The Vietnamese Tourism Industry - Case Study Example

The Vietnamese tourism industry has faced tremendous growth in the past decade. According to a report filed by the United Nations World Tourism Organization, the Asian tourism giant ranked among the top performers, recording 35% in growth for its tourism industry. Beaten by its rivals Sri Lanka and Japan, the country has shifted focus towards home-stay tourism. The homestay tourism model will ensure sustainable tourism development through the ministry of culture, sports, and tourism. According to Taleb Rifai, the minister in charge, the country welcomed over 1.87million foreign arrivals in the first three months of 2015, indicating an on-year increase of 24.5% (UNWTO, 2015). The country shows high recovery potential from the 2008 decline brought by the great recession. Receiving 6.8million international arrivals in 2012 up from 4.8 million received in 2008, the country has opted for diversification to ensure that it taps the Asian tourism potential better. Looking into the 2007 gross domestic product, tourism contributed 4.5 % of the total GDP. The country has thus focused more of the foreign direct investments on the tourism sector with an investment of over $94.2billion on tourism-related infrastructure. Inbound tourism in Vietnam registered a significant growth in 2013 compared to 2012. The growth has been attributed to the constant efforts by the government of Vietnam towards the administration of tourism. Through these efforts, the government seeks to make Vietnam the preferred tourism destination for international travellers. The Government through this programme undertook an initiative and organized the Da Nang International Fireworks Competition in Da Nang Province. The event was held on a five-day holiday for the country promoting both domestic and international tourism. The rising levels of disposable income among the Vietnamese people and the improving living standards have been credited as a major boost for local tourism in the country. Further, travelling has become more affordable owed to the increased tourism infrastructure, fostering both local and international tourism alike. According to the UNWTO (2015), the country was able to serve 9.6 million local tourists in the 3months. The country also targets to receive 10-10.5 million visitors from across the globe and places its local tourism expectations to about 47-48million by the year 2020. The revenues from both are also expected to rise to about $18million or $19billion. The Vietnamese people have a rich history and several tourist destination and attraction points. Some of the most notable destinations include the national parks of Vietnam, world heritage sites, the man and biosphere programme, the cities and the national tourism area. The rich military history is also a major point of attraction for most of the visitors who often want to see the Vietnam War museums among other traditional military sites and training camps. The country’s 31 national parks are home to rare game. The Vietnamese man and the biosphere programme has eight zones that make Vietnam a special destination for many. The homes stay programme is a game changer for the industry where tourists are offered a chance to interact with remote and rural communities in Vietnam live and experience their culture directly. Air transport is the most common form of transport for international arrivals in Vietnam. In the year 2013, about 6 million of the guests who arrived in the country arrived by air. Ho Chi Minh City’s Tan Son Nhat International airport is the most popular airport for most of the international travellers. As one of the country’s biggest airport both in country volume and run-way length, the country is able to receive big planes and provide safe and efficient departure for them. The Noi Bai and Da Nang International airports are also big and serve a similar purpose as the Tan Son. Road transport and railway has also been improved in the past, with the government spending over $90 billion on the same. A popular website for travellers known as Vietnam beauty notes that one of the most concerning issues that affect tourists to Vietnam is the need for convenient and reasonably priced accommodation. Accommodation in the country ranges from five-star to budget accommodation allowing people of all calibre to enjoy value for their money. For most of the travellers, Vietnamese hotels are their preferred accommodation solution. Hotel accommodation is available in almost all major cities with Danang, Ho Chi, and Hanoi providing all types of hotels. However, it is important to note that in Northern Vietnam, the hotel system is not very well developed. When visiting some of these areas, it would be much convenient to consider spending at a local people’s house, which often lacks the commonest of the services and facilities. Nevertheless, this offers a unique shift for those with a thirst to explore and experience tradition. Motels are also another source of alternative accommodation especially when visiting the countryside. It is recommended that prior booking is done to ensure customers a chance for comparison for the different types of accommodation options. Bordering China to the north, Eastern Vietnam enjoys a tropical monsoon climate. The country majorly enjoys northerly to easterly winds. On the northwest side, the country is mostly mountainous with the mountain peaks reaching a height of over 2450 meters. In Hanoi, the areas are low-lying and enjoy friendly climates due to the presence of the Red River Delta and Mekong Delta respectively. The country only enjoys one rainy season year round. Despite this, the rain is enough especially for those areas facing the mountains. The north monsoon winds make the northern Vietnam areas cloudy with occasional light rains coming, yet the area remains dry and quite sunny. As such, sunbathing has become one of the tourist activities in the area motels. Frost and snow may tend to occur in high altitude areas such as the mountains. The future of tourism in Vietnam is bright. With the home-stay tourism coming into the picture, hotels and motels have little work left to do. People would rather spend their holidays in the homes where they have everything under one roof and their privacy to themselves. Through the diversification programme, the industry has a great potential especially due to the Vietnamese military history that puts the country on the limelight for many international travellers. The massive investments in tourism infrastructure and campaigns by the government also play a major role in marketing the country’s tourism sector. Some of the obstacles the country is likely to face include intensive competition from other Asian countries who have built a name for themselves in the global tourism industry. Poor infrastructure compared to their counterparts japan and Sri Lanka is also a problem as the latter two boast of electric trains and other efficient methods of land transport. The rich Japanese history of the samurai and the traditional Sri Lankan dishes also make a major threat for the thriving giant. Conclusion, Despite the challenges, the country is endowed with massive potential. With good marketing and effective investment in strategic industries, the country is bound to achieve its growth potential in the respective industries. As such, it is important to recognize the role of government investments through provision of transport, marketing the sector through international platforms and promoting local tourism as key to overall industrial growth. The political sphere must also provide political goodwill through providing a peaceful environment for the visitors and the locals. They must also ensure massive FDI goes into creating accommodation facilities in the remote mountainous areas, where people wish to go and take refuge from their busy schedules on holidays. Through the promotion of diversification, the country is also likely to achieve its potential fully and achieve its targets as desired in its long-term plans for 2020. Works Cited Bui, H. T., & Jolliffe, L. 2011, “Vietnamese domestic tourism: an investigation of travel motivations”. ASEAS-Austrian Journal of South-East Asian Studies, vol. 4 no. 1, pp. 10-29. News UNWTO: Vietnam a top growth tourist destination. (2010, September 8). Retrieved April 30, 2015. Retrieved from < http://www.vietnamtourism.com/en/index.php/news/items/3434 > Suntikul, W., Butler, R., & Airey, D 2008, “A periodization of the development of Vietnam's tourism accommodation since the open door policy”. Asia Pacific Journal of Tourism Research, vol. 13 no. 1, pp. 67-80. The Climate of Vietnam. (n.d.). Retrieved April 30, 2015, from http://www.vietnamembassy.org.uk/climate.html UNWTO to Assist Vietnam in Tourism Development: General-Secretary. (n.d.). Retrieved April 30, 2015. From < http://www.ngocentre.org.vn/news/unwto-assist-vietnam-tourism-development-general-secretary> Read More