Three negative impacts of the Coronavirus (COVID-19) disease on tourism in Vietnam

Three negative impacts of the Coronavirus (COVID-19) disease on tourism in Vietnam

Gonexp - The outbreak of the Coronavirus in China has caused a big shock to the global tourism industry and is expected to continue to significantly affect the hotel business in the near future.


Gonexp - The outbreak of the Coronavirus in China has caused a big shock to the global tourism industry and is expected to continue to significantly affect the hotel business in the near future.

Coronavirus negative impacts on tourism in Vietnam

Coronavirus pandemic is expected to have a negative impact on the Vietnamese tourism market


Tourism is one of the most vulnerable sectors by the negative impacts of natural disasters such as forest fire disaster in Australia in 2019, Taal volcano erupting in the Philippines in 2020 or political instability like Brexit, US-China trade war.

The global health pandemic also has a greater impact on world tourism demand in general and has a serious impact on specific destinations in the short and medium-term. Up to now, many airlines around the world have simultaneously reduced or canceled flights to and from China due to the complicated situation of the disease, including Air Canada, American Airlines, British Airlines, and Cathay Pacific. ...

The Vietnamese government has also issued a notice to stop operating all flights to and from Vietnam to epidemic areas in China. On the other hand, to prevent the spread of the Coronavirus, the Chinese government has also set out export restrictions on Chinese people.

This has caused huge losses in many countries because China is now the largest market of foreign tourists in the world. Fearing the risk of the Coronavirus infection, not only Chinese tourists but also tourists from many countries around the world planning to travel to Asia have canceled tours and hotel reservations.

Similarly, Vietnam is also facing the negative consequences caused by this global pandemic. According to Mauro Gasparotti, Director of Asia - Pacific Savills Hotels, hotels have been receiving a large number of rooms cancellation requests in the past few weeks not only from groups of delegations, business travelers but also individual customers.


Three negative impacts of the corona pandemic on tourism in Vietnam

Negative impacts Coronavirus tourism Vietnam

Mr. Mauro Gasparotti, Director of Asia - Pacific Savills Hotels


Mr. Gasparotti said that, in addition to directly affecting the health and lives of people, the acute respiratory infection caused by the Coronavirus also causes three direct impacts on Vietnam's tourism industry.


The first and most noticeable impact is the significant decline in the number of Chinese tourists to Vietnam, which is the largest source of visitors to Vietnam, accounting for more than 30% of the total number of international visitors in 2019. Coastal resorts will also suffer the same situation.

In particular, Nha Trang - Khanh Hoa is expected to be most seriously affected because Chinese tourists currently account for the largest share of international arrivals to the region, over 70% of total international visitors in 2019, according to information from Khanh Hoa Department of Tourism. Many meetings and conferences are also delayed to prevent the spread of the disease, leading to a significant decline in the number of MICE and business visitors in major cities such as Hanoi and Ho Chi Minh City.


The second impact is the decline in international tourists in Asia as it is thought to be a more contagious region than other tourist destinations. Southeast Asia, after a period of strong growth in attracting international visitors (138 million international visitors in 2019 with an impressive annual double growth rate of 7.8% over the past 9 years) is expected to face a relatively large decline in international visitors.

Some tourist destinations such as Thailand, Indonesia, and Vietnam will face a decline in visitors from Europe, Australia, the US,... because visitors from these countries are likely to cancel or delay travel time due to the effects of the disease.

According to STR's report, during the SARS epidemic (2002 - 2003), the average revenue per room of hotels in Asia decreased by more than 4.5%. According to a recent report by the Ministry of Tourism of Thailand, the disease caused by the Coronavirus could cause damage to the tourism industry's turnover of over 1.5 billion USD this year.


The third impact is that domestic tourism demand will also decline significantly as most people tend to avoid going to crowded places such as airports, train stations, bus stations, and restaurants or entertainment areas. Whether domestic demand can be improved or not depends mainly on the prevention and prevention of epidemics of the Vietnamese government in the near future.

Mr. Gasparotti said that if the disease is successfully controlled and prevented in the world in general and Vietnam in particular in the near future, Vietnam's tourism industry will have a recovery in the second half of 2020 and continue to be one of the industries with rapid development in Vietnam.

For hotels and resorts, especially those serving a large number of customers coming from the affected areas of the epidemic, Savills leaders highly recommend to strictly follow the regulations on epidemic prevention to ensure the safety and health of both customers and employees working there.