Vietnam Gains Ground as Southeast Asia's Top Tourist Destination
Thailand's tourism industry faces challenges as Vietnam reports significant growth in inbound tourists, with a goal to attract 23 million foreign arrivals this year
Tourism operators in Thailand are expressing concerns that the country may lose its position as the top Southeast Asian destination to Vietnam in the near future.
Vietnam has reported a nearly 50% increase in inbound market growth in March compared to pre-pandemic levels, while Thailand is experiencing sluggish growth.
According to Thanet Supornsahasrungsi, president of the Association of Chon Buri Tourism Federation, it may take only two to three years for Vietnam to surpass Thailand in terms of inbound tourists.Thailand recorded 2.7 million tourists in March, a 20% decrease from 2019 levels, while Vietnam welcomed over 2 million tourists in the same month, representing a 40% increase from 2019. The Vietnamese government has set a target of 23 million foreign arrivals for this year, whereas Thailand's Finance Ministry has revised its international arrivals forecast downward from 38.5 million to 36.5 million.One factor contributing to Vietnam's growing popularity is its lower living costs compared to Thailand.
Family-oriented resorts and theme parks in Vietnam are also newer and more affordable than similar products in Thailand.
Additionally, all-inclusive packages at Vietnamese hotels are priced at half the cost of those in Thailand.Vietnam has been actively supporting foreign travel agents by subsidizing air travel and offering reduced landing fees at airports.
This has led some agents to shift their tours from Phuket to cities like Nha Trang during the summer season.
The country's international airports, located near tourist areas, also provide easy access for visitors.In contrast, tourists traveling to Hua Hin or Kanchanaburi in Thailand must spend over three hours commuting from Bangkok's airports.
According to Mr. Thanet, Thailand is relying on its existing merits without developing new infrastructure and attractions to lure tourists, which may make it difficult to reach the target of 36.5 million arrivals.Sanga Ruangwattanakul, president of the Khao San Road Business Association, noted that Bangkok may record fewer tourist arrivals than last year due to a shrinking Chinese market and foreigners opting for emerging destinations like Vietnam.
Vietnam boasts a wide range of attractions, including natural beauty, beaches, and a vibrant nightlife scene, which can compete with Thailand's popular tourist spots.The Association of Thai Travel Agents has submitted a proposal to the Tourism Authority of Thailand and the government, requesting a subsidy worth 320 million baht to increase Chinese arrivals.
The plan aims to generate at least 8.3 billion baht in revenue, based on average spending per trip of 55,869 baht from 150,000 Chinese tourists.
Vietnam has reported a nearly 50% increase in inbound market growth in March compared to pre-pandemic levels, while Thailand is experiencing sluggish growth.
According to Thanet Supornsahasrungsi, president of the Association of Chon Buri Tourism Federation, it may take only two to three years for Vietnam to surpass Thailand in terms of inbound tourists.Thailand recorded 2.7 million tourists in March, a 20% decrease from 2019 levels, while Vietnam welcomed over 2 million tourists in the same month, representing a 40% increase from 2019. The Vietnamese government has set a target of 23 million foreign arrivals for this year, whereas Thailand's Finance Ministry has revised its international arrivals forecast downward from 38.5 million to 36.5 million.One factor contributing to Vietnam's growing popularity is its lower living costs compared to Thailand.
Family-oriented resorts and theme parks in Vietnam are also newer and more affordable than similar products in Thailand.
Additionally, all-inclusive packages at Vietnamese hotels are priced at half the cost of those in Thailand.Vietnam has been actively supporting foreign travel agents by subsidizing air travel and offering reduced landing fees at airports.
This has led some agents to shift their tours from Phuket to cities like Nha Trang during the summer season.
The country's international airports, located near tourist areas, also provide easy access for visitors.In contrast, tourists traveling to Hua Hin or Kanchanaburi in Thailand must spend over three hours commuting from Bangkok's airports.
According to Mr. Thanet, Thailand is relying on its existing merits without developing new infrastructure and attractions to lure tourists, which may make it difficult to reach the target of 36.5 million arrivals.Sanga Ruangwattanakul, president of the Khao San Road Business Association, noted that Bangkok may record fewer tourist arrivals than last year due to a shrinking Chinese market and foreigners opting for emerging destinations like Vietnam.
Vietnam boasts a wide range of attractions, including natural beauty, beaches, and a vibrant nightlife scene, which can compete with Thailand's popular tourist spots.The Association of Thai Travel Agents has submitted a proposal to the Tourism Authority of Thailand and the government, requesting a subsidy worth 320 million baht to increase Chinese arrivals.
The plan aims to generate at least 8.3 billion baht in revenue, based on average spending per trip of 55,869 baht from 150,000 Chinese tourists.
