How quick action averted full-blown tourism crisis for Phu Quoc Island

In the first quarter of this year the island received over two million visitors, a 66.5% year-on-year increase, including 474,468 foreign tourists.

During the nine-day Lunar New Year holidays in late January and early February it saw a surge in foreign visitor numbers to 74,833, a 30.2% increase.

Foreigners accounted for nearly 40% of arrivals during the period, and 90% of hotels were fully booked, according to the local Department of Tourism.

Most rooms in the four- and five-star segments are fully booked for the Reunification Day and Labor Day holidays (April 30-May 4).

"Tourists have returned to Phu Quoc" and "Phu Quoc is no longer being shunned" are common remarks by CEOs of travel companies and analysts when discussing the tourism situation.

Varun Grover, Vietnam country director of travel aggregator Booking, said Phu Quoc remains attractive due to its high-quality hotel services, beautiful beaches and friendly people.

The Dutch website recently named Phu Quoc one of the 10 most welcoming destinations in Vietnam.

In 2023 and 2024 tourists had kept away from Phu Quoc due to high prices, expensive airfares and a general perception of price gouging. Some airlines even canceled services to the island due to low demand.

Phu Quoc's tourism industry quickly addressed these issues.

It cracked down on dubious business practices, launched new routes to regional destinations and has been targeting new markets such as Mongolia and Poland to replace its traditional markets.

Nguyen Tien Dat, CEO of AZA Travel, said Phu Quoc is now a highly attractive destination for international visitors with its visa exemptions, relaxed policies and growing air connectivity to key markets such as South Korea, China, Russia, and India.

Its year-round warm weather attracts both domestic and international tourists.

Phu Quoc is nearly 575 square kilometers, almost 80% the size of Singapore, meaning it is capable of accommodating "10 times" the current number of international visitors, Nguyen Van My, chairman of Lua Viet Tours, said.

But it needs to continue evolving and upgrading tourism services, and crack down relentlessly on price gouging, he said.

Dat pointed out that most beaches are private and situated inside high-end resorts, limiting public access, and resort prices are often out of reach of domestic tourists.

The budget hotel segment is limited and does not meet the demand, he said.

My said: "Do not raise prices just because there are more visitors. The more visitors we get, the more we need to provide quality services. That is the best policy."