On March 15, 2023, the Chinese government included Vietnam in the list of countries to open group tourism in the second phase. After one year, Vietnam welcomed nearly 1.8 million Chinese visitors, ranking second in the market sending visitors to Vietnam, but only 31% compared to 2019.
Mr. Nguyen Trung Khanh, Director of the Vietnam National Administration of Tourism, assessed that China has always been a key source market. In 2019, the number of Chinese visitors to Vietnam led, with 5.8 million visitors out of a total of 18 million international visitors.
The Vietnam National Administration of Tourism also recorded a strong growth trend of Chinese visitors in the first 3 months of the year, reaching 890,000 arrivals, an increase of 635% over the same period.
Chinese tourists spend an average of $1,022 per trip in Vietnam, higher than some neighboring markets such as Japan, South Korea and Southeast Asia. In 2019, total revenue from Chinese tourists in Vietnam reached $5.9 billion, accounting for 32% of total revenue from international visitors.
Mr. Johnathan Hanh Nguyen, Chairman of the Inter-Pacific Group (IPPG), commented that the Chinese tourist market still has a lot of untapped potential. Tourism products in Vietnam currently do not meet the shopping needs of the high-spending Chinese tourist market.
According to Mr. Hanh, for every 100 middle- and high-end Chinese tourists, 80% will spend a lot on shopping. Meanwhile, favorite tourist destinations of Chinese tourists such as Mong Cai, Nha Trang or Ho Chi Minh City still lack this group of tourists as well as shopping places for them to spend money.
CEO of Fantasea International Travel Company Dao Viet Long said that before the pandemic, Vietnam was a favorite destination for Chinese tourists. Localities that attracted Chinese tourists included Da Nang, Nha Trang, and Phu Quoc. During peak periods, about 20,000 Chinese tourists visited Nha Trang every day. However, even then, Vietnam was not attractive to the middle and high-end Chinese customer groups.
According to Mr. Long, Chinese tourists prioritize luxury destinations in developed countries, with cultural differences or satisfying entertainment and shopping needs. Vietnam tourism only meets basic needs, services are not diverse, and have not stimulated the shopping needs of Chinese tourists.
Vietnam has always been considered a "cheap destination" for Chinese tourists due to the way the tourism industry has exploited tourism in the past with zero-dong tours and cheap road tours. The low spending level also comes from the fact that most of the tourism programs are short (4-5 days), most of the tourists travel in groups with full-package services, and spend little outside.
"King of luxury goods" Johnathan Hanh Nguyen said that in March he joined hands with two Chinese partners to open duty-free stores and develop shopping tourism products at key tourist destinations.
The duty-free shop at Bac Luan border gate, Mong Cai, Quang Ninh is expected to open at the end of 2024. This activity is expected to bring the locality an additional 10 million Chinese visitors. In Nha Trang, the inner-city duty-free shop in the city center will be invested in in 2024 and open in early 2025, ready to welcome 12 million international visitors, of which 50% will be Chinese visitors.
Mr. Hanh said that when the duty-free stores come into operation, it will be an opportunity to attract foreign currency from high-end Chinese customers. IPPG representatives calculated that the two partner companies will bring about 28 million Chinese visitors to the Vietnamese market each year, equivalent to 2% of the country's population.
Mr. Le Huu Hoang, Standing Vice Chairman of Khanh Hoa Provincial People's Committee, said that the locality supports the development of the duty-free shop model in Cam Ranh. He also hopes that there will be more international flights from Chinese localities to Cam Ranh, Khanh Hoa.
Mr. Nguyen Trung Khanh commented that cooperation with Chinese enterprises is an opportunity to promote tourism trade, contributing to diversifying Vietnam's tourism products, serving international tourists. In the second half of 2023, international visitors to Vietnam will exceed 1 million each month. In the first quarter of this year, Vietnam welcomed 4.6 million arrivals, an increase of 72% compared to 2023.
In order to achieve the annual target of welcoming 17-18 million visitors, the tourism industry prioritizes cooperation with domestic and foreign partners, developing highly competitive tourism products, including shopping tourism.
Mr. Khanh said that in the world, there are many countries that have successfully built the duty-free store model such as Singapore and South Korea. Duty-free stores not only stimulate tourists' spending but also build the destination's shopping brand.
"If invested and completed effectively, duty-free shopping centers in Vietnam will contribute to promoting tourism economy, increasing investment, attracting labor, and bringing positive impacts to businesses," said Mr. Khanh.
TH (according to VnExpress)Source
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