- Vietnam News
HANOI: Vietnam’s tourism sector welcomed over 8.8 million international visitors in the first half of 2024, marking a nearly 60% 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 seven 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 spending has indirectly boosted the local economy by bringing substantial foreign exchange and promoting trade and investment.
In 2023, tourism contributed four percentage points to Vietnam’s gross domestic product (GDP) growth. While foreign tourists’ spending accounted for only 10% of retail sales, it significantly impacted economic growth.
VinaCapital estimated that the total contribution of tourism to Vietnam’s economy, including both direct and indirect contributions, is over 15% of GDP.
Before the pandemic, about 8% of Vietnam’s GDP was accounted for by international tourism, compared to 12% 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 its business since the beginning of the year.
The company’s foreign tourist numbers and revenue increased by over 50% compared to the same period in 2023. Both traditional and new markets have shown promising growth.
Markets such as India, Taiwan 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 Ben Thanh Market, international tourists account for 60% of sales, with many purchasing local fruits, coffee and tea as souvenirs.
The impact of foreign tourist spending is further highlighted by the Ho Chi Minh City Customs Department, which processed value-added tax refunds totalling more than 40 billion dong 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. — Viet Nam News/ANN
