Luang Prabang is home to one of the most well-preserved UNESCO World Heritage Site in the world. As a magnet for both regional and international tourists, Luang Prabang attracts 600,000 – 700,000 international tourists per year. The heritage town of Luang Prabang has also been named “World Best Tourist Destination”, and won “Best City” award.

With its increasing popularity and the government’s desire to further expand the country’s tourism industry, the number of tourist arrivals is expected to increase at an estimated 16% per year. In order to accommodate for the fast expanding tourism market with the need to preserve the World Heritage Site and cultural integrity, the government has designated a Special Economic Zone (SEZ) outside the Luang Prabang heritage town.