Tourism sector clocks up growth, heralds new dynamics

Buoyed by the rapid growth of international tourist arrivals which have risen to an all-time high with more than 7.57 million this year, the local tourism industry targets around 8 million foreign visitors and 40 million domestic holidaymakers in 2014. Report by Nhan Dan Online.
Buoyed by the rapid growth of international tourist arrivals which haverisen to an all-time high with more than 7.57 million this year, thelocal tourism industry targets around 8 million foreign visitors and 40million domestic holidaymakers in 2014. Report by Nhan Dan Online.

Vietnam’s tourism sector achieved impressive progress in 2013,receiving 35 million domestic visitors and 7.5 million foreigners, anincrease of 10.6 percent over the 2012, and earning total revenue of 195trillion VND (9.17 billion USD). These figures show that the sectorhas recovered its growth rate and ensured that its development gets backon track.

Realising development goals

After four years of recovery from impact felt within the sector fromthe global economic recession of 2009, the number of foreignholidaymakers in Vietnam has doubled and the tourism revenue is 2.2times higher. The sector has reached its 2015 targets, as set in theStrategy on Developing Vietnam’s Tourism, two years ahead of time.

The sector has benefited from improved infrastructure, and thetransport system by air, roads and waterways has received ampleinvestment to expand. The country has more than 14,200 lodgings,totalling 320,000 rooms, 34 percent of which are located in three-starto five-star hotels.

Tourism businesses and the1,250 international travels agents operating in the country areproviding customers with diversified products to penetrate new markets.People working in the field, directly and indirectly, are of increasingquality and professionalism.

Last year also saw theestablishment of new tourist facilities; cultural, sporting andentertainment sites; fairs; exhibitions and related services, as well asa series of four-star and five-star hotels and resorts, all of whichcontributes to the significant overhaul of the hospitality sector.

These spectacular achievements have illustrated the clear-sightedrecent guidelines on tourism development set by the Party, State andGovernment with the aim of turning the sector into a key industry.Favourable conditions, including the high appreciation of foreignvisitors to Vietnam, have also contributed to the progress. Plus,abundant natural resources help to create diversified and unique touristproducts.

Difficulties and challenges

At the beginning of the year, the number of visitors to Vietnamslumped slightly, leading those working in the field to taking a franklook at their limitations. They found that shortcomings in the sector’soperation include weak management, poor sanitary conditions, disorderand unsafe conditions at tourist attractions, and more cases of touristsbeing cheated during the high season.

Theoverexploitation of tourist resources has damaged the naturalenvironment, while the work of environmental and social management hasnot received enough attention from authorities.

Climate change has recently led to an irregularly high occurrence ofnatural disasters, including storms and floods, which have had negativeimpacts on tourist infrastructure and tourist programmes in affectedlocalities.

A lack of professionalism in tourismproduct creation marketing, coupled with a dearth of well-qualifiedworkers in the field has imposed limitations on the sector’s viability.As the State budget spent on hospitality in Vietnam is less than inother countries in the region, the sector has achieved modest results inadvertising Vietnam’s attractions and stimulating tourist demand intargeted markets.

Moreover, the co-ordinationbetween the tourism sector and relevant industries, as well as thatamong localities, has not worked effectively. The inactivity of localtourist businesses in developing markets, creating distinguishedproducts and improving quality has combined with the industry’sunhealthy competiveness to cause serious consequences for Vietnam’simage.

Meanwhile, the national tourism industry isundergoing increasing pressures of product price, staff quality andservice, and business capacity from other countries in the region.Vietnam has to vie with top tourist attractions in the region –including Malaysia, Thailand and Singapore – which have made massiveinvestments in their hospitality sectors to enhance staff qualificationsand update tourist products.

As the ASEAN nationsare set to cut their non-tariff barriers to 0-5 percent after 2015,Vietnam must make good preparations to protect the market share ofVietnamese tourist businesses, both domestically and internationally.

Solutions for short-term and long-term development

Considering the current domestic and international situation,Vietnam’s tourism sector has followed the guidelines set in the Strategyand Master Plan of Tourism Development by 2020, with a vision towards2030.

In 2014, the sector will focus on realisingthe Government instruction on ensuring the health, safety and securityof visitors. One of the urgent goals under this category is to buildhygienic public toilets at all tourist sites.

It isnecessary to have a law enforcement agency responsible for ensuringsecurity and ensuring a healthy environment for visitors as manycountries with strong tourism brands already do. Vietnam should alsoestablish the Tourism Police, particularly in major cities and tourismcentres that attract many tourists.

In the longterm, the sector should prioritise reforming and perfecting policies,mechanisms and laws relating to tourism to pave the way for itsdevelopment and foster market research and tourism promotion, as set outin the Plan on Building Vietnam Tourism Brand by the Vietnam NationalAdministration of Tourism.

The sector should focuson attracting more domestic visitors, particularly when the number offoreign visitors decreases due to external reasons.

In addition to consolidating discipline in the operation of travelagents and removing unregistered ones, the sector ought to createfavourable conditions for tourism businesses to improve theirperformance and increase their competitiveness as Vietnam becomes morestrongly integrated in international institutions.

The Ministry of Culture, Sports and Tourism has proposed solutions tothe Government for developing tourism in the 2013-2014 period andcreating momentum for the development of related industries. It has alsosuggested preferential policies for businesses working in the field andsimpler administrative procedures for foreign visitors to Vietnam.

The hospitality sector is set to become a key industry withprofessionalism, modern infrastructure, high-quality products,established trademarks, and a high standard of competitiveness againstthe tourism industries of countries in the region and the world.

Promoting its achievements in 2013, it is expected that thehospitality sector will continue to create momentum for its robustdevelopment in a bid to achieve its 2014 target of attracting 48 millionvisitors, including 8 million foreigners, and earning 220 trillion VND(10.34 billion USD) in total revenue.-VNA

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