Vietnam's tourism industry making non-stop efforts to find new customers

In addition to focusing on traditional, high-spending tourists, Vietnam tourism is constantly hunting for new customers and improving the service quality.
Visitors experience eco-tourism at Thieng Lieng Island, Can Gio District, Ho Chi Minh City. (Photo: SGGP)

Visitors experience eco-tourism at Thieng Lieng Island, Can Gio District, Ho Chi Minh City. (Photo: SGGP)

According to the Vietnam National Administration of Tourism (Ministry of Culture, Sports and Tourism), since the beginning of 2023, Vietnam has earned over US$14.5 billion (VND343 trillion) from welcoming over 5.5 million international visitors, of which more than 2.3 million arrived in HCMC. In addition to focusing on traditional, high-spending tourists, Vietnam tourism is constantly hunting for new customers and improving the service quality.

From July 20 to July 25, HCMC welcomed nearly 500 MICE (traveling combined with conference) visitors from India. The group stayed at Le Meridien Saigon Hotel (District 1, HCMC), then visited the HCMC Post Office, Ben Thanh Market, and War Remnants Museum, and experienced Vietnamese and Indian cuisine. This is good news for tourism in HCMC in particular and Vietnam in general, given the economic downturn resulting from the Covid-19 pandemic.

According to the Vietnam National Administration of Tourism, the number of Indian tourists to Vietnam in the first five months of 2023 reached 141,000, surpassing the total number of Indian visitors to Vietnam in the whole of 2022. The number is expected to reach 500,000 in 2023, an increase of 250 percent compared to last year.

Mr. Suhash Chandar, Managing Director of Asia DMC (a company specializing in welcoming Indian tourists to Vietnam), said that Vietnam is a popular destination among Indian tourists. In the coming time, the company will extend its destinations to the Central and Northern provinces of Vietnam. Ms. Nguyen Cam Tu, Director of HCMC Tourism Promotion Center, revealed that the city considered MICE tourism one of 7 typical and potential tourism products that need to be exploited in tourism development.

In addition to prioritizing the quality improvement of products, services, and accommodation facilities, HCMC's Department of Tourism also issued "The policy of MICE tourism in HCMC”, with many attractive offers and welcoming programs. These include the program to welcome tourist groups, souvenir gifts for tour leaders, ticket discounts in some tourist attractions, and supporting promotion on social media.

The number of visitors from familiar markets such as Russia, or China is reported to have "shrunk" after the Covid-19 pandemic for many reasons, such as economic recession, changing spending trends, and wars. Many souvenir stalls and eateries catered to this group of tourists in Nha Trang have shut down. As a result, many localities have boosted tourism promotion activities to many countries around the world, combined with other diplomatic activities of ministries and agencies.

In particular, at the end of June 2023, the Department of Tourism of HCMC announced a promotion program for HCMC tourism in Phnom Penh (Cambodia) and Bangkok (Thailand), with the participation of public hospitals, private hospitals, medical facilities, health care (spa, dentistry), and tourism enterprises.

Ms. Bui Thi Ngoc Hieu, Deputy Director of HCMC Department of Tourism, said the program aims to promote the city's medical tourism to the people and the leading travel agency of Phnom Penh. According to the Department of Tourism, in the first 5 months of 2023, Vietnam welcomed more than 167,000 Cambodian tourists, accounting for nearly 4 percent of the total number of international visitors to Vietnam.

Market diversification

In addition to the traditional group of tourists, Vietnam is striving to attract other sources of tourists, including those from Muslim countries, being the fastest growing market, with large spending capacity. According to the Global Islam Index report, in 2013, there were about 108 million Muslim tourists, while by 2019, this number had reached 160 million.

At the end of December 2022, Tan Son Nhat Airport Services Joint Stock Company (SASCO) put into operation the Jasmine business lounge, located on the second floor of Tan Son Nhat international terminal area, HCMC. This is the first airport lounge in Vietnam that meets international standards for Muslim business class passengers, certified by the international Halal alliance organization, Halal Consulting & Training Company.

Malaysia (MHCT). With a floor area of 300 square meters and the capacity limited to only 70 guests, Jasmine business lounge is divided into many functional areas, including a separate prayer room area for men and women, designed to ensure sanctuary space for the pilgrimage and prayer. The business lounge marks an important step in the airline service industry in Vietnam, especially in the current context that the number of Muslim tourists and businessmen coming to Vietnam is increasing, contributing to the quality improvement of aviation services, said a representative of SASCO.

According to Mr. Nguyen Duc Quynh, Vice Chairman of Da Nang Tourism Association and Chairman of the Da Nang Hotel Association, Da Nang attaches great importance to the Muslim tourist market and always wants to exploit this market. Similarly, Mr. Nguyen Son Thuy, Director of Indochina Duy Nhat Tourism Company, said that the Central region is an area with many places that attract Muslim tourists such as the Museum of Cham Sculpture (Da Nang), and My Son Sanctuary (Quang Nam).

However, Ms. Nguyen Thi Duyen, manager of Maharaja Indian restaurant, considered it very difficult to attract customers from the Halal market as they often have their own standards for food, thus Halal certification is required (a certification that the products and services are in full compliance with the precepts of Islamic Law). Meanwhile, besides the food system, Central provinces and cities have not yet constructed necessary facilities to serve Halal guests, such as prayer rooms at the international airport, or public areas with separate prayer areas. In addition, it is also essential that tour guides and souvenir shop owners understand the specific demands of Muslim tourists.

However, travel agencies in these areas still believe that as Islamic tourists tend to spread word of mouth about their chosen destination, if they manage to provide good service, they can still attract this target group of tourists.

Tourism priority and environmental sustainability rank low

According to the latest report on the global tourism development capacity index 2021 of the World Economic Forum (WEF) published in 2022, Vietnam's tourism ranked 52 out of 117, an increase of 8 ranks compared to that of 2019. The growth is the third highest in the world, after Indonesia (12 ranks) and Saudi Arabia (10 ranks). However, Vietnam's tourism still has a number of indicators that have declined in rankings, the lowest of which include health and hygiene (ranking 73rd), tourism service infrastructure (ranking 86th), priority for the tourism industry (ranking 87th) and environmental sustainability (ranking 94th).

Mekong Delta to attract Indian tourists

Recently, a delegation of many high-ranking officials and more than 100 Indian businessmen visited the Mekong Delta and searched for investment cooperation opportunities in many fields with provinces and cities in the area.

The wedding of the bride Kaabia - Indian billionaire jeweler, at JW Marioot Phu Quoc 2019.

The wedding of the bride Kaabia - Indian billionaire jeweler, at JW Marioot Phu Quoc 2019.

In the years 2017-2019, Kien Giang Province and some localities became the destinations for traveling and organizing important events for Indian billionaire tourists. This can be seen in the wedding of an Indian billionaire jeweler at JW Marioot Phu Quoc Emerald Bay resort (of Sun Group) in 2019.

According to Mr. Pham Thien Nghia, Chairman of Dong Thap Provincial People's Committee, Dong Thap Province is ready to welcome Indian businessmen and tourists with a series of attractive tourism services, such as ecotourism, humanistic tourism, local cuisine with specialties of the Southern Delta (grilled snakehead fish with young lotus leaves, braised perch, sour soup of young reishi with cotton dandelion, fish stock with water lily, especially 200 dishes made from lotus), and many kinds of garden fruits that have become trademarks (Cao Lanh mango, Chau Thanh longan, Lai Vung mandarin, and Phong Hoa pomelo).

From the wedding of the Indian billionaire jeweler in Phu Quoc City, welcoming Indian tourists is, according to tourism experts, not without challenges. In India, only economically well-off people can travel. Therefore, from now on, the tourism industry of Vietnam in general and the Mekong Delta in particular must first prepare for the capacity to meet the requirements, then promote the image of the people and country of Vietnam to this new potential market.

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