Vietnam Travel Channel

Vietnam’s tourism revenues declined 90% in May

Tourists in front of the HCMC post office / Photo courtesy of VNExpress.

Nguyen Ngoc Thien, Vietnam’s Minister of Culture, Sports and Tourism reported that because of the Covid-19 pandemic, and Vietnam’s domestic lockdown and suspension of international tourists, the country’s revenue related to the travel industry in May fell by 90% compared with the same period last year

Nguyen also said that since the Covid-19 restrictions related to the domestic lockdown were eased and then eliminated, that the country’s tourism sector has recovered somewhat, but that the current recovery is built solely on domestic tourism, since Vietnam is still closed to international travelers.

Across the country, local authorities along with their local businesses are launching various domestic tourism stimulus programs, but the demand for travel remains low since many families are hesitant, or do not have the financial ability to travel around the country.

While beach resorts and hotels that are easy to access (such as Vung Tau) have seen their weekend room occupancy rates improve significantly, they have few if any customers during the week, and therefore their average rates remain low and their total revenue is significantly lower when compared to 2019 or earlier years.

Minister Nguyen said that getting the country’s tourism industry back on track requires four steps: including:

1. Boosting local tourism demand

2. Welcoming a limited number of foreign tourists to certain resorts that have effective Covid-19 infection prevention and control measures

3. Receiving tourists from countries that have effectively controlled the pandemic

4. And eventually reopening the tourism market completely

Minister Nguyen said that at this point, Vietnam is still in the first stage.

According to government statistics, when compared to 2019 – domestic tourism fell 58% and international tourist arrivals to Vietnam from January to May 2020 dropped by 50%, with an overall 50% year-on-year decline in tourism revenue.




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