The country has gone from the third cheapest in the region to the third most expensive in just two years.
Vietnam has been ranked third from bottom in Southeast Asia when it comes to price competitiveness, only standing above Singapore and Cambodia, according to the biennial Travel and Tourism Competitiveness report produced by the World Economic Forum.
The ranking is based on 14 factors, including price competitiveness. In the 2015 report, Vietnam was the third cheapest place to visit in Southeast Asia.
Despite the drop in price ranking, Vietnam still jumped eight spots overall globally in the report, ranking 67th and surpassing regional peer the Philippines for the first time.
Tourists were lured by its rich natural and cultural resources, stated the report.
To continue enhancing competitiveness, the country should focus on environmental sustainability and infrastructure development, with the latter being the second worst in Southeast Asia. From now to 2026, Vietnam’s tourism sector will continue to expand and become more attractive, it added.
Vietnam welcomed over 3 million foreign visitors in the first quarter of this year. The country is on track to reach its target of welcoming 11.5 million international and 66 million domestic visitors this year, which is projected to contribute over $20 billion to the economy.
Tourism is expected to contribute 10 percent to Vietnam’s gross domestic product by 2020 when the country expects to receive up to 20 million foreign visitors and earn $35 billion in tourism revenue.VNExpress