Visa report shows increased spending by Korean tourists in Vietnam: Visa Consulting & Analytics data
09/27/2024
Visa's latest analysis highlights Vietnam's continued appeal as a top Asian destination for Korean travelers, with emerging cities witnessing impressive spending growth
Visa, the world leader in digital payments, reveals in its latest analysis that Vietnam continues to be a preferred travel destination for Koreans. This trend was unveiled by the Visa Consulting & Analytics (VCA) team – Visa’s payments advisory arm – based on VisaNet data1. The data showed a significant rise in accommodation spending by Korean tourists in the first half of 2024, reinforcing Vietnam's appeal for resort vacations. Additionally, there was a marked increase in contactless payment usage in Vietnam’s popular travel destinations, from 15% to 33%.
According to Visa’s Green Shoots Radar survey2, travel among Koreans has revived over the past year, with 37% travelling for leisure or work, up from 23% the previous year. The survey ranks Vietnam as the second most visited destination (16%) by Korean travelers, trailing only Japan (54%) and tied with Australia (16%). According the General Statistics Office of Vietnam, South Korea was the largest source market of tourists in the first three months of 2024, with more than 1.2 million arrivals, a year-on-year increase of 10%. Notably, Vietnam ranked first among the most favorable foreign destinations for Korean visitors during the summer holiday season of 2024, forming 13.7% of inbound tourists.
In Vietnam, Korean tourists' spending on accommodation surged to 21% of total expenditure in the first half of 2024, representing a jump of over 60% from the previous year. This solidifies Vietnam's reputation as a popular destination for resort stays. Spending on dining, the top category in the first half of 2024, accounted for 17% of total expenditure, highlighting Vietnam's renown for culinary tourism. Visa has enhanced Vietnam's booming culinary scene by offering seamless digital payments through its partnership with The MICHELIN Guide in the past two years, providing diners and restaurant owners with top-notch dining experiences.
Despite a slight dip from the previous year, Da Nang, Ho Chi Minh City, and Hanoi remained at the top of the spending list, with approximately 25%, 15%, and 10% of total expenditure, respectively. Emerging hotspots like Nha Trang, Dalat, and Phu Quoc saw substantial spending growth, up by approximately 90%, 150%, and 160%, respectively.
Visa's analysis underscores the enduring allure of Vietnam for Korean travelers, with a marked shift towards accommodation spending. The rise of cities like Nha Trang, Dalat, and Phu Quoc, coupled with the growing trend of contactless payments, signifies a promising future for Vietnam’s travel and tourism industry.
Vietnam's tourism sector welcomed over 8.8 million international visitors in the first half of 2024, marking a nearly 60% increase compared to the same period the previous year. For the full year, Vietnam aims to attract 17 to 18 million foreign visitors and 110 million domestic visitors, generating VND 840 trillion (USD 34.2 billion) in revenue, an 11% increase from 2019. This growth is bolstered by strategic partnerships, such as with Korea, which stands as Vietnam's top investor with a registered capital of nearly USD 87.5 billion, comprising 18% of total investment.
To attract high-spending, long-term tourists, Vietnam is enhancing its premium tourism sector by improving high-quality services and increasing the number of 4 and 5-star hotels, luxury shopping malls, recreational spots, and event venues. An example of this strategy is Korea's Lotte Duty Free, whose expansion in Vietnam led to a 351% sales surge in 2023, with Korean tourists making up about 60% of the sales.
Ms. Dung Dang, Visa Country Manager of Vietnam and Laos, said: "As cross-border travel gains momentum, particularly with Korean travelers visiting Vietnam, we see a tremendous opportunity for Visa to remain a crucial part of the traveler's journey. Our goal is to be present during the key stages of travel planning and booking, and to encourage consumers to use Visa cards for a seamless payment process on relevant travel apps. Our survey found that credit cards are a top payment method for shopping purchases at these destinations due to their convenience, security, and wide acceptance. At Visa, we aim to ensure a convenient and secure travel experience, and we are committed to working towards the Vietnamese government's goal of growing tourism by enhancing digital payment methods and providing tourists with an enjoyable experience in Vietnam."
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1 VisaNet data tracking consumer spend from Jan – Jun 2024 compared to the same period in 2023.
2 The Green Shoots Radar study was conducted online with 8,400 consumers across 14 Asia Pacific countries and territories including 500 Korean respondents aged 18-65 years old, in June 2024.
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