Indian tourists can be gold mine for Vietnam

Photo: Grand Mercure Hanoi Hotel

The peak period for Vietnam’s tourism industry began last week when the first flights carrying delegations from Sun Pharmaceutical Industries in India, comprising 4,500 employees, landed in Hanoi, marking the start of their four-day tour of Vietnam.

On August 28, the Grand Mercure Hanoi hotel welcomed around 200 guests from this Indian delegation.

Remi Faubel, general manager of Grand Mercure Hanoi, stated, “We are confident that the elements celebrating local culture at Grand Mercure Hanoi, such as the Indochine architecture, the Buc Ban doors system, and the interior details inspired by Vietnamese culture like lotus flowers, bronze drums, rice grains, and terraced fields, will leave a positive impression. In addition to traditional Indian dishes, the hotel will also prepare some local specialties so that guests can experience the diversity of Vietnamese cuisine, such as pho, steamed rice rolls, and tropical fruits.”

According to the itinerary, the visitors will be divided into six smaller groups and will experience tourism in Hanoi, Halong, and Ninh Binh in stages, starting from August 26 and concluding on September 7.

Bodo Klingenberg, general manager of Pullman Hanoi, said that, on August 30, the hotel welcomed 700 Indian guests from the large incentive group. “We have prepared two months prior to their arrival to ensure both hotel facilities and human resources are of high standard quality to provide the group with the best experience,” he said.

According to Bodo, India is indeed a new blooming market for tourism. It is the country with the biggest population in the world now and is a very potential market not only for Vietnam tourism but also for bilateral cooperation in other industries such as information technology, pharmaceutical, textile, or finance.

Nguyen Nguyet Van Khanh, marketing director at Vietravel, stated that the Indian group will spend a full four nights in 5-star hotels in Hanoi.

“This result reflects Vietravel’s efforts in promoting and marketing tourism in India since 2018. Indian visitors now account for 16 per cent of Vietravel’s total international tourists, a significant increase compared to pre-pandemic levels,” she said.

India is considered a promising market for Vietnam’s tourism and is also among the top 10 largest international tourist markets. According to the Vietnam National Authority of Tourism (VNAT), there were 392,000 Indian visitors to Vietnam in 2023, a 231 per cent increase compared to 2019.

In the first half of this year, the number of visitors from India rose by 164 per cent compared to the same period last year, reaching over 231,000.

Many wealthy Indians particularly favour Vietnamese destinations such as Danang and Phu Quoc for hosting luxurious weddings with hundreds of high-profile guests. This year, Danang has also been repeatedly selected by big-spending Indians for wedding celebrations.

A representative from the VNAT noted that, in addition to its natural and cultural appeal, Vietnam is also attractive to the Indian market due to its simple visa procedures, relatively short distance, and numerous direct flights with journey times of around 4-5 hours.

Conversely, a market of over 1.4 billion people, with a growing middle class and many individuals willing to spend significantly on travel like India, is a key factor for Vietnamese businesses to focus on.

“However, tapping into the Indian tourism market is not easy due to the cultural, religious, and lifestyle differences of the tourists, which require highly specific services and standards, especially concerning food to accommodate religious beliefs,” said the representative.

According to UK publication The Economist, Indian outbound spending in 2023 reached $33 billion, tripling over the past decade and is expected to reach $45 billion in 2025. The World Travel and Tourism Council considers India a large and promising outbound travel market, projected to approach 50 million visitors with an estimated revenue of around $100 billion by 2027.

“It’s no surprise that everyone wants Indian tourists as they represent a significant potential market with high spending power,” said Sudhir Upadhyay, CEO of TravB2B, a provider of Asian travel services to over 7,000 travel agents in India.

India has surpassed China to become the most populous country and is also the most sought-after source market. Upadhyay predicts that the international Indian tourist market will grow 5-6 times its current size over the next decade.

Although China has become the largest source of tourists globally and an attractive market for many Western countries, it is Indian tourists who are driving the competition among Middle Eastern and Southeast Asian countries.

A decade ago, India sent about one million tourists to Thailand annually. In the first half of 2024, the number of Indian tourists to Thailand has already reached one million.

The driving forces behind Indian outbound tourism lie in demographic and economic factors, according to The Economist. Those aged 25-34 are the most desired travellers, expected to comprise around one-fifth of the country’s population in the future. Meanwhile, the middle class is also projected to double by 2047, leading to an increase in Indian passports from 52 million a decade ago to 93 million this year.

According to Upadhyay from TravB2B, the most important factor for attracting Indian tourists is visa-free entry or easy visa applications. “Indian tourists do not plan their trips too far in advance, so countries with easy entry policies will attract them,” Upadhyay said.

Khanh from Vietravel noted that the arrival of 4,500 visitors is a significant step in establishing Vietnam’s position as an ideal destination for international events and conferences, especially with potential markets like India. However, serving this delegation also presents many challenges, requiring travel businesses to be thoroughly prepared. “Services such as proficient Hindi-speaking guides, Indian restaurants, and understanding of Indian culture in Vietnam are still lacking,” Khanh said.

Indian billionaire to bring 4,500 employees to Vietnam Indian billionaire Dilip Shanghvi is planning to bring 4,500 employees to Vietnam for a holiday in late August. They will visit Hanoi, Ninh Binh, and Halong Bay for nearly two weeks.