The tourism industry has witnessed significant growth over the four-year period from 2014 to 2017, corresponding to a substantial rise in the number of both international and domestic visitors. The number of enterprises operating in the sector has increased by 28% in which the accommodation segment grows by 23%, and the tourist services segment achieves a higher growth rate of 36%. With regards to the labor force in the sector, the growth rate is lower compared to the number of enterprises with 16.3% for the whole sector, 15% growth in accommodation, and 21% in tourist services. The sector is dominated by small and micro businesses accounting for 80% of the number of enterprises.

Table 1: Number of enterprises in the tourism sector over the period 2014-2017

Economic activity VSIC code 2014 2015 2016 2017
Accommodation services 55           7,577           7,871           8,654           9,333
Travel agency, tour operator and other reservation service activities 79           4,322           4,879           5,236           5,883
Total tourism sector           11,899           12,750           13,890           15,216

(Source: GSO – Enterprise survey, 2018)

Table 2: Number of employees in the tourism sector over the period 2014-2017

 Economic activity VSIC code 2014 2015 2016 2017
Accommodation services 55       141,322       136,343       151,387       162,683
Travel agency, tour operator and other reservation service activities 79         33,489         35,136         35,870         40,675
Total tourism sector       174,811       171,479       187,257       203,358

(Source: GSO – Enterprise survey, 2018)

Table 3: Number of enterprises in the tourism sector as of 31 Dec 2017 by the size of employees

Economic activity Total <5 pers 5-9 pers 10-49 pers 50-199 200-299 300-499 500-999 1000-4999 > 5000
Accommodation services    9,333   4,960  2,268  1,542   432     54     42     28       6       1
Travel agency, tour operator and other reservation service activities    5,883   3,549  1,535    717     70       7       3       –       2       –
Total tourism sector  15,216   8,509  3,803  2,259   502     61     45     28       8       1

(Source: GSO – Enterprise survey, 2018)

Based on the statistics of the Vietnam National Administration of Tourism as of 2018, there were 2,022 licensed tour operators. The number of tour operators is increasing every year, with a growth rate ranging from 7% to 9%.  Table 4 shows that by 2018 60% of businesses belong to limited-liability enterprises, 39% are joint-stock enterprises, 1% are foreign-invested enterprises, approximately 0.3% are private enterprises. The fluctuation of enterprises in international travel service business mainly occurred in the group of joint-stock and limited liability enterprises, while the number of state-owned enterprises under the equitization process has decreased over the period.

Table 4: Number of tour operators by types of business

 Types of enterprises 2014 2015 2016 2017
State owned enterprises                  8                  7                  5                  5
Limited liability companies              949           1,012           1,081           1,164
Joint stock companies              474              475              489              556
Private enterprises                  9                10                10                11
Foreign invested enterprises                15                15                15                16
Total           1,456           1,519           1,600           1,752

(Source: Vietnam National Administration of Tourism)

In recent years, the system of tourist accommodation establishments in Vietnam has changed dramatically in quantity and quality. In terms of quantity, the average growth rate is about 18.4% per year, with rooms’ growth rate of about 16% per year. The number of tourist accommodation establishments and rooms has increased over time. With the supply of rooms from the new accommodation establishment, the average occupancy rate had declined from 69% in 2014 to 56.5% in 2017. By the end of 2017, the number of accommodation establishments nationwide was 17,422, with over 370,000 rooms.

In total, there are 116 five-star hotels with 33,700 rooms, 259 four-star hotels with 33,500 rooms, 488 three-star hotels with 34,200 rooms, 04 five-star apartment areas with 882 rooms, 03 tourist apartments with 494 rooms, 02 luxury tourist apartments with 262 rooms, 03 luxury tourist villas with 75 rooms, and 01 three-star tourist village with 62 rooms.

Of the total classified tourist accommodation establishments, hotels and motels account for the largest proportion, respectively 45% and 44.6%. The type of housing business with rooms for tourists (homestays) accounts for about 8.6%. Other types such as tourist villages, tourist ships, tourist villas, tourist apartments, tourist camping sites only account for 1.7%.

Table 5: Number of tourist accommodations

2014 2015 2016 2017
Number of accommodations         12,376         13,029         14,453         17,422
Number of rooms       263,468       288,935       318,237       370,907
Average occupancy                69                55                57             56.5

(Source: Vietnam National Administration of Tourism)

 

Table 6: Facilities of 3- to 5-star class accommodation establishments from 2013-2017

Year Total 5-star class 4-star class 3-star class
Number of est. Number of rooms Number of est. Number of rooms Number of est. Number of rooms Number of est. Number of rooms
2013 598 62.002 64 15.385 159 20.27 375 26.347
2014 640 66.728 72 17.659 187 22.569 381 26.5
2015 747 82.325 91 24.212 215 27.379 441 30.734
2016 784 91.250 107 30.624 230 29.387 442 30.902
2017 863 101.400 116 33.700 259 33.500 488 34.200

(Source: Vietnam National Administration of Tourism)

By region, the Red River Delta and Northeast Coast region leads the country in the number of ranked tourist accommodation establishments with 3,226 establishments, accounting for 22.3%. Followed by the Southeast region with 3,028 establishments, accounting for 21%. In terms of the number of rooms, the Southeast region leads the country with 70,805 rooms, accounting for 22.2%. Ranked last in 7 tourist regions is the Central Highlands with 1,219 establishments (accounting for 8.4%) and 20,903 accommodations (accounting for 6.6%).

Table 7: Distribution of tourist accommodations by region 2016

Region Number of accommodations Number of rooms
Quantity % Quantity %
Red River Delta & Northeast Coast 3,226 22.3 62,385 19.6
Northern Midland & Mountainous Region 2,871 20 37,610 11.8
North Central Coast 1,225 8.5 41,318 13
South Central Coast 1,383 9.6 55,011 17.3
Central Highland 1,219 8.4 20,903 6.6
Southeast 3,028 21 70,805 22.2
Mekong River Delta 1,501 10.3 30,205 9.5
Total 14,453 100 318,237 100

(Source: Vietnam National Administration of Tourism)

Published January 16, 2023
Author Do Linh
Topics Tourism Sector
Copyright © 2022 Thai Nguyen University