Nestled among the crumbling stupas of Laos’s ancient capital Luang Prabang, 525 Cocktails and Tapas was the city’s premier fine dining establishment, serving elevated local cuisine and perhaps Southeast Asia’s yummiest smoked negroni.
Foreign visitors comprised 95% of the restaurant’s footfall, and with tourist numbers to Laos breaking records year-on-year, plus a new high-speed train route due to link the landlocked nation with China’s city of Kunming to the north and Singapore to the south, business was looking up.
Then the pandemic struck. With borders sealed shut, 525’s British proprietor Andrew Sykes had no choice but to suspend operations, instead pivoting to local clientele by opening new premises in Laos’s modern capital, Vientiane. “The business is going very well,” says Sykes. “I will reopen in Luang Prabang but just not quite yet.”
Laos flung open its borders to visitors in May but the uptick in foreign arrivals has been torpid. Many in the hospitality industry hoped that would change following the opening of China’s borders on Jan. 8, given free-spending Chinese tourists comprised almost a quarter of the nation’s 4.7 million international visitors in 2019. Still, the results have been underwhelming.
“We’re starting to see Chinese customers come in, but it’s sub-10% of our business,” says Sykes. “It’s still predominantly Laos with some expats as well.”
Despite an indeterminate human toll, the sudden end of China’s zero-COVID policy is an undoubted boon for the global economy, liberating consumers and retailers of three years of supply chain disruptions wrought by arbitrarily shuttered ports and factories. The end of China’s pandemic travel restrictions is also a huge relief to the global hospitality industry. In 2019, Chinese travelers made 155 million trips overseas,…
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