Vietnam’s tourism industry will fall short of meeting 5 Million foreign tourist arrivals target for 2008, thanks to the global recession and unfavorable conditions like high inflation.
In the midst of sharply declining of tourist inflow, the tourism industry of Vietnam is unlikely to achieve its target of 5 Million foreign tourists for 2008, said VNAT (Vietnam’s National Administration of Tourism), as reported by Carrentals.co.uk.
The first eleven months of 2008 were not good in terms of tourist arrivals as there was a 22% decline over the same period last year. During January-November 2008, nearly 3.87 Million visitors came to Vietnam, with tourists from all major markets like the US, South Korea, Taiwan and Japan fall down. Moreover, the tourist arrivals outlook for 2009 is projected down by 20%-30% from 2008 and therefore, the industry will see zero growth or worse, said Industry officials.
Vietnam’s tourism industry is severely hit by the global economic slowdown as the tourist arrivals from some big markets, the US and Europe (particularly from Germany, Britain and France), have slumped. These tourists generating countries have been struggling against financial crisis since mid-year; consequently, the overseas tourist inflow to Vietnam declined.
Moreover, strike by the airport employees in Thailand contributed to downfall in arrivals during November 2008. High inflation has also put hurdles in wooing tourists from overseas because the cost of services has gone up by almost 30%-40% during 2008.
According to the industry experts, given the steep fall in arrivals, Vietnam’s hospitality industry that includes hotels and tour operators has slashed its rates. The Vietnam National Administration of Tourism has recommended to the communist government to spend $20 Million-$30 Million on marketing campaign worldwide to attract tourists in coming years.
Considering the current scenario and effects of the global recession, the government of Vietnam has announced a bailout package of $1 Billion, which will help the tourism industry to rebound.
According to a Research Analyst at RNCOS, “Global economic slowdown badly hit Vietnam’s tourism industry as visitor inflow from major foreign tourist markets tumbled significantly. Thus, the government has to increase its investment in tourism products to attract tourists. Moreover, correction of room charges by hotels and more expenditure on marketing campaigns can support the industry in coming years.”
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