Untangling visa bottlenecks, eagerly welcoming new influx of tourists.

VietNamNet•11/07/2023

Prepare tours, targeting new customer segments.

The removal of visa restrictions to attract international tourists has been long awaited by the tourism industry, airlines, and travel companies. Therefore, the draft Law amending and supplementing several articles of the Law on Exit and Entry, recently passed by the National Assembly and effective from August 15th, is truly good news and a driving force for Vietnam's tourism sector to strongly implement Government Resolution 82 on accelerating tourism recovery and development.

Mr. Cao Tri Dung, Vice President of the Vietnam Tourism Association, assessed that the new visa policy will fundamentally change the structure of tourists as well as our service system.

A relaxed visa policy will pave the way for many new tourist flows, especially independent travelers, families, and small groups. At the same time, it will enhance Vietnam's competitiveness as a destination in attracting international tourists.

Vietnam expects to welcome over 10 million international tourists in 2023, setting the stage for 2024-2025.
(Photo: Do Huong)

Mr. Dung affirmed that the remaining six months of 2023 and the following years will see a significant increase in the number of international visitors to Vietnam, especially individual travelers and those using e-visas.

According to Mr. Nguyen Cong Hoan, General Director of Flamingo Redtours, removing the visa "bottleneck" will create favorable conditions for travel companies to develop products, especially long-duration tours with multiple visitors.

To date, the company is planning to develop longer-stay products for elderly and retired customers who have more time to travel; focusing on product lines such as field trips, cultural exploration , tours exploring Vietnam, medical tourism, and tours combining visits to Indochina countries with a return to Vietnam, etc.

He said that some markets that reacted quickly to the policy have already attracted customers, such as those in Northeast Asia, Southeast Asia, and South Asia. Some markets far from the unit have prepared products for the year-end and next year's tourist season.

Meanwhile, Mr. Pham Ha, Chairman of Lux Group, commented that with the expansion of markets approved for e-visas, extending the validity period to 90 days and removing entry limits, tourists can stay longer, 3-4 weeks instead of just 14-15 days as before. Therefore, longer tours of Vietnam from North to South, and 21 or 23-day tours combining Vietnam, Cambodia, or Laos before returning to Phu Quoc or Da Nang for relaxation are being designed. He expects the company's revenue during the peak inbound tourism season from September onwards to increase by at least 30%.

VietIndo Travel Co., Ltd. is also focusing on developing its products, with completion expected in July to be ready to welcome international tourists from September to October. Instead of being constrained by time and the limited number of days as before due to visa restrictions, more tours lasting over 15 days will be offered.

We need guests who stay longer and spend more.

Having previously worked in state tourism management and as an expert in the industry, Mr. Vu The Binh, Chairman of the Vietnam Tourism Association, believes that exploiting the benefits of a more open visa policy is not difficult, but the important thing is to implement each task in detail to truly transform those advantages into attractive tourism products.

He noted that policies can make it easier for international tourists to come to Vietnam, but if tourists come and don't enjoy themselves, don't spend more money, or don't stay longer, then attracting a large number of visitors loses much of its meaning.

"Therefore, becoming a luxury tourism market, attracting high-spending tourists who stay for extended periods in Vietnam, is the goal of the tourism industry. This necessitates a clear policy and a strong commitment from tourism businesses," he emphasized.

Furthermore, there needs to be linkage between industries and businesses to ensure that the supply chain offers tourism products at the most suitable prices. While price competition may not be the deciding factor in the coming period, it creates an attractive appeal for international tourists.

In reality, Mr. Nguyen Cong Hoan observed that the biggest challenge for tourism today is pricing. Tour prices in Vietnam are not competitive due to three factors: the depreciation of the currency; increased airfare costs, with airfare accounting for 50-60% of tour costs; and rising input costs such as hotels, restaurants, entrance fees, and increased wages. All of these factors lead to higher input costs, making it difficult to create products that stimulate demand and attract tourists.

However, AZA Travel CEO Nguyen Tiet Dat believes that the price of Vietnamese tourism products is not high, because with the same 5-star quality, compared to other countries in the region and around the world, our prices are still competitive.

However, we lost out in terms of approach. Thailand's strategy is to attract tourists first and then figure out how to get the money later, so the all-inclusive package prices are very cheap. This price is possible thanks to the close collaboration between airlines, hotels, restaurants, and supporting shopping systems. As a result, according to the Tourism Authority of Thailand, tourists spend between 5,000 and 10,000 baht (approximately 3.5 to 7 million VND) per day on shopping alone (food and goods).

In Vietnam, the tourism industry still thinks short-sightedly, wanting to make money immediately and setting prices that are just enough to cover costs, which is why prices are often high. This mentality, coupled with a lack of cohesion, leads to inflated airfare and transportation prices, and exorbitant restaurant prices, while in reality, Vietnamese tourism is inherently inexpensive (hotel room rates, food prices), yet it still ends up being perceived as expensive.

Ngoc Ha

Building a solid 'runway' will propel tourism to take off . Experts believe that the government's and the nation's expectations for the tourism industry do not stop at 8 million international visitors. Successfully implementing Government Resolution 82 will create momentum for Vietnamese tourism to take off.

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