Viet Nam Tourism Development Strategy

and demand for foreign assistance

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MINISTRY OF CULTURE, SPORTS AND TOURISMVIETNAM NATIONAL ADMINISTRATION OF

TOURISM

Ha Noi, 27th January 2016

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Contents

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•Review 5 year implementation of the Tourism Strategy

•Foreign assistance to Viet Nam Tourism

•Priority needs of Viet Nam Tourism

•Coordination between VNAT and Donors

1.1. Viet Nam tourism development (2011-2015)

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I. Review 5 year implementation the Strategy

2011 2015 Projected Results

International tourist arrivals(Million visitors)

6.01 7.94 7.5 Domestic tourists

(Million visitors)30 57 36

Total revenue(billion USD) ~6.6 ~15 11

Accommodation 13,756256,739 rooms

18,800355,000 rooms 390,000 rooms

Total tourism labors

1.39 million(435,000 direct)

1.78 million(550,000 direct) 2.2 million

1.2. Tourism development targets by 2020o International arrivals: 10-10.5 milliono Domestic tourists: 47-48 milliono Total revenue: USD 18-19 billion, 6,5-7% GDPo Accommodation: 580,000 rooms (35-40% 3*-5*)o Tourism employment: 3 million jobs (870,000

direct)

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I. Review 5 year implementation the Strategy

1.3. Shortcomingso Tourist markets

The share of luxury and high-spending markets are small

Difficulties in expanding to new source markets due to the shortage of air connectivity

o Tourism product development Lack of unique tourism products and repeated

products in localities with similar geographical patterns Selected niche products need to be improved in

quality

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I. Review 5 year implementation the Strategy

1.3. Shortcomings (cont.)o Tourism marketing and promotion

E-marketing is not effectively implemented Market research should be strengthened and closely

linked with marketing and promotion activitieso Investment

Insufficient investment capital for tourism Investment projects mainly focused on coastal and

mountains resorts, lack of projects for entertainment and public works

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I. Review 5 year implementation the Strategy

1.3. Shortcomings (cont.)o Human resources

Tourism professional and language skills need to be improved, especially for less popular foreign languages (Russian, German, Korean, Japanese, etc)

Tourism training institutions need capacity buildingo Technology application

The application of science and technology in managing and developing tourism is still limited

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I. Review 5 year implementation the Strategy

• Major donors and development partners: EU, JICA, AECID, Luxembourg, ADB, UNESCO, ILO, SNV,…

2.1. Formulation of legal docs and tourism planning• Completed

o UNWTO - Revised master plan, Phu Quoc tourism plan, Formulation of Tourism Law

o JICA - Research on tourism development in 11 coastal central provinces

o AECID – Implementation of Tourism Law to enhance state management capabilities; Hue tourism master plan

o KTO – Technical assistance project on eco-tourism

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II. Foreign assistance to Viet Nam Tourism

2.2. Product development• Completed

o ADB - Develop pro-poor tourism; Sustainable development for GMS countries

o IUCN, SNV - Develop community-based tourism, eco tourism, homestay in Sapa

o AECID - Orientation for tourism management and development in areas of world heritage sites in Viet Nam

o ILO, Luxembourg - Strengthening tourism activities in the remote districts on the mainland of Quang Nam

o UNESCO, ILO, Luxembourg - Responsible tourism in Central of Viet Nam

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II. Foreign assistance to Viet Nam Tourism

2.2. Product development (cont.)• Completed (cont.)

o UNESCO - Quang Nam integrated culture and tourism strategy for sustainable development

o JICA - Promote self-sustaining community development in Viet Nam through heritage tourism

• Implementingo FIDR - Cotu ethnic minority community-based tourismo JICA - Diversified livelihoods based on heritage tourism in

agricultural and fishery villageo JICA – Development of Distribution Channels through

partnership between ‘Locality”, ‘Local Products’ and ‘Tourism’

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II. Foreign assistance to Viet Nam Tourism

2.3. Tourism promotion• Completed

o SNV - Tourism branding for North –West regiono AECID - Formulate Vietnam Tourism marketing plan in the

period of 2008-2015

2.4. Human resources• Completed

o EU - Vietnam Human Resources Development in Tourismo Luxembourg- Capacity building for Vietnam Tourism

human resourceso Korea, Singapore, Japan,… - In country and Overseas

Training Courses and Workshops

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II. Foreign assistance to Viet Nam Tourism

2.4. Human resources (cont.)• Implementing

o EU - Environmentally & Socially Responsible Tourism Capacity Development Programme (ESRT)

o GIZ - Project Initiative for ASEAN Integration2.5. Tourism infrastructure development• Implementing

o ADB - Greater Mekong subregion tourism infrastructure for inclusive growth project

Overall assessment: The foreign assistance plays an important role in developing and diversifying Viet Nam tourism; enhancing quality, improving competitiveness and contributing to poverty reduction, ...

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II. Foreign assistance to Viet Nam Tourism

3.1. Institutional strengthening and state management on tourismo Disseminate and implement the amended Tourism Law o Tourism integration in ASEAN and the worldo Capacity strenthening of tourism sector to cope with crisis,

climate change, impact of the world economy, ...3.2. Developing tourism products

o Develop distinctive tourism products, improve the quality of tourism products

o Expand environmentally and socially sustainable and responsible tourism

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III. Priority needs of Viet Nam Tourism

3.3. Building tourism infrastructureo Invest in tourism public works: Pilot project of tourist center

4-in-1 (Tourist center, Tourism information center, Public restroom and Tourist shopping center)

o Closer linkage with potential investors to attract investment on seaports, resorts, amusement parks,...

3.4. Developing tourism human resourceso Training courses of foreign languages and e-marketingo Improve the quality of tourism labor workforce through

capacity building for tourism training institutions and on-job training

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III. Priority needs of Viet Nam Tourism

3.5. Technology applicationso E-marketingo Softwares for tourism development management o Standardization and effective tourism statistics system

3.6. Improving the competitiveness of businesses

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III. Priority needs of Viet Nam Tourism

4.1. Demand from Viet Nam Tourismo MCST, Vietnam National Administration of Tourismo Local: Department of CST/Department of Tourism

report on: Demand for technical assistance Demand for foreign investment project through

project proposals, feasibility studies

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IV. Coordination between Viet Nam Tourism and Donors

4.2. Information about resources and priorities of the foreign donorso Donors and development partners periodically provide

information on prioritized areas and available resources for tourism

o Support to link with major investors, donors4.3. Role of Vietnam National Administration of Tourism

o Clarify the role of VNAT in providing information and bridging demands of Viet Nam tourism and donors

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IV. Coordination between Viet Nam Tourism and Donors

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Thank you for your kind attention!

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Vietnam National Administration of TourismAddress: 80 Quan Su Str., Hoan Kiem Dist., Ha Noi

Tel.: (+84) (4) 3942 3760, ext. 121 Fax.: (+84) (4) 3942 4115Website: www.vietnamtourism.gov.vn

MINISTRY OF CULTURE, SPORTS AND TOURISMVIETNAM NATIONAL ADMINISTRATION OF TOURISM