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Upgrading Vietnam's tourism ranking.

Việt NamViệt Nam25/06/2024

The tourism industry is establishing its position on the world tourism map. However, in a recent report by the World Economic Forum (WEF) on the 2024 Tourism and Travel Development Index, several of Vietnam's tourism indicators were ranked at the bottom.

International tourists visiting Vietnam.

Were the indicators truly objective?

According to the WEF, the lowest-scoring indicator for Vietnam's tourism industry is Tourism Service Infrastructure (2.2 points, ranked 80th out of 119). The indicator on Prioritization of Tourism and Travel scored 3.63 points, ranking 98th out of 119. Vietnam's lowest-ranked indicator is the socio-economic impact of the tourism industry, scoring 2.95 points, placing it near the bottom of the list at position 115th out of 119.

However, some argue that the ranking doesn't accurately reflect the capabilities of Vietnam's tourism industry. According to AZA Travel CEO Nguyen Tien Dat, the data is largely based on figures from the end of 2023. Meanwhile, many of Vietnam's policies have begun to be relaxed recently. To fully understand the benefits of these policies, Vietnam needs more time. Therefore, many indicators may not accurately reflect the competitiveness of Vietnam's tourism.

Hoang Quoc Hoa, Director of the Tourism Information Center (Vietnam National Tourism Administration), also believes that this ranking does not accurately reflect the reality of Vietnamese tourism, and the reason may be that the WEF has not fully updated the latest statistical data. For example, the index on the level of tourism openness in Vietnam ranks 80th out of 119, in the lower-middle group globally . This index consists of four component indicators, in which the visa requirements are assessed based on a report by the World Tourism Organization from 2015. This is outdated, as Vietnam has made significant improvements to its visa policy since mid-August 2023.

For example, the socio-economic impact index ranked 115th out of 119, almost at the bottom, because the WEF used data from 2020, 2021, and 2022, a period when Vietnam was almost entirely focused on combating the Covid-19 pandemic, so it was inevitable that it could not invest in or focus on tourism development.

However, many believe that the tourism industry needs to re-evaluate itself, address shortcomings, and find solutions to "recover from rock bottom," aiming for a more positive ranking.

A grueling race track

Although there are many explanations for the decline, and even the bottom ranking, in some tourism and travel development indicators, it cannot be denied that Vietnamese tourism is showing signs of stagnation and beginning to reveal weaknesses. In the race against other countries in the region, Vietnamese tourism is showing signs of falling behind.

Many travel agencies report that even during peak tourist season, they are desperately short of customers. The majority of international tourists visiting Vietnam travel independently, not purchasing package tours. They primarily opt for smaller, individual services such as renting vehicles, hotels, guesthouses, and hiring tour guides, which do not generate high profits for the businesses.

In particular, tourism trends have undergone significant changes in recent years. According to some studies, Vietnam is not yet a top-tier destination for potential markets such as China, Japan, European countries, and the Americas. The majority of Japanese visitors to Vietnam are businesspeople. While Chinese tourism has seen a resurgence after a period of stagnation due to the Covid-19 pandemic, it has not yet reached the expected numbers.

We've discussed the reasons for this "stagnation" quite a bit. These include significant investment in infrastructure, which is still insufficient to address the problems of overloaded airports, congested roads, and a shortage of seaports serving tourists. Furthermore, the number of standard hotels and accommodations in localities is not commensurate with the growth in tourist numbers. Finally, the system of rest stops along the way to tourist destinations in Vietnam is still largely unplanned and lacks a coordinated approach.

According to Vu The Binh, Chairman of the Vietnam Tourism Association, we are proud of the rapid growth of our tourism industry, but it cannot yet be compared to countries like Thailand, Singapore, South Korea, and Japan. Meanwhile, Dr. Pham Trung Luong, former Deputy Director of the Institute of Tourism Research (Vietnam National Tourism Administration), believes that indicators show the Vietnamese tourism industry is facing many difficulties and challenges. Tourism in recent times still has many limitations, failing to accurately reflect its inherent potential and strengths. Tourism products are not truly attractive and lack differentiation in market development.

From there, Mr. Luong proposed creating conditions for domestic and international airlines to open direct routes connecting Vietnam with target and potential markets. Regarding the lowest indicator related to tourism infrastructure, the tourism sector needs to coordinate with related sectors to develop tourism technical infrastructure and service infrastructure, especially accommodation and entertainment facilities. At the same time, it is necessary to promote the development of high-end, branded, and internationally competitive resorts in key tourist areas.

According to Lux Group CEO Pham Ha, there are four main criteria for a country's tourism to attract visitors: natural landscapes, cuisine, culture, and people. Therefore, for the tourism industry to increase its competitiveness and ranking in the WEF rankings, Vietnam needs to redefine its national tourism promotion strategy. One of these is to become a high-end destination, with services that ensure visitor satisfaction. Competitive pricing is also a strong point to attract tourists. But instead of lowering prices, the focus should be on improving service quality so that visitors feel their money is well spent.

Therefore, for Vietnamese tourism to truly reach a higher level, a well-structured strategy is needed to position the Vietnamese tourism brand on the world map.

The Government Office has issued a document conveying the directives of Deputy Prime Minister Le Minh Khai regarding improving Vietnam's tourism development index ranking. According to the World Economic Forum's (WEF) Global Tourism Performance Index 2024 report, many Southeast Asian countries have dropped in ranking, with Vietnam falling 3 places compared to 2021. Regarding this issue, the Deputy Prime Minister assigned the Ministry of Culture, Sports and Tourism to lead and coordinate with the Ministry of Transport, the Ministry of Foreign Affairs, the Ministry of Planning and Investment, and other relevant ministries and agencies to research, review, and assess the reasons for Vietnam's tourism development index ranking decline, and to propose appropriate and effective solutions to improve the ranking and attract international tourists; a report should be submitted to the Prime Minister before June 30, 2024.


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