Foreign tourists visit the ancient town of Hoi An. - Photo: VNA/VNS
HANOI: Vietnam's tourism sector welcomed over 8.8 million international visitors in the first half of 2024, marking a nearly 60 per cent increase compared to the same period last year.
This substantial growth signals a recovery from the post-Covid-19 era.
Despite this progress, Vietnam still faces significant challenges in making tourists spend more, lagging behind regional competitors like Thailand, Singapore and China.
Many tourists said that their visits to Vietnam primarily involve sightseeing, beach outings, strolling and taking photos.
Tourist destinations lack a wide variety of entertainment and recreational services.
Although some places have improved by adding new facilities and services for visitors, these efforts have not been sufficient to attract repeat visits.
Despite comprising only one-fifth of domestic tourist numbers, foreign tourists spent more, contributing better to the national economy.
On average, a foreign tourist spends 7 times more than a domestic tourist, resulting in 14 times higher revenue.
Michael Kokalari, chief economist at VinaCapital, highlighted in a recent report that foreign tourist spend has indirectly boosted the local economy by bringing substantial foreign exchange and promoting trade and investment.
In 2023, tourism contributed 4 percentage points to Vietnam’s GDP growth.
While foreign tourists' spending accounted for only 10 per cent of retail sales, it significantly impacted economic growth.
VinaCapital estimates that the total contribution of tourism to Vietnam’s economy, including both direct and indirect contributions, is over 15 per cent of GDP.
Before the pandemic, about 8 per cent of Vietnam’s GDP was accounted for by international tourism, compared to 12 per cent in Thailand.
Another percentage point is expected to be added to national GDP growth by the ongoing recovery in 2024.
Tran Phuong Linh, Marketing and IT director of BenThanh Tourist, saw exceptional growth in the international tourism market for their business since the beginning of the year.
The company’s foreign tourist numbers and revenue increased by over 50 per cent compared to the same period in 2023.
Both traditional and new markets have shown promising growth.
Markets such as India, Chinese Taipei, and Europe have all seen significant growth, with foreign tourists in Ho Chi Minh City particularly interested in cultural and historical tours, local cuisine and the local coffee culture.
At Ban Thanh Market, international tourists account for 60 per cent of sales, with many purchasing local fruits, coffee and tea as souvenirs.
The impact of foreign tourist spending is further highlighted by the HCM City Customs Department, which processed VAT refunds totalling more than VNĐ40 billion for over 7,200 foreign tourists in the first five months of 2024.
Despite these positive trends, Vietnam needs to enhance its tourism services to attract higher spending from tourists.
Compared to neighbouring countries such as Thailand, Singapore and China, Vietnam offers fewer entertainment and shopping options.
This is evident in spending patterns, where the majority of tourists' expenses are on food and beverages, reflecting the lack of diverse attractions and entertainment choices.
Vietnam also needs to improve its visa policies and develop unique tourism products to retain international tourists.
Recent policy changes have extended e-visa duration and allowed longer stays for citizens from 13 countries.
However, to attract and retain tourists, Vietnam must offer more engaging activities and entertainment options.
There is also potential to target high-spending markets such as Australia and New Zealand, especially during the winter months when tourists seek warmer destinations.
Strategies could include visa waivers and tailored tourism products focusing on beach resorts and cultural experiences.
"Vietnam needs short, medium and long-term plans to attract tourists.
"Short-term plans should simplify visa regulations and improve air connectivity, encouraging more direct flights from key markets.
"The aviation and tourism sectors need to strengthen cooperation and reduce service fees at international airports," Hoang Nhan Chinh, head of the Secretariat of the Vietnam Tourism Advisory Board (TAB), said.
Medium-term strategies should develop responsible tourism products, extend tourists' stays and spending and innovate marketing campaigns.
Authorities also need to manage destinations sustainably and make them friendly, enhancing visitor experiences and encouraging repeat visits.
Digital transformation in tourism should be accelerated to meet new post-pandemic demands and trends, Chinh said.
"Long-term strategies should focus on upgrading transport and tourism infrastructure, expanding land routes to tourist destinations and international airports.
"In the post-pandemic period, the tourism workforce is both lacking and weak, necessitating enhanced training for high-skilled workers to meet demanding tourist requirements," he said.
"Vietnam could adopt similar measures to boost tourism and aviation, offering combo packages of airfare and hotel vouchers at attractive prices.
"Besides publicising these offers widely, the tourism sector should select reputable accommodation providers to participate in this stimulus programme."
Chính believes this approach will make Việt Nam a more appealing destination for international tourists.
Vietnam can also learn from Thailand, which has taken measures to reduce airfares and subsidise accommodation to attract foreign tourists.
Adopting similar strategies, such as offering flight and accommodation combo packages, could enhance Vietnam’s appeal to international tourists. - Vietnam News/ANN
