considerable challenges, including limited access to finance, particularly green financing, and low capacity to implement sustainable practices that meet international standards. Young entrepreneurs, particularly women, encounter additional hurdles in accessing opportunities for growth, innovation, and market expansion.
In response to these challenges, a new initiative, TUI Futureshapers Laos, has been launched to strengthen the sustainability and resilience of the country’s tourism economy. Implemented in alignment with an EU-funded project and supported by development partners, the program targets MSMEs and young entrepreneurs with a comprehensive approach to capacity building, financial support, and sustainable development.
At the core of the initiative is the Small Matching Grants Programme, designed to provide green financing that enables businesses to develop and implement environmentally responsible products and services. The program focuses on four primary tourism regions in Laos: Vientiane Capital, Vientiane Province, Luang Prabang, and Champasak. Over the course of the project, 200 MSMEs and 100 young entrepreneurs, with half of the latter being women, will benefit from technical support, including training in sustainable business practices, financial management, and innovative product development.
MSMEs participating in the initiative will also work toward achieving a national sustainability certification, ensuring that their operations align with both local green growth strategies and international environmental standards. Through these efforts, participating businesses will not only improve their sustainability practices but also enhance competitiveness in the international tourism market.
The program plans to award grants to a total of 80 businesses, providing seed funding to pilot and scale environmentally friendly innovations. These investments are expected to generate a positive ripple effect across the sector, supporting roughly 2,000 livelihoods, including employees within participating enterprises. To further stimulate investment and strengthen global partnerships, the project will host an investor familiarisation trip in its third year, inviting international investors and mentors to explore funding opportunities and connect with high-potential enterprises in Laos.
TUI Futureshapers Laos forms part of a broader global initiative empowering local communities to transform social and environmental challenges into entrepreneurial opportunities. The program has a footprint in diverse regions including Europe, Africa, Latin America, and Asia, demonstrating a commitment to sustainable tourism as a tool for inclusive economic development.
Complementing these efforts, the initiative is supported through a dedicated Tourism for Development Fund, which aims to invest €10 million by 2030 in projects across Least Developed Countries. The fund emphasizes building capacity within destination communities, empowering them to improve livelihoods, protect and regenerate natural ecosystems, and establish market-based solutions that strengthen the tourism sector.
By combining technical assistance, financial support, and international collaboration, the project sets a new benchmark for sustainable tourism in Laos. It offers a roadmap for MSMEs and young entrepreneurs to innovate responsibly while ensuring that the growth of the tourism sector contributes meaningfully to economic recovery, social equity, and environmental stewardship.
