Vietnam urged to upgrade tourism services

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Grant Thornton Vietnam’s general director Ken Atkinson said Vietnam’s tourism growth was lagging behind neighbouring countries, and urgent action needed to be taken by the Vietnamese government to ensure that the sector, which contributes significantly to the country's GDP, does not get left behind.

Atkinson, chief of the Vietnam Business Forum Working Group for Hospitality and Tourism, and vice chairman of the Vietnam Tourism Advisory Board, expressed his concerns as he announced Grant Thornton’s second quarter International Business Report results last week.

He added urgent action needed to be taken in reviewing the policy on visas on arrival and visa exemptions, as well as investment into tourism marketing campaigns.

According to the report, Asia Pacific continues to see strong tourism growth, with Myanmar experiencing a 30 per cent increase, Cambodia 18 per cent and Thailand 20 per cent growth in the first seven months of the year.

Vietnam in contrast experienced a 1.4 per cent fall in the first five months, according to Grant Thornton. However, due to improved performance in June and July, Vietnam achieved a 5.9 per cent increase in the first seven months.

Atkinson added Vietnam was now seeing strong growth in the number of arrivals from Russia, South Korea and Japan.

“We believe in large part this is due to the visa exemption policy. But we are seeing a decline in visitors from Europe and North America.”

According to the report, the BRIC economies (Brazil, Russia, India and China) continue to drive global tourism thanks to their burgeoning middle classes who are increasingly able and willing to spend their new wealth.