LAOS
Money &
Cost
Lao currency is the kip and is available in 5000K, 2000K, 1000K,
500K, 100K and 50K notes. There are no coins in circulation. In
addition, the Thai baht and American dollar operate parallel to
the kip. Although a 1990 law forbids the use of foreign currencies
to pay for local goods and services, many hotels and tour operators
quote their prices in dollars or baht , and accept payment in
either. The government-owned airline, Lao Aviation, only accepts
payment in American dollars cash.
The Asian financial crisis in 1997 badly affected the kip. Between
June 1997 and early 1999, the kip, which is not freely convertible,
fell more than eighty percent against the dollar. The banks are
currently broke and inflation is running at around a hundred percent
a year (up from 7.3 percent a few years before). Many Lao are
suffering real hardship, as prices have gone up while salaries
have remained the same.
A black market ( talat meut) in foreign currencies exists and
until recently was more or less tolerated. However, the government
has started a campaign against the "illegal changing of money"
urging tourists to use banks and official exchange kiosks. The
difference between the official and black-market rate is now so
little that it hardly seems worth the risk of being caught. At
the time of writing, the official exchange rate was 7600 kip to
the US dollar, 195 kip to the Thai baht and 12,054 kip to the
pound stirling.
Travellers' cheques are a convenient and safe way to carry your
money, although it's wise to have a decent supply of American
dollars and Thai baht in cash , especially if you intend to spend
time in some of the remoter parts of the country. Before travelling
into smaller towns, change enough money to get you through until
the next major town, but bear in mind that you cannot change your
kip back into dollars or baht when leaving the country - and that
duty-free shops only accept dollars and baht. Major credit cards
are accepted at many hotels, upmarket restaurants and shops in
Vientiane. Cash advances on Visa cards, and less frequently MasterCard,
are possible in Louang Phabang, Vientiane, Savannakhet and Pakxe.
At present, you can't withdraw cash from ATMs in Laos.
Costs
Given the volatility of the kip, prices for accommodation, river
travel and car hire are given in their more stable dollar equivalents.
Indeed, many hotels and guesthouses have opted to fix their rates
to the dollar. The prices quoted in kip for transport, museum
entrance fees, etc were correct at the time of research and have
been retained to give a relative idea of costs, though in practice
many of these prices will be higher.
By eating at noodle stalls and cheap restaurants, taking local
transport and opting for basic accommodation, you can travel in
Laos on a daily budget of less than $10. Food and accommodation
tend to be slightly more expensive in Vientiane.
While restaurants and some shops have fixed prices, you should
always bargain in markets and when chartering transport (fares
on passenger vehicles are fixed). Room rates can be bargained
for in low season. As the Lao in general - with the exception
of some tourist businesses in Vientiane and Louang Phabang - are
less out to rip off tourists than their counterparts in Thailand
and Vietnam, they start off the haggling by quoting a fairly realistic
price and expect to come down only a little. Price tiering does
exist in Laos, with foreigners paying more than locals for airfares,
bus fares, speedboat tickets and entry to museums and famous sites.
Tipping isn't a Lao custom, although upmarket Vientiane restaurants
expect a gratuity of around ten percent.
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