VI
EN
Anticipating a piece of the billion-dollar pie.
In 2019, Chinese tourists spent approximately $260 billion, far exceeding many other markets. When the pandemic struck, China implemented a "zero-COVID" policy.
China's recent end to its "zero-COVID" policy is expected to benefit the global economy and provide a lifeline for the tourism industry in many places. However, China is currently only piloting group tours for its citizens to 20 countries, and Vietnam is not yet included.
According to experts, not only for Vietnam but for all tourism markets worldwide, China is an irreplaceable source of tourists.
The Ministry of Culture, Sports and Tourism recently sent a document requesting that China include Vietnam in the list of pilot countries for receiving Chinese tourists in group tours.
Dr. Luong Hoai Nam, a member of the Vietnam Tourism Advisory Board (TAB), believes this is a timely move from the management agency. According to the expert, not only for Vietnam but for all tourism markets worldwide, China is an irreplaceable source of tourists.
Mr. Nam cited the example that in 2019 (before the Covid-19 pandemic), Vietnam welcomed 5.6 million Chinese tourists, accounting for one-third of the total number of international tourists to Vietnam. These tourists generated over $5 billion in revenue for Vietnamese tourism businesses, not including revenue from airfare, airport fees, and sales to Chinese tourists.
The expert also estimated that tourism revenue from the Chinese market is equivalent to more than half of Vietnam's agricultural exports to China. Meanwhile, due to the pandemic, Vietnam lost billions of USD in tourism revenue from this market.
"If we cannot rapidly increase international tourist numbers to reach and surpass pre-Covid-19 levels, not only will tourism businesses be stalled and exhausted, but real estate businesses that have overinvested in resorts will face even greater difficulties," Mr. Nam worried.
How do I fill the gap?
Speaking to Tien Phong newspaper, Mr. Phan Tri, director of a Hanoi-based travel company, said that in the current difficult circumstances, tourists from any market are "valuable." Although his company's main tourists are from Europe and America, the lack of Chinese tourists has left some tourist destinations somewhat deserted and less bustling, affecting the morale and spending of other tour groups and the overall market. In fact, in many places, only when Chinese tourists arrive do numerous hotels, large and small, begin to renovate to welcome this "regular" customer base.
"The more tourists there are, the more developed the services become, and the better the demand is stimulated," Mr. Tri shared, noting that the absence of Chinese tourists has somewhat affected the target of welcoming 8 million international visitors that Vietnam has set for this year.
From the perspective of someone with many years of experience in the tourism industry, Mr. Tri believes that as long as China hasn't reopened, businesses can't just "sit idly by" and need to actively seek out other sources of tourists. He recounted how one business was quite flexible, quickly switching to attracting Indian tourists and achieving success with this shift.
"Of course, the transition isn't easy, but many parties have managed to do it," Mr. Tri said. He also added that many businesses are still waiting, because some services cater exclusively to Chinese tourists.
Mr. Nguyen Van Tuong, director of a tourism business in Ha Long, Quang Ninh, also shared the difficulties in finding a replacement for Chinese tourists in Vietnam. Currently, European and American tourists are also significantly reducing their spending on tourism amidst austerity measures. Furthermore, Vietnam faces many barriers in competing with some regional countries like Thailand and Singapore in the tourism sector. While Thailand may not be as attractive as Vietnam, according to this businessman, many tourists might visit Thailand 10 times a year, but how many times would they actually visit Vietnam?
Many businesses believe that, given the continued absence of Chinese tourists and the decline in the European and Russian markets, Vietnam has no choice but to implement more appropriate micro-level policies, and that regulatory agencies and associations need to organize more vigorous promotional activities targeting other markets.
