Nguyen Son Thuy, CEO of Visit Indochina, said Indian tourists are now among his company’s top five clients along with people from Thailand, Malaysia, the Philippines, and Laos.
Indian tourists accounted for 30% of all guests at Hanoi’s Flower Garden Hotel in the first week of the year, Vu Thu Hien, sales director for the northern region for hospitality giant TMG, said.
At a recent conference in Hanoi, Hoang Nhan Chinh, secretariat director of the Vietnam Tourism Advisory Board, said India is the fastest growing source market.
The number of Indian tourists to Vietnam last year was up 297% from pre-Covid levels, far surpassing second ranked Cambodians (208%).
India was also among the top 10 source markets, with over 500,000 Indians visiting Vietnam last year out of a total of 17.6 million foreign arrivals.
Pham Anh Vu, deputy general director of Viet Travel Company, attributed the influx of Indian tourists to Vietnam's growing appeal as a new destination for South Asian travelers.
The increase in direct flights between Vietnam and major Indian cities has also made travel convenient.
"Vietnam has a vibrant pace of life and bustling motorbike traffic," Rakesh Revannasiddaiah, 48, an Indian tourist, said.
Traveling with his wife and son last year, he visited places like Da Nang, HCMC and Hanoi.
He expressed a desire to return with friends to Hoi An.
But industry insiders said Vietnam needs targeted strategies to attract high-spending Indian tourists.
Last year Dilip Shanghvi, India's fifth richest individual and the owner of Sun Pharmaceutical Industries, visited northern Vietnam with 4,500 employees.
The group toured Hanoi, Ninh Binh and Quang Ninh, including the UNESCO World Heritage Site Ha Long Bay.
Shanghvi and his family also enjoyed a private vacation in Da Nang during their stay.
"The advantage of Indian tourists is that they stay longer—seven to eight days—and visit multiple destinations. We need to leverage this," Thuy of Visit Indochina added.