The strong growth of air travel demand in Vietnam

DNHN - Vietnam is becoming a top tourist destination in Southeast Asia, with the strong growth in air travel demand creating both opportunities and challenges for the industry.

With the stunning natural beauty, diverse cultural heritage, and excellent cuisine, Vietnam has become an attractive destination for international tourists. In 2023, the number of international visitors to Vietnam exceeded 20 million, a 25% increase compared to the previous year. This significant increase underscores the importance of the aviation industry in connecting Vietnam to the world.

One of the main factors contributing to the strong growth of air travel in Vietnam is the development of the aviation transportation system. Currently, Vietnam has about 10 airlines operating, including national carriers like Vietnam Airlines and low-cost carriers such as Vietjet Air and Bamboo Airways. The competition among airlines has benefited travelers by improving service quality and reducing airfares.

Economic development and rising incomes have also contributed to the growing demand for air travel in Vietnam. The country has become a popular destination for international tourists from Asian countries such as China, South Korea, and Japan. Additionally, tourists from Western countries like the United States, Europe, and Australia also seek to explore Vietnam's cultural and natural beauty. The variety of destinations and travel experiences has attracted the interest and demand of tourists.

In the future, the strong growth of air travel demand in Vietnam is expected to continue. This poses a challenge for the tourism industry in meeting the needs of tourists by providing accurate, attractive, and visual information.

At the Conference on Rapid and Sustainable Tourism Development, chaired by Prime Minister Pham Minh Chinh, it was noted that the tourism market is recovering after COVID-19 and the policy of reopening, but the aviation industry is still at a low growth level. By October 2023, the international air transport market had recovered to 97% of its pre-pandemic level. The Asia-Pacific region reached 73%, while Vietnam was at 72%.

To achieve the goal of 50 million international tourists by 2025, Mr. Le Hong Ha, General Director of Vietnam Airlines, stated at the conference that the National Tourism Development Strategy needs to be reconsidered to enhance competition with other regional destinations. Additionally, an effective tourism promotion program needs to be developed, ensuring the close participation of various ministries and businesses to showcase Vietnam's tourism potential and beauty to the world.

Furthermore, the development of green and sustainable aviation is considered necessary for Vietnam to maintain its competitive advantage in tourism. Measures such as using environmentally friendly fuels and integrating tourism data through digital technology will also help enhance the travel experience and attract tourists to return to Vietnam.

According to forecasts from the Civil Aviation Authority of Vietnam, the Vietnamese aviation market is following the trend of the Asia-Pacific market and is expected to recover by the end of 2024. The forecast indicates that the total demand for passenger transportation by air in 2024 is expected to reach about 84.2 million passengers, an increase of 15% compared to 2023 and 6% higher than in 2019.

Despite many positive signals, the aviation industry still faces numerous challenges and potential risks. These include negative factors affecting the economy, political and social instability in countries worldwide, limitations in infrastructure capacity, and unfavorable developments in aviation fuel prices.

Meanwhile, according to forecasts from the International Air Transport Association (IATA), the global aviation market is expected to fully recover by the end of 2024. The Asia-Pacific region, which is the slowest to recover, could escape losses and achieve a profit of about $1.1 billion in 2024. IATA also predicts that global airlines will record record revenues of up to $964 billion, with passenger transport revenues expected to reach about $717 billion, an increase of 12% compared to 2023.

Phong Ha