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 countries

Therefore, tourism is considered a key economic sector with development prospects for many countries around the world, because of the great socio-economic benefits that the tourism indus

VIETNAM GENERAL CONFEDERATION OF LABOR TON DUC THANG UNIVERSITY

FACULTY OF SOCIAL SCIENCES AND HUMANITIES

DAI HOC TON BUC THANG

TON DUC THANG UNIVERSITY

FINAL REPORT Course: Strategic Management Tourism

TOPIC: 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 countries) poses numerous opportunities, advantages, as well as

intertwined difficulties and challenges

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

Tran Ngoc My Tran 320H0365

Vo Thi Giang Huyen 320H0163 Tran Nguyen Thị Hoang Thị 320H0348

MEMBER EVALUATION TABLE

100%

2.1.2.2 2.1.2.3 2.1.2.4 Conclusion

1.1 1.2 Word

85%

INSTRUCTOR'S FEEDBACK

TABLE OF CONTENTS

1.3 Brief overview of the Tourism Development Strategy in Vietnam 006 9

2.1 Impact of changes in the current tourism ÏnUSÍTY - s5 5 5555 <s e2 13

2.2 Analysis and Refinement of the Tourism Development Strategy in Vietnam 31 2.2.1 The pre-existing Tourism Development SŠtraf€gÏ€S 5< css<s« 31

CHAPTER 3 RECOMMENDATIONS TO ADAPT AND RECOVER TO

3.1.1 Destination development, flexible products 47

3.2.1 Crisis management of health, safety and destination security 00+ 48 3.2.2 Crisis management for unforeseen global €V€TfS - 5-5 «<< se se 49

3.3.1 Conservafion eforts and eco-friendly initiafÏV€S con s55 55 50

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

PICTURE, TABLE AND FIGURE CATALOG

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

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

Picture 6 Ngo Mon Hue was submerged in the sea 30

Figure 1 Internafional visitors to Vietnam ïn the first 6 months of 2023 7

Figure 3 International tourists comprise a small percentage of tourists in Vietnam

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

INTRODUCTION

1 Statement of the problem

With the rapid development of the world's economy, these days, human life

Is increasingly improved When material needs are fully met, at the same time, the need for mental satisfaction such as play and entertainment is increasingly paid attention to Therefore, tourism is considered a key economic sector with development prospects for many countries around the world, because of the great socio-economic benefits that the tourism industry brings and is even more evident

in the current trend of globalization and international economic integration

Therefore, to operate effectively in the tourism industry, it is necessary to have an overview of the strategy to manage and operate tourism in a country Without a strategy, tourism activities are susceptible to strategic drift and operational inefficiencies This is the consequence of not monitoring and responding to changes in the external environment, especially in a global context with many major changes such as the Covid-19 pandemic and the ongoing war in one country country number As a result, national tourism organizations that do not use strategic planning tend to make ad hoc decisions and are reactive rather than proactive to events From there, lessons learned to develop Vietnamese tourism in the current context of globalization and international economic integration, it is necessary to specifically refine tourism management strategies At the same time, analyze the opportunities, advantages as well as the intertwined difficulties and challenges 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 information from documents such as articles and previous research works with official origins

on Google Scholar, Research Gate, etc In addition, the group also Refer to articles, magazines, and reports transmitted according to the research process of the Internet system and electronic information portals of the General Department of Tourism, Ministry of Culture, Sports and Tourism From there, synthesize and analyze collected information about travel and tourism business strategies On that basis, analysis and refinement of the Tourism Development Strategy in Vietnam in the

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

2.2 SWOT Matrix Analysis Method The SWOT model analyzes tourism development, business, and trade activities to help stakeholders improve tourism business activities and make policies

in the right direction, building a foundation for recovery as well as sustainable development In particular, Strengths and Weaknesses are considered two internal factors (reputation, characteristics, geographical location, ect) because these are factors that can be tried to change Opportunities and Threats are two external factors (supply, competitors, market prices, human resources, etc.) because they are not factors that can be controlled by will alone

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

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

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

Opportunities: External environmental factors that can be exploited to gain advantage

Challenge: External environmental factors can negatively affect the strategic management 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 business strategies, as a basis for proposing suitable solutions and tourism products

CONTENT CHAPTER 1 THEORETICAL BASIS 1.1 Related concepts

Strategy According to Johnson and Scholes (2001:10, original emphasis), “Strategy is the direction and scope of an organization over the long term: achieving advantage for the organization through the configuration of resources within a changing market, to meet market needs and meet stakeholder expectations

Athtyamen and Robertson (1995) found that “the level of commitment to strategic planning in the tourism industry is at least as strong as that in the manufacturing sector”

Tribe's definition of strategy (1997:13) “Strategy is planning for a desired future 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 gives the goals and direction of the strategy

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

3 Strategy Selection: This is where an organization creates, evaluates and selects an appropriate strategy

4 Strategy implementation: This represents how an organization puts its strategy 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 goals and objectives of organizations operating within the tourism industry It involves a systematic approach to decision-making that considers the external environment, internal resources, and the organization's capabilities Here are key elements and considerations in strategic management within the context of tourism:

1 Environmental Analysis:

Conducting a thorough analysis of the external environment, including economic, socio-cultural, technological, environmental, and political factors (commonly known 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 actions with 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, or expanding into new markets

Continuously assessing the progress of strategic initiatives through key performance indicators (KPIs) and other metrics

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

8 Adaptation and Flexibility:

Recognizing the dynamic nature of the tourism industry and being prepared to adapt strategies in response to changes in market conditions, technology, or other external factors

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

1.2 The reality of Vietnam's tourism industry According to statistics from the Vietnam National Administration of Tourism, in January 2023, the tourism industry welcomed and served 871,162 international visitors, an increase of 23.2% compared to December 2022 General Director of the Vietnam National Administration of Tourism Nguyen Trung Khanh assessed that these are positive signs showing that tourism activities continue to maintain recovery momentum and completely overcome difficulties after two years

of epidemic The fact that international visitors have begun to return to Vietnam also proves the correct and timely direction of the Vietnamese tourism industry in restructuring the market and proactively renewing its products

Saigontourist Travel Service Company said that on the occasion of the Year

of the Cat, the company welcomed and served the first group of international visitors 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 Minh City to My Tho - Cai Be - Vinh Long - Sa Dec - Chau Doc and connecting to Cambodia route Saigontourist also noted clear signs of recovery in international tourism by sea when preparing to provide travel services for Spectrum of the Seas ships with more than 3,000 tourists and multinational crew members expected to

dock at the port Nha Trang and Ba Ria - Vung Tau from February 26 - 27 This is considered a good signal from localities and Vietnamese travel businesses

According to the Da Nang City Tourism Promotion Center, the arrival of the international MICE tourist market to Da Nang has seen many improvements On the occasion of the beginning of the Year of the Cat 2023, Da Nang welcomed more than 1,200 MICE guests Specifically, there was a group of 33 guests from IndiaRF company from India of Sannatour Travel on January 17, 2023; a Group of 81 guests

of 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 Nang

on January 28, 2023; Group of 500 guests of Allybuild Vietnam Company operated

by Viettravel on February 2, 2023 In particular, the city has welcomed nearly 500 Indian guests to attend a wedding right in the first days of the Lunar New Year

2023 Travel and event agencies have registered more than 350 Malaysian guests in March 2023; Viking Travel's group of 2,000 Indonesian guests arrived in Da Nang

in April 2023 and many other domestic and international groups To promote the development of the MICE tourist market, the People's Committee of Da Nang City has issued the 2023 Official Tourist Support Program (MICE) In which, domestic and international official tourist delegations to Da Nang are welcomed Welcome at the 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 General Statistics Office on the morning of June 29, positive figures for the tourism industry were announced With the synchronized efforts of the entire tourism industry, in the first 6 months of the year, Vietnam welcomed nearly 5.6 million international visitors, reaching 70% of the target for 2023, 9.3 times higher than the same period last year, but still only equal to 65.7% compared to the same period in 2019 - the year before the Covid-19 epidemic occurred However, this is still an optimistic number because, in just half a year, Vietnamese tourism has achieved 70% of the goal of welcoming 8 million international visitors in 2023 In June alone, international visitors to Vietnam reached 975 thousand people, up 6.4% over the previous month and 4.1 times higher than the same period last year The General Statistics Office's report also said that in the first 6 months of the year, the number

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

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Figure I 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 than the same period last year; by road reached 633.5 thousand people, accounting for 11.4% 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 other attractive factors such as cost, beautiful scenery the number of Korean visitors to Vietnam still increases steadily month by month This explains why Korea is still the traditional market providing the largest number of visitors to Vietnam In the first 6 months of 2023, there were more than 1.6 million Koreans coming to Vietnam, 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 group tourism The number of Chinese visitors has increased rapidly over the months, especially in the first 6 months of the year, Vietnam welcomed 557,151 visitors from China In June alone, there were 158,260 Chinese visitors to Vietnam,

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

According to the General Statistics Office, in the first half of 2023, the accommodation and food service sector is one of the industries contributing a large proportion to the increase in total added value of the entire economy Specifically, the accommodation and food service sector increased by 15.14%, contributing 0.37 percentage points Also in the first 6 months of 2023, revenue from accommodation and 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 14.5 trillion VND, up 65.9% over the same period last year Of which, Da Nang had the highest increase of 174%, followed by Hanoi (106.9%), Hai Phong (93.2%), and Ho Chi Minh City (78.5%)

According to data from Google's travel trend tracking tool, from the beginning of 2023 until now, the number of searches about Vietnamese tourism has continuously increased; Vietnam is among the top in the world, from 11th position

to 6th position today Vietnam is also the only destination in Southeast Asia in this group Accordingly, Vietnam has a growth rate of 10%-25%, ranking 6th in the world, much higher than the general growth rate of Southeast Asia

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

In particular, on June 24, 2023, the National Assembly agreed to extend the electronic visa period from 30 days to 90 days, valid for multiple entries At the same time, increase the temporary stay period for people entering the country under unilateral visa exemption from 15 days to 45 days This policy will officially take effect from August 15, 2023 On the other hand, the Government is also considering unilaterally expanding visa exemption to attract international visitors to Vietnam

The Vietnam National Administration of Tourism affirms that groundbreaking new policies will contribute to facilitating visas and immigration, combined with positive market trends, and the tourism industry believes it will attract a large number of international visitors to Vietnam in the near future, especially the peak international tourism season starting around September 2023

1.3 Brief overview of the Tourism Development Strategy in Vietnam

In general, the tourism industry in Vietnam has been active in continually expanding and polishing products and services, playing an important role in national economic growth Vietnam Tourism's strategy focuses on sustainable growth, attempting to combine economic gains with environmental and socio- cultural conservation through the following development strategies:

1 Maintain a creative mindset and awareness regarding the development of tourism, observing it as a general service industry with significant cultural and humanistic content This will greatly aid in economic integration and inspire other industries to grow in order to meet the requirements of turning tourism into a significant economic sector

2 Create technical facilities and infrastructure for promoting tourism; swiftly create contemporary, synchronous infrastructure; Concentrate transportation infrastructure investment resources in tourist clusters, areas that are key to the growth of tourism, national tourist destinations, and areas with potential for tourism

3 Expand and diversify the travel industry, broaden the scope of the global travel market, and bolster the growth of the domestic travel industry Research and understand market trends on a regular basis to quickly adapt to the changing needs and preferences of domestic travelers Support the growth of the leisure and weekend tourism sector linked to healthcare Restructure the festival and spiritual culture tourism sectors to work harmoniously with other goals in order to combat seasonality

4 Tourism product development focuses on creating high-quality, diversified, and unique tourism goods with high added value and enhanced visitor experiences Improve service quality and strengthen linkages in the tourist product value chain

5 Encourage advertising, partnership and branding in the travel industry, worldwide integration of travel, the power of communication, and more promotion

on social media Pay focuses on integrating governmental resources with social resources to promote and advance tourism Creating regional, local, corporate, and tourist product brands is the foundation for creating tourism brands

6 Apply science and technology, accelerate digital transformation in the tourism industry; develop smart tourism Creating a smart tourism ecosystem; connecting to enhance and support visitor experiences through digital technologies Using technology to reduce cash payments for tourism services, directing and encouraging travelers to utilize electronic payment forms on smart devices Make use of information technology to improve the tourist statistical system; Create a tourist industry database system that is linked to the national database system

7 Adapt in a safe and flexible manner, successfully control the Covid-19 pandemic, relaunch the national tourism economy, and test the return of international visitors through the "vaccine passport" program

1.4 Context of significant global changes 1.4.1 Covid-19 pandemic

Because the Covid-19 pandemic emerged during a period of increased globalization, its transmission has been extremely fast and difficult to contain Globally, the economic effects of the epidemic are significant Global GDP is expected to reach USD 84.54 trillion in 2020, representing a 4.5% fall in economic growth and a loss of about USD 2.96 trillion in economic production The world has experienced four waves of the COVID-19 epidemic, which has had a significant influence on all facets of social life and claimed the lives of millions of people worldwide In response to this dilemma, numerous governments throughout the world implemented isolation laws, urging social distancing

As a result of national governments’ vaccination efforts, the Covid-19 pandemic may currently be regarded as over The revival of the tourist and service sectors is being facilitated by the global economy's ongoing stabilization However, there are other difficulties for the tourism sector as a result of the pandemic, including shifting traveler behaviors and purchasing patterns and the rise in popularity of certain travel trends

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1.4.2 Ongoing wars in some countries 1.4.2.1 Summary of Russia - Ukraine conflict Along with injuring many citizens of the two nations, the military conflict between Russia and Ukraine has also damaged several industries and commercial sectors worldwide

The war in Ukraine has resulted in around 19,000 deaths and injuries, making it the worst conflict in Europe since the end of the Cold War Almost one- third of Ukraine's population, or over 13 million people, were compelled to leave their homes Along with losing control of a portion of the coast, Ukraine's economy

is in shambles The World Bank claims that Russia's special military operation in Ukraine severely damaged the country's economy, resulting in losses of up to USD

350 billion and a one-third decline in GDP

1.4.2.2 Summary of Israel - Palestine conflict

An ongoing conflict involving several nations in the Middle East is becoming more likely as the Israeli-Palestinian crisis in Gaza worsens every day The battle is reported to have had a significant impact on the travel and tourism business in particular, as well as the worldwide supply chain, which is still recovering from the COVID-19 epidemic

1.4.3 Climate change Climate change is a term used to refer to changes in climate due mainly to human impacts that change the components of the earth's atmosphere Climate change has direct consequences on the ecosystem, environmental resources and human life

Currently, the tourism industry is facing rising temperatures and extreme weather events Relentless heat waves offer major health dangers, including dehydration and heatstroke, and the heat affects travelers' mentality This shift is expected to have a considerable impact on economies that rely largely on tourism revenue Climate change also creates potential risks including eroded coastlines and flooded tourism infrastructure,

1.4.4 The impact of the economic depression Many organizations predict that global GDP growth will slow in 2023 compared to 2022, with certain economies expecting a recession Global inflation is

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also expected to fall, with the global CPI falling from 8.8% in 2022 to around 6.5%

in 2023 and 4% in 2024 However, there have been numerous arguments regarding whether the economy would go into a recession or continue to thrive

The situation for Vietnam's economy in 2023 is expected to be difficult due

to the fact that many economies are growing close to the "brink of recession," which means that many will have to raise interest rates in order to control inflation In addition, the conflict in Ukraine will persist, and there will be a number of other issues that will arise, such as supply chain disruptions and increases in the cost of many raw materials used in production

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CHAPTER 2, ANALYSIS AND REFINEMENT OF THE TOURISM DEVELOPMENT STRATEGY IN VIETNAM IN THE CONTEXT OF

SIGNIFICANT GLOBAL CHANGES 2.1 Impact of changes in the current tourism industry 2.1.1 Opportunities and Advantages

2.1.1.1 Shift in Travel Preferences a) Rise of sustainable and responsible tourism The growth of the travel and tourism industry often entails potential risks to the environmental, social and cultural fabric As the world becomes more and more interconnected, tourism gradually becomes an inseparable part of life, and people are increasingly aware of the impact their tourism activities have on the social environment As a result of these attitudes, the concepts of responsible and sustainable tourism began to take shape, aiming to reduce environmental damage while maintaining a positive traveler experience, etc

In Vietnam, the post-Covid-19 pandemic context shows us even more the importance of responsible tourism and the need to promote this type of tourism to develop:

Firstly, after living with Covid-19, visitors are still scared to go in big groups, especially in congested settings Tourists today prefer places close to nature, villages, conservation areas, and isolated areas over popular and mass-market attractions They will then have a greater knowledge of the site they chose, as well

as a desire to conserve the environment and culture in that location

Secondly, modern travelers are also curious about the spiritual qualities that

a place offers them, in addition to the amenities and hygienic conditions Enhancing one's bodily and mental well-being is the primary priority Moreover, events that need communication between visitors and the local population can turn into components that draw tourists

Third, tourists' awareness and behavior have changed in a positive direction: choosing more environmentally friendly hotels; Tourists are more willing to participate with local communities Demand for responsible tourism increases, creating pressure on service providers to improve quality and operating standards

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Lastly, because older tourists tend to be more cautious when making trip plans, a significant proportion of travelers in the future will be young ones Encourages the study and creation of travel-related goods, such as responsible travel, that are appropriate for younger audiences

For Vietnamese tourists, according to a survey from the Booking.com platform, more than 88% of tourists said the Covid-19 epidemic has boosted their need for sustainable travel Hoi An (Quang Nam) is a prime example of using sustainable tourism techniques to draw visitors From a very young age, Hoi An Ancient Town has encouraged its residents and visitors to utilize single-use plastic products Hoi An introduced a zero-plastic hotel concept in September 2023 The city plans to eliminate single-use plastic trash by 2025 and reduce disposable plastic waste by 13-15% annually Additionally, a sailing excursion to collect rubbish is offered in Hoi An and has grown in popularity with tourists

Picture I Foreign tourists silently participate in the "picking up trash on Hoai River" tour

Source: Ha Ngoc

b) Wellness tourism According to UNWTO, tourism associated with health will grow strongly in the post-Covid-19 period The Global Health Institute (GWI]) predicts that this type

of tourism could reach 919 billion USD in revenue by 2022 A healthy body and a joyful soul are the main goals of wellness tourism, which is a type of travel service

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that emphasizes beauty, health, and relaxation The primary goals of medical travel are emotional and physical healing,

Vietnam is a developing country, with 55.5% of its population under 35 It is among the few to have recovered from the Covid-19 epidemic and achieved a remarkable GDP level of 2.9% by 2020 (World Bank, 2021) Covid-19 also alters travel behaviors; when people are forced to endure a prolonged length of time because of the epidemic, they often look for opportunities to treat or reward themselves through travel Vietnam is a possible market for growing wellness tourism, as can be seen from the aforementioned considerations Wego and Trustyou rank Hanoi and Hoi An among the top ten tourist destinations in Asia for health care services (Food & Hotel Vietnam, 2019) Moreover, the majority of internal travelers choose Da Nang, Nha Trang, and Phu Quoc because of their exceptional natural scenery, clean air, lengthy coastlines, and other attributes

The province of Binh Thuan intends to draw investment to create a variety of tourist goods based on kinds such as beach tourism, medical tourism, wellness tourism in its tourism development strategy until 2025 In addition, Binh Thuan also possesses many advantages to exploit and develop tourism products aimed at

“health care” for tourists A typical example is Phu Quy island, which is suitable for leisure and wellness tourism In addition, the province of Binh Thuan has a wealth

of historical artifacts, a varied scenery with woods, lakes, streams, waterfalls, and several distinctive pagodas, such as Ta Cu Mountain Pagoda, whose picturesque surroundings might attract tourists interested in meditation, yoga, and general wellness And the natural terrain with both mountains and sea is also very suitable for the type of weight loss tourism that European tourists love In addition to executing strategies to diversify tourism goods with high economic value, Binh Thuan province has been successful in catching up with the wellness tourism trend This will help the province's tourism industry thrive sustainably in 2022 and the years that follow

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

Source: Nguyen Vu c) Spiritual tourism

The World Tourism Organization (UNWTO) estimates that around 600 million domestic and international religious and spiritual travels occur annually, with over 50% of those travels taking place in Asia and 40% in Europe (2011) According to Norman (2012), spiritual tourism is a personal phenomena that tries to balance body, mind, and soul by exploring life outside of oneself and developing self-awareness to uplift spirit and soul

In 2013, UNWTO organized the workshop "Spiritual tourism for sustainable development" in Ninh Binh According to assessments from the Organization, Vietnam is a potential market to develop a special type of spiritual tourism in Asia Vietnam currently has five development-oriented areas linked to the exploitation of spiritual and historical cultural values: the Ba Den Mountain tourist area, the Trang

An tourist area, the Mau Son tourism area, and the Thanh Long Imperial Citadel Central Relics Area In addition, there are numerous small to medium-sized spiritual and religious establishments spread throughout all of the country's provinces and cities

Due to the significant impact the Covid-19 pandemic has had on visitor psyche over the months spent combating the outbreak, there have been prospects for the growth of spiritual tourism Every day, there are mental health problems in the

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vicinity of visitors These include family disputes, psychological bewilderment, and stress resulting from quarantine, among other things Religious institutions closed between the beginning of 2020 and the end of 2022, which led to an increase in anxiety and depressive illnesses among the populace The aforementioned research shows that religion has good psychological benefits on certain participants Religious groups have a chance to promote spiritual travel or religious travel in Vietnam in the post-Covid-19 era

2.1.1.2 Digital Transformation According to Vietnam's Ministry of Foreign Affairs, the government is promoting the deployment and synchronization of new generation information infrastructure and new technology applications in Vietnam's tourism industry

Means for the digital transformation of Vietnam's Tourism industry include: Mobile applications, Internet of Things (loT), Artificial Intelligence (AJ), Virtual Reality Technology (VR), Augmented Reality (AR) and 5G technology The tourism industry relies on new generations of information networks such as IPv6 and 5G to meet industry needs for high reliability and wide coverage Based on these foundations, the Tourism industry can promote digital transformation through the following 3 measures:

Firstly, accelerate the application of data processing and analysis technology

in the tourism industry After recetving information infrastructure such as industrial Internet and cloud computing, the tourism industry is radiating new vitality, promoting deep integration between big data and the tourism industry

Secondly, strengthen the connection between information technology and traditional means of tourism IPv6 technology is the "key" to improving the transmission capacity of the Internet The company's ability to operate its infrastructure will be improved effectively

Thirdly, further streamline access procedures for information operators and reduce information tax rates accordingly To some extent, this can lower the digital transformation threshold, thereby promoting the digital transformation of the tourism industry

a) Embracing technology for virtual tourism

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The COVID-19 pandemic has made the terms "Virtual Tour” or "Interactive Tour", which have appeared since 1994, become more and more popular among tourists in many countries around the world

Therefore, the People's Committee of Ha Giang province has Plan No.242/KH-UBND on communication to introduce the cultural identities of ethnic groups associated with Hoang Su Phi terraced fields, tea culture and typical products of Ha Giang province through digital technology applications Thereby, many images and videos about the culture, people, and tourism of Ha Giang such as Hoang Su Phi terraced fields, drum dance of the Lo Lo people, Ha Giang tea culture, fire dancing festival of the Dao ethnic group, ect widely promoted to domestic and international tourists

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

Source: Ho Trong Tien

From September 2021 to December 2021, Ninh Binh organizes a series of online tours every Sunday morning, taking tourists to visit Hoa Lu ancient capital, Thai Vi temple, Tam Coc - Bich Dong tourist area, Trang An tourist area, Cuc Phuong National Park, etc Many Ninh Binh specialties such as Yen Mac spring rolls, shrimp paste, eel vermicelli, Tong Truong perch soup, ect will also be introduced in these tours

The online tour in Ninh Binh premiered on October 3, 2021 and has attracted thousands of followers Source: Ninh Binh Tourism Promotion Information Center

On February 2, 2023, Hoi An City organized a report session "Hoi An - From Heritage City to Creative City", launching the electronic information page "Hoi An

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- Creative City" (Website Hoiancreativecity.com) and handed over the project to introduce Hoi An's image on the metaverse platform

Hoi An Metaverse gradually implemented digital transformation of Hoi An tourism information system, bringing Hoi An's image to Bizverse's virtual universe platform Specifically, relics and attractions in the old town and traditional craft villages will be digitized with 3D images, 360 Space built, and tour guides' explanations in local voices using technology AI in travel destinations

Through this technology, visitors will have a more real, more vivid view of the image of Hoi An as well as the experiences they will have here; thereby optimizing the decision-making ability of tourists going to Hoi An

Website Hotancreative.com is an electronic information site focusing on the creative values of Hoi An in all areas of life from cuisine, architecture, culture, lifestyle, etc with the strongest focus on two fields: Handicrafts and Folk Art In addition, this website is also a place and the pure lifestyle of local people

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implementation of safety criteria of tourist accommodation establishments, reflect service quality to the authorities, etc

This application targets an audience of more than 43 million smartphone users This is a useful tool for tourists in finding safe destinations and promoting destinations to tourists, while effectively serving the domestic tourism stimulus program

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of the Vietnam National Administration of Tourism, in which the website https://vietnamtourism.gov.vn plays the role of policy communication, serving work state management and tourism promotion; Website https://vietnam.travel specializes

In promoting the image of Vietnamese tourism abroad Along with that is a system

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of social networking sites such as Facebook, Zalo, Youtube, Instagram that strongly spread Vietnam tourism information

Besides, travel companies have also flexibly applied innovative technology

to keep customers safe while still providing new, convenient travel experiences Booking hotel rooms, boarding flights, trains contactlessly, ordering food or services via apps or assisting staff with guidance via mobile apps or chat are all solutions that bring peace of mind more attentive to tourists Vietnam Report's survey conducted in November 2022 shows that the service booking channel chosen

by the majority of tourists when traveling is through travel applications such as Traveloka, Booking.com, etc (78.5%), Next is through the travel company's website (56.9%), then booking directly at the office of the travel agent or company (36.9%) The survey also shows the trend of tourists prioritizing contactless payment methods, limiting cash more with the proportion of customers using ATM/Visa cards up to 72.3%, bank transfer 52.3% %, e-wallets 46.2% and then cash (33.9%)

Phương thức thanh toán khi di du lich

2.1.1.3 The Government actions a) Support sustainable tourism practices

A policy framework in the tourism sector is being developed and implemented to enhance sustainable tourism practices and promote social and environmental responsibility within the industry The Government is committed to developing and implementing policies to encourage and support sustainable tourism activities

First, the policy will focus on encouraging businesses in the tourism industry

to adopt environmentally friendly approaches This includes creating incentives and incentives for businesses to adopt innovative tourism methods and technologies, which help reduce negative environmental impacts These policies may include providing grants or tax incentives to businesses that undertake sustainable projects and initiatives

Second, the policy will encourage social responsibility of tourism businesses Businesses will be encouraged and rewarded for participating in community activities and contributing to social and cultural development Measures such as creating partnership programs with local communities, supporting education, health, and implementing environmental restoration projects will be encouraged

Additionally, to promote sustainable standards in the tourism industry, the government is proactively encouraging hotels, resorts, and tour operators to achieve and display Green Certification This policy aims to create a positive and environmentally responsible tourism environment

In addition, the Government also creates favorable conditions for community participation in the decision-making process on tourism development The goal is to build an interactive environment where the community can share opinions and participate in shaping the direction of the tourism industry

To support community-based tourism initiatives, the government will place emphasis on promoting environmental and cultural conservation These initiatives

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will build on the diversity and uniqueness of each local community, from protecting biosphere areas to maintaining and promoting traditional cultural values

This policy not only respects the power and opinions of the community but also promotes shared responsibility in the protection and sustainable development

of both the environment and culture Community-based tourism initiatives will become an important resource and contribute to the comprehensive and positive development of tourism in Vietnam

b) Tourism stimulus policy Financial incentives

The State Bank has directed commercial banks to reduce payment fees for businesses, including tourism and travel businesses, and customers in general, including tourists

Commercial banks restructure debt for businesses in general, including travel and tourism companies nationwide, so as not to increase bad debts, overdue debts,

or generate new bad debts of group of economic sectors directly affected by tourism, services, and travel, affected by the Covid-19 epidemic

Commercial banks continue to lend new debt to unfinished tourism and travel service projects with preferential or low interest rates to continue project implementation Provide financial support for marketing campaigns targeting domestic as well as international tourists

Reduce electricity prices for tourist accommodation establishments from the retail electricity price applied to business to the retail electricity price applied to manufacturing industries from June to December 2021; 50% reduction in assessment fees for granting travel business licenses until the end of 2021; Reduce 80% of deposits for travel services until the end of 2023; Support tour guides who meet the criteria at 3,710,000 VND/person By the end of November 2021, the total amount of money supporting tour guides across the country was over 55 billion VND

Infrastructure development Invest in local infrastructure development to enhance the attractiveness of domestic destinations

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Improve connectivity and access to less-explored areas to boost local tourism

Encourage private enterprises to invest in tourism infrastructure (airport and port systems; means of transportation, large-scale tourism services; modern public guidance system )

Promote public-private cooperation, especially in building infrastructure, accommodation facilities, entertainment areas, and high-end complex resorts, in accordance with new tourism needs and trends

Ho Chi Minh city in the third quarter of 2022 will open a waterway by high- speed boat from Ho Chi Minh city to Tien Giang, Ben Tre and vice versa On April

29, 2023, the Dau Giay - Phan Thiet expressway with a length of 99 km was inaugurated

c) Strengthen human resource training Launch campaigns to raise awareness about the beauty and attractiveness of domestic destinations

Educate people about the economic benefits of supporting local tourism

Open training classes for local tourism human resources to improve the quality of service to tourists, especially international visitors The Department of Tourism will review current degraded accommodation facilities to support motivated units to continue improving service quality as well as the quality of tourism products

Promote awareness and responsibility in environmental protection; responsibility to society and community, preserving and promoting the nation's cultural identity Implement well the regimes and policies for employees; Pay attention to building a safe, friendly, harmonious, healthy and sustainable working environment Employees must be open, cheerful, polite, and show hospitality; contributing to human resource training through public-private cooperation

The tourism industry has an opportunity to update and enhance staff skills in the new context This can include digital transformation, risk management and cross- disciplinary working skills

2.1.2 Challenges and difficulties 2.1.2.1 The impact of Covid-19 pandemic a) Global tourism industry

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According to statistics from the World Tourism Organization (UNWTO), in

2021, the Covid-19 pandemic is expected to cost the global economy about 2.4 trillion USD due to the collapse of the international tourism industry international Among them, the countries with the highest GDP decline due to the decline in tourism due to the Covid-19 pandemic are Turkey with -9.1%, Ecuador with -9%, South Africa -8.1% and Ireland with -5.9%

According to a United Nations report, the number of international tourists has decreased by nearly | billion, so in 2020 it decreased by 73% while in the first quarter of 2021 it decreased by more than 80% The epidemic also affected the hotel industry in 2020, the hotel room occupancy rate decreased significantly, in Europe

it decreased to 11%, until April 2022, this rate increased again to 11% 63% (Statista Research Department, November 4, 2022)

b) Tourism industry in Vietnam

In 2020, the number of international tourists to Vietnam decreased significantly, reaching about 3.8 million visitors, down more than 75% compared to the same period last year according to statistics from the General Department of Tourism Similarly, the number of domestic tourists also decreased significantly Many hotels, resorts, restaurants, and tourist attractions have had to close or reduce their scale In addition, revenue from translation services Accommodation and food services in the period is estimated to reach 126,200 billion VND, equivalent to 10%

of the country's revenue from commercial and service activities, down 9.6% compared to the first quarter of 2019 Tourism revenue in the first quarter of 2020 is estimated to reach 7,800 billion VND, accounting for 0.6% of the total and down 27.8% Comparing October 2020 with the same October 2019, the number of international flights has decreased by 80%

According to the General Statistics Office in 2021, the number of international tourists as well as domestic tourists continues to be affected In the first 5 months of 2021, international visitors to our country are estimated to reach 81,000 arrivals, drop 97.8% over the same period last year, of which the number of arrivals by air reached 50.5 thousand arrivals, down 98% over the same period last

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year, 3%, by road reached 30.3 thousand people, decline 94.5%; by sea reached 193 passengers, down 99.9%

In addition, because foreign tourists spend more than Vietnamese tourists, the sudden decrease in tourist numbers has greatly affected tourist spending as well

as Vietnam's overall economy In 2019, when tourism accounted for 12% of the country's GDP, foreign tourists only accounted for 17% of the total number of tourists in Vietnam, but they spent more than half of total tourism revenue, an average of 673 USD/tourist calendar compared to 61 USD for domestic tourists

International tourists comprise a small percentage of tourists in Vietnam but generate the most spending

Domestic vs international tourism in Vietnam

Visitors served, Tourist spending, Average expenditure

2019 estimate, $ billio per tourist, 2019,

ternational

Domestic HR 5.9

68

Domestic

Accommodation Trave Vietnamese Vietnames:

facilitie agencies to ( srists in

abt xuris‡s /iet i"

ome

Figure 3 International tourists comprise a small percentage of tourists in Vietnam but generate

2 Internationa tourists

the most spending

Source: Euromonitor, Globaldata, GSO

With the characteristics of Vietnam's tourism business being Business to Business (B2B), in addition to depending on partners sending tourists, when the Covid-19 pandemic occurs, it will create a huge gap for Tourism Groups of Chinese, Korean, Thai and Taiwanese tourists mainly travel in groups, organized by large travel companies of that country with tourism units in Vietnam Once a destination is less attractive, partners will direct their guests to travel to another location or country, leading to a huge hole in the destination after losing a key market Specifically, in the past few years, when Chinese and Russian tourists left the Nha Trang market, it took a very long time for Nha Trang to rebalance its tourist market

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Another factor is that about 80% of the Vietnamese tourism market is a B2B model, so Vietnamese businesses will be very passive because after Covid-19, many travel agencies in Europe and the US have to closed or converted to another model because there are no longer tourists interested in that type of tourism or have gone bankrupt after a long period of epidemic Currently, 1f Vietnamese businesses still depend on partners in key markets, we are afraid that many partners have completely closed or no longer operate under the old tourism model

Business to Consumers (B2C) types of tourism are gradually developing, especially large businesses are willing to spend large sums of money to promote awareness of a destination in world media, or directly reach out to tourists to offer and entice them to come to Vietnam for tourism However, to do this, tourism businesses need large capital resources and appropriate human resources to do business in the competitive international market

Some challenges after Covid-19 are that many tourism product groups may

no longer have tourists such as: tourism for the elderly and traveling through many countries; a type of independent backpacking travel that moves to many countries in the same vacation; Mass-participation tourism models may only be suitable for domestic tourists and groups from countries in the region

2.1.2.2 Ongoing Wars in Some Countries The occurrence of conflicts has significantly impacted travel in the tourism industry in Vietnam Bans on flights over conflict zones have had a profound effect

on the aviation sector Airlines are compelled to operate longer flights, leading to a substantial increase in flight costs Concurrently, the lack of safety assurance for flights over conflict zones adds another layer of concern to air travel

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Số lượng khách du lịch Nga đến Việt Nam từ 2015 -

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

Source: Euromonitor, Globaldata, GSO

According to statistics released by the Vietnam National Administration of Tourism on December 29, there were 28,056 Russian tourists to Vietnam in 2022, down nearly 94% compared to 646,524 people in 2019 before the pandemic 2019 data from the Vietnam National Administration of Tourism also shows that in 2019, although Russia is not the largest market, this group of tourists spends more than other markets, averaging about 1,830 USD / People

For Vietnam, conflicts in other countries lead to a significant reduction in inbound tourism, such as the decline in Russian tourists visiting Vietnam due to the Russia-Ukraine conflict Chartered flights from Russia to Vietnam remain suspended, causing Russian tourists to visit Vietnam independently in small groups

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