Dr. Trinh Le Anh believes that applying technology and artificial intelligence (AI) in the tourism industry helps improve the tourist experience. (Photo: NVCC)

That is the opinion of Tourism and Event Expert, Dr. Trinh Le Anh, Head of Event Management Department, Faculty of Tourism, University of Social Sciences and Humanities, VNU with The Gioi and Viet Nam Newspaper.

There are many barriers

Looking back at the tourism industry in 2023, how do you evaluate what has been done and what has not been done?

The highlight in 2023 is the growth in the number of visitors from the domestic and international markets. Although still far from the record before the Covid-19 pandemic, the international tourist market in the first 11 months of the year alone reached about 11.2 million visitors.

Thus, the tourism industry has exceeded the first target and achieved over 85% of the new target. A more open visa policy is one of the reasons why foreign visitors to Vietnam have continuously increased in the last months of 2023. Vietnam tourism received many important awards at the World Travel Awards 2023, which can be considered a valuable opportunity to promote Vietnamese tourism globally, with the expectation of recovering the international tourist market in the near future.

According to world reports, international tourist flows tend to change destinations significantly, when the world situation in the year has many fluctuations such as geopolitical conflicts, economic recession in major tourism markets such as the US and Europe. The Asia-Pacific region is considered a safe destination with reasonable prices. In particular, Vietnam is one of the countries that the World Tourism Organization highly rates for safety along with reasonable spending prices for most tourist segments.

So what about the domestic tourism market, sir?

The domestic tourism market proved to be the industry's main market in the past year, when in the first 11 months of 2023, domestic visitors reached 103.2 million, surpassing the figure for the whole year of 2019. The General Statistics Office's report shows that revenue from accommodation and food services in the past 11 months is estimated at 616 trillion VND. Tourism revenue is estimated at 34 trillion VND, up 50.5% over the same period last year. This growth was achieved thanks to the increased demand for tourism among people after the Covid-19 pandemic. In addition, many outstanding events have recently taken place, helping to attract a large number of tourists.

In addition to long holidays such as April 30 - May 1, National Day September 2, there are also many exciting activities in localities such as: The 17th Ho Chi Minh City International Tourism Fair; VITM Hanoi International Tourism Fair 2023; Celebrating 120 years of Sa Pa tourism; Thanh Tuyen Festival 2023; Do Son Buffalo Fighting Festival... To stimulate tourism, travel companies, travel applications and direct travel service providers continuously launch discount and promotion programs, aiming to recreate customers' travel habits.

According to a survey by Vietnam Report, 78.6% of businesses recorded increased revenue compared to 2022, of which 14.3% of businesses had a significant increase. Regarding profit indicators, 71.4% of businesses recorded growth, of which the hotel group had a higher profit growth rate with 85.7% of businesses recording. The growth of the tourist market has created positive impacts on hotels.

This market has initially recovered compared to the pre-Covid-19 period. Both Hanoi and Ho Chi Minh City showed growth compared to 2022 in room capacity and price. In Ho Chi Minh City, the supply reached 15,641 rooms, the average room capacity reached 58% with the price of 1.9 million VND/room/night.

For the Hanoi market, the supply reached 10,962 rooms, the room occupancy rate was at 61% with the price of 2.7 million VND/room/night, up 22% year-on-year, this price has exceeded the price of 2019 (only 2.5 million VND/room/night). According to the survey results of Vietnam Report, 71.4% of hotels said that the total number of guests served increased by over 100% compared to 2022, showing the strong recovery of the hotel market in Vietnam. Despite the above bright spots: Vietnam completed the set goals and won many international awards, it is difficult to say that tourism in 2023 will be a great success.

Remember, at the National Conference on Tourism Development, on March 15, 2023, Prime Minister Pham Minh Chinh commented that "Vietnam's tourism is ahead and behind" when Vietnam opened earlier than many countries in the region but has not been successful in attracting international visitors.

Bai Dong (Nghi Son - Thanh Hoa) is one of the interesting destinations. (Source: VNE)

Tourism industry must "transform"

What about looking at countries in the region?

Although Vietnam has set a target of welcoming 8 million international visitors, 1.6 times higher than the total of 5 million visitors in 2022, we need to look at the recovery index compared to before the pandemic to evaluate success. If set according to this reference, Vietnam only set a rather low target of recovering by 44% compared to 2019. Meanwhile, looking at the region: Malaysia has fully recovered compared to before the pandemic when reaching the milestone of 26 million international visitors in 2023.

According to the Tourism Authority of Thailand, in 11 months, Thailand welcomed more than 23 million visitors and aims to recover 75% compared to the same period in 2019. Tourism and hotel businesses in Vietnam still share the same feeling of going through a gloomy year.

Businesses in the service sector are facing difficulties due to a sharp decline in the number of tour visitors. In 2023, the number of domestic visitors exceeded 2022, but the number of tour visitors decreased sharply due to the global economic recession. Visitors travel independently or buy part of the tour such as room and hotel combos. Instead of traveling long distances, visitors choose day trips, short trips and nearby destinations. Travel spending is also more economical.

What do you expect from the tourism picture in 2024? How does the tourism industry need to "transform"?

In 2024, in the global tourism sector and in Vietnam, there will be a number of prominent trends: One is increased connectivity and virtualization with strong digital application to change the interactive experience. Two is sustainability and Green ecology, reducing negative impacts on the environment and community. Three is diversification of tourism experiences and strong development of domestic tourism. With these trends, Vietnam, with its natural beauty and unique culture, can become an attractive destination for international and domestic tourists.

However, the success of the tourism industry depends largely on the management and sustainable development of localities and countries. In order for the Vietnamese tourism industry to "transform" and meet future challenges and opportunities, there are some important points that the industry needs to focus on.

That is, strengthen sustainable tourism measures to preserve the environment and local communities. Improve service quality. Leverage digital technology to improve the tourism experience, from online promotion to services and communication during travel, develop smart tourism applications and online solutions to help tourists easily manage and enjoy their journey. Strengthen promotional strategies to attract international tourists through effective and creative promotional campaigns. Cooperate between the tourism industry and the community, ensuring that tourism benefits both the community and tourists.

In addition, promote and develop domestic tourism products, develop new tourist destinations and diversify experiences. Ensure effective safety and health measures to respond to emergency situations, helping tourists feel secure when traveling. The transformation of Vietnam's tourism industry requires consensus and close cooperation among stakeholders, including the government, tourism businesses, local communities and tourists. This will help the tourism industry develop sustainably and bring long-term benefits to all parties.

Leveraging artificial intelligence

So is there any international experience in tourism development that we can learn from?

Some countries have successfully implemented strategies to restore tourism after the Covid-19 pandemic. New Zealand, for example, has focused on promoting domestic tourism and ensuring the safety of visitors. New Zealand has created a “Keep Exploring Aotearoa” campaign to promote domestic tourism, promoting domestic holidays to support the tourism industry and stimulate the domestic economy.

Thailand has implemented the "3C Prevention" policy: Cleanliness, Confidence and Convenience. Thailand has implemented safety measures such as the "Amazing Thailand Safety and Health Administration" (SHA) program, which helps tourism businesses ensure compliance with hygiene and safety standards.

This has boosted tourist confidence and sent a positive message of safety preparedness. Korea has implemented the “K-New Deal for Tourism” strategy, focusing on developing high-tech tourism products and stimulating the tourism industry through infrastructure improvement projects.

Singapore has expanded its “SingapoRediscovers” program to encourage people to participate in domestic tourism experiences, while providing financial support to the tourism industry. Studying and applying similar strategies from these countries can help Vietnam diversify its tourism income and increase its attractiveness to visitors in the post-Covid-19 era.

How important is the application of technology and artificial intelligence in tourism development?

Applying technology and artificial intelligence (AI) in the Tourism industry plays an important role by improving the tourist experience and optimizing industry management. Technology & AI can help optimize the tourist experience: AI systems can personalize suggestions and recommendations based on personal data, helping tourists have a better and more personalized experience.

At the same time, AI can help predict travel demand and manage supply, thereby optimizing prices and creating flexible business models. In addition, AI technology can be used in security systems, helping to monitor and prevent risks, while protecting traveler data.

Chatbots and AI interactive systems help provide quick information and support travelers throughout their journey. Using AI to analyze data and predict trends makes marketing strategies more effective. More specifically, the application of technology and artificial intelligence in tourism includes:

Many hotels have deployed AI systems to predict booking demand, optimize prices, and provide personalized services to travelers. Travel websites and mobile apps often use AI chatbots to provide information, assist with bookings, and answer travelers’ questions in real time.

Smartphone apps can use artificial intelligence to provide interactive travel guides that are tailored to a traveler’s preferences and itinerary. AI technology can analyze big data to predict trends in ticket prices and accommodations, helping travelers choose the right time and place to travel.

Tourist areas can integrate AI-based security systems to identify risks and respond quickly, ensuring the safety of visitors. These applications not only enhance the visitor experience but also help the tourism industry maximize the potential of technology and artificial intelligence. Thus, combining technology and artificial intelligence can improve tourism management and experience, while helping the industry develop sustainably and intelligently.

Thank you!