Vietnam’s former top paradise island sees substantial drop in tourists

October 25, 2023 Vietnam Industry Updates

Phu Quoc, formerly considered Vietnam’s top paradise island, is seeing a sharp drop in tourists. Numerous causes, such as high airfares, a drop in tourist services, and problems like overcharging, have contributed to this fall.

During the Reunification Day holiday, Phu Quoc had a fall in revenue of 24.3% and a decline in tourist arrivals of 11.5%. Over the course of the four-day National Day break, there was a 40% drop in visitors. Furthermore, on a significant holiday, the island’s lodging occupancy rate was a pitiful 27%.

Le Thi Hai Chau, general secretary of the Phu Quoc Tourism Development Investment Association, thinks that keeping airline costs stable is a sensible tactic to entice travellers to return to the island. To promote long-term relationships, airlines should have a balanced approach to business strategy. In order to address gaps and carry out these responsibilities, it is also thought that government action is required. Due to the high expense of flying, many are searching for alternatives to take vacations abroad that provide equivalent or even reduced rates.

The number of visitors from China and Europe is declining, thus Phu Quoc has to expand its marketing efforts to include South Korea, India, Taiwan, and Hong Kong. Many South Korean airlines want to increase the number of flights to Phu Quoc before the year closes.

The increasing popularity of Vietnam as a tourist destination has brought new possibilities to Phu Quoc. Dr. Nuno Ribeiro, an Associate Senior Programme Manager in Tourism and Hospitality at RMIT Vietnam, suggests limiting the number of tourists visiting the island by using the Balearic Islands of Spain as an example, which addressed similar issues by limiting the number of hotels and enacting a special tourism tax to offset the negative impacts of tourism on local communities.

More economical travel choices should primarily target travellers from neighbouring locations like Ho Chi Minh City, the Mekong Delta, and southern regions who can reach Phu Quoc by high-speed boat and road, according to Phan Dinh Hue, director of Vietcircle Tourism Company. Furthermore, in order to improve the island’s reputation as a holiday destination, local authorities need to take action against overcharging and tourist fraud.