South Korean tourists lead Vietnam’s tourism revival

According to data from Visa’s Green Shoots Radar in late September, South Korean travel activity has significantly rebounded over the past year, with 37 per cent of respondents travelling abroad for leisure or business, up from 23 per cent in the previous year.

The research highlights Vietnam as the second most popular destination for South Korean tourists, attracting 16 per cent of travellers, on par with Australia and only slightly behind Japan, which tops the list at 54 per cent.

This trend is further supported by figures from Vietnam’s tourism industry.

The Vietnam National Administration of Tourism reported that in the first eight months of 2024, total international arrivals reached over 11.4 million, representing a 46 per cent increase on-year, and a 1 per cent rise compared to the same period in 2019. South Korea remains Vietnam’s largest source market, accounting for over three million visitors, or 26 per cent of the total. Together with Chinese visitors, South Korean tourists contributed nearly half of all international arrivals to Vietnam.

Vietnam’s appeal as a destination was particularly evident during this summer, when it became the top choice for South Korean tourists, accounting for 13.7 per cent of the total international visitor flow. Vietnam welcomed approximately 3.6 million South Korean visitors last year, more than any other foreign market, underscoring the effectiveness of the country’s tourism promotion efforts and confirming its enduring attractiveness to South Korean travellers.

Not only do South Koreans lead in visitor numbers, but they are also among the highest spenders. In the first half of 2024, South Korean tourists’ expenditure on accommodation made up 21 per cent of total spending, marking a more than 60 per cent increase compared to the same period last year.

This surge in spending highlights Vietnam’s growing appeal as a relaxation and leisure destination. South Korean visitors' spending on food and beverages accounted for 17 per cent of their total expenditure, underlining the strong draw of Vietnam’s culinary offerings for international visitors. This increased expenditure on accommodation also suggests longer stays among South Koreans.

With its diverse landscapes, rich cultural experiences, and high-end services, Vietnam offers the perfect environment for extended holidays. In addition, the growing presence of Vietnamese restaurants recognised by prestigious organisations such as The Michelin Guide has elevated the country’s culinary reputation, attracting South Korean visitors who savour the local cuisine and help promote it globally.

Although traditional tourism cities like Danang, Ho Chi Minh City, and Hanoi continued to dominate in terms of spending–accounting for 25 per cent, 15 per cent, and 10 per cent of total expenditure, respectively–emerging destinations such as Nha Trang, Dalat, and Phu Quoc saw substantial growth in South Korean tourist spending. These newer destinations experienced increases of 90 per cent, 150 per cent, and 160 per cent, respectively, signalling promising opportunities for Vietnam’s tourism sector to capitalise on.

In light of these developments, tourism experts suggest that Vietnam should further develop its high-end tourism offerings, enhance service quality, and expand its network of 4-5 star hotels and luxury shopping centres to sustain and increase spending by South Korean visitors.

The introduction of Lotte Duty Free in Vietnam has already contributed significantly to this growth. In 2023, sales at Lotte Duty Free increased by more than 350 per cent, with South Korean tourists making up 60 per cent of these purchases. This illustrates the impact that enhanced retail experiences can have on attracting high-spending travellers.

In addition to the rapid development of destinations like Nha Trang, Dalat, and Phu Quoc, the growing trend of contactless payments has also encouraged more liberal spending among South Korean tourists, further boosting Vietnam’s tourism sector.

According to industry experts, South Korean tourists are not concentrated in one particular region, but rather explore various locations across the country. In several popular destinations like Danang, Nha Trang, Phu Quoc, and Hoi An, South Koreans account for 35 to 50 per cent of international arrivals, reinforcing their dominant presence within Vietnam’s tourism landscape.

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