American tourists – Vietnam's untapped 'gold mine'.

VnExpress•08/09/2023

While the number of American tourists visiting Vietnam ranks third among the top 10 largest source markets, experts say it is still low compared to its potential.

According to data from the Vietnam National Tourism Administration, in the first eight months of the year, Vietnam welcomed over 7.8 million international visitors. Of these, the United States ranked third among the top 10 largest source markets for tourists to Vietnam, with nearly 503,000 visitors, after South Korea (2.2 million) and China (950,000). In 2022, before China reopened its borders, the United States ranked second, after South Korea.

Data from the National Tourism Administration indicates that for 10 consecutive years before the pandemic (2010-2019), the number of American tourists visiting Vietnam consistently ranked 4th or 5th among the top 10 largest source markets and continued to increase year by year.

"The US is a market with the highest number of travelers and travel spending in the world because of the high demand for overseas travel among its citizens," said Huynh Phan Phuong Hoang, Deputy General Director of Vietravel Tourism Company.

On average, American travelers in the Gen Z age group (those born between 1995 and 2012) spend 29 days traveling per year. Millennials (1980-2000) travel for 35 days, Gen X (1965-1980) for 26 days, and Baby Boomers (1943-1964) for 27 days.

The U.S. National Travel and Tourism Office (NTTO) indicates that before the pandemic, the U.S. was the world's second-largest market in terms of international travel spending and number of trips, after China. In 2019, Americans made over 99 million international trips, spending over $184 billion abroad. After the pandemic, Americans surpassed China to take the number one spot, according to the World Tourism Organization (UNWTO), with over 35 million trips in the first six months of the year.

*A group of American tourists visited Ho Chi Minh City in April 2022. Photo: Huynh Nhi*

According to CNN , the US market has long been coveted by destination management companies for many reasons. One of them is income. The average American earns around $70,000 per year, the seventh highest in the world. Travel experts note that higher income means higher spending on travel.

According to Ms. Phuong Hoang, American tourists visiting Vietnam spend a lot on food, hotels, and tours, "even more than other markets like China and Europe." According to the 2022 Statistical Yearbook of the General Statistics Office, in 2019, American tourists spent an average of $1,710 USD in Vietnam, ranking third after tourists from the Philippines and Belgium. American tourists also tend to stay longer and often bring family members along.

Mr. Pham Ha, CEO of Lux Group and an expert in luxury tourism, said that on average, American tourists spend 15-45 days traveling each year. They usually visit Vietnam, then stop by Thailand, Laos, or Cambodia before returning to Vietnam. "American tourists account for 10% of the clients my company receives annually, but their spending is double, triple, or even ten times that of tourists from other markets," Mr. Ha said. They often choose high-end tours, dining, and accommodation. According to Mr. Ha's company statistics, each American tourist spends an average of $400-$500, or even $1,000 per day. This figure is considered high because the average foreign tourist in Vietnam spends about $1,200 in 9 days.

The US is not only a potential market but also a "gold mine" that Vietnam's tourism industry needs to target and exploit to the fullest. American tourists tend to spend a lot and stay longer. "These factors are very beneficial for Vietnamese tourism," Mr. Ha said.

Beautiful nature, warm seas, delicious food, and diverse landscapes offer many exciting experiences, which is why Americans love Vietnam. Lindy, 40, came to Vietnam for three weeks with her family earlier this year and was quickly captivated by the local cuisine. Lindy particularly enjoyed bun cha, banh cuon, and banh bao. "The seafood in Ha Long Bay was incredibly fresh. I visited Ha Long Bay and stayed for a week, but I still wish I could have stayed longer. Ninh Binh was the same," the woman from Kansas commented. She said that exploring the caves by boat was one of her favorite parts of the trip. "The whole family had a fun and very affordable trip," Lindy said.

In addition, Vietnam has many advantages to attract American tourists: the two sides have a historical relationship, the Vietnamese community in the US is among the largest in the world, and diplomatic relations between the two countries are becoming increasingly warm.

According to Mr. Pham Ha, many American tourists, including veterans, come to Vietnam with a sense of curiosity: What is Vietnam like now, and do they still harbor resentment towards America? After arriving, many are surprised by how developed Vietnam has become. What's particularly noteworthy is the friendliness of the people. "Many American visitors told me they felt Vietnamese people welcomed Americans. After their trip, most Americans have positive feelings about Vietnam and often return with their families," Mr. Ha said.

Some experts argue that while 35 million Americans traveled worldwide in the first half of this year, only just over half a million visited Vietnam, which is "too few." Vietnam needs a strategy to attract this wealthy and potentially lucrative market. One of these strategies is to ease visa application procedures and intensify the promotion and marketing of Vietnamese tourism to the US market.

According to Mr. Ha, the United States is vast, so Vietnam needs to segment its market to attract customers. Opening representative offices and promotional centers in many major cities across the US is essential.

According to Ms. Phuong Hoang, Vietnam needs to further develop its tourism products, focusing on themes that Americans enjoy, such as cultural tourism, museum visits, beach tourism, exploration and adventure, experiencing life with local people, visiting former battlefields, and healthcare. Travel businesses should research and regularly participate in annual travel fairs and roadshows in the US, such as the Roadshow Travel Industry Exchange, the New York Times Travel Show, and Seatrade Cruise Global.

"We also need to attract American tourists through intermediary markets, as some countries in the region receive quite a high number of American tourists, such as Japan, China, Thailand, and the Philippines," Ms. Hoang said.

"Many American tourists have told me that Vietnam is a more popular destination than Thailand. Therefore, this high-spending market is truly very promising and worth investing in and exploiting for the tourism industry," said Mr. Pham Ha.