HANOI: In the first half of 2024, Vietnam’s tourist industry saw over 8.8 million foreign visitors, up nearly 60% from the same time the previous year.
This significant increase denotes a post-Covid-19 period of recovery. Vietnam is still faring poorly in terms of getting tourists to spend more money, trailing behind its regional rivals like Thailand, Singapore, and China.
Many visitors claim that sightseeing, beach excursions, strolling, and taking pictures are the main activities they do when in Vietnam.
There is a dearth of recreational and entertainment options at tourist attractions. While some locations have made improvements by introducing new amenities and services for guests, these initiatives have not been enough to draw people back.
Even though they made up only 25% of all visitors, foreign visitors spent more and made a greater economic contribution to the country. Foreign visitors spend seven times as much as domestic visitors do on average, which generates fourteen times more revenue.
In a recent analysis, Michael Kokalari, chief economist at VinaCapital, said that international visitor spending has contributed significantly to foreign exchange earnings and encouraged commerce and investment, which has indirectly improved the local economy.
Vietnam’s gross domestic product (GDP) increased by four percentage points in 2023 thanks in part to tourism. Even though the spending of foreign visitors made up only 10% of retail sales, it had a big impact on economic expansion.
According to VinaCapital’s assessment, tourism contributes more than 15% of Vietnam’s GDP overall, including both direct and indirect effects.
Before the pandemic, foreign tourism accounted for 8% of Vietnam’s GDP, whereas it accounted for 12% in Thailand. By 2024, when the recovery is still going strong, the national GDP growth rate should have increased by another percentage point.
Since the start of the year, BenThanh Tourist’s marketing and IT director, Tran Phuong Linh, has witnessed remarkable growth in the global tourism market for his company.
When compared to the same period in 2023, the company’s foreign visitor numbers and revenue surged by almost 50%. There has been encouraging growth in both established and emerging markets.
Significant growth has been observed in markets like Europe, Taiwan, and India. Foreign visitors to Ho Chi Minh City are especially drawn to the city’s native cuisine, coffee culture, and cultural and historical tours.
Sixty per cent of purchases at Ben Thanh Market come from foreign visitors, many of whom buy local fruits, coffee, and tea as mementoes.
The Ho Chi Minh City Customs Department, which handled value-added tax refunds totalling more than 40 billion dong for over 7,200 international tourists in the first five months of 2024, further highlights the impact of foreign tourist spending.
Notwithstanding these encouraging developments, Vietnam must improve its tourism offerings to get travellers to spend more money. Vietnam provides fewer opportunities for shopping and recreation than its neighbouring countries, Thailand, Singapore, and China.
The dearth of varied attractions and entertainment options is reflected in spending patterns, as the majority of tourists’ expenses go toward food and drink.
To draw in foreign visitors, Vietnam must also enhance its visa regulations and provide distinctive travel offerings. Citizens of 13 countries are now able to remain longer thanks to recent changes in policy that have extended the validity of e-visas.
However, Vietnam needs to provide more interesting entertainment alternatives and activities to draw in and keep tourists.
Targeting affluent markets like Australia and New Zealand is another possibility, particularly in the winter when travellers are looking for warmer climates. Visa exemptions and specially designed travel packages emphasizing beach resorts and cultural activities are examples of possible strategies. — News/ANN from Vietnam