92.9% of tourism businesses expect growth in revenue in 2024

Vietnam's tourism industry stands at the threshold of a remarkable milestone, with experts asserting that an impressive figure of 14-15 million foreign visitors could be achieved this year, provided unexpected issues are kept at bay.

A recent survey conducted by Vietnam Report JSC has unveiled an optimistic outlook, with 66.7% of businesses in the tourism and hotel industry expressing confidence in more favourable prospects this year. Among them, 92.9% anticipate robust growth in revenue, while 85.7% foresee an uptick in both profit and visitor numbers.

Vu Dang Vinh, CEO of Vietnam Report, said their confidence is entirely justified, citing the impact of the new visa policy effective since August 15, 2023. This policy allows electronic visas for tourists from all countries and extends visa exemptions for certain visitors to 45 days, up from the previous 15 days. As a result, the number of foreign arrivals exceeded 1 million in the last four months of the previous year, far surpassing the initial plan.

Looking ahead, up to 92.9% of respondents view this policy as a "lever" crucial for sustaining the growth trajectory of Vietnam's tourism industry.

The hosting of international tournaments, such as the VTV Cup International Women's Volleyball Cup and the Asian Women's Club Volleyball Championship, has played a crucial role in bringing the images of Vietnam and its people closer to the global audiences. Complemented by accolades at the World Travel Awards ceremony, 85.7% of surveyed businesses emphasised the strategic importance of promoting Vietnamese tourism through international events on culture, sports, festivals and tourism exhibitions as a key recommendation for 2024.

Despite Vietnam's commendable rise to the fourth position in Southeast Asia for tourist arrivals, World Data statistics revealed a challenge. While other countries maintain a certain threshold of average revenue per visitor, Vietnam has experienced a decline, slipping from the fifth to the sixth place. This is attributed to its emphasis on developing local specialty stores rather than duty-free shopping centres, a trend that the industry needs to reassess.

Vinh proposed a forward-looking solution, advocating for the establishment of factory outlets in duty-free zones. This strategic move not only attracts a substantial customer base from Asian countries but also mitigates the "currency bleeding" phenomenon, wherein Vietnamese tourists curtail overseas shopping expenditures, he said.