Phu Quoc tourism in recession: Empty beaches, struggling businesses

Vietnam's tourism industry, from the Pearl Island of Phu Quoc to the 'City of a Thousand Flowers,' Da Lat, and the 'resort capital' of Mui Ne, has never experienced such a dearth of both international and domestic tourists as it does currently.
The sightseeing boat is not operational at the mouth of the Duong Dong River in Phu Quoc due to a lack of tourists.

The sightseeing boat is not operational at the mouth of the Duong Dong River in Phu Quoc due to a lack of tourists.

Hotels and restaurants are also experiencing a severe downturn. This presents a different scene from the usual one seen in previous years.

In recent years, Phu Quoc Island, often dubbed as the resort paradise of Vietnam's tourism industry, has witnessed a significant influx of investors, causing hotels and villas to mushroom and property prices to skyrocket, seemingly heralding a bright future for this island. However, all of a sudden, the local tourism sector has taken a nosedive, grappling with stagnation and desolation. The situation has become so dire that Kien Giang Province recently convened a meeting aimed at reviving tourism in Phu Quoc.

Gloomy tourism in Phu Quoc Island

Cuong, a member of the service staff on the Ha Tien - Phu Quoc ferry route, said that over the last two weeks, a significant number of people have been leaving Phu Quoc Island. On each ferry voyage to the mainland, there are dozens of people on motorbikes, carrying their belongings. The majority of these individuals are migrant workers who initially came to the island to work in restaurants, eateries, and beverage stalls within the entertainment district. Due to the downturn in the tourism industry and the increasing unemployment rates, they are compelled to leave the island in search of livelihoods.

According to the manager of a hotel located on the central road of Phu Quoc Island, the hotel has more than 40 rooms but hosts only two guests. This desolate scene has persisted for several months, prompting the hotel owner to recently let go of over a dozen staff members to reduce expenses.

In the evening, along Tran Hung Dao Street (often referred to as the "Western Town" of Phu Quoc Island), restaurants and bars are aglow with bright lights, and music fills the air, but from the outside, the scene is quite different. Instead of customers, staff are chatting in small groups in these establishments. Only a fortunate few establishments have one or two tables occupied by customers.

As for the Phu Quoc night market, there are many people standing near the entrance, holding umbrellas. At first glance, they might be mistaken for tourists, but they are actually taxi drivers waiting to pick up passengers. Inside the market, numerous stalls display a wide range of products, spilling onto the streets, yet there are very few customers perusing or making purchases.

At the end of the market, there is a tavern with a sign advertising various types of fresh seafood. However, when customers come in to place their orders, the owner informs them that only chilled sea prawns and squid are available. The owner of the tavern sighed and expressed that it was challenging for them in the tavern business, especially during the current quiet period. He mentioned that he could not take the risk of stocking up on live seafood. In the past, he used to earn tens of millions each night, but now, he considered himself fortunate if he made a few hundred thousand Vietnamese dong a night. The previous week, he contemplated closing the tavern and ceasing business, but he decided to persevere until the end of the month to see if there would be any change.

Nam, a vendor selling Vietnamese thick noodle soup near Duong Dong No.1 Primary School, expressed her disbelief at how Phu Quoc Island has become so empty of visitors. The quantity of thick noodle soup bowls she sells every evening from late August until now is only one-third of what it was last year. "In the past, I used to have foreign customers dining here every night, but now, not a single person has come for the entire month. My main customers are now locals," Nam said with a heavy heart.

Despite discounts, tourist drought persists

The scenario of emptiness and customer scarcity is not limited to just eateries, restaurants, and night markets; it has also extended to entertainment and amusement areas. Even in these grand, beautifully named amusement parks like 'Thom Island Paradise' and 'Mediterranean Town,' only the staff can be spotted. Even the fine white sands of Khem Beach, near the 5-star JW Marriott resort, are devoid of human footprints.

Most establishments in the Grand World Phu Quoc area have closed and ceased business.

Most establishments in the Grand World Phu Quoc area have closed and ceased business.

Earlier, when contacting Sun World Hon Thom to purchase cable car tickets for Hon Thom, the staff informed us that the cable car system had temporarily ceased operations since September 19, and there is currently no official announcement regarding when it will resume. The Sun World Hon Thom employee suggested, "Customers interested in visiting Hon Thom can either book a Rooty Trip ferry or utilize online referral service companies." She added, "Hon Thom is only open to welcome tourists from Wednesday to Saturday and remains closed on other days. When planning a visit to Hon Thom, it is advisable for visitors to contact the hotline in advance, as some services like the Lazy River and the Artificial Beach may not operate on certain days due to low tourist numbers."

In the Southern part of Phu Quoc Island, specifically in the Cua Can and Cua Duong areas, the tourist activities at resorts and bungalows are rather subdued. Khuyen, an employee at Y Nghia Bungalow in Ong Lang Hamlet in Cua Duong Commune, explained that foreign tourists frequently choose this destination for leisure and relaxation. Besides providing accommodation, the area features pepper gardens, fruit orchards, and ornamental plants and animals, offering opportunities for exploration and unwinding.

In the past, each room at this establishment was priced at VND800,000 per day and night and was consistently fully occupied. However, recently, there has been a significant decline in the number of guests despite the bungalow owner reducing prices by half. Khuyen mentioned, "The entire complex has 21 rooms, but there are only two foreign guests staying here. These two individuals are not short-term tourists but long-term residents on Phu Quoc Island for work."

Several owners of large hotels on Phu Quoc Island have reported that, typically, by this time of the year, in preparation for Christmas and the New Year, rooms are usually fully booked. However, this year, the number of tourists inquiring and making reservations for holiday periods is only around 20-30 percent, and many guests are not making advance deposits.

“Tourism has recently experienced a stagnancy, and those of us in the tourism industry are still facing uncertainties. We are now sitting on pins and needles, worrying about the possibility of revenue losses and financial deficits during the upcoming year-end peak holiday periods," disclosed the owner of a 4-star hotel in Phu Quoc, who prefers to remain anonymous.

Phu Quoc flights reduced by half

Phu Quoc International Airport reports that currently, the island only receives approximately 22-25 flights per day, including 3-4 international flights, down from 45-50 flights at the same time last year. The Phu Quoc Tourism Development Investment Association has noted that the tourism sector in Phu Quoc has encountered numerous challenges recently, resulting in financial losses for many businesses. During this year's National Day holiday, Phu Quoc hosted just over 19,000 overnight visitors, marking a nearly 40 percent decrease compared to the same period last year, with room occupancy rates reaching only about 27 percent.

Seeking help despite increased visitors and revenue

According to the People's Committee of Kien Giang Province, in the first ten months of the year, Phu Quoc Island alone welcomed approximately 5,196,872 visitors, up 17.4 percent compared to the same period and achieving 86.6 percent of the annual target. The number of international visitors reached an estimated 540,323, a remarkable 242.4 percent increase over the same period, surpassing the annual goal by 54.4 percent. The total revenue surpassed VND13.2 trillion, up 105.4 percent compared to the same period and exceeding the annual target by 14.8 percent.

However, numerous travel and hotel businesses in Phu Quoc find it hard to comprehend the situation. While tourism on the island has been sluggish recently, the People's Committee of Kien Giang Province reports a significant increase in the number of tourists during the same period. If the number of tourists to Phu Quoc is indeed on the rise, and tourism activities are stable and growing, what solutions are being sought after by the provincial People's Committee, the Phu Quoc Tourism Development Investment Association, and relevant organizations? Providing an explanation, Mr. Bui Quoc Thai, Director of the Department of Tourism of Kien Giang Province, stated, "The figures cover the period from the beginning of the year until now, including peak seasons. The lack of customers only happened lately, so it has had little impact on the annual targets."

Restoring peace to the 'Pearl Island'

Since the beginning of 2023, in the area of Phu Quoc City, law enforcement agencies have successfully dismantled eight criminal gangs involving 104 individuals and identified 74 individuals testing positive for drug use, resulting in the uncovering of five cases and seven individuals engaged in drug possession and usage. Furthermore, they intervened in two cases where ten individuals gathered, carrying dangerous weapons to resolve conflicts. Additionally, 32 small and large-scale gambling establishments were discovered, addressed, and closed down. The authorities also proactively solved two cases of robbery.

Colonel Diep Van The, Deputy Director of the Police Department of Kien Giang Province, emphasized that their efforts are focused on reestablishing security and order, particularly in promptly preventing crimes like fraud, theft, and robbery, to support tourism development in Phu Quoc. The Kien Giang Provincial Police are executing various plans and initiatives to combat crime with an unwavering spirit, leaving no room for criminals and ensuring there are no "safe havens" for them in Phu Quoc.

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