India's rise to become the world's most populous nation is transforming Southeast Asia's tourism landscape. Learn how Vietnam and neighbouring countries are adapting to attract Indian tourists, addressing challenges, and seizing this lucrative growth opportunity. Discover strategies that can enhance Vietnam's appeal to Indian tourists and ensure memorable experiences.
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India is rapidly emerging as a significant player in the global tourism market. With a burgeoning middle class and increasing disposable income, Indian tourists are exploring international destinations more than ever before. Their preferences often lean towards cultural sites and beach resorts, making them an attractive demographic for countries looking to boost their tourism sectors.
Amidst the travel boom, countries like Thailand and Malaysia have taken proactive steps to attract Indian tourists:
Both nations have waived visa requirements for Indian citizens, simplifying travel and encouraging more visitors. This strategic move emphasises the importance of Indian tourists in their tourism strategies.
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According to the Vietnam National Authority of Tourism, prior to the COVID-19 pandemic, Vietnam received just 169,000 visitors from India. In contrast, last year, the country saw an increase to 392,000 Indian tourists. In the first half of 2024, the number of Indian arrivals reached 231,000, showing a 164% rise compared to the same period in 2023.
Vietnam is well-positioned to capitalise on the influx of Indian tourists. The country offers a three-month visa for Indian nationals, making it easier for them to plan extended stays.
Furthermore, VietJet has launched several direct routes between India and Vietnam, facilitating convenient travel. Partnerships between Vietnam Airlines and major Indian travel agencies, along with local giants like Vietravel, Vingroup, and Sungroup, are promoting Vietnam as a prime destination. Cities like Da Nang, Hue, and Hoi An have become top choices for Indian travellers.
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Vietnam offers competitive pricing, with travel expenses being 10% –15% cheaper than other destinations, without compromising on quality. This cost-effectiveness, combined with the country's rich cultural heritage and natural beauty, makes it an appealing choice for Indian tourists.
Another benefit is that Vietnam and India are not too far apart—it only takes four to five hours to fly from India to Vietnam. People might not get tired from lengthy travel because of this, and more direct flights are now available, saving them from having to make a stopover.
However, Vietnam faces challenges in fully tapping into this market.
Although Vietnam has introduced e-visa options, the visa application process can still be complicated and time-consuming compared to options offered by other Southeast Asian countries.
Even domestic travel takes a long time to process, which reduces customer satisfaction and expectation while travelling.
Compared to famous destinations like Phuket (Thailand) or Bali (Indonesia), Vietnam is lesser-known among Indian tourists. Limited marketing and promotional efforts in India can result in lower awareness and interest.
This can hinder communication and the overall experience for Indian tourists, as they may face challenges in understanding local culture, history, and attractions.
While Vietnam has a rich culinary scene, the lack of familiar Indian food options can deter some tourists who prefer Indian cuisine. Muslims, for example, avoid food cooked in vessels used for meat or seafood, while Hindus typically do not consume beef.
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The government, innovative travel agencies, and all members of the hospitality industry must collaborate to address these challenges.
Firstly, simplifying the visa process can attract more tourists, not just from India but from other international markets as well. Secondly, businesses should work together to launch promotional campaigns that raise awareness about Vietnam as a travel destination.
Then, investing in training for human resources to better understand Indian culture and language will be crucial in enhancing the overall experience for Indian tourists.
Finally, food and beverage options play a crucial role in attracting tourists. Not everyone is open to trying local cuisine while travelling abroad, so restaurants and hotels must thoughtfully plan their menus to accommodate diverse religious and dietary needs. Collaborating with Indian food suppliers for spices and raw materials can help fulfill these requirements effectively.
A recent visit by 4,500 tourists, including employees of Sun Pharmaceuticals, owned by Indian billionaire Dilip Shanghvi, highlights Vietnam's potential as a tourist destination. The group, arriving in six groups from August 26-28, toured Hanoi, visiting popular sites like Hoa Lo Prison, Ho Chi Minh Mausoleum, and Hoan Kiem Lake, before exploring Ninh Binh and Ha Long Bay.
They stayed in Hanoi for four nights, lodging at 5-star hotels like InterContinental Hanoi Landmark72, Meliá Hanoi, Movenpick Living West Hanoi, Pan Pacific Hanoi, and Novotel Hanoi Thai Ha. During their visit to Ninh Binh, the group dined at the Trang An restaurant chain, which specifically prepared Indian and vegan dishes to accommodate the largely vegetarian group, even recruiting additional Indian chefs for the occasion.
This large-scale visit demonstrates Vietnam's capability to handle significant tourist groups, showcasing its readiness in areas such as security, healthcare, accommodation, and culinary experiences, potentially setting a precedent for future large-scale tourism events.
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India’s ascent as the world’s most populous nation is reshaping the global tourism landscape, particularly for Southeast Asian countries like Thailand, Malaysia, and Vietnam. With the Indian middle class eager to explore international destinations, the drive to attract these travellers has intensified.
Countries such as Thailand and Malaysia have proactively implemented visa-free policies to simplify travel, while Vietnam is poised to capitalise on this trend by enhancing its offerings and accessibility. However, to fully embrace the influx of Indian tourists, Vietnam must address challenges like visa complexity, awareness, and cultural compatibility.
Success in attracting Indian travellers will rely on collaborative efforts across the tourism sector, innovative marketing strategies, and a commitment to improving the overall travel experience. By leveraging its unique cultural and natural assets, Vietnam can position itself as a premier travel destination for Indian tourists.