Average Spending Structure of International Visitors to Vietnam Staying Overnight at Accommodation Facilities in 2019

According to Figure 2.2 and the above table, the Asian market is Vietnam's main export market in the period of 2018 - 2019. The number of tourists from Asian countries to Vietnam accounts for a large proportion. In 2019, the number of Korean and Chinese tourists was 4,290,802 and 5,806,425, respectively, accounting for more than 70% of the total number of Asian visitors and 56.06% of the total number of international visitors to Vietnam. The growth rate of the Korean and Chinese markets increased by about 15-20% per year. In the first month of March 2020, the number of Asian visitors still accounted for 72.54% of the total number of international visitors to Vietnam.

Regarding the structure of visitors by region, Asian markets account for the majority (79.9%), of which Northeast Asia accounts for 66.8%, Southeast Asia accounts for 11.3%, and the remaining Asian countries account for 1.8%, showing the importance of nearby markets in the Asian region. European markets account for 12%, America accounts for 5.4%, and Australia accounts for 2.4%. The large proportion of the Asian market is also a common feature of countries in the region: Asian visitors to Malaysia account for 90%, of which Singapore 2 visitors account for 40%. Asian visitors to Thailand account for 75%, of which Chinese visitors account for 28%.

In the overall strategy for Vietnam tourism development in 2020, with a vision to 2030, the Vietnamese tourism industry identifies the Northeast Asian market as a potential market. The basis for building this strategy is based on the needs and travel preferences of Northeast Asian tourists as well as their ability to pay for travel. In general, tourism spending of Northeast Asian visitors tends to increase steadily compared to previous years and is higher than the average of international visitors to Vietnam. According to the latest statistics of the General Statistics Office in 2019, in the Northeast Asia region, visitors from China have the highest average daily spending of 135.2 USD/person, followed by Japanese visitors with an average of 132 USD/person, and Korean visitors with an average of 127.2 USD/person. China is also the country that spends the most for the whole trip with 1021.66 USD, followed by Japan with 935.24 USD, and finally Korea with an average total trip spending of 872.14 USD (General Department of Tourism, 2019). With a large market share of tourists and high spending, Northeast Asian tourists contribute significantly to the growth and development of Vietnam's tourism industry.

With its Eastern culture and similar religious features, Vietnam is always a destination for international tourists with many cultural activities and festivals. If not affected by the Covid-19 epidemic, Vietnam could completely aim to welcome about 14.35 million Asian visitors in particular and 20.5 million international tourists in general.

 Structure of tourists by travel purpose

If divided by the main purpose of the trip, pure tourists accounted for 59.71% in 2019. In particular, the number of foreigners coming to Vietnam for work purposes also increased rapidly. In the first 4 months of 2019, business tourism accounted for 19.68% (the whole year of 2019 was 16.93%), or through commercial purposes to find markets...

The World Tourism Organization (UNWTO) predicts that by 2030, tourists traveling for the purpose of visiting, health, and religion will account for 31% of total tourists; for the purpose of visiting, relaxing, playing, and entertaining will account for 54%; for the purpose of work and career will account for 15%. According to this forecast, in the coming time, global tourism will continue to grow according to the following main trends: Global tourism demand is booming, especially among the growing middle class in China, creating significant economic opportunities for destinations in Southeast Asia. The country of a billion people has become the world's largest source market and will strongly impact the tourism development policies of many countries.

The purpose of most tourist markets is still sightseeing, relaxation, entertainment, but many new needs will be formed. Tourists are increasingly interested in the need to experience new values ​​established on the basis of traditional cultural values ​​(distinction, uniqueness, originality), natural values ​​(primitiveness, uniqueness), creative values ​​and high technology (modernity, convenience). In particular, medical and health care tourism is increasingly popular. Developing responsible tourism, ecotourism and community tourism is both a trend and an inevitable requirement for the tourism industry to implement the principles and goals of sustainable development.

The UNWTO estimates that Southeast Asia will become the 4th largest international tourist attraction region in the world, and Vietnam is one of the 10 countries with the fastest tourism growth rate. The world tourism industry is witnessing the development of many different tourism trends such as: self-designed tours, luxury tours, adventure tourism, experiential tourism, leisure tourism with modern equipment... In the face of this wave, domestic travel agencies must also invest more in building tour products to meet market demand and meet the purposes of international passengers.

Currently, simple vacations are no longer a popular choice. Tourists are more interested in the quality of experiences at the destination. Tourists will stay longer if the destination has many interesting experiences. If in the past, beach tourism was popular, in recent years it has shifted to mountain resorts and experiencing local culture. This is an opportunity for Vietnam to improve and invest in many aspects to build the country's image to foreign tourists while improving the quality of services, facilities, and ensuring human resources to be competitive and attract foreign tourists.

 Spending structure of international visitors

According to the 2019 annual report of the General Department of Tourism, the spending of international visitors to Vietnam in the survey includes the spending of visitors in Vietnam from the time of entry to exit. Overnight visitors spend an average of 1,074 USD/person, travel to Vietnam for 8.1 days, spend an average of 132.6 USD/day. Daytime visitors spend an average of 99.86 USD/person. Overnight visitors at CSLT spend an average of 1,083.36 USD/person, the length of the trip is 8.02 days, the average spending per day is 135 USD/day. Overnight visitors not at the accommodation facility (stay at friends' or relatives' houses...) spend an average of 622.71 USD, the length of the trip is 11.92 days.

Figure 2.3 Average spending structure of an international visitor to Vietnam staying overnight at an accommodation facility in 2019

Figure 2.4 Average spending structure of international visitors to Vietnam per day in 2019

International visitors to Vietnam mainly spend on 4 main purposes: accommodation services, food services, transportation and shopping. Thus, it can be seen that revenue from tourism service exports mainly comes from room services and food services. With more than 18 million visitors in 2019, Vietnam can see that it is necessary to develop accommodation facilities to meet the number of visitors that may increase in the coming period, raising

Improve service quality and develop additional services to bring more revenue to tourism activities.

REVENUE FROM INTERNATIONAL VISITORS

Revenue from international visitors

20.00 18.30

18.00

16.65

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00

13.74

10.48

8.57

2015 2016

2017

YEAR

2018

2019

BILLION USD

2.2.2.3 Current status of revenue from international tourists

Figure 2.5 Total revenue from international tourists in the period 2015 - 2019

Of the total revenue from tourists, the total revenue from international tourists is considered the on-site export value, bringing foreign currency to the country. In 2019, the total revenue from tourists reached 755 trillion VND (equivalent to 32.8 billion USD), of which:

- Total revenue from international tourism was 421 trillion VND, accounting for 55.7%, equivalent to 18.3 billion USD of export value from tourism.

- Total revenue from domestic tourism is 334 trillion VND, accounting for 44.3%, equivalent to 14.5 billion USD.

In total revenue from tourists, total revenue from international tourists is considered as on-site export value, bringing foreign currency to the country. Along with the development of the domestic economy, people have more and more opportunities and needs to travel.

According to the annual report of the General Department of Tourism, in the period from 2015 to 2019, tourism service export revenue has grown steadily and clearly. Since joining the WTO, the service market in general and tourism services in particular have improved, and exports of goods and services have been boosted. From 2015 to

In 2019, the growth rate was up to 13.53% compared to 2015 and 9.9% compared to 2018. The on-site export value of tourism increased 2.1 times from 8.57 billion USD to 18.3 billion USD, an average increase of 20.9%/year.

In general, in the period of 2015 - 2019, each year the Vietnamese tourism industry has attracted millions of international tourists to visit and relax. The increase in the number of international visitors means that export turnover through tourism in Vietnam has grown significantly in recent years. This proves that the Vietnamese tourism industry is on the rise and promoting its image in the international arena and has been specifically demonstrated by the number of international visitors to Vietnam in 2019 reaching more than 18 million visitors.

According to the General Statistics Office's year-end report, in 2020, due to border closures to prevent Covid-19, international visitors to Vietnam only reached about 3.7 million, down 79.5% compared to 2019; domestic visitors reached 56 million, down 34.1%; total tourism revenue reached 312 trillion VND, down 58.7% - a decrease equivalent to 19 billion USD.

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

Direct contribution of tourism to GDP (2015-2019)

9.20%

8.39%

6.96%

7.90%

6.33%

2015

2016

2017

2018

2019

GDP

Figure 2.6 Direct contribution of tourism to GDP (2015-2019)

With the rapid growth of international and domestic tourists, tourism brings an increasingly large source of revenue to the country's economy. The direct contribution of tourism accounts for an increasingly high proportion of the Gross Domestic Product (GDP): 6.3% in 2015 and 9.2% in 2019, an increase of 2.9%.

Table 2.5 Revenue of accommodation and travel establishments in the period 2016 - 2019

(Unit: billion VND)

Year

2016		2017		2018		2019
Revenue	Increase growth (%)	Revenue	Increase growth (%)	Revenue	Increase growth (%)	Revenue	Increase growth (%)
Revenue of accommodation establishments	48,524.60	8.53%	54,383.30	12.07%	59,202.20	8.86%	64,507.60	8.96%
Revenue of travel agencies	32,530.30	6.85%	36,111.80	11.01%	40,371.20	11.80%	44,259.10	9.63%

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• Organizational Structure of My Le Trading - Service - Import Export Joint Stock Company
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• Spending, Accommodation and Demand for Goods and Tourism Services of International Tourists

(According to General Statistics Office of Vietnam)

Revenue from accommodation and travel establishments increased gradually from 2016 to 2019. For accommodation and travel establishments, the average revenue growth rate was about 9.5% per year. In 2019, revenue from accommodation establishments reached 64.5 trillion VND, an increase of 8.96% compared to 2018, revenue from travel establishments increased by 9.63% compared to 2018, an increase of nearly 4 trillion VND.

The number of international tourists increasing each year is the main factor that helps the revenue of the establishments increase steadily and the profit from tourism services also increases. This shows that the supply of these establishments always meets the service demand with the number of visitors increasing each year. With a guaranteed profit, the more establishments and service providers open, the more tourists have the choice of accommodation and travel establishments with corresponding service quality.

2.2.2.4 Current status of scale and facilities serving the tourism service industry

International travel business

According to the General Department of Tourism, as of 2019, the number of international travel businesses was 2,667, of which the number of limited liability companies accounted for 62.4%, joint stock companies accounted for 36.3%, the remaining 1.4% were private enterprises and foreign-invested enterprises. Many travel businesses have been proactive in

The establishment of representative offices abroad is the basis for on-site promotion and attracting visitors from key markets. The increase in the number of international travel businesses has significantly contributed to improving the capacity of Vietnam's tourism industry, affirming that Vietnam's tourism is capable of welcoming international visitors from all over the world.

The tourism business environment is increasingly favorable, administrative procedures for tourism business have been amended in a more open direction, creating conditions for a rapid increase in the number of newly established tourism businesses. The General Department of Tourism always closely coordinates with functional agencies to strengthen inspection of tourism business activities in many provinces/cities to ensure the business environment and service quality.

Table 2.6 Number of tourist accommodation establishments in the period 2015 -2019

Year

Number of facilities	Growth	Number of rooms	Growth	Average chamber capacity
2015	19,000	18.8%	370,000	11.4%	55%
2016	21,000	10.5%	420,000	13.5%	57%
2017	25,600	21.9%	508,000	21.0%	56.5%
2018	28,000	9.4%	550,000	8.3%	54%
2019	30,000	7.1%	650,000	18.2%	59%

(According to General Department of Tourism)

The tourism infrastructure system is increasingly improved, both in quality and quantity. In 2011, the country had 13,756 accommodation establishments, with a total of 256,739 rooms, by 2019, it increased to 30,000 accommodation establishments with 650,000 rooms. The average growth rate of the number of accommodation rooms in the period 2015 - 2019 reached about 12.3%/year, the average room occupancy rate reached about 59%/year. The types of accommodation are increasingly diverse, from high-class accommodation establishments (4-5 star hotels, high-class tourist apartments, tourist villas) to 1-3 star hotel systems, tourist motels, houses with rooms for tourists to rent (homestay), tourist villages, tourist accommodation ships,... With