Travel companies see positive outlook but challenges lie ahead

By VNA   June 10, 2023 | 04:41 pm PT
Travel companies see positive outlook but challenges lie ahead
Foreign tourists drink beer at a restaurant in Hoi An ancient town, April 2023. Photo by VnExpress/Hoang Phong
Experts have forecast a positive outlook for travel stocks after two years of being battered by the Covid pandemic. However, Vietnamese tourism businesses still have to face many difficulties and challenges.

With the overall positive developments of the industry, a series of travel companies on the stock market announced very positive profit growth in the first quarter of 2023.

Statistics from showed that most travel businesses have achieved an increase in revenue in the first quarter of 2023 compared to the same period last year.

In terms of net profit, the data shows that seven out of 11 companies reported increased net profit.

Experts say that in the context of slowing spending demand, foreign tourists tend to look to Vietnam and Thailand - countries with low costs but still ensure tourism experiences.

In addition, the arrival of more tourists from China after the country reopens will contribute to boosting the tourism and service industries in Southeast Asian countries, including Vietnam.

However, Vietnam's tourism industry will face some challenges.

Ha Van Sieu, deputy director general of the Vietnam National Administration of Tourism, listed them as inflationary, exchange rates, rising interest rates, climate change, natural disasters that continue to develop abnormally and that the visa policy of Vietnam does not have many advantages compared to other countries in the region.

Nguyen Quoc Ky, chairman of Vietravel Group, said that Vietnam's tourism still has some problems with visa policies, VAT policies, and promotion of foreign tourism offices.

Ky also pointed out other obstacles, such as transportation and aviation problems as well as the lack of advertisements for festivals and events in the country.

In the first five months of this year, the number of international visitors to Vietnam was estimated at nearly 4.6 million, 12.6 times higher than the same period last year, according to the General Statistics Office.

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