Vietnam's tourism, hotel, and resort industry continues to see steady revenue growth in 202 but cost pressures are mounting, with the percentage of businesses reporting a decline in profits rising to 11 percent from 7.2 percent, according to a survey by Vietnam Report.

Vietnam Report has released the top 10 prestigious travel companies and top five reputable hotels and resorts in 2024, providing an insight about the local tourism market.

Vietnam's tourism, hotel, and resort industry entered 2024 with positive momentum, reflected in revenue growth across both tourism and accommodation/catering services.

From January to October, tourism turnover was estimated at VND50.3 trillion (US$2 billion), a 14.2-percent increase compared to the same period last year.

Revenue from accommodation and catering services reached VND602.3 trillion (US$23.7 billion), up 12.5 percent.

These figures signify the tourism industry's strong recovery and growth following a challenging period.

However, businesses are grappling with significant challenges in controlling costs and maintaining profit margins.

In particular, increasing operating costs, the need to invest in digital technology, and the pressure to transition to a sustainable development model are creating significant financial burdens.

Risk management strategy has emerged as one of the top long-term priorities of businesses in the industry with a priority rate of 57.1 percent.

Consumers are now showing increasing interest in sustainable tourism and are willing to pay more to experience environmentally friendly and socially responsible services.

The trend is clearly demonstrated by a jump in the rate of willingness to pay for sustainable tourism services over the years.

Notably, sightseeing services have grown strongly, from 63.1 percent in 2022, to 75.4 percent in 2023 and reaching 80.9 percent in 2024, according to the Vietnam Report survey.

In this context, 2025 is not only expected to be a year of recovery but also a time for the entire industry to transform more strongly toward sustainable development.

The percentage of consumers willing to spend more on tourism has surged, reaching 48.1 percent, compared to only 27.6 percent in 2023. 

This is an impressive improvement, reflecting the strong recovery trend of this industry and changes in consumer behavior, Vietnam Report claimed.

The economic recovery in 2024 has brought positive signals to the tourism, hotel, and resort industry, particularly as factors like GDP growth, a reduced unemployment rate, and gradually stable inflation create a favorable environment for consumer spending.

As personal income rises, people are spending more on entertainment and recreational activities, which is driving demand in both domestic and international tourism.

In the face of global geopolitical instability, Vietnam has emerged as a safe, stable, and welcoming destination, aligning with the growing trend of safe travel among international tourists.

Despite ongoing challenges, 71.4 percent of businesses are optimistic about a more positive outlook in 2025.

The industry aims to attract 25-28 million international visitors and 130 million domestic tourists, with a direct contribution of 8-9 percent to GDP next year.

The tourism industry is expected to generate 6.3 million jobs in 2024, including 1.2 million direct jobs, reflecting efforts not only to recover but also to grow robustly toward sustainable development and establish Vietnam as a leading global tourist destination.

The shift from offline shopping to online channels has accelerated in 2024. According to the 2024 Consumer Trends survey by Vietnam Report, the percentage of bookings made through travel platforms like Traveloka and Booking.com has soared to 71.4 percent this year, up from 31.4 percent in 2023.

Similarly, bookings through travel company websites also ascended to 57.1 from 26.5 percent, while traditional channels such as booking directly at agency offices or with suppliers at tourist destinations recorded a clear fall, indicating the trend of prioritizing modern online platforms.

This shift is driven by the digitization of the tourism industry, technological development, and changes in consumer behavior after the COVID-19 pandemic, as customers increasingly look for faster, more transparent, and flexible ways to book services.

Amid a tech boom, 85.7 percent of tourism businesses, hotels, and resorts have swiftly adapted their marketing strategies, focusing on enhancing brand image and promoting activities across digital channels such as Facebook, Instagram, YouTube, and official websites.

Vietnam's tourism sector is striving to balance long-term investment needs with cost pressures.

Given growing competition, digital transformation and sustainable development are no longer optional but essential, according to Vietnam Report’s survey.

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