Laos is perhaps the most unique and unusual historical travel locations in Southeast Asia only bordered by neighbors Thailand, Vietnam, Cambodia, Myanmar, and China. The country has a relaxed character, unstressed people, and a slower rate of life in general. While the “Land of a Million Elephants” is becoming a hot spot for checked and uncharted international travelers who want to chill out and be connect with their culture.
Before you pack for your journey to Laos you might want to take a look and confirm one little travel tip – What is the Laos currency (Kip Laos), knowing how to deal with currency exchange, where you can pay with currency, and how much cash to bring to Laos will allow you to get the most out of your time in Laos, free of any possible issues and you may save a ton of money too.
Official Laos Currency
The Lao Kip serves as the official Laos currency represented by the symbol ₭ and the national code LAK. The term kip exclusively refers to paper currency as the only legal tender in the nation. All the banknotes are produced and released by the Central Bank of Laos. Unlike most of its neighboring countries, there are no coins in circulation as Laos currency only exists in banknotes to buy amounts of: 500₭, 1,000₭, 2,000₭, 5,000₭, 10,000₭, 20,000₭, 50,000₭ and 100,000₭.
All banknote denominations represent either an important historical figure or cultural symbol of Laos, and it always brings a smile to tourists who collect them as a perfect souvenir. Because the Laos currency is relatively low in value compared to hard currencies like the USD or EUR, you may find yourself carrying a “thick wad of bills” even if you only exchange a few dozen dollars – which is completely normal when traveling in Laos.
Laos Currency
Where to Exchange Money in Laos for the Best Rates?
Changing money is simple with banks, international airports, exchange counters or larger hotels in Vientiane, Luang Prabang or Pakse. Banks typically offer the most competitive rates, and they always provide a clear receipt.
The latest rates to convert Lao currency (kip) indicates current exchange rates that most closely match the following; USD – 20000 – 22000 kip; and EUR – 22000 – 24000 kip. You can also usually exchange Thai Baht (THB) at most if you’re traveling from Thailand.
Due to its extensive border with Thailand, the Baht is frequently accepted in various border provinces, and in popular tourist cities like Vientiane, Savannakhet, and Luang Prabang. The baht is especially good for smaller to medium sized payments at hotels, restaurants and marketplaces.
Please note, these rates are for reference only and subject to change based on the locality and time. Feel free to double-check the exchange rates as Laos’ rates vary often! You can easily check real-time exchange rates on Wise to stay updated and make sure you’re getting a fair deal.
In the more rural regions, you may have a harder time exchanging money, so you should either exchange money before you go to the rural areas, or bring cash to last you your number of days in remote areas.
Understanding Payments in Laos
Laos is still a cash-based economy, and this section of the money guide for travelling in Laos will help you understand payment habits.
In most tourist facilities, USD, and THB will be accepted, especially at hotels, nice restaurants, or tour companies. However, in local markets, smaller restaurants, and taxis, only Kip Laos will be accepted by many of the local businesses. While foreign currencies can be used in some cases, it’s often at a poor Laos currency exchange rate. One of the safest and most economic ways to manage your expenses is to change some of your money to kip to facilitate daily transactions.
Laos is still predominantly a cash-based economy and paying with electronic or international cards is only widely accepted in the larger cities. Some things to keep in mind:
Withdrawals from ATMs
There are ATMs available in Vientiane, Luang Prabang and several other popular tourist towns, which typically accept either Visa or MasterCard. The limits on approved withdrawals are usually very low (around 1–2 million kip, which is around 50–100 USD), and most charges around 3–5 USD/transaction. Some international banks maintain an ATM network here (such as BCEL or ANZ or Lao Development Bank).
Paying by Card
In 4–5 star hotels, luxury restaurants or large tour agencies, you can use credit cards. But many shops, eateries or local transportation (like tuk-tuks) only accept cash in Kip Laos. Additionally, some places may charge an additional 2–3% fee for card transactions.
Electronic payments
Apps like Alipay, WeChat Pay, or Lao bank e-wallets are gradually being used, but mainly serve locals. International tourists are unlikely to be able to use platforms like Apple Pay or Google Pay.
To summarize, it’s best to bring cash as a general rule and bring cards for those rare occasions when absolutely necessary.
Budgeting: How Much Cash to Bring to Laos?
One of the most significant questions travelers have around going to Laos is how much cash they should have. Although travel generally is very cheap in Laos, it depends on your level of travel type and comfort. Below is a money guide for all budget travelers going to Laos.
Budget Travelers
If you are the backpacking kind of traveler, you can certainly travel Laos on a budget. With a budget of around 400,000 – 600,000 kip per day ( 18-28 USD) you will be fine:
- Accommodation: Several inexpensive options, including guest houses, homestays or hostels, are available for 100,000 – 200,000 kip/night (5-10 USD).
- Eating: Dinner at local restaurants costs between 10,000 – 40,000 kip/meal (1-2 USD) or you can eat street food at the local night markets.
- Transportation: Ride a tuk-tuk, rent a bike, or take a public bus to get between attractions in town.
- Sightseeing: See free or inexpensive things to do including temples, local night markets, a stroll along the Mekong River, or light hikes at jungle trails near the city.
Travel Guide for Budget Travelers.
Travel Guide for Budget Travelers
Mid-range Travelers
Mid-range travelers care about a comfortable trip but want a little more for their budget, as well as some degree of cultural experience to blend in with a easy mix of activities that include nature. This is by far the most-popular budget for international tourists in Laos.
With that budget, you can:
- Accommodation: At a 3-start hotel or small, pretty boutique hotel located in the city center.
- Eating: At a well-known or local popular restaurant or a restaurant serving European and Southeast Asia food where the space is beautiful.
- Transportation:
- Within the city: If you want to explore from affordable local restaurants and local sights (including visiting temples), you can rent motorbike or the driver can take you around if you rent your private tuk-tuk by the hour.
- Between cities: By using a tourist bus / minivan, that is reasonable for cost and easy to buy online.
- Activities: Purchase half day or full day tour packages experiences to one or more sightseeing places from Kuang Si Waterfall, Pak Ou Caves, or cruise on either upper or lower Mekong river.
Travel Guide for Mid-range travelers
>>> For travelers in this budget who want a planned itinerary, you can definitely visit and find this well-planned itinerary 6-day overland tour route in Laos tastes comforts and efficient to experience the country.
Luxury Travelers
Laos has lots of high-quality options for those who would like to relax and enjoy a quality luxury holiday, that can be compared to any throughout Southeast Asia.
With your budget, you can:
- Accommodation: High-end resort or boutique hotel 4-5 stars in riverside in Luang Prabang or Vientiane.
- Eating: Fine dining, fusion dining or contemporary Laotian style food.
- Transportation:
- Within the city: Rent private car and driver, rent a luxury limousine or an electric vehicle service.
- Between cities: Fly domestically or rent a private car and driver or let someone take you for a drive in private vehicle with excursion and itinerary fit your interests.
- Activities: Hire a private guide for diving, trekking, take a sunset cruise on the Mekong river, set up a spa retreat, take a Laotian cooking class.
Travel Guide for Luxury Travelers
Practical Tips for Tourists
Don’t panic when you get a wad of Kip! The first time you get handed a wad of Kip, you’ll feel like a millionaire (a meal that cost 40,000 Kip). Take a few minutes to get used to the number of zeros before paying and you’ll be fine.
Some small but useful tips:
- Always carry small bills.
- Don’t exchange money on the black market: counterfeits are common.
- Please keep your bills intact: Lao people will not be happy and will not accept torn or crumpled bills.
- Be polite when paying: Remember that Lao people value gentleness and respect. When paying, always give money with both hands or your right hand and accept change with a genuine smile; this small gesture will help you get closer to the local culture.
While it isn’t popularly recognized as a highly developed economy, Laos does offer certainly something that is rare these days: a slow, original, and completely authentic experience. If you are familiar with the Laos currency (Kip Laos), it will greatly assist you with payments and figuring out local budgeting, and how locals live. Before you travel, you should check on the Laos currency exchange rate, and bring some small bills and enough money during your daily itinerary.
With this money guide to travel in Laos and currency you can now determine how much cash to bring to Laos for a travel, relaxing, and culture experience within Southeast Asia. If you are ready to start planning your traveling, or have questions on the best tour options, currency, or locally related interesting experiences, contact us today to guide you onto your marvelous expedition across Laos.
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