Tourism is expected to make a breakthrough in 2024

How is the tourism industry benefiting from strong recovery in 2023?

Nguyen Trung Khanh, chairman of the Vietnam National Authority of Tourism

Last year featured many highlights and memorable events for the entire industry. Tourism development targets exceeded plans, showing that the tourism industry is moving in the right direction in restructuring the customer market and renewing products.

The effect of the new visa policy has contributed to an increase in international tourist arrivals. The total number of international tourists to Vietnam reached 12.6 million, exceeding the plan set at the beginning of the year and reaching the adjusted target of about 12-13 million in 2023.

The number of domestic tourists reached 108.2 million, and total revenues from tourism reached $29.4 billion, both exceeding the 2023 plan.

Promotional activities to improve the competitiveness and position and image of Vietnam’s tourism in the international arena are focused on both offline and online. Promotion and advertising work is focused on implementing major international events, coordinating with localities to do so.

The tourism product system is continuously renewed and diversified, increasing the attractiveness and competitiveness of Vietnamese tourism. Hanoi has developed a series of 15 night tourism products associated with preserving and promoting the cultural heritage value of the capital. Service business activities at travel businesses, tourist accommodation establishments, restaurants, and entertainment areas have recovered, especially during peak holidays and New Year.

The national tourism website vietnam.travel has also had a breakthrough increase in ranking, ranking 128 out of 229 countries or territories in the world with an access rate from the international market reaching 85 per cent, among the top in the region. This is an effective demonstration of implementing Vietnamese tourism marketing on a digital platform, consistent with the general trend of global tourism.

Do these prospects open up a more optimistic future for Vietnamese tourism in 2024?

According to forecasts by the World Tourism Organisation and the World Travel and Tourism Council, international tourism activities can fully recover by the end of 2024, on par with the level in 2019. However, the level of recovery is not uniform across regions.

The needs of international tourists are constantly changing, demanding increasingly higher product quality, experience, diversity, and uniqueness. The number of international tourists coming to Vietnam is forecast to reach the same target as in 2019. The trend of applying IT, AI, and digital transformation will promote the new formation of tourism methods, the process of entrepreneurship and innovation in tourism activities will become increasingly clear.

The forecasts are the basis for the tourism industry aiming to welcome 17-18 million international visitors, serve 110 million domestic tourists, and make total revenues of about $35.6 billion.

What specific challenges will Vietnamese tourism face moving forward?

The trend of globalisation and deep international integration, especially the Fourth Industrial Revolution, poses many new challenges, requiring tourism businesses to have innovative mindset and approaches, new ways to develop.

Tourist needs are constantly changing, demanding increasingly higher product quality, experience, diversity, and uniqueness. Meanwhile, current tourism products are not commensurate with their potential and strengths, have low added value, and are not truly diverse and attractive to some tourist markets.

Countries in the region have flexible policies to entice tourists, promote investment, and create great competitiveness, while Vietnam’s investment resources are still limited. Some key and traditional markets of Vietnamese tourism such as China and Russia have not yet fully opened.

Tourism advertising and promotion activities have not met the requirements of frequency and coverage to key markets, and national scale tourism promotion activities have not been organised. Industry recovery has not been uniformed in some localities. Destination management also allows for increases in service prices and air ticket prices, squeezing tourists, especially during holidays.

The connection and creation of conditions for tourism to recover and accelerate development between industries and fields is also not yet tight enough.

What tasks will the industry focus on to remove difficulties and increase competitiveness for Vietnamese tourism?

In 2024, the Tourism Department will prioritise implementing domestic and foreign promotion and advertising tasks, strengthening cooperation with businesses to carry out this task.

We will encourage businesses to actively participate in international tourism events such as the ASEAN Tourism Forum and Travex 2024, major international tourism fairs.

The tourism agency will also coordinate with the Vietnam Tourism Association, the Tourism Development Support Fund, localities, and businesses to continue to organise programmes to introduce Vietnamese tourism in key markets.

In addition, we are also coordinating with Dien Bien province to organise National Tourism Year 2024 and the 14 events within the event.

We will prioritise supporting localities to strengthen links, cooperation, and effective implementation of coordination mechanisms and regional and inter-regional action plans in product development, promotion, brand building, and human resource training.

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