Tourism businesses are "starving" for customers, putting pressure on the first half of 2024.

16/05/2024

Vietnam's tourism industry has great potential for development, but also faces many challenges. However, with new demands, tourism is striving to find solutions to overcome difficulties and achieve the "dual goals" of the smokeless industry.

According to the Vietnam National Administration of Tourism, in the first four months of 2024, Vietnam welcomed 6.2 million international visitors, an increase of 68.3% compared to the same period in 2023. Revenue from accommodation and food services in the past four months is estimated at VND 237,300 billion, an increase of 15.3% compared to the same period in 2023.

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However, tourism businesses are facing many difficulties. According to the Vietnam Tourism Association, the number of tourists on tours in the first four months of the year increased by only 2.2% compared to the same period in 2023. The average revenue per international tourist in the first four months of 2024 reached only US$1,100, a decrease of 14% compared to 2023.

This is because international tourists are increasingly preferring independent travel over package tours. Travel agencies primarily profit from selling package tours, which include meals, accommodation, transportation, entrance tickets, etc. However, when tourists travel independently, they often book these services separately, causing travel agencies to lose their main source of income.

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Vietnam's tourism industry has great potential for development, but it also faces many challenges.

Tourism development trends worldwide, and in Vietnam in particular, are undergoing significant changes. Tourism types are becoming increasingly diverse, ranging from independent travel and all-inclusive tours to beach tourism, and both short and long-term trips. According to estimates by the Vietnam National Tourism Administration (Ministry of Culture, Sports and Tourism), by 2025, 800,000 tourism workers will be needed in residential areas, while universities, colleges, and vocational schools training in tourism produce only about 20,000 students annually. This is a very limited number compared to the demand.

The demand for human resources in the tourism industry is increasing, but the supply is limited. Some tourism workers lack proper training, skills, and experience. Some localities have abundant tourism human resources, while others face severe shortages.

Vietnam's tourism industry has great potential for development, but to address the paradox of "tourism growth, but travel businesses 'starving' for customers" and a shortage of human resources, both the government and businesses need to work together to innovate business models, improve service quality, and boost tourism promotion.

Khanh Linh - Source: Compilation
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