Chinese money fuelling

Debt and diplomacy

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dodge creditors back home, another reflection of the tough economic environment across the border.

“Bare branches” — a Chinese term for single, middle-aged men - also arrive seeking prospective wives from surrounding villages.

In historic Luang Prabang, the scenes at its high-speed rail station could be out of any typical Chinese town along China’s 48,000km network. The train looks identical, save for the strips of blue, red and white - the Laotian flag colours - on the train livery.

The layouts of train stations are also carbon copies of those in China, from the ticket booths and security check down to the waiting areas and platforms.

As the train pulls into the station and comes to a stop, a frenetic crush of people spills out of the carriages, making a beeline for the platform exit. A large number of the passengers are part of Chinese group tours, shepherded by flag-toting guides onto waiting tour buses.

Unesco heritage-listed Luang Prabang has long enjoyed a reputation as a trendy destination on the tourist trail, drawing travellers with its tranquil lanes, quaint architecture and atmospheric setting on the Mekong River.

But it was the opening of the high-speed rail link that led to an explosion of tourist arrivals from China. There were 438,355 Chinese tourist arrivals in 2024, nearly seven times the previous year’s figure of 62,900, and making up 28.6 per cent of all foreign visitors.

While the soaring number of Chinese visitors has been a boon for Laos’ tourism and hospitality sectors, some local tourism operators said the benefits have been unevenly distributed.

The majority of Chinese tourists arrive on bulk group tours, which have sprouted extensive self-contained Chinese-owned ecosystems.