1. It has a small population only 6.8 million that's a lot less then Cambodia 13million, Thailand 67million, Vietnam 86 million and Burma/Myanmar 50 million.
2. It's economy is very small and it doesn't produce anything of note.
3. It has a brutal Communist government
4. Five it has a difficult history with the United States because the Vietnam war in the 70's during this time it was heavily bombed.
5. It's very poor and undeveloped much of it lacks adequate infrastructure. Laos has no railways, except a short link to connect Vientiane with Thailand. The major roads connecting the major urban centers but villages far from major roads can be reached only through unpaved roads that may not be accessible year-round.
6. It's also remote. Many people would rather go to Thailand, Vietnam, or Malaysia who have much better tourist infrastructure.
7. It doesn't have any world renowned sites to see unlike it's neighbors who are rich with famous places.
8. It hasn't done a very good job advertising it's self, Thailand, Cambodia, and Vietnam spend millions and millions of dollars advertising their selves every year.
It's a great county I've been to it once and I'd like to go back again. The people are wonderful and it's not lacking in culture or hospitality in the least.