The number of new hospitality businesses is rising, but a shortage of staff and tourists from pre-Covid major markets are hampering the tourism industry’s revival. The number of foreign tourists rose 582 percent year-on-year to 602,000, while over 3,000 new accommodation and hospitality businesses were registered, up nearly 28 percent year-on-year, according to the General Statistics Office.
However, as 60.8 million domestic tourists started to travel after two years of Covid-19 constraints, businesses are struggling to recruit enough staff to cater to the surging demand in many localities.
Another key problem for the industry is the lack of foreign tourists.
The 602,000 foreign tourist arrivals in the first six months marked a decline of nearly 93 percent over the same period in 2019, when the pandemic had yet to hit the world.
The four major markets of China, South Korea, Japan and Taiwan together accounted for 66 percent of foreign tourists in the first six months of 2019, but as these countries and territories still maintained quarantine policies for returning tourists, people were not eager to fly.
The Russia-Ukraine crisis has also blocked Russian tourists, who used to pack Nha Trang and Mui Ne beaches.