VietNamNet Bridge - To obtain the targeted turnover of $45 billion by 2025, the tourism industry needs to reform its way of doing business through digitalization, experts say. 


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Digitalization has changed the tourism industry


Tuyet Vu from Boston Consultancy Group (BCG) said at the 2018 Travel & Tourism Summit held in early December that high technology and digitalization have been changing the tourism industry.

When planning tours, travelers search for information on Google, and book air tickets and hotel rooms.

A survey by BCG found that 58 percent of travelers use voice search engine to learn about tours, 81 percent seek comments from other travelers, and 46 percent of travelers book tours via smartphones.

Tuyet went on to say that the digitalization has had an impact on the tourism industry not only in Vietnam, but all over the world as well. Most of the travelers from 10 biggest tourism markets of Vietnam use smartphones to experience journeys. 

Vietnam is one of a few countries witnessing high growth rate of 30 percent per annum in the tourism industry in the last three consecutive years. It ranked 6th among 10 fastest growing destinations in the world last year.

“This forces travel firms to switch their ads, and sales and marketing activities to a digital platform,” she said.

Vietnam is one of a few countries witnessing high growth rate of 30 percent per annum in the tourism industry in the last three consecutive years. It ranked 6th among 10 fastest growing destinations in the world last year.

Kenneth Atkinson from Grant Thornton Vietnam said that the target of attracting 16 million travelers in 2018 is within reach.

It took Thailand 20 years to reach 30 million foreign travelers. For Vietnam, if the investment in tourism infrastructure increases, Vietnam may not have to spend seven years to have the same number of travelers.

Vietnam aims to gain turnover of $45 billion from the tourism sector by 2025, which makes up 10 percent of GDP, and generates 6 million jobs, including 2 million direct jobs.

One of the problems of Vietnam’s tourism is the lack of sustainability in development. 

Atkinson from Grant Thornton Vietnam said at a tourism forum that Ha Long Bay, a World Heritage Site, is getting seriously polluted. Meanwhile, Sa Pa is suffering from massive construction which has damaged the original beauty of the town.

Meanwhile, Nguyen Xuan Thanh from Fulbright Vietnam University pointed out that the lack of qualified workforce is also a bottleneck in Vietnam’s tourism industry. 

Vietnam had turnover of $1.23 billion in 2000 and $22.7 billion last year. These figures show impressive growth rates, but show modest productivity of workers in the sector.


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