Vietnam’s tourism industry is riding a wave of success, welcoming a significant influx of international visitors, particularly from China. In the first eight months of 2024, Vietnam saw a remarkable 46% increase in foreign tourist arrivals, reaching a total of 11.4 million. This surge is largely attributed to the strong rebound in travel from China, with visitor numbers skyrocketing by a staggering 158%. Indonesia, the Philippines, and South Korea also contributed to the positive trend, recording substantial increases in tourist arrivals. However, amidst this overall growth, a concerning trend has emerged: a decline in Thai tourists visiting Vietnam.
In the first eight months of 2024, the number of Thai tourists visiting Vietnam dropped by 15%, reaching only 274,000. This decline stands in stark contrast to the robust growth from other Asian markets, and raises concerns for Vietnam’s tourism authorities. Experts attribute this shift to several factors, including expensive airfares, limited entertainment options, and increased competition from China.
Thai tourists are increasingly opting for China as their preferred travel destination, citing several reasons. The visa waiver agreement between China and Thailand, implemented in March 2024, has made Chinese destinations more accessible and attractive to Thai travelers. With simplified travel procedures and new destinations to explore, China offers a fresh and exciting alternative to Vietnam. Additionally, Thai tourists find Vietnam’s offerings to be somewhat repetitive and lacking in innovation. They perceive the experiences as “too familiar” and are seeking new and distinctive travel options.
Furthermore, the rising cost of airfares between Thailand and Vietnam, which are currently 50-60% higher compared to previous years, has made travel less convenient and more expensive. The reduced number of direct flights and the suspension of flights from Phuket to many Vietnamese destinations force travelers to transit through Bangkok, further increasing travel time and costs. In contrast, the growing number of direct flights between Thailand and China has made the latter a more attractive destination.
The limited availability of large shopping centers that cater to Thai tourists in Vietnam has also contributed to the decline. Many Thai visitors are left shopping at smaller stores and markets, raising concerns about product quality and safety. To attract more Thai visitors and boost spending, experts suggest that Vietnam develop reputable, larger shopping centers specializing in souvenirs and agricultural products.
To address the decline in Thai tourists, industry stakeholders are calling for measures to address the challenges. These include reducing airfare costs, expanding entertainment and leisure options, and boosting marketing efforts tailored to Thai preferences. Vietnam must innovate to remain competitive in attracting Thai visitors, particularly as competition from China and other regional players continues to rise. The tourism industry needs to focus on organizing more cultural events and festivals to appeal to Thai visitors, and increase the number of Thai-speaking tour guides, especially in northern Vietnam. By addressing the specific issues of cost, entertainment, and competition, Vietnam can potentially regain its share of the Thai tourist market and sustain its broader growth in international arrivals.
