growing unease in Laos

The velocity of Chinese money has grated on many Laotians.

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Many equate, fairly or otherwise, the influx of cashed-up Chinese investors over the years with the laundering of ill-gotten gains from the explosion of scam centre activity in recent years.

This is largely centred on the Golden Triangle border area, and in other hot spots across the region, especially in Laos, Cambodia and Myanmar.

"We are attracting the wrong kind of Chinese," said 34-year-old information technology master's graduate Phouthasone Sithisack.

In comments echoed by others who spoke to The Straits Times, he questioned why savvy businessmen would prefer to invest their capital in Laos over neighbouring countries with arguably greater prospects. "They bring dirty money to wash clean in Laos."

The animosity does not always go unnoticed. One Chinese business owner from Yunnan province's cultural tourism hub, Xishuangbanna, said he prefers to keep a low profile while travelling the Laos countryside to source coffee beans.

"I try not to tell them where I'm from - they are quite anti-China in the villages," the businessman, who did not want to be named, said.

Chinese tourists also complain of being singled out for their perceived wealth, from being shaken down for extra fees while clearing immigration, to being targeted for fines for smoking in public or for traffic infractions while riding scooters.

More ominously for the longer-term prospects of Laos’ tourism industry, Chinese travellers who spoke to ST, including many on group package tours from neighbouring provinces, were lukewarm about their overall experience.

"It feels like the food and hotels aren't great," one said. "If you have to pay more for good hotels, then you might as well travel within China."

While most Laotians are not fully aware of the poor state of the country’s finances, Mr Phouthasone said the LCR had not improved the lives of ordinary workers who are hard hit by the devalued kip.