Notification 1328/MOIC, List C 02-2015, reserves several activities to Lao nationals. Included in the list is short-term accomodation services, including guesthouses and up to 3stars hotels. The 2005 Law on Tourism also restrict foreign investors to conduct tourism-related activities (e.g. tour guides, guesthouses, daily room services), and transnational guided tours are reserved to joint ventures with domestic investors.
"[...] For the business of transnational guided tours, the State permits foreign legal entities to jointly invest with domestic investors. Foreign individuals or organisations shall not be permitted to conduct certain tourism business reserved for Lao citizens, [such as]: the tour guide profession, the business of domestic guided tours, the tour business in a specific area, guesthouses, and daily room services. Detailed regulations on [obtaining] permission for investment and establishment of tourism enterprises in the Lao PDR by foreign individuals or legal entities are separately stipulated" (Art. 64, Law on Tourism, 2005)
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"Business Activities Reserved for Lao Nationals (Revised): [...]
- Short term accommodation services (specifically for the guesthouses, resorts, hotels that are graded less than 3 stars)
- Other reservation services and related activities (specifically for some specific tourist attractions)" (Notification 1328/MOIC, List C 02-2015)
Law on Tourism No.10/NA, of 09 November 2005, Art. 64.
Notification 1328/MOIC, List C 02-2015
[<a href="https://www.vientianetimes.org.la/Laws%20in%20English/62.%20Law%20on%20Tourism%20(2005)%20Eng.pdf">Law</a>],[<a href="http://www.laotradeportal.gov.la/kcfinder/upload/files/MOIC_1328_2015_Eng.pdf">Notification</a>]