According to data recently released by the online travel platform Agoda, the number of searches from China to Vietnam during the recent Lunar New Year (Year of the Dragon) has nearly recovered to pre-pandemic levels. In January 2024, data from the General Statistics Office showed that Chinese tourists to Vietnam continued to increase sharply, after rising to second place among the largest international tourist markets in 2023.
Leading in tourist markets
Agoda's data shows that Vietnam is a preferred travel destination for Chinese tourists in early 2024. Specifically, during the recent Lunar New Year holiday, the percentage of Chinese tourists interested in traveling to Vietnam in 2024 reached 95% compared to 2020 - the period before travel restrictions due to the COVID-19 pandemic were implemented.
According to Mr. Vu Ngoc Lam, Director of Agoda in Vietnam, mainland Chinese tourists accounted for nearly one-third of Vietnam's total tourists in 2019 and generated the largest tourism revenue. "In 2020, China topped the rankings for searches for tourism information in Vietnam. Tourists from this country choose Vietnam because of its rich culture and beautiful natural landscapes."
However, the subsequent pandemic and border closures led to a significant drop in the number of visitors to Vietnam. After reopening, search volumes in 2022 and 2023 only reached 3% compared to 2020. Therefore, the recent resurgence of interest from mainland Chinese tourists is a sign of Vietnam's tourism potential this year," said Mr. Vu Ngoc Lam.
According to the General Statistics Office, in January 2024, Vietnam received over 1.5 million international visitors, a 73.6% increase compared to the same period last year. Of these, Chinese visitors led with over 242,000 arrivals, a significant increase from the previous month. In 2023, Vietnam also welcomed over 1.74 million Chinese visitors, a 376% increase compared to the previous year.
Chinese tourists visit and watch performances at the Ponagar Tower in Nha Trang. Photo: KY NAM
Michael Kokalari, Director of Macroeconomic Analysis and Market Research at Vina Capital Investment Fund, predicts that the number of Chinese tourists is likely to increase again in 2024 (having reached 30% of pre-COVID-19 levels last year).
Mr. Nguyen Quoc Ky, Chairman of the Board of Directors of Vietravel Tourism Company, stated that in 2024, the Vietnamese tourism industry aims to welcome over 18 million international visitors, the same number as in 2019. To achieve this figure or higher, it is necessary to examine the key markets that have been supplying tourists to Vietnam in recent years.
Regarding the Chinese tourist market, forecasts from the World Tourism Organization (UNWTO) and China's policies indicate a surge in overseas travel by Chinese citizens this year. In January 2024 alone, approximately 1.2 million Chinese tourists traveled abroad. On average, around 120 million Chinese citizens travel overseas each year.
"After 2023, along with the growth of domestic tourism, Chinese people will travel abroad more, and Vietnam is a promising destination due to its convenient road, air, and rail connections..."
"Chinese tourists will be a driving force for the recovery of tourism in various countries, including Vietnam, if a suitable strategy is in place. The tourism industry needs clear policies with specific targets for how many tourists each country and region will receive, and then plans and actions can be developed immediately to avoid falling behind," said Mr. Nguyen Quoc Ky.
Consider waiving visa requirements for Chinese visitors.
Currently, countries in the region such as Thailand, Malaysia, and Singapore have set specific targets for attracting international tourists, including Chinese tourists, with well-structured plans and strategies. For example, Thailand aims to welcome 36-38 million international tourists this year and targets 10-11 million Chinese tourists, double last year's number.
Mr. Dang Manh Phuoc, CEO of The Outbox Company, analyzed forecasts from many international organizations indicating that Chinese tourists will return and quickly become a major source market for Vietnam. He stated that formulating a strategy to attract Chinese tourists at this time might be a little late for this year, but it remains necessary for the future.
"Chinese tourists are important not only to Vietnam but also to many other Southeast Asian countries, so competition among destinations is fierce. This requires the tourism industry to have appropriate strategies and policies for welcoming tourists, the first of which is considering visa exemption. After COVID-19, the needs and tastes of Chinese tourists have also changed, so suitable products are needed. This group of young tourists prefers independent tours and prioritizes beautiful destinations… so more investment in promotion and communication is needed, rather than focusing on cheap or zero-cost tours as before," said Mr. Dang Manh Phuoc.
Considering visa exemption for Chinese tourists is a proposal mentioned by many experts and tourism businesses in their strategies for attracting visitors from this market. Thailand and another country have already implemented this policy to increase competitiveness as destinations. Vietnam has many advantages in attracting Chinese tourists, such as its proximity, similar culture, many beautiful destinations, and shopping, accommodation, and dining services that suit the needs and mid-range segment of this market.
Mr. Phan Dinh Hue, General Director of Vietnam Circle Tourism Company, said that after a period of encouraging domestic tourism, Chinese tourists will travel abroad more in 2024 and will be the most important market for many countries.
"In addition to visa policies, strategies for attracting Chinese tourists could include developing products that combine train, sea, air, and road transport. Chinese tourists tend to be a bit noisy, so dedicated areas could be created to cater to this segment, such as soft-planning of streets specifically designed to attract Chinese tourists, without impacting traditional tourist flows from Europe and the US..." - said Mr. Phan Dinh Hue.
The peak season for international tourists from Europe and the US is usually from September and October to March and April of the following year. The remaining periods are typically less crowded, especially for destinations in the North. Attracting Chinese tourists could help 3-4 star hotels and accommodations in the North achieve full occupancy and maintain business operations throughout the year…
Increase customer spending capacity.
Agoda's data shows that Ho Chi Minh City, Hanoi, Nha Trang, Da Nang, and Phu Quoc Island are the top choices for Chinese tourists. Speaking with a reporter from the Nguoi Lao Dong newspaper, Mr. Le Truong Hien Hoa, Deputy Director of the Ho Chi Minh City Department of Tourism, said that China has consistently been one of the largest tourist markets in the city. The city prioritizes promoting and developing this market, while also encouraging businesses to invest in products and services to increase tourists' spending and purchasing power.
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