Travel companies see positive outlook but challenges lie ahead

According to the General Statistics Office, in the first five months of this year, the number of international visitors to Vietnam was estimated at nearly 4.6 million, 12.6 times higher than the same period last year.

Trang An scenic landscape complex in the northern province of Ninh Binh. After three years of stagnation due to the COVID-19 pandemic, Vietnam’s tourism industry is accelerating its recovery. (Photo: VNA)

With the overall positive developments of the industry, a series of travel companies on the stock market announced very positive profit growth in the first quarter of 2023. Statistics from Nhadautu.vn showed that most travel businesses have achieved an increase in revenue in the first quarter of 2023 compared to the same period last year. In terms of net profit, the data shows that 7 out of 11 companies reported increased net profit. Experts say that in the context of slowing spending demand, foreign tourists tend to look to Vietnam and Thailand – countries with low costs but still ensure tourism experiences. In addition, the arrival of more tourists from China after the country reopens will contribute to boosting the tourism and service industries in Southeast Asian countries, including Vietnam. However, Vietnam’s tourism industry will face some challenges. Deputy Director General of the Vietnam National Administration of Tourism Ha Van Sieu listed them as inflationary, exchange rates, rising interest rates, climate change, natural disasters that continue to develop abnormally and that the visa policy of Vietnam does not have many advantages compared to other countries in the region. Nguyen Quoc Ky, Chairman of the Board of Directors of Vietravel Group, said that Vietnam’s tourism still has some problems with visa policies, VAT policies, and promotion of foreign tourism offices. Ky also pointed out other obstacles, such as transportation and aviation problems as well as the lack of advertisements for festivals and events in the country.