{"id":29644,"date":"2021-03-26T10:00:40","date_gmt":"2021-03-26T16:00:40","guid":{"rendered":"https:\/\/www.ceo-na.com\/?p=29644"},"modified":"2021-03-26T10:00:48","modified_gmt":"2021-03-26T16:00:48","slug":"how-vietnam-can-accelerate-travel-recovery","status":"publish","type":"post","link":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/ceo-life\/travel\/how-vietnam-can-accelerate-travel-recovery\/","title":{"rendered":"How Vietnam can accelerate travel recovery"},"content":{"rendered":"

By Margaux Constantin<\/a>, Matthieu Francois<\/a>, and Thao Le<\/p>

While domestic travel has kept the Vietnamese travel sector afloat, the industry needs to reinvent itself until international tourism resumes<\/strong>, say analysts from McKinsey<\/strong>.<\/strong><\/p>

For most players in the travel industry, the idea of vacationers lounging on a beach thousands of miles from home or sailing the high seas seems like a distant memory. Globally, countries experienced a decline of 35 to 48 percent in tourism expenditures last year compared with 2019<\/a>. Vietnam, with its ten-month international border closure, has not been exempted.<\/p>

Tourism contributes a significant share to Vietnam\u2019s GDP, and the economy has relied on domestic travel to buoy the sector. Local tourism resumed shortly after the country ended its relatively brief lockdown\u2014just in time for 2020\u2019s summer holiday season. Our analysis shows that demand for domestic travel in Vietnam will continue to grow and will recover relatively fast because of growing domestic spending: vacationers who cannot yet travel abroad are redirecting their money locally, at a higher level than in 2019.<\/p>

As Vietnam\u2019s travel sector continues to evolve and as prospects of international travel become increasingly feasible with vaccination rollouts, travel and tourism players have to adapt to survive. This article gives an overview of the state of Vietnam\u2019s tourism sector, looks ahead at how the industry is likely to recover, and maps out a way forward for the country\u2019s travel and tourism companies.<\/p>

The state of travel in Vietnam today: Staying afloat<\/strong><\/strong><\/p>

Vietnam\u2019s tourism sector relies heavily on international travel, which plunged last year. International flights dropped 80 percent in October 2020 from the same time period a year earlier. Hotels, in turn, filled only 30 percent of their rooms.<\/p>

The sharp drop in foreign travelers has had an outsize impact on tourism expenditures\u2014and Vietnam\u2019s overall economy\u2014because they spend significantly more than their local counterparts. In 2019, a year in which the tourism industry accounted for 12 percent of the country\u2019s GDP, international travelers made up only 17 percent of overall tourists in Vietnam, yet accounted for more than half of all tourism spending\u2014averaging $673 per traveler compared with $61 spent on average by domestic travelers. The tourism sector created 660,000 jobs between 2014 and 2019, and this sharp expenditure dive has also stunted the country\u2019s food and beverage and retail industries.<\/p>

As a return to pre-COVID-19 levels of international tourism may be far off, the travel sector\u2019s short-term revival could depend on local tourism. In 2019, Vietnamese tourists spent $15.5 billion, of which $5.9 billion flowed overseas. The majority of tourists are unable to leave the country, so they are looking domestically to scratch their travel itch. Travel companies should therefore rise to the occasion and capture value from this opportunity.<\/p>

Looking ahead: Vietnam\u2019s tourism industry can recover by 2024 if it implements a zero-case-first approach<\/strong><\/p>

Even with favorable tailwinds driven by domestic tourism, Vietnam will be dependent on international markets, which represent around $12 billion in spending. The majority of Vietnam\u2019s international tourists come from Asian countries, with those from China, Japan, South Korea, and Taiwan accounting for around 80 percent of Vietnam\u2019s foreign tourism spending. Vietnam\u2019s strong economic ties with these countries could lead to a relatively fast tourism-industry recovery compared with other key tourist destinations in Europe and North America.<\/p>

Read the full article here<\/a>. <\/p>","protected":false},"excerpt":{"rendered":"

By Margaux Constantin, Matthieu Francois, and Thao Le While domestic travel has […]<\/p>\n","protected":false},"author":57,"featured_media":29648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1337,49],"tags":[4563],"class_list":["post-29644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-primezone","category-travel","tag-vietnam"],"_links":{"self":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/29644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/comments?post=29644"}],"version-history":[{"count":1,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/29644\/revisions"}],"predecessor-version":[{"id":29656,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/29644\/revisions\/29656"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media\/29648"}],"wp:attachment":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media?parent=29644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/categories?post=29644"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/tags?post=29644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}