analysis and refinement of the tourism development strategy in vietnam in the context of significant global changes such as the covid 19 pandemic and ongoing wars in some countrie

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VIETNAM GENERAL CONFEDERATION OF LABORTON DUC THANG UNIVERSITY

FACULTY OF SOCIAL SCIENCES AND HUMANITIES---

FINAL REPORT

Course: Strategic Management Tourism

TOPIC: Analysis and Refinement of the Tourism DevelopmentStrategy in Vietnam in the context of significant global changes

(such as the Covid-19 pandemic and ongoing wars in somecountries) poses numerous opportunities, advantages, as well as

intertwined difficulties and challenges.

Intructing Lecturer: Ph.D Nguyen Thi Bich Dao Student implementation group: 3

7 Tran Nguyen Thi Hoang Thi 320H0348

Ho Chi Minh City, November 20, 2023

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MEMBER EVALUATION TABLE

100%

80%

95%

85%

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TABLE OF CONTENTS

1. Statement of the problem...1

2. Research Methods...1

2.1 Methods of data collection and processing...1

2.2 SWOT Matrix Analysis Method...2

CHAPTER 1. THEORETICAL BASIS...3

1.1. Related concepts...3

1.2 The reality of Vietnam's tourism industry...5

1.3 Brief overview of the Tourism Development Strategy in Vietnam...9

1.4 Context of significant global changes...10

1.4.1 Covid-19 pandemic...10

1.4.2 Ongoing wars in some countries...11

1.4.3. Climate change...11

1.4.4. The impact of the economic depression...11

CHAPTER 2. ANALYSIS AND REFINEMENT OF THE TOURISM DEVELOPMENT STRATEGY IN VIETNAM IN THE CONTEXT OF SIGNIFICANT GLOBAL CHANGES...13

2.1 Impact of changes in the current tourism industry...13

2.1.1 Opportunities and Advantages...13

2.1.2. Challenges and difficulties...24

2.2 Analysis and Refinement of the Tourism Development Strategy in Vietnam 312.2.1 The pre-existing Tourism Development Strategies...31

2.2.2 The SWOT analysis...41

CHAPTER 3. RECOMMENDATIONS TO ADAPT AND RECOVER TO GLOBAL CHANGES...47

3.1 Diversification of Tourism Offerings...47

3.1.1 Destination development, flexible products...47

3.1.2 Build products that fit your audience...47

3.2. Crisis Management and Preparedness...48

3.2.1 Crisis management of health, safety and destination security...48

3.2.2 Crisis management for unforeseen global events...49

3.3. Towards sustainable tourism...50

3.3.1 Conservation efforts and eco-friendly initiatives...50

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3.3.2 Developing tourism associated with preserving and promoting cultural values, protecting the environment, promoting sustainable development in the

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PICTURE, TABLE AND FIGURE CATALOG

Picture 1. Foreign tourists silently participate in the "picking up trash on Hoai

River" tour...14

Picture 2. Bung Thi hot water, potential for developing health care tourism...16

Picture 3. Introducing the ceremony of the Dao people to Japanese tourists in an online tour...18

Picture 4. VR 360 virtual reality web.site interface "Hoi An Metaverse"...19

Picture 5. Safe Vietnam Travel application...20

Picture 6. Ngo Mon Hue was submerged in the sea...30

Figure 1. International visitors to Vietnam in the first 6 months of 2023...7

Figure 2. Payment methods when traveling...21

Figure 3. International tourists comprise a small percentage of tourists in Vietnam but generate the most spending...26

Figure 4. Number of Russian tourists to Vietnam from 2015-2022...28

Table 2. The SWOT analysis of strategies...45

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INTRODUCTION1. Statement of the problem

With the rapid development of the world's economy, these days, human lifeis increasingly improved. When material needs are fully met, at the same time, theneed for mental satisfaction such as play and entertainment is increasingly paidattention to. Therefore, tourism is considered a key economic sector withdevelopment prospects for many countries around the world, because of the greatsocio-economic benefits that the tourism industry brings and is even more evidentin the current trend of globalization and international economic integration.

Therefore, to operate effectively in the tourism industry, it is necessary tohave an overview of the strategy to manage and operate tourism in a country.Without a strategy, tourism activities are susceptible to strategic drift andoperational inefficiencies. This is the consequence of not monitoring andresponding to changes in the external environment, especially in a global contextwith many major changes such as the Covid-19 pandemic and the ongoing war inone country. country number. As a result, national tourism organizations that do notuse strategic planning tend to make ad hoc decisions and are reactive rather thanproactive to events. From there, lessons learned to develop Vietnamese tourism inthe current context of globalization and international economic integration, it isnecessary to specifically refine tourism management strategies. At the same time,analyze the opportunities, advantages as well as the intertwined difficulties andchallenges that our country faces.

2. Research Methods

2.1 Methods of data collection and processing

For this topic, the team used the method of collecting secondary informationfrom documents such as articles and previous research works with official originson Google Scholar, Research Gate, etc. In addition, the group also Refer to articles,magazines, and reports transmitted according to the research process of the Internetsystem and electronic information portals of the General Department of Tourism,Ministry of Culture, Sports and Tourism. From there, synthesize and analyzecollected information about travel and tourism business strategies. On that basis,analysis and refinement of the Tourism Development Strategy in Vietnam in the1

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context of significant global changes (such as the Covid-19 pandemic and ongoingwars in some countries) poses numerous opportunities, advantages, as well asintertwined difficulties and challenges.

2.2 SWOT Matrix Analysis Method

The SWOT model analyzes tourism development, business, and tradeactivities to help stakeholders improve tourism business activities and make policiesin the right direction, building a foundation for recovery as well as sustainabledevelopment. In particular, Strengths and Weaknesses are considered two internalfactors (reputation, characteristics, geographical location, ect) because these arefactors that can be tried to change. Opportunities and Threats are two externalfactors (supply, competitors, market prices, human resources, etc.) because they arenot factors that can be controlled by will alone.

SWOT analysis is an important factor for planning Vietnam's tourismdevelopment strategies in the travel business of today's businesses. Basically, theSWOT analysis method is to analyze 4 factors:

Strengths: Internal factors bring positive points and strengths to tourismdevelopment planning policies and strategic travel business management.

Weaknesses: Internal factors negatively affect the strategic management ofthe travel business to develop tourism.

Opportunities: External environmental factors that can be exploited to gainadvantage.

Challenge: External environmental factors can negatively affect the strategicmanagement of the travel and tourism business.

The research team uses the SWOT matrix model to research strengths,weaknesses, opportunities and threats to analyze travel and tourism businessstrategies, as a basis for proposing suitable solutions and tourism products.

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Athiyamen and Robertson (1995) found that “the level of commitment tostrategic planning in the tourism industry is at least as strong as that in themanufacturing sector”.

Tribe's definition of strategy (1997:13) “Strategy is planning for a desiredfuture and designing appropriate ways to bring it about.”

There are four main elements of a strategy

1. Mission: This defines what an organization is trying to achieve and givesthe goals and direction of the strategy.

2. Strategic analysis: This provides information to an organization about thestrengths and weaknesses of internal resources as well as obvious opportunities andthreats from the external environment.

3. Strategy Selection: This is where an organization creates, evaluates andselects an appropriate strategy.

4. Strategy implementation: This represents how an organization puts itsstrategy into practice.

Tourism strategic management

Strategic management in tourism refers to the process of planning,implementing, and evaluating actions and initiatives to achieve the long-term goalsand objectives of organizations operating within the tourism industry. It involves asystematic approach to decision-making that considers the external environment,internal resources, and the organization's capabilities. Here are key elements andconsiderations in strategic management within the context of tourism:

1. Environmental Analysis:

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Conducting a thorough analysis of the external environment, including economic,socio-cultural, technological, environmental, and political factors (commonlyknown as PESTLE analysis).

Assessing trends in the tourism industry, such as changes in traveler preferences,emerging markets, and technological advancements.

3. Mission, Vision, and Values:

Defining the organization's mission (its purpose), vision (its long-term aspirations),and core values (the principles guiding its actions).

These statements provide a framework for decision-making and help align actionswith the organization's overall direction.

4. Setting Objectives and Goals:

Establishing specific, measurable, achievable, relevant, and time-bound (SMART)objectives and goals that contribute to the organization's mission and vision.Goals could include increasing market share, improving customer satisfaction, orexpanding into new markets.

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Continuously assessing the progress of strategic initiatives through key performanceindicators (KPIs) and other metrics.

Adjusting strategies as needed based on the evaluation of results and changes in thebusiness environment.

8. Adaptation and Flexibility:

Recognizing the dynamic nature of the tourism industry and being prepared to adaptstrategies in response to changes in market conditions, technology, or other externalfactors.

Overall, strategic management is crucial for tourism organizations to remaincompetitive, respond to market changes, and sustain long-term success in a dynamicand evolving industry. It involves a combination of foresight, planning, andeffective execution to achieve the desired outcomes.

1.2 The reality of Vietnam's tourism industry

According to statistics from the Vietnam National Administration ofTourism, in January 2023, the tourism industry welcomed and served 871,162international visitors, an increase of 23.2% compared to December 2022. GeneralDirector of the Vietnam National Administration of Tourism Nguyen Trung Khanhassessed that these are positive signs showing that tourism activities continue tomaintain recovery momentum and completely overcome difficulties after two yearsof epidemic. The fact that international visitors have begun to return to Vietnamalso proves the correct and timely direction of the Vietnamese tourism industry inrestructuring the market and proactively renewing its products.

Saigontourist Travel Service Company said that on the occasion of the Yearof the Cat, the company welcomed and served the first group of internationalvisitors with French nationality to visit Vietnam in the Year of the Cat 2023 by air.Along with that, Saigontourist also welcomed more than 200 guests of American,German, and Swiss nationality to Vietnam on 9-day river cruises from Ho Chi MinhCity to My Tho - Cai Be - Vinh Long - Sa Dec - Chau. Doc and connecting toCambodia route. Saigontourist also noted clear signs of recovery in internationaltourism by sea when preparing to provide travel services for Spectrum of the Seasships with more than 3,000 tourists and multinational crew members expected to

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dock at the port. Nha Trang and Ba Ria - Vung Tau from February 26 - 27. This isconsidered a good signal from localities and Vietnamese travel businesses. According to the Da Nang City Tourism Promotion Center, the arrival of theinternational MICE tourist market to Da Nang has seen many improvements. On theoccasion of the beginning of the Year of the Cat 2023, Da Nang welcomed morethan 1,200 MICE guests. Specifically, there was a group of 33 guests from IndiaRFcompany from India of Sannatour Travel on January 17, 2023; a Group of 81 guestsof Indian company SK Finance Limited at Sandy Beach Resort on January 18,2023; A group of 44 guests from Rockman Industries company arrived in Da Nangon January 28, 2023; Group of 500 guests of Allybuild Vietnam Company operatedby Viettravel on February 2, 2023. In particular, the city has welcomed nearly 500Indian guests to attend a wedding right in the first days of the Lunar New Year2023. Travel and event agencies have registered more than 350 Malaysian guests inMarch 2023; Viking Travel's group of 2,000 Indonesian guests arrived in Da Nangin April 2023 and many other domestic and international groups. To promote thedevelopment of the MICE tourist market, the People's Committee of Da Nang Cityhas issued the 2023 Official Tourist Support Program (MICE). In which, domesticand international official tourist delegations to Da Nang are welcomed. Welcome atthe airport with MICE Da Nang's check-in model, welcome banners for the group,flowers for the group leader and Da Nang specialty gifts for group members. According to the socio-economic situation report released by the GeneralStatistics Office on the morning of June 29, positive figures for the tourism industrywere announced. With the synchronized efforts of the entire tourism industry, in thefirst 6 months of the year, Vietnam welcomed nearly 5.6 million internationalvisitors, reaching 70% of the target for 2023, 9.3 times higher than the same periodlast year, but still only equal to 65.7% compared to the same period in 2019 - theyear before the Covid-19 epidemic occurred. However, this is still an optimisticnumber because, in just half a year, Vietnamese tourism has achieved 70% of thegoal of welcoming 8 million international visitors in 2023. In June alone,international visitors to Vietnam reached 975 thousand people, up 6.4% over theprevious month and 4.1 times higher than the same period last year. The GeneralStatistics Office's report also said that in the first 6 months of the year, the number6

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of Vietnamese people leaving the country reached 2.4 million, nearly 4 times higherthan the same period last year and equal to 71.5% over the same period year 2019.

Figure 1 International visitors to Vietnam in the first 6 months of 2023. Source: General Statistics Office (GSO)

The total number of visitors arriving by air reached nearly 4.9 million,accounting for 87.6% of international visitors to Vietnam and 9.3 times higher thanthe same period last year; by road reached 633.5 thousand people, accounting for11.4% and 8.1 times higher; by sea reached 55 thousand people, accounting for 1%and 443.9 times higher. With short flights, favorable visa policies and many otherattractive factors such as cost, beautiful scenery the number of Korean visitors toVietnam still increases steadily month by month. This explains why Korea is stillthe traditional market providing the largest number of visitors to Vietnam. In thefirst 6 months of 2023, there were more than 1.6 million Koreans coming toVietnam, an increase of 1485.4% over the same period last year. In June alone,Vietnam welcomed 284,350 visitors from Korea.

The second largest sending market to Vietnam in the past 6 months is China.Since March 15, China has included Vietnam in its pilot list of opening grouptourism. The number of Chinese visitors has increased rapidly over the months,especially in the first 6 months of the year, Vietnam welcomed 557,151 visitorsfrom China. In June alone, there were 158,260 Chinese visitors to Vietnam,7

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compared to 146,755 visitors in the previous month. In the first 6 months of theyear, Vietnam also welcomed 373,785 visitors from the US, 184,799 visitors fromAustralia, 129,515 visitors from the UK.

According to the General Statistics Office, in the first half of 2023, theaccommodation and food service sector is one of the industries contributing a largeproportion to the increase in total added value of the entire economy. Specifically,the accommodation and food service sector increased by 15.14%, contributing 0.37percentage points. Also in the first 6 months of 2023, revenue from accommodationand food services is estimated to reach 321.7 trillion VND, an increase of 18.7%over the same period last year. Of which Khanh Hoa had the highest increase(51%), followed by Da Nang (39.1%), Can Tho (37.5%), and Quang Ninh (36.9%).In addition, tourism revenue in the first 6 months of 2023 is estimated to reach 14.5trillion VND, up 65.9% over the same period last year. Of which, Da Nang had thehighest increase of 174%, followed by Hanoi (106.9%), Hai Phong (93.2%), and HoChi Minh City (78.5%).

According to data from Google's travel trend tracking tool, from thebeginning of 2023 until now, the number of searches about Vietnamese tourism hascontinuously increased; Vietnam is among the top in the world, from 11th positionto 6th position today. Vietnam is also the only destination in Southeast Asia in thisgroup. Accordingly, Vietnam has a growth rate of 10%-25%, ranking 6th in theworld, much higher than the general growth rate of Southeast Asia.

According to the General Department of Tourism, this shows thatinternational tourist demand for Vietnamese tourism is recovering very quickly, at amuch higher rate than regional competitors. Therefore, Vietnam has a goodopportunity to attract international visitors in the coming time.

In particular, on June 24, 2023, the National Assembly agreed to extend theelectronic visa period from 30 days to 90 days, valid for multiple entries. At thesame time, increase the temporary stay period for people entering the country underunilateral visa exemption from 15 days to 45 days. This policy will officially takeeffect from August 15, 2023. On the other hand, the Government is also consideringunilaterally expanding visa exemption to attract international visitors to Vietnam.

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