Vietnam’s tourism industry is poised for a robust recovery in 2024, significantly contributing to the country’s economic growth. The number of international tourists visiting Vietnam is expected to rise by 40% in 2024, following a dramatic increase of nearly 250% in the previous year. This surge is largely fueled by the resurgence of outbound Chinese tourism, a vital component of the sector. Previously accounting for approximately 8% of Vietnam’s GDP, compared to Thailand’s 12%, the tourism industry is on track to add more than one percentage point to Vietnam’s GDP growth this year. This follows a remarkable year where tourism alone boosted the GDP growth by over four percentage points.
Despite the lingering impact of the pandemic on Chinese tourism across Asia, Vietnam has seen a 65% year-on-year increase in tourist numbers in the first five months of 2024, reaching levels slightly above those before Covid. This rise occurred even though Chinese tourist numbers have not fully rebounded to their pre-2019 figures. In May, China regained its top position as a source of tourists to Vietnam for the first time since the pandemic began. The resurgence is not limited to Chinese visitors. An “extraordinary desire” for travel among Americans is also expected to drive tourist numbers well above pre-Covid levels by more than 5% this year. However, domestic tourism, which represents 4% of the GDP and saw a complete recovery last year, is unlikely to contribute significantly to GDP growth this year.
Vietnam’s proactive measures, such as easing visa requirements and initially attracting tourists from Korea and the U.S., have revitalized its tourism sector. The relaxation of China’s “Zero COVID” policies in 2023 further boosted these numbers. The efforts have already paid off, with tour operators witnessing a nearly 50% increase in revenues in the first five months of the year. However, the hospitality sector faces challenges, with hotel room occupancy still 20% below pre-Covid levels, primarily due to the slower return of Chinese tourists. The mid-market travel segment, significantly reliant on Chinese and Russian tourists, has yet to fully recover. In contrast, high-end properties like the Hanoi Metropole and Fusion Resorts are experiencing occupancy rates at or above pre-pandemic levels.
In 2023, Vietnam welcomed nearly 13 million foreign tourists, a more than 200% increase from the previous year, achieving 70% of pre-Covid levels. This influx has not only propelled GDP growth but also significantly boosted retail sales, with foreign tourists accounting for about 10% of total retail sales in Vietnam. The broader economic impact of tourism is substantial, contributing over 15% to the nation’s GDP and benefiting a wide array of local businesses. As Vietnam continues to leverage its tourism potential, the sector is set to play a pivotal role in the nation’s economic trajectory for 2024, heralding a period of sustained growth and prosperity.
