CASE STUDY ON TOURISM INDUSTRY IN

SUBMITTED BYANURAG KOLTEM. TECH II SEM UPLSTUDIO II

CONTENTS DESTINATION CHARACTERISTIC

HISTORY

TOURISM IN VIETNAM

TOURISM POTENTIAL

TOURISM SCENARIO

ADMINISTRATION AND MANAGEMENT

LAWS AND POLICIES

TOURIST MARKETS

INFRASTRUCTURE

ECONOMIC GENERATION

TOURIST DEVELOPMENT AND PLANNING

PROMOTION AND MARKETING

SWOT ANALYSIS

REFERANCES

DESTINATION CHARACTERISTIC With a strong history, the Socialist Republic of Vietnam is

today an increasingly coveted tourist destination

Capital - Hanoi

Population – 88.78 million

Area - 331,210 km2

The official language is Vietnamese.

The literacy level is at 95.9 %

The South of Vietnam has a tropical climate, and the North is characterized by the monsoon.

In the North temperature varies from 13°C to 17°C in winter, and from 27°C to 34°C the summer.

In the South, the climate varies a little, and the temperature borders the 27°C all the year.

Coast line: 3444 km .Sources : Wikipedia

HISTORY In 1960, the tourism strategic plan already existed, but the war

slows down the development of the hotel infrastructure.

It was in 1986 when the ministers realised the potential of tourism industry to bring in about the much needed foreign earnings to Vietnam.

From 1975 to 1990, the strategic plans of tourist development were better elaborated.

In 1990, visitors from all over the world had expressed their renewed interest in this country.

Vietnam initiated ‘Visit Vietnam Year’ in 1990.

The tourism industry is relatively young in Vietnam. Sources : Wikipedia

TOURISM IN VIETNAM Tourism Cities :

1. HANOI2. SAPA3. HALONG BAY4. HUE5.HOI AN6. MY SON7. NHA TRANG8. DALAT9. MUI NE10.HO CHI MINH CITY11. MEKONG DELTA12.PHU QUOC

Nha Trang

It is Vietnam’s most popular seaside resort town located along the second most beautiful bays in the country.

Nha Trang Bay is recognised as one of 29 most beautiful bays in the world.

Tourism Potential In Vietnam

Cu Chi Tunnels

The Cu Chi Tunnels are an immense network of connecting underground tunnels located about 40 km northwest of Ho Chi Minh City (Saigon).

The tunnels were used by Viet Cong guerrillas as hiding spots during the Vietnam War

Ho Chi Minh City

Ho Chi Minh Museum

Sa Pa Terraces

Sa Pa is a town in northwest Vietnam not far from the Chinese border

At the height of 1,600m above sea level, the average temperature of the area is 15-18oC

Visitors to Sa pa will have opportunities to discover the unique customs of the local residents.

Ha Long Bay

Ha Long Bay features thousands of islands, each topped with thick jungle vegetation, forming a spectacular seascape of limestone pillars.

Ha long Bay is famous internationally, and is recognized as a World Heritage by UNESCO for its thousands of natural islands.

One of the new seven natural wonders of the world.

Temple of Literature in Hanoi The temple was founded in the middle of 11th century

 The temple hosts the "Imperial Academy" Vietnam's first national university.

There are many beautiful PAGODAS around city Hanoi.

Tourism Scenario

ADMINISTRATION AND MANAGEMENT The Vietnam National Administration of Tourism (VNAT) concerns

to manage the tourist activities in all the country.

GENERAL OBJECTIVE o The creation of precise Vietnamese tourist products.

o The exploitation of existing or potential markets, including domestic market.

o The development of skills and knowledge in order to form highly qualified employees.

o The development of the sector of tourism sciences and technology in order to improve the sector effectiveness in business and management.

o The integration of various areas and the Vietnam position compared to the rest of the world.

o The increase in national management capacities, to make an effective and suitable use of resources and an environment which can ensure a durable tourism development.

Specific Objectives : To increase by 11% to 15% the average share of the tourism industry in the GDP.

Laws

VNAT created a legal environment to manage the tourism activities and to prepare the conditions necessary to attract the foreign investments.

Tourism Ordinance was adopted in 1999.

The reception and the integration of the tourists are significant points which are greatly taken into consideration.

The administration simplified the procedures by authorizing the Viet Kieu to request visa to the customs during Têt

POLICIES Date of Approval

Main Objective

Master Plan for Tourism Development 1995-2010

1994 By 2000: 3.5-3.8 million foreign tourists; 11 million domestic tourists; turnover US$2.6 billion.

By 2010: 9 million foreign tourists; 25 million domestic; turnover US$11.8 billion

National Action Plan for Tourism Development 2002-2005

1999 Ensure tourism would be a key industry and turn Vietnam into an advanced tourist destination by 2005.

NSTD 2001-2010 2002

Law on Tourism 2005 Issue policies to ensure tourism could become a spearhead industry

National Action Plan for Tourism Development 2006-2010

2006 Turn Vietnam into an advanced tourist destination in Asia by 2010.Foreign tourists increase about 10-20% annually. Domestic tourists increase about 15-20% annually.

National Action Plan for Tourism Development 2007-2012

2007 Achieve targets set by NSTD 2001-2010: develop tourism into a spearhead industry; receive 5.5-6 million foreign tourists and 25million domestic tourists.

NSTD to 2020 (vision 2030) 

2011 Affirm tourism as the spearhead industry and use total tourism receipts as the primary indicator of tourism development

TOURISM POLICIES

Regional Development Tourist Vietnam is divided into three zones.

1. The north zone

2. The northern center

3. The southern centre and the south

The objectives of this point are to emphasize the tourist products of each area as well as the whole country.

Vietnam envisages making the promotion of certain tourist roads which link various strong tourist regions

TOURIST MARKETS

Vietnam pays detailed attention to the other countries of the Association of Southeast Asian Nations (ASEAN).

The country is also interested in other markets such as the north of Asia countries.

Table of the international arrivals in Vietnam in May 2006 (By country of consignment)

Market Number of visitor (in person)

Variation of the number of visitors compared to the

year 2005 China 264870 - 20,7%

South Korea 182055 + 45,3% United States 162766 + 23,5%

Japan 146071 + 28,5% Taiwan 115722 + 2,1%

Cambodia 95375 + 26,5% Australia 71469 + 20,2% France 56255 + 1,6%

Thailand 51370 + 65,6% Singapore 39690 + 41,3%

China ; 264870; 22%

South Korea ; 182055; 15%

United States ; 162766; 14%

Japan ; 146071; 12%

Taiwan ; 115722; 10%

Cambodia ; 95375; 8%Australia ; 71469; 6%

France ; 56255; 5%

Thailand ; 51370; 4%

Singapore ; 39690; 3%

Number of International Tourist Visitor

China South Korea United States Japan Taiwan Cambodia Australia France Thailand Singapore

Five years ago, the targeted markets were France and North America.

Today, the prospects changed and Vietnam more precisely aims the Chinese and Japanese customers and, in a more general way, the countries of Asia.

Number of International Tourist Visitor (2013 figures)

China ; 1358961; 35%

South Korea ; 562076; 15%

United States ; 328215; 9%

Japan ; 450004; 12%

Taiwan ; 297584; 8% Cambodia ; 247725; 6%

Australia ; 238647; 6%

France ; 157637; 4%

Thailand ; 195031; 5%

China South Korea United States Japan Taiwan Cambodia Australia France Thailand

TOURIST EXPENDITURE

Domestic Tourism Domestic tourism in Vietnam represents a great

part of market.

It does not have a growth rate as high as that of international tourism

In 2001, 12.1 million Vietnamese traversed the country, comparatively to 15 million in 2005, an increase of 24%.

Domestic tourism is on its top during national events such as the ‘‘Têt’’

NUMBER OF ARRIVALS Half of the international tourists land in Hô Chi Minh City before

visiting the other cities.

The average stay of a tourist in this city is three days

SARS outbreak

Economic Meltdown

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

International tourism, number of arrivals

Year

Num

ber

of

arr

ivals

INFRASTRUCTURE In 1992, there were 13050 rooms and,

according to the last 2004 census, this number reached 85381.

An increase of 654% in 12 years.

In 2010, the number had reached 135 200 rooms, which made an additional increase of 158%.

Hotels; 1956

Small Hotels; 666Rented

Apartments; 434

Tourist Villas; 53

Tourist Villages; 11

Campsites; 8

Number Of Lodging Places

Hotels Small Hotels Rented ApartmentsTourist Villas Tourist Villages Campsites

1 Star 2 Star 3 Star 4 Star 5 Star0

2000

4000

6000

8000

3840

69777752

4966 5251

Number of rooms

Star Category hotels

Num

ber

of

room

s

CONNECTIVITY

RAILWAYS International railway links People's Republic of China Cambodia and Laos.High-speed rail.

AIRPORTS

 37 civil airports

 3 international gateways:

Noi Bai serving Hanoi,

Da Nang serving Da

Nang City Tan Son Nhat serving

Ho Chi Minh City.

PORTS AND HARBORS

Hai Phong

Da Nang

Cam Ranh

Nhon Traob

Phu Quoc

Economic Generation The trades located at the bottom of the hierarchical

scale allow to a citizen to gain 100-120 USD per month

Whereas the employees of the tourist field receive 120-140 USD per month.

In the hotels, the employees are paid a little better with a wage scale of 120-200 USD.

The sector already accounts for 4.3% of Vietnam's GDP

Investments The strategy stipulates that investments must come from the State budget and

sources coming from the foreign capital.

The foreign capital decreased after the 1997Asian financial crisis, but starts again to increase since 2003.

The direct foreign investments slightly increased by 4,2% in 2005 compared to 2004.

Vietnam tries to create favorable conditions to attract the direct investment abroad in order to develop the tourist offices and other higher quality products.

Tourist Development and planning The National Administration of Tourism puts, as first priority, the importance to

plan tourism in a rational way.

The urban development is done in harmony with the durable tourism concept.

The VNAT establishes a development plan every five years.

These plan acts as bible for the rest of the tourist institutions.

More privet sector companies are engaged in grass root level to increase overall standards of tourism at international level.

Human Resources

VNAT wishes to work out and establish a development plan of human resources in tourism.

This improvement would be made by a broad outline establishment that the State and the tourist companies should fallow.

Training of foreign language such as Chinese, Japanese, English, and French etc. are being given to market associates.

1.2 % of total

population

TOTAL NUMBER OF EMPLOYEES IN TOURISM FIELD

30 %

70 %

Directly related to TI

Indirectly related to TI

60 %

40 %

Never Received Education

University Diploma Holder

Promotion and marketing

The potential visitors and tourists had in mind the vision of a country which knew the war.

The adoption of the new logo and the slogan "Vietnam, the Hidden Charm" confirms a promotion based on the country cultural and historical heritage.

VIETNAM ADVERTISING ON

VISA ON ARRIVAL This is an alternative way to get visa for

Vietnam.

A Vietnamese visa application can be applied for 1 day to 6 months in advance.

Although it takes only 2-3 working days to get your visa approved.

STRENGTH Use of tourism potential to there great extent.

Regional development of tourism throughout country.

Proactive government policy approach, prioritizing the tourism sector

High percentage of literacy

WEAKNESS Difficulties encountered to reach the final tourist

To enter in Vietnam, it is still necessary to have a visa which can only be obtained to the custom post and its cost is high.

Small qualified staff in marketing

In addition, the language trainings and the English master are still very weak in certain areas.

The government is still prone to arbitrary and disruptive policy decisions at microeconomic level.

SWOT ANALYSIS

OPPORTUNITIES Vietnam knows an annual increase of 13% in the tourist field.

The population is conscious of the benefit tourism gives.

The possibility to offer Internet reservation and payment service constitutes an opportunity.

Government is easing visa requirements.

THREATS As coastline is near about 3500 km it is going to affect seashore tourism in case of

disaster like tsunami.

Potential foreign competitors.

Government is easing visa requirements.

CONCLUSION

Vietnam has come a long way since, and has passed through hurdles in its history by far.

The potential of tourism is bucketful and use of available resources through planning and framing polices helping to develop the tourism industry as spearhead industry in the country.

Also some of the government policy may affect tourism in feature such visa policy, with regard to any feature terrorist activity as such.

Overall development of tourism industry is in tune with countries growth and contributing major part in GDP.

Vietnam tourism in generally and specific domestic tourism are growing fast in recent years.

Investment for tourism is increasing and gains a big turn-over.

References E-tourism at a glance……. Vietnam.

Journal of policy research in tourism, leisure and events.

Sustainable Tourism Development in Vietnam by Nguyen Thuy Khanh Doan.

Tourism & Economic Development in Vietnam -Bee Chin NG

Greifswald Articles. International Edition. Volume 4 (2008). Edited by „Forum Regional- and Tourism Research

World Travel and Tourism Council, Travel & Tourism Economic Impact: Vietnam, 2010

Govt. Site :

http://www.vietnamtourism.gov.vn/

www.vietnamtourism.com

www.dulichvn.org.vn

My son

Mui Ne

Nha TrangPhu Quoc

Hoi An

THANK YOU