VIEWS: 14 PAGES: 283 CATEGORY: Research Reports POSTED ON: 3/27/2012
Travel and tourism in Vietnam contributed about XX% to the national GDP in 2011, which indicates a significant increase from the XX% it contributed in 2010. Travel and tourism also accounted for XX% of the country’s total employment in 2011. Vietnam’s tourist volume, which includes inbound, domestic and outbound tourists, increased during the review period (2007–2011). The main reasons for this growth include Vietnam’s growing economy, hosting of international fairs and exhibitions, government initiatives to promote the country as an attractive tourist destination, and increasing level of leisure and business travel. In 2011, Vietnam recorded the fourth-fastest inbound tourism growth in the world. The main growth drivers over the forecast period will be the government’s efforts to increase inbound tourism, the country’s improving consumer confidence and the high demand for promotional offers provided by travel and tourism suppliers.
Travel and Tourism in Vietnam, Key Trends and Opportunities to 2016 Market Intelligence Report Reference code: TT0011MR Published: March 2012 www.timetric.com Timetric John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0)20 7936 6400 Fax: +44 (0)20 7336 6813 www.timetric.com EXECUTIVE SUMMARY 1 Executive Summary Vietnam was ranked the fourteenth most attractive destination to develop travel and tourism businesses within the Asia-Pacific region in 2011, according to the Travel and Tourism Competitive Index (TTCI). Travel and tourism in Vietnam contributed about 5% to the national GDP in 2011, which indicates a significant increase from the 3.9% it contributed in 2010. Travel and tourism also accounted 3.0% of the country’s total employment in 2011. Vietnam’s tourist volume, which includes inbound, domestic and outbound tourists, increased from 25.30 million in 2007 to 34.65 million in 2011, at a compound annual growth rate (CAGR) of 8.18% during the review period (2007–2011). The main reasons for this growth include Vietnam’s growing economy, hosting of international fairs and exhibitions, government initiatives to promote the country as an attractive tourist destination, and increasing level of leisure and business travel. Large volume of inbound tourism According to the WTO, Vietnam accounted for the fifth-largest number of inbound tourist arrivals among ASEAN countries in 2011. Vietnam also recorded the fourth-fastest tourism growth in the world in the same year. The favorable trend in inbound arrivals is the result of the country’s hosting of several international events and fairs, aggressive promotional tourism campaigns and increasing government investment in travel and tourism. Tourism revenue in the country reached US$6.2 billion in 2011, compared to US$4.6 billion in 2010. There were 5.25 million inbound tourist arrivals in the country in 2011, and the top three countries accounted for 36% of the total inbound arrivals. The peak season for inbound tourism is September to March. International tourist arrivals are expected to increase at a CAGR of 6.72% over the forecast period (2012–2016), to reach 7.19 million tourists in 2016. The main growth drivers over the forecast period will be the government’s efforts to increase inbound tourism, the country’s improving consumer confidence and the high demand for promotional offers provided by travel and tourism suppliers. Cruise tourism on rapid growth in Vietnam Vietnam is developing into a popular destination for cruise tourism, and holds strong potential for the future growth of cruise tourism. The country benefits from its location between North and South Asia, and its close proximity to the region’s cruise hubs of Hong Kong and Singapore. The Vietnamese cruise tourism market registered steady growth during the review period, and cruise passenger volume reached 65,198 passengers in 2011. In addition, several cruise line operators, including Royal Caribbean, Costa Croisieres, Cunard and StarCruises, have recently added Vietnam to their itineraries. The cruise tourism market’s growth will be supported by the introduction of attractive tours, supportive government policies and quality service over the forecast period. Hotel market poised for strong growth The increasing tourism levels and positive investment environment in Vietnam is encouraging several international hotel operators to invest in the country. Hotel operators are entering the country through direct investments, joint ventures, management contracts and franchise agreements. Luxury hotel companies such as Accor, Hilton, Sheraton, Hyatt, Marriot, Banyan Tree, Intercontinental group and Sol Melia opened new hotel properties during the review period, and expanded their brands in popular tourist destinations such as Hanoi, Da Nang, Ho Chi Minh, Vung Tau, Nha Trang, Hoi An and Quang Ninh. Several existing operators are also renovating their properties to capitalize on the increasing inbound tourist arrivals. However, there is scarcity of hotel rooms in Vietnam’s small tourist locations, mountainous areas and countryside. Travel and Tourism in Vietnam, Key Trends and Opportunities to 2016 Page 2 © Timetric. This product is licensed and is not to be photocopied Published: March 2012 EXECUTIVE SUMMARY Government efforts to improve tourism The Vietnamese government has implemented various initiatives to encourage inbound tourists to visit the country. The Vietnam National Administration of Tourism (VNAT) selected some cities and provinces to host festivals such as the Mekong festival, Nha Trang sea festival and Can Tho fruit festival. These festivals included activities such as exhibitions and fairs, which attracted domestic and inbound tourists. The government also organized several tourism events, such as the International Travel Expo (ITE) in Ho Chi Minh City, National Tourism Year 2011 in Phu Yen and Caravan Week in Quang Ngai province during 2011. In addition, Vietnam is preparing to host events such as the National Tourism Year 2012 and Hue Festival in 2012 to promote tourism. The country will continue to participate in international tourism events such as ITB ASIA in Singapore, JATA in Japan, WTM in the UK and road-shows in different countries to promote itself as an attractive tourism destination to foreign countries. Travel suppliers such as hotels, airlines, tour operators and car rentals are also offering discounts to attract tourists. Some of the tour operators have partnered with airlines to offer discount tours for tourists. These initiatives will attract more inbound tourists over the forecast period. Aviation market anticipating strong growth The Vietnamese aviation market is expected to register significant growth due to the high demand from domestic and business passengers. According to the International Air Transport Association (IATA), Vietnam is expected to be the third-fastest-growing aviation market in the world, following China and the United Arab Emirates. The IATA also expects the country to register second-fastest growth worldwide in domestic passenger volume after China. Despite the country’s large population, the low-cost carrier (LCC) penetration is low compared to other Southeast Asian countries. This provides huge potential for the growth of LCCs in Vietnam. Domestic carriers have started increasing their flight frequency and number of routes to benefit from the rising aviation demand. The competition among airlines is expected to increase on main routes over the forecast period, and airlines will be forced to offer lower ticket prices to attract more passengers. The country’s strong economy, favorable demographics, expanding tourism industry and gradual liberalization of the aviation market offer strong prospects for the market to capitalize on. Travel and Tourism in Vietnam, Key Trends and Opportunities to 2016 Page 3 © Timetric. This product is licensed and is not to be photocopied Published: March 2012 TABLE OF CONTENTS TABLE OF CONTENTS 1 Executive Summary .............................................................................................................. 2 2 Introduction ............................................
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