Việt Nam’s Lunar New Year tourism: Challenges and hopes

Bà Nà Hills in Đà Nẵng is a popular tourist destination in Việt Nam. — Photo thanhnien.vn

HCM CITY — With economic difficulties, tightened budgets, and a significant increase in the price of transportation services, demand for spring travel has not shown signs of excitement.

Even though Tết (Lunaer New Year) is approaching, many families have not pinned downed their travel plans, and some are even planning to stay home for Tết or not travelling far to save money.

Trần Thị Bảo Thu, director of Communications at Vietluxtour Company, told Thanh Niên (Youth) newspaper that the company’s business situation for the upcoming Lunar New Year is not overly bleak but not overly lively either.

Vietluxtour has achieved about 70 per cent of its tour sales plan, with domestic services typically sold both before and after the Tết holiday.

According to her assessment, during the 2024 Lunar New Year, MICE (Meetings, Incentives, Conferences, and Exhibitions), inbound, outbound, and domestic individual tours are expected to have relatively good growth rates but not exceptional.

The inbound tours show promise due to effective promotion activities in the past year, favourable visa policies, positive international reviews of destinations, and more.

The outbound tours are also active, especially to the Northeast Asian destinations, with increasing competition in destinations, promotions, and attracting Vietnamese tourists.

Meanwhile, the domestic market faces competition pressures due to relatively high service prices.

“That being said, there is a niche market, which is the middle-income family group interested in booking luxury resort services at four-to-five star resorts. They only want to relax, with minimal sightseeing,” Thu said.

“This niche, following the general trend, is developing from demand for Free and Easy (F&E) travel, domestic option tours using higher-end services, to less crowded destinations like Côn Đảo, Tuy Hòa, Quy Nhơn, Đà Nẵng or Nha Trang.”

Hội An is always busy during peak tourism season. — Photo thanhnien.vn

To revitalise the domestic tourism market after more than half a year of slowdown, and attract international visitors, many localities are introducing attractive new products.

The recent launch of the Hôn (Kiss) Bridge and entertainment complex in Hoàng Hôn Sunset Town by the Sun Group on Phú Quốc has brought a lively atmosphere to the region in the last days of 2023 and the beginning of 2024.

Opening less than a month ago, the Hôn Bridge has not only received praise from English-speaking media but has also appeared in newspapers in South Korea, Greece and Eastern European countries.

The Hôn Bridge is expected to be a magnet attracting tourists from around the world, becoming a “Vietnamese tourism icon”, like the Golden Bridge in Đà Nẵng.

Similarly, one of the hottest destinations recently is Bà Đen Mountain in the southern province of Tây Ninh, which has become a favourite among Buddhists and tourists.

At the end of January, Sun World Bà Đen Mountain in Tây Ninh will inaugurate the statue of Maitreya Buddha created from 6,688 pieces of green quartzite.

Additionally, the tallest artificial waterfall in Asia will flow around the Maitreya Buddha statue, and the Ước Bridge – a unique spiritual bridge for visitors to worship the Maitreya Buddha – will contribute to making the area a prominent destination for Tết holiday tourism.

Nguyễn Minh Mẫn, director of Communication and Marketing at TST Tourist Company, told Thanh Niên that after the pandemic, the tourism industry has undergone a significant transformation with efforts to innovate and upgrade products by localities.

Although in the current economic situation, the number of customers interested in and booking tours through travel companies has not experienced a breakthrough as expected during the peak Tết period, provinces that are dynamic in deploying new destinations will still attract tourists and achieve significant success.

More policies needed

It is crucial for tourism agencies to receive support from state policies, especially when the trend of increasing domestic service prices has led to adjustments in tour prices. The average price increase for domestic package tours is over 15 per cent.

“Customers choosing March, April and May to travel suggest 2024 will be a stable year. However, airfare prices will increase from March as airlines cut their fleet and flights. If airlines and tourism do not work closely with each other, it will be very difficult to stimulate the domestic market,” Mẫn said.

Domestic tourism needs comprehensive stimulus of new products, promotion, and incentives to be deployed systematically.

“For domestic tourism, we need a synchronised promotion campaign, not only airfare but also many other services such as restaurants, hotels, attractions, and other means of transportation to positively impact tour prices and customer demand,” Thu proposed.

Nguyễn Châu Á, CEO of Oxalis Group, also stressed the importance of quickly establishing a linkages to stimulate tourism demand in localities.

If Phú Quốc wants to increase visitors, it must find a way to increase the number of air passengers. It may collaborate with airlines by subsidising flight losses to maintain routes and reduce airfare, he added.

In addition, Kiên Giang Province should have incentive policies, such as cash rewards or shopping vouchers, for each tourist visiting Phú Quốc, both by air and sea routes. — VNS