Vietnam Tourism and Hotel Issues

Running Head: TOURISM AND HOTEL 0 TOURISM AND HOTEL 7 Contemporary Tourism and Hotel Issues Destination: Vietnam Student Name: Student University: Introduction In recent times, the Vietnam is the most nominated destination in terms of tourism and accommodation across the globe. The management and investment in accommodations is done at large over Vietnam by SOEs (State Owned Enterprises) owning provincial or central government such as Vietnam Tourist Company and Saigon Tourist Company consisting joint-venture companies as well (Vivu Travel, 2017).

Running Head: TOURISM AND HOTEL 0
Contemporary Tourism and Hotel Issues
Destination: Vietnam
Student Name:
Student University:

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Introduction
In recent times, the Vietnam is the most nominated destination in terms of tourism and
accommodation across the globe. Vietnam is a one-party Communist state and one of the
fastest growing economies in south-east Asia along with setting sights to become a
developing nation. The language used there is Vietnamese and the currency used is ‘dong’
following the religion of Buddhism majorly with the population of 92 million (BBC, 2019).
In Vietnam, there is vast development of tourism and accommodation facilities where
numerous hotels concentrated in Hanoi being a national capital, and Ho Chi Minh City. There
were economic crisis in past that hit the major ASEAN countries affecting international
tourists from the primary market sources to Vietnam. The management and investment in
accommodations is done at large over Vietnam by SOEs (State Owned Enterprises) owning
provincial or central government such as Vietnam Tourist Company and Saigon Tourist
Company consisting joint-venture companies as well (Vivu Travel, 2017). Vietnam providing
tourism facilities with hospitality services consisting transportation, cultural and recreational,
and agencies facilities. Moreover, tourism development projects and plans were made for
tourists such as VNAT (Vietnam National Administration of Tourism) investing in resorts as
one of the biggest development plans. Vietnam won World Travel Awards in 2018 as Asia’s
Leading Destination (Das, 2019). In this report, the discussion is based on critically
examining the contemporary tourism and accommodation issues of Vietnam. Also,
identification of tourism market potential and accommodation development is done along
with the impact of transport development. There can be crisis and risk that needs to be
managed with the impact of social media and visitor experience development identification as
required to be mentioned in this report.
Contemporary tourism and accommodation issues
In the industry of accommodation and tourism that always undergo and evolve with radical
changes. There is development of skills and knowledge rapidly advancing based on past
practices acquired to create and adapt innovation in different ways across the globe
(Ambrozik, 2016). The issues faced by such as the facility functioning and the staff with
applicability of marketing processes. One more issues is the development of tourist
infrastructure along with brands occurrence, tourism and globalization that requires the
authenticity protection of events and places. Furthermore, the values and trends in tourist

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related issues along with attractions of destinations such as Vietnam for tourists’ attraction. In
tourism issues covers tourism in national parks, intensity of tourist flows impact on natural
beauty and protected areas. The issue of social media focuses on way of gaining the interest
in implementation of marketing strategies and provided services (Bauer, 2014). Hence, the
concern is mainly with oncoming changes and development in tourist industry not only in
Vietnam but across the globe. In Vietnam, the major problem in tourism and hotel faced is
poor public infrastructure going with a steady growth (Chen, 2014). Vietnamese put their
efforts in motivating the development of service industry and contributed in position
improvisation for better outcomes of tourism internationally. Vietnam’s widening flight
routes, policy changes and improved infrastructure can help the country with increase
demand for boosting development of tourism property. Another issue is few shopping centers
in Vietnam and others on small scale occupied that are Vincom Mega Mall, AEON Mall Binh
Tan and AEON Mall Long Bien.
Tourism market potential
In Vietnam, travel agencies, transport businesses and accommodation units has been raised
with a positive impact and feedback by tourists but the country is still trying to make the
tourism of Vietnam better concerning its image and country to lead in economic sector. One
factor important in contributing to tourism growth is trending of technology for making easy
to tourists sharing their travelling experiences and accessibility to information related to
travel such as air ticket prices and accommodations (Nhung, 2017). VNAT framed the market
segmentation by looking towards the potential market that are mainly Indian and Middle
East. Vietnam considers the factors under geographic market segmentation dividing it in rural
and urban as per different attitude or responses towards the country. Also, Vietnam works
with inbound tourism emphasizing the most among more employment opportunities creation
for local individuals and attracting foreign investment. However, there are changes impacting
in tourism of Vietnam that is its infrastructure, social behaviour, increased petrol or gas price,
and internet and e-commerce development rapidly (Neubacher, 2015). Vietnamese
government encouraged travel companies to follow new trend and expand business in the
Western markets. Vietnam aims at high-and-above-income market for serving to mid and
high income tourists with highest standard.

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Transport development
Vietnam faces the challenges of branding that shifts to vague or perceptions as a tourism
destination of the country with a more positive reality for seeing future tourism markets being
very strong with the ability to deliver the country’s development. In Vietnam, the travel
industry remains fragile resulting promotional activities and visa waiver policies legislated by
the government along with doubling of tourism revenue and numerous tourists as expansion
of infrastructure such as government personnel, airport, increase of service for support visitor
and highways. Vietnamese focuses on upscale visitors mainly such as families, business
travellers and cultural tourists staying for long to continuously grow the tourism market by
outspending in marketing and advertising (Viet, et al., 2019). Thus, it is essential to attract
tourists in Vietnam and upgrade its infrastructure which is the only major issue in the
country’s tourism and accommodation industry.
The country works on project in transport strongly where the government of Vietnam tries to
draw investment from the private sector of foreign for attracting specialises technical
knowledge along with equity through these projects. Vietnam has the potential of growing
transport infrastructure sector for the movement of freight and passenger along with best
practices to increase the infrastructure in the country (Andiva, 2019). In future, the country
thought of sustainable transport with expansion process and international economic
integration where the demand of transport is high where Vietnam faces the shortcomings.
These issues consisted of not meeting the society’s needs by public passenger, traffic
congestion, transport growth rate increased to environmental pollution, lacking with strategic
vision and sustainability being development-oriented covering the urban development
planning as a whole leading to the urban networks development without any uniformity
where the development of transport project is also lacking harmonious nature green goals
consisting environmentally and clean friendly (MOT, 2012). In Vietnam, mainly urban
transport is considered for forming clearer-functional distinction based on provincial,
national, district and regional levels with a rapid development in system.
The investment and operations in infrastructure for transport development suggests public
transport means in plenty, improving the services quality while using modern facilities to
meet the urban population travelling needs. The new construction has been done in transport
infrastructure for development under herringbone and uni-directional radial structure majorly
consisting urban centers and national highway as well. Though, this development in transport

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infrastructure rapidly did not catch the early transportation growth based on the travelling
demand. The issues faced in this contemporary tourism in Vietnam was the road
infrastructure development, high personal vehicles growth, not meeting the travel demand in
case of public transport system for passenger along with personal vehicles explosion
(Vietnam Insider, 2019). Also, it consists of urban transport planning and management
processing construction and investment altogether where Vietnamese Government policies
and committees of cities and provinces never targeted to personal vehicles controlling in the
traffic system. In Vietnam, the transport development made by generating the solutions were
to associate them with socio-economic strategy of development of individual localities and
the country along with correct infrastructure system for developing the urban and public
transport, making sure about the land and promoting bus system in big cities of Vietnam by
making rapid investment in the public transport construction services (Ngoc, 2015). And,
lastly, making accurate policies for the private vehicles to limit and manage the growth
directly through the government by improving the planning quality and developing the
planning law at national scale.
Accommodation development
In Vietnam, hotel development has been boosted due to the government embracing good idea
of tourism in the country with the potential of real estate projects related to hospitality and
open lending to individuals. It is essential to materialize money from investors resulting in
development across the globe along with contribution to demand and investment influx for
making the living standard higher concerning travel in the country (Rosenthal, 2018). Hence,
Vietnam is emerging from rough diamond to a true gem with continuous growth in the
market among country’s natural assets and ability of having experiences for tourists (CPP-
Luxury, 2018). The country started to diversifying their operations related to travel and
accommodation across the globe with “China+1” strategy where there was a massive
development in Hoi An and Sapa trending hotels. There was developments in resort
destinations of Vietnam largely built by local developers through the funding of pre-sales
which helped in decreasing the risk of developer with zero capital exposure and adequate
financial resources for this potential (Hamdi, 2019). Thus, Vietnam is substantially developed
in terms of accommodation trends with the increasing interest from local and international
investors. There is a development of information technology making easy to travel with
products of higher quality and various options to stay for tourists through travel support

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applications and tools. The trends having the presence in Vietnamese market can be select
service hotels, branded residence, or experience-oriented resorts for diversified choices and
capturing the needs of new generation as travellers with sustainable and green projects
development in future. Thus, this will generate many more new development opportunities
with the tourism market for Vietnam and also by inaugurating open door policy (Savills plc,
2019). The development in the country is done on terms of resort and eco-tourism, finance
and entertainment for the achievement of accommodation development goal by also
attracting huge investments from international and local companies.
Crisis and risk management
Vietnam is one of the countries having most hazard-prone in the region of Pacific and East
Asia also consisting serious storms, droughts and flooding which causes human and
economic losses substantially (ANT Consulting, 2019). The projection of climate change is
done for increasing the influence of disasters including mainly severity, timing, intensity, and
frequency of hydro-meteorological events. This impacts the accommodation and tourism of
the country that requires help internationally with good governance and inter-sectoral
coordination. The actions need to be taken for disaster risk management integration for short
and longer-term based on experiences globally (Baca, et al., 2017). The events of crisis are
beyond the management control that results in action failure, lack of contingency measure or
process taken for dealing with predictable risks. It is essential for the professional tour
operators also known as destination managers to take care of their clients where the
reputation of business is largely contingent shielding with the ability of protecting the tourist
from danger or any kind of risk within the travel (Beirman, 2016).
Social media influence
In tourism industry, social media plays an important role while analysing attitudes and
behaviours as information of reliable source. Tourists living away from the destination thin of
social media as a most effective and frequent way to attain information through the Internet
or any application while looking towards websites’ popularity, appearance and development
that conveys the information linked to tourism (Tuong Tran, et al., 2017). The use of social
media for getting information is cost-effective and bias-free allowing customers to access all
the information related to Vietnam’s tourism without any barriers. The travellers for Vietnam
can search the information from Twitter or Facebook with the Internet’s robust development

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while attracting meticulous attention in a trust-worthy and convenient way. It requires high-
frequency of networks contributing information with higher chances to reach towards the
individuals (Piriz, 2018). In Vietnam, there can be issue of high costing and stop travellers to
self-explore the information source due to restricted tour schedule where tourists can go over
practical experiences. Here, people can see reviews on Trip Advisor receiving high trust for
looking towards the travel spots in Vietnam which have a significant impact on individuals
thinking to visit the country. Social media helps in interacting with potential customers where
the travel industry thinks to transform while keeping pace with technological changes with
sustained high confidence if talk about Vietnam (Vietnam Tourism, 2018).
Visitor experience development
In tourism sector, it is essential to improve service quality for encouraging tourists to stay
longer and spend more where visitors are attracted with increased experience. The investors
for tourism other than accommodation helps in paying attention towards the tourists
experience with broad activities range at the time of stay especially in entertainment. The
model of community-based tourism helps within the local culture and performing activities
for the development of local residents and tourists experience. In Vietnam, visitors come to
relax demanding highly for sport activities and cultural experiences that requires
development for enhancing their experience (VNS, 2019). It is essential for the country to
develop tourism that is environmental friendly along with sustainable growth and green
tourism for better visitor experience along with promoting the tourism destinations within
Vietnam among quality accommodation and tourism service (Citrinot, 2019). Also, the
development of new shopping malls and building through modernity is important to making
the experience of tourists better.
Conclusion
To conclude, Vietnam is a developing country and known as one of the beautiful destinations
considering the geographic market segmentation of people defining families, groups and
business people. The development of infrastructure in terms of hotels and transport is an
emerging trend in the country along with tourism marketing initiatives for keep up with its
growth, image and popularity across the globe. The nature of accommodation and tourism
industry is dynamic and fast-changing connected with various aspects consistently such as
agriculture, politics, health, religion, environment, immigration, economics, transport,

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education, finance, and society that have an impact on tourism in some or the other way. This
report briefed about Vietnam as a best destination in terms of tourism and accommodation
contemporarily. Vietnam aims at developing the transport infrastructure where the country
lacks substantially that made the trade competitiveness less efficient and economic growth to
be less sustainable. Moreover, Vietnam’s culture and food is strongly and easily brought
while designing in terms of accommodations individuals search for staying. No doubt, there
was a requirement of upgrading infrastructure for resolving and making progress within the
destination. Except the poor infrastructure which is improving currently defines Vietnam as a
best destination with positive image under tourists or visitors along with the transport and
accommodation development by investing and operating for development opportunities. In
terms of disasters increment in the country having economic and human loses caused harm to
the industry requires to indulge crisis and risk management for preventing this issue. Here,
social media impacts more to Vietnam positively by attracting customers through the internet
and making high foreign investments. Thus, Vietnam is improving the service quality and
infrastructure with the development overall for providing best visitor experience by taking
actions within the global context.

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