CEEC Market Insights – Tourism & Hospitality Post-pandemic
On June 1st, 2022, the CEEC has published this year’s edition of “Doing Business in Vietnam” guide to give an update on the country’s current economic outlook. With a focus on the macroeconomic climate, the publication gives investors valuable insights into the Vietnamese market and highlights its most potential sectors. Notably, the guide also features our co-founder Łukasz Kozłowski’s article on the Tourism & Hospitality sector updating Vietnam’s post-pandemic situation and direction.
The pandemic has taken a toll on Vietnam’s overall economic stability, especially the Tourism & Hospitality sector as the country closed its borders in March 2020. As mentioned in the article, “Nobody could have imagined that the possibility to travel in and out of Vietnam would be halted for over two years. Domestic tourism enterprises suffered heavy losses due to local lockdowns and other restrictions of commute between provinces, communes, and even wards inside of a city”. However, things have started to pick up after almost two years.
In accordance with the article, “the situation in Vietnam has more or less returned to the pre-pandemic state” and the government has removed almost all of the remaining restrictions and requirements for entering the country. “The arriving guests – both vaccinated and non-vaccinated – are no longer subject to a quarantine of any kind” and pre-departure COVID-19 test results are not required for air travel. “These actions have already brought a fraction of the once humongous tourist traffic back to the S-shaped country: The number of foreign arrivals to the country in April 2022 was 4 times higher compared to the same period of the previous year; around 91000 international tourists arrived in the country during the 1st quarter of 2022 – a year-on-year increase of an impressive 89%!” As tourists have started pouring into classic destinations such as Hoi An, Da Lat, Sapa, and others, Vietnam’s tourism sector as well as every business owner in general is looking forward to a better future with the upcoming high season of 2022-23.
With unmatched natural beauty stretched all over the country, Vietnam has always been a prominent destination for international travelers, even before the pandemic. From UNESCO World Heritage sites - such as Ha Long Bay or the Complex of Hue Monuments, exploratory spots like the Fansipan peak, to world-class seaside resorts at remote islands, there are countless destinations for travelers to explore and enjoy. As Mr. Kozłowski has stated, “Vietnam possesses everything that may attract countless numbers of international travelers to spend their holidays here, allowing the country’s quite battered tourism to re-start developing and thriving, bringing in even more traffic than the pre-pandemic times.”
For more information about other business sectors, read the full publication here.