Has tourism really 'won big'?

Series of localities with bumper crops, early finish

In the last month of the year, many localities summarized the socio-economic situation in 2023 with outstanding results in the tourism industry. The most impressive is Quang Ninh. The leading tourism "hub" in the northern region is recognized as one of the localities with the highest tourism growth rate in the country. Before the end of the year, Quang Ninh has achieved the target of welcoming 15 million tourists, including over 2 million international visitors. The growth rate has exceeded that of 2022 by about 43% and brought the budget more than 32,000 billion VND in tourism revenue.

International visitors to Vietnam will increase in 2023. In the photo: Foreign tourists shopping at Ben Thanh market, Ho Chi Minh City

Similarly, Da Nang, the tourism capital of the Central region, has had a spectacular recovery year when it reached 7.39 million visitors even though the year has not been "closed", double that of 2022 and has reached 92% compared to 2019. This result was achieved thanks to the boom of the domestic market when it recorded a growth rate of up to 66% compared to the previous year and equal to 113% of 2019. In addition, despite facing many challenges, the number of international visitors to Da Nang is also expected to reach nearly 2 million, 4.2 times higher than in 2022, equal to 61% compared to the time before the pandemic. Total revenue from tourism is estimated at 28,000 billion VND.

Also in the Central region, tourism activities in Hue City (Thua Thien-Hue) this year recorded a very good recovery and growth. According to statistics from the People's Committee of Hue City, the total number of visitors to Hue after nearly 12 months reached 2.1 million people, an increase of 12% compared to 2022. In particular, tourism revenue is estimated at 4,585 billion VND, an increase of 186.6% over the same period. This is also one of the 4 goals that Hue City has exceeded the plan set for 2023. Also excitedly announcing a "big win" in tourism, Binh Thuan province has exceeded the target of welcoming 8.3 million visitors, right from the end of November. Before the end of the year, Binh Thuan has welcomed more than 9.6 million visitors, an increase of 16.4% compared to the plan, of which the number of foreign visitors doubled compared to last year, reaching nearly 500,000 visitors. The tourism industry helps the provincial budget "pocket" more than 20,000 billion VND, officially putting Binh Thuan on the list of localities with large tourism revenue, over 10,000 billion VND.

Explaining this "hot" growth, Mr. Bui The Nhan, Director of the Department of Culture, Sports and Tourism of Binh Thuan, said that in 2023, tourism in the province will have many favorable factors. In particular, the Phan Thiet - Dau Giay and Vinh Hao - Phan Thiet expressways put into operation have helped Binh Thuan make a leap forward, increasing the number of visitors by more than 2 million. Currently, the province is continuing to repair and prepare to welcome new visitors after Phan Thiet airport comes into operation. Binh Thuan leaders predict that the airport's operation will help attract many times more visitors.

Previously, Lao Cai was the first locality to announce that it had completed its 2023 visitor reception plan early. In the first 10 months, Lao Cai welcomed 6.5 million visitors, equal to 108% of the annual plan, up 66% over the same period in 2022. During this time, Sa Pa was also listed in the top 50 most beautiful small towns in the world by an American magazine and has always been the leading locality in tourism growth in the northern mountainous region as well as the extended 8 Northwestern provinces.

Tourists visiting Grand World Phu Quoc

Each locality has recognized tourism as a "bright spot" of the economy, creating a bright overall picture of the entire Vietnamese tourism industry. According to the newly published research results of Vietnam Report Joint Stock Company, the highlight in 2023 is the explosion of the domestic and international tourist markets. In just the first 11 months of the year, Vietnam has reached 11.2 million international visitors, far exceeding the target of welcoming 8 million visitors from the beginning of the year and reaching over 85% of the target of welcoming 12 - 13 million visitors that the Ministry of Culture, Sports and Tourism has just set expectations for. Vietnam Report believes that the open visa policy is one of the reasons why foreign visitors to Vietnam have continuously increased in the past 3 months. In addition to the strong growth of international visitors, the domestic tourism market is also showing no signs of slowing down as in 11 months, domestic visitors reached 103.2 million, surpassing the figure for the whole year of 2019. Revenue from accommodation and food services in the past 11 months is estimated at VND616,000 billion. Revenue from tourism and travel is estimated at VND34,000 billion, up 50.5% over the same period last year.

Tourism ecosystem still struggling

Although the number of visitors in many localities recorded spectacular growth, the room occupancy rate of a series of accommodation establishments has not yet met expectations. A survey by Vietnam Report in Ho Chi Minh City showed that the supply of accommodation establishments reached 15,641 rooms, with an average room occupancy rate of 58% at a price of VND1.9 million/room/night. For the Hanoi market, the supply reached 10,962 rooms, with a room occupancy rate of 61% at a price of VND2.7 million/room/night. In Hoi An (Quang Nam), tourism is flourishing with total industry revenue estimated at more than VND2,568 billion; however, many accommodation establishments and restaurants in this area are in dire straits, with insufficient revenue to cover expenses, and have had to sell assets to pay debts. The wave of flight by many hotel and homestay owners in Hoi An has not stopped. It is not difficult to see some "golden land" with no customers hanging signs for rent with 30 - 50% discount.

Not only hotels, which are always likened to "two wings of an airplane", but it seems that the aviation industry is still helpless to see tourism grow. All four airlines are "struggling" to bear losses. Vietnam Airlines, the national airline of Vietnam, has recorded losses for three consecutive years, even facing the risk of delisting. Bamboo Airways has continuously changed senior personnel, and at the same time sent notices to agents about suspending a series of international routes, reducing the frequency of many main routes and niche routes in the domestic market, to serve restructuring. The management board of Vietravel Airlines also said that it is still struggling to bear losses. Vietjet Air alone reported a consolidated profit after tax of VND55 billion at the end of the third quarter, but this was largely thanks to the strong growth of ancillary segments, ownership transfer and aircraft trading. In addition, right before the peak of Tet, a series of airlines' routes were cut, and the fleet was still gradually shrinking.

Explaining this situation, Mr. Tran The Dung, General Director of Vietluxtour Company, said that first we need to review the statistics of the tourism industry. We have always collected all the foreign visitors to Vietnam and "embraced" them in the tourism industry, while among the nearly 12 million visitors this year, how many people came for tourism purposes, how many people came to visit relatives, how many people came to work for only 1-2 days and then left, how many diplomatic guests, business guests..., all are not classified or specified. If they are international visitors coming for work purposes, then whichever locality they go to, that locality will benefit. They do not travel, so other provinces and cities are still "hungry" for visitors. Along with that, the spending on accompanying services is not high, so the tourism ecosystem does not benefit much. In addition, some localities such as Phu Quoc, Nha Trang, Da Nang, Phan Thiet... have always had international visitors mainly from Russia, China, and Korea. The absence of the two markets of Russia and China has left a large gap that cannot be filled, causing the growth rate to mainly rely on domestic visitors. Vietnamese tourists may go to this place this year, then change to another province next year, or if domestic tour prices are high, they will switch to foreign destinations. When the domestic market cools down, the aviation, accommodation system, restaurants, and services will also face difficulties.

"If we only look at statistics to evaluate whether tourism has had a successful year or not, it is very difficult. We need to clearly classify the source of customers and customer groups to know whether the target customer group has come to us or not, and whether it has really recovered as expected. Besides, we need to accurately count the spending level of customers because in case the number of visitors has not reached the same level as before the pandemic, but if we welcome long-term guests with high spending, many industries will benefit, that is also a positive shift," Mr. Tran The Dung commented.

Blockbuster series creates a springboard for 2024 to accelerate

As Mr. Tran The Dung assessed, although the growth rate is very good compared to 2022, the tourism industry still has to make a lot of efforts to recover to its golden age before 2019. That is the reason why localities and businesses are accelerating in the "race" to renew the image of tourism.

Passengers boarding the plane at Noi Bai airport

Typically, Phu Quoc, after a year of "incidents", the pearl island is trying to regain its position as a resort paradise when it officially announced the tourism stimulus campaign "I love Phu Quoc - I Love Phu Quoc". The campaign began with the simultaneous launch of inter-sectoral tourism monitoring, issuing a code of conduct for civilized tourism with the aim of strengthening supervision, improving service quality, building a civilized, friendly, international-class destination for the pearl island. Along with that is a series of "blockbuster" projects, high-class products when Sun Group invested up to 4,000 billion VND, including: opening of Cau Hon - an artistic masterpiece that promises to make Sunset Town one of the most beautiful sunset viewing spots in the world; launching La Festa Phu Quoc hotel of the Curio Collection by Hilton brand; Launching the Vui Phet - Vui - Fest Bazaar Creative Night Market along with a series of experiences to make Phu Quoc a "phenomenon" at the end of this year and early 2024. Ho Chi Minh City has also just become the only city in the world to operate city tours by open-top double-decker buses 24/7, strengthening the brand of "The City That Never Sleeps", in addition to launching many new waterway tours...

A tourism expert assessed that a series of new "blockbusters" will be the springboard for tourism in 2024 to accelerate more strongly. Currently, with economic difficulties and many political and social fluctuations in the world, both international and domestic visitors will tend to tighten spending and be more selective about destinations. In that context, creating new, classy products to increase competitiveness, attract target customers, stay longer, and spend more is a very important factor. However, because tourists have many choices, the place that is friendly, easy to get to, and makes visitors feel welcome will win. Therefore, visa policies for some key markets such as Australia, the US, Europe, etc. need to be more open. Domestic service price policies also need to be built and calculated reasonably to form suitable tour prices that are competitive enough. In parallel, there is a strategy to promote and advertise tourism on international platforms. This must be done regularly, according to a systematic campaign of national and international scope.

"If we want tourism to recover, we must invest heavily. We need to identify this as a period of recovery and attracting visitors back, not a period of "bubble" bursting, so we need appropriate policies and coordinated coordination to create the best results," this tourism expert suggested.

Visa continues to be expected as a "lever" for 2024

The survey results of tourism and hotel enterprises by Vietnam Report show that 66.7% of enterprises believe that the tourism industry's prospects in 2024 will be slightly more positive. Of which, the revenue target is expected by 92.9% of enterprises to have the strongest growth in 2024; followed by profit and number of visitors (with 85.7% of enterprises). Visa policy continues to be considered by 92.9% of enterprises participating in the survey as the main "lever" to help Vietnam's tourism continue to grow.

Tan Son Nhat Airport will welcome about 140,000 passengers per day during the Tet peak season.

Tan Son Nhat International Airport said that during the upcoming Tet peak period, it is expected to welcome an average of 140,000 passengers per day. Specifically, during the peak period of the 2024 New Year (from December 23, 2023 to January 2, 2024), it is expected that there will be about 680 - 740 flights departing and arriving at Tan Son Nhat Airport each day, with an average of about 110,000 - 120,000 passengers per day. During the peak period of the 2024 Lunar New Year (from January 26 to February 24, 2024), it is expected that Tan Son Nhat Airport will serve about 860 - 900 flights departing and arriving each day, with an average of about 135,000 - 140,000 passengers per day. To prepare for the peak Tet holiday, Tan Son Nhat International Airport proactively held meetings before the peak and proposed unified plans with all units participating in exploitation activities at the airport; coordinated and arranged personnel in a timely manner at the Operation Coordination Center; increased personnel, developed detailed work plans at each location, as well as in emergency work; regulated vehicles and equipment reasonably, to avoid congestion...

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