VIETNAM
TRAVEL
LANDSCAPE
2024 THE OUTBOX COMPANY
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UNDERSTANDING
YOUR TRAVELERS
ASIA
TRAVEL MARKET
VIETNAM
TRAVEL-FOCUSED
T RAC K E R OMNIBUS SURVEY
GUEST SURVEY
The state of Vietnam's tourism
industry in 2023 is a blend of
achievements and obstacles.
Vietnam successfully exceeded its tourist arrival targets.
Initially, the country had set a goal of 8 million foreign
visitors by 2023; however, in October, that number was
revised upwards to 12.5-13 million. At the end of the year,
Vietnam welcomed over 12.59 million international tourists,
surpassing the expectations.
Vietnam's tourism industry demonstrated an impressive
recovery, however, Vietnam is still lagging behind regional
peers such as Thailand and Malaysia in terms of proactive
approaches to diversify and attract international tourists
back to the country.
01 VIETNAM TRAVEL LANDSCAPE 2024
The global economy is still on a bumpy road which is likely to impact travel spending to
some extent. However, travel remains under-indexed relative to the broader economy.
The tourism industry has witnessed a remarkable resurgence
worldwide, primarily in regions beyond Asia, which have
achieved complete recovery relative to 2019. Between January
and September 2023, roughly 975 million tourists ventured
overseas, marking a 38% increase from the corresponding
period in 2022.
International tourism in many regions still has significant room
for improvement, with only the Middle East fully recovered, while
North America, Europe, and Asia are still lagging.
02 VIETNAM TRAVEL LANDSCAPE 2024
Despite its slow initial recovery, the tide is turning
and international tourist arrivals are making a
robust comeback in the second half of 2023.
The easing of travel restrictions for inbound and outbound tourists in China
and the continued recovery in the region’s tourism capacity have supported
rising tourism demand. Despite the overall positive trend, air connectivity
remains a significant challenge for the Asia Pacific travel industry. The
pandemic led to reduced flight frequencies and higher airfares, which still
affect the region to this day.
However, performance among Asia-Pacific sub-regions is mixed, with South
Asia being the most resilient, recovering 87% of pre-pandemic levels but
North-East Asia only about 49%.
The speed of tourism recovery in Asia &
Pacific in 2023 faces both upside and
downside risks.
03 VIETNAM TRAVEL LANDSCAPE 2024
Vietnam's tourism industry has demonstrated a significant recovery in 2023, with a
remarkable increase in international tourist arrivals, reaching 12.59 million. This figure
reflects a nearly fourfold increase compared to the 3.66 million arrivals recorded in the
entirety of 2022.
Vietnam's tourism recovery rate in the first three quarters of
2023 stood at 44% of pre-pandemic levels, the lowest
among five popular Southeast Asian destinations, including
Thailand (75%), Singapore (73%), Malaysia (69%), and
Indonesia (53%). The situation had significantly improved
toward the end of 2023.
International arrivals Vietnam's tourism industry concluded 2023 with a
staggering 12.59 million visitors, surpassing the
12,59 mil. predetermined target of 8 million. Despite this significant
achievement, it is evident that the industry has yet to
Domestic tourists recover from the impact of the pandemic, as the figures still
103,2 mil. fall short of the 2019 pre-pandemic record of 18 million
tourists. Notably, the absence of Chinese tourists remains a
significant factor in the lower numbers.
Given the remarkable expansion of the domestic market in
Recovery vs.2019 2022, the favorable outcome of 2023 (103.2 million) is hardly
unexpected. The number of domestic tourists reached a
70% historic high of 101.3 million in 2022, exceeding the target by
168.3% and surpassing the 2019 figure of 85 million.
Target reached
04 VIETNAM TRAVEL LANDSCAPE 2024 157,49%
Singapore, Indonesia, and Vietnam are at the forefront of
tourism resurgence in the Southeast Asian region.
05 VIETNAM TRAVEL LANDSCAPE 2024
China’s slower-than-expected economic recovery has left its population more
hesitant to spend money heading abroad. As a result, the number of Chinese arrivals
in Southeast Asian countries varied, ranging from 14% to 39% compared to the figures
recorded in 2019.
Following three years of Covid-enforced isolation,
The proportion of the Chinese market in ASEAN China's outbound tourism industry has begun to regain
destination’s international arrivals momentum, with tourists eagerly embarking on trips to
various holiday destinations. However, it appears that
some Southeast Asian countries are discovering that
Vietnam Singapore Indonesia
the post-pandemic travel demand might not mirror the
same patterns as before.
32,2% 19% 12,9% China was once the largest source of international
tourists globally, with Southeast Asia ranking among
their favored destinations. However, Vietnam, like other
countries in the region, has observed that the influx of
Chinese visitors has not reached the levels they had
Thailand Malaysia
anticipated.
In the short term, it is impossible for Southeast Asian
27,9% 11,9% countries to make up for China’s missing tourists.
However, in the long term, countries should expand
tourist marketing and outreach to other markets with
expanding middle classes.
Source: Destination’s Tourism Authorities; 2019 figures are used for calculation
06 VIETNAM TRAVEL LANDSCAPE 2024
Vietnam's international source market is characterized by a diverse mix of established,
emerging, and niche markets.
Top 15 international source markets to Vietnam over the years
The East Asian markets are the primary source of
international tourism for Vietnam, with China, South
Korea, and Taiwan serving as the leading countries
1
of origin. These markets are drawn to Vietnam due
to its affordability, cultural similarities, and natural
beauty.
KEY MARKETS
Vietnam benefits significantly from the proximity
and regional tourism ties of its Southeast Asian
2 neighboring markets, namely Thailand, Singapore,
and Malaysia, as they represent significant source
markets.
Europe and North America continue to exhibit
steady growth, captivated by Vietnam's rich
cultural heritage, historic landmarks, and
3 opportunities for adventure. Nevertheless, in
comparison to East Asia, these regions' total
contribution to overall arrivals remains smaller.
Source: VNAT, General Statistics Office
07 VIETNAM TRAVEL LANDSCAPE 2024
In 2024, broadening the tourist source markets of Vietnam doesn't necessarily imply a
complete shift to new ones. Rather, it presents an opportunity for the destination to
cultivate its current markets and capture various segments within them.
In the short term, relying on the number of tourist arrivals may not be the most effective method to boost the performance of Vietnam's tourism industry. Given
the robust market structure established over the years, transitioning to new markets may prove challenging. As such, in the coming years, Vietnam's travel
businesses should continue to prioritize the dominant tourist sources with more differentiated approaches.
South Korea remains the primary source of tourists,
Circle size = dominating both in volume and resilience to bounce back.
number of
arrivals from
Meanwhile, Thailand and Taiwan, with a CAGR 2016-19 of
each market over 20%, are displaying robust recovery rates. There is a
in 2023 considerable opportunity for Vietnam to enhance its
appeal and attract more tourists from these markets.
Arrivals Vietnam faces unique challenges and opportunities when
recovery,
2023 as
it comes to the Chinese market. Despite the current
share of economic downturn and reduced flight capacity,
2019, % particularly between China and Southeast Asia, Vietnam
has to be prepared for the demographic shifts in this
market. With a large population of young people,
traditional group travel experiences may no longer suffice
for Chinese tourists. Moreover, travel businesses must be
aware of the discerning nature of younger Chinese
travelers, who have high expectations due to the elevated
standards of hotels, airlines, and high-speed rail trains in
China.
Arrivals CARG
2016-19, %
08 VIETNAM TRAVEL LANDSCAPE 2024
The current stage of emerging market: India
India presents an attractive proposition for those looking to expand their The Asian Development Bank recently predicted that India could
tourism industry. Similar to China in the 1990s, India boasts a growing become “the next China” with regarding to outbound tourism, a
affluent population with an increasing interest in travel and a sentiment that appears to be reflected in the numbers. In May 2023, the
burgeoning airline industry. The country’s forecast growth in GDP per number of Indian tourists in Singapore surpassed that of Chinese
capita, accompanied by a growing propensity for international travel, tourists, and the trend is being observed in other parts of the region.
could lead to a wave of Indian travelers setting out to see the world.
To tap into the Indian outbound market, countries would need to
India’s outbound travel has potential to grow from 21 million trips in emulate the measures that have long been employed with Chinese
2022 to over 80 million in 2040. tourists. These steps include loosening visa policies, expanding air
routes, and aiding hotels, restaurants, and attractions in customizing
their services to cater to Indian visitors.
Proximity is a major factor for 70% of Indian travelers when choosing a
destination. The Middle East and South Asia are popular nearby
locations, while North America and Western Europe are preferred for
long-distance travel. Some destinations have maintained their
popularity, while others are rising in the rankings.
Top Southeast Asia destinations are steady favorites.
Top Southeast Asia destinations are steady favorites. It’s primarily
Source: Bureau of Immigration, Govt. of India , Oxford Economics due to diaspora and cultural linkages. Thailand, in addition, draws
Indian travelers due to its leisure positioning.
09 VIETNAM TRAVEL LANDSCAPE 2024
Travel & Tourism Outlook for 2024
APAC Tourism in 2023: Behind 2019 Figures The Future of APAC's Tourism Market: A Mixed Picture
Despite making strides in the tourism industry, APAC is still trailing in Although the forecast for APAC's tourism market is positive, there are
comparison to the 2019 numbers. This year, the region is expected to receive varying degrees of growth. While China, India, and Australia will see a
a total of 149 million leisure arrivals, which is 30% less than the figures from slight increase in value compared to previous years, Thailand and Japan
2019. Furthermore, the overall value of the region's tourism industry is will still lag behind 2019 levels.
estimated to reach only 68% of the returns from 2019.
However, domestic travel within the region is expected to rebound
strongly, with most countries surpassing their 2019 rates. Due to the
The Robust Outlook for Leisure Travel Demand in 2024 pandemic, many travelers opted for domestic travel over international
While the pandemic has had a significant impact on the economy, the trips, a trend that is expected to continue despite the removal of
future of leisure travel demand appears promising. Despite financial restrictions. The only exception to this trend is Japan, which has
constraints, people have demonstrated that traveling is a priority. traditionally had a lower demand for domestic leisure and travel.
Consumers are more inclined to allocate their funds towards travel than
other discretionary spending options. Additionally, many households still Anticipated Growth in Chinese Outbound Travel
have significant amounts of surplus savings, indicating untapped demand. According to the WTM Global Travel Report, produced in partnership with
Therefore, we predict that prioritizing travel will continue to be a defining Tourism Economics, China is expected to experience a 131% increase in
characteristic of the 2024 outlook. outbound travel between 2024 and 2033. This growth is projected to be the
highest among all the major markets. As a result, China has the potential
to surpass the United States and double its size as a source market in
terms of spending.
10 VIETNAM TRAVEL LANDSCAPE 2024
Travel & Tourism Outlook for 2024
Air Travel outlook for 2024 Hotel outlook for 2024
Current situation Current situation
Vietnam's aviation sector has made an impressive comeback since the lifting of Growth in 2022 was driven by demand as borders reopened. In 2023, however,
COVID-19 travel restrictions. It has quickly become the world's fastest- the rise in operational costs has compelled hotel owners to offset the costs by
recovering domestic aviation market and is projected to be the fifth fastest- driving ADR growth. Additionally, operators have been focusing on increasing
growing aviation market worldwide. The International Air Transport Association the ADR to mitigate the impact of inflation. Despite occupancy rates dropping to
(IATA) forecasts that the country will reach 150 million air transport passengers as low as 20-40% during the pandemic, the hotel sector in Vietnam has made a
by 2035. strong recovery, with occupancy rates now hovering just 15% below 2019 figures.
In 2023, the total aviation market is estimated to carry around 74 million Outlook for 2024
passengers, a 35% increase from the previous year, equivalent to 94%
compared to pre-COVID-19 levels in 2019. International passenger Despite the macroeconomic volatility that has hindered short-term hotel
transportation has reached 32 million passengers, a 1.7-fold increase from the investment, there has been a steady increase in fundamental performance.
previous year, and a 77% increase compared to 2019. Looking ahead, there are more tailwinds than headwinds for the balance of
2023 and 2024. With hotel trading maintaining a strong performance, the hotel
Outlook for 2024 investment market is poised for a full recovery. The outlook is positive, with a
projected growth of 3% in transaction volume for Asia Pacific by 2024, reaching
The prevailing uncertainty that defines the current global climate will have US$10.4 billion.
significant implications for air travel and pricing in 2024. According to the Civil
Aviation Authority of Vietnam (CAAV), domestic passenger traffic volumes are Investment volume forecast for 2024 in SE Asia destinations, (in US$ million)
expected to decline by approximately 11% compared to 2023, with an estimated
volume of 38.5 million. Conversely, international passenger traffic is anticipated
to increase by 31%, with expected volume of 41.8 million.
The international flight network has been gradually restored and expanded.
Both Vietnamese and foreign airlines have reinstated flights to their traditional
markets, while also branching out to new markets in Central Asia.
Source: JLL
11 VIETNAM TRAVEL LANDSCAPE 2024
Travel trends to look out for in 2024
As we enter 2024, the travel landscape continues to evolve, shaped by both post-pandemic realities and emerging preferences. Destinations and travel
businesses are keen to keep their finger on the pulse of these trends to remain competitive and cater to shifting traveler demands. Here are some key trends to
watch out for:
Nich tourism Sustainable hotel Diversed and
segments choices empowered travelers
In the coming year, personalized experiences Sustainability will be a defining factor in To attract the post-pandemic traveler, who
that align with consumers' lifestyles and values hospitality in 2024. Hotels that prioritize demands high-tech and high-touch
will be in high demand, particularly in the areas sustainable initiatives will bring in more products/services that respect their beliefs and
of wellness, luxury, eco-tourism, sports, and business, both from groups and leisure travelers. values, travel brands and destinations must
adventure. This growing trend reflects a Even business travel managers are looking for prioritize diversity and inclusion as core values in
willingness to invest more in what matters most ways to reduce the carbon footprint of their their products and services.
to individuals. corporate travel programs, and that can include
choosing more eco-friendly accommodations.
Value-driven travel Localism, beyond the Intelligence concierge,
consumption authenticity Chat GPT in travel
Value-driven consumption is a significant shift Localism, driven by a desire for transparency, Leading companies such as TripAdvisor,
in travel consumer behavior, with a growing support for local economies, environmental Trip.com, GetYourGuide, Klook, Kayak, and
preference for brands and products that align concerns, and authenticity, will be shaping OpenTable have recently revealed their
with personal values and ethics, such as traveler choices and strategies. Businesses integration of ChatGPT plugins, with many others
sustainability and social responsibility. This sourcing locally, highlighting local heritage, and expected to follow suit in the years ahead.
trend is reshaping the marketplace, with fostering community connections will likely see Despite this, demand for human travel agents
consumers making choices based on a brand's increased consumer loyalty and preference. still presents as they offer a unique value
values and ethical practices. Localism reflects a societal shift towards proposition that leverages their status as
sustainability and community-focused living. influencers, having actual real-world experience
and recommendations to share. Artificial
intelligence, however, has the potential to
augment their abilities by bringing in technology
capabilities that support their
12 VIETNAM TRAVEL LANDSCAPE 2024 recommendations.
Disclaimer on Report Information
While we have conducted thorough research and verified the
contents of this report, we cannot guarantee or warrant the
accuracy, completeness or timeliness of the information
provided. We do not accept responsibility for any damages or
losses that may result from using the information contained in
this report.
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