Vietnam's tourism industry holds its breath ahead of peak season.

great potential for domestic tourism

In mid-April, hotels and resorts in Da Nang, Phu Quoc, Phan Thiet, and Ho Tram all recorded high demand for holiday bookings.

According to data released by the Vietnam Airports Corporation (ACV), during the peak holiday period (from April 28, 2021 to May 2, 2021), the airports under its management served nearly 1.5 million passengers. Compared to the April 30 - May 1 holiday in 2019 (which had a similar number of days off and was not affected by the Covid-19 pandemic), this year's domestic passenger volume increased by 30%.

This shows that the demand and potential for domestic tourism are enormous. With international commercial flights still not resuming, domestic tourism is the focus of tourism development.

Difficulties arose.

The recent outbreak has once again impacted the country's tourism industry. Tourist destinations that rely on air travel, such as Da Nang and Nha Trang, saw numerous room cancellations just before the holiday season as information about the first infections was announced.

According to a report by the Da Nang Department of Tourism, during the April 30th and May 1st holiday, the total number of tourists visiting Da Nang decreased by 42% compared to pre-holiday projections. Major events and festivals in Da Nang were also temporarily suspended due to the complex developments of the pandemic.

Conversely, destinations easily accessible by car, such as Ho Tram, Vung Tau, and Da Lat, still see increased demand leading up to the holidays as many families worry about the risk of infection when traveling by air.

Mauro Gasparotti, Director of Savills Hotels Asia Pacific, commented: “The fourth wave of Covid-19 has once again had a severe impact on the hospitality industry. Hotels and resorts have received numerous requests for cancellations or changes to dates. Furthermore, MICE (Meetings, Incentives, Conferences, and Exhibitions) and event businesses have also been affected, with conferences being postponed or canceled at the request of local authorities. This is a real blow to hotels, as April and May are typically peak seasons for conferences.”

Resort businesses have been impacted across the board, with over 50%, and in some places nearly 80%, of current bookings being cancelled, primarily from group and corporate clients.

Some hotels have even announced that guests need to present a negative Covid-19 test certificate to be able to use their services. This is unprecedented.

"Hopefully, with the efforts of the Vietnamese Government in preventing and controlling the Covid-19 epidemic, we can soon contain and limit the spread of the disease so that we can restart business and tourism activities for the upcoming peak season," Mr. Mauro Gasparotti shared. "The recent long holiday is proof that domestic tourists are the driving force behind the recovery of the tourism industry."