Before the pandemic, Vietnam was on a huge tourism growth trajectory. Needless to say that all changed. But as Southeast Asia and the world move forward, Vietnam once again is hoping to position itself for extreme tourism growth. It wants to be the ‘new Thailand’ and the darling of Southeast Asian tourism.
In this article we will explore the recent growth of Vietnam’s tourism industry and its impact on the economy. We will also analyze potential risks for investors in this market and identify opportunities for new businesses to get involved with this sector, that post-COVID should see growth again.
Growth of Vietnam’s Tourism Industry
Vietnam’s tourism industry is experiencing incredible growth. In 2016, the estimated number of foreign tourists was 12 million. By 2020, this is expected to increase to 19 million. The government has also set a goal of 20 million tourists by 2030. This increase in visitors has had a positive impact on the economy of Vietnam, with the travel and tourism sector accounting for about 11% of the country’s GDP. Tourism has also created plenty of jobs in Vietnam, with over 500,000 people employed in this industry.
The Benefits of Tourism to the Economy
Vietnam’s tourism industry is experiencing rapid growth, as the number of foreign tourists was expected to double by 2020. This has had a significant impact on the economy, with the travel and tourism sector accounting for about 11% of the country’s GDP. This is expected to increase even further in the coming years as the industry scales up to meet rising demand.
Tourism was creating jobs before COVID and is ramping up again.
As the number of tourists grows, so does the demand for services and products in the travel and tourism sector. This has created many jobs in Vietnam, with over 500,000 people employed in the industry at its peak
The government also saw an increase in revenue from tourism. This income has helped the government fund infrastructure projects and social programs, benefiting the whole country.
And finally tourism was and should again begin attracting investment. With rising numbers of tourists and increased government revenue, Vietnam is seeing more investment opportunities. This is expected to increase in the coming years as investors seek new opportunities in the Southeast Asian country.
Risks for Investors
There are a few risks for investors in Vietnam’s tourism industry. One major risk is rising competition, particularly from other Southeast Asian countries. The growth of tourism in Southeast Asia had been rising in recent years, with many countries trying to attract travelers. Of course COVID changed everything, at least paused gowth. We still don’t know the long-term impacts.
Another risk is the potential for natural disasters. The geography of Vietnam makes it prone to flooding and earthquakes, which could severely affect the tourism industry. Vietnam has also been dealing with issues of safety, with a rising level of crime affecting tourists. This has had a negative impact on the tourism industry, with many travelers now hesitant to visit the country.
Potential opportunities for investors
The tourism industry in Vietnam has been growing rapidly in recent years, with more and more visitors coming to the country. This has created plenty of opportunities for investors, particularly in the hospitality and retail sectors. The tourism industry is expected to grow even more in the coming years, making it an interesting investment for anyone who is interested in getting involved in this sector.
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