This study estimates the impact of the COVID-19 pandemic on the tourism sector in Lao PDR by analyzing changes in employment and value-added. Utilizing secondary data from the Lao Labor Force Survey and quarterly economic reports, the research applies econometric techniques to quantify sector-specific effects. The findings indicate that 39.5% of workers in the tourism sector experienced employment-related disruptions due to COVID-19, with 88.8% facing reduced working hours or job cessation. The total income loss among tourism workers is estimated at LAK 48.5 million per person, highlighting the sector’s vulnerability. Econometric results suggest that workers in the tourism sector were 12.4% more likely to be affected by the pandemic and experienced a 103.6% greater decline in income compared to those in other economic sectors. In terms of value-added, the accommodation and restaurant subsectors experienced a sharp decline of 87.9%, while the transportation sector was comparatively less affected, with a decline of 4.3%. These results underscore the need for targeted policy interventions to support recovery and resilience in Lao’s tourism industry.