Vietnam Efforts to Attract Wealthy Muslim Travelers

Vietnam has historically struggled to attract Islamic travelers due to a lack of Halal-standard restaurants, prayer facilities, and targeted marketing efforts.

With a population of 2.1 billion, Islamic countries represent a significant tourism market. While approximately 140 million Muslims travel internationally, Vietnam has managed to attract less than 1 million over a span of four years. Nguyen Trung Khanh, head of the Vietnam National Authority of Tourism (VNAT), highlighted the importance of Muslim travelers, noting their tendency to spend lavishly on tourism services. As a result, many countries are keenly focused on capturing this lucrative market.

According to the Global Muslim Travel Index, the number of Muslim travelers has been rising rapidly, with 108 million Muslims traveling in 2013 and 160 million in 2019. Despite the disruption caused by the Covid-19 pandemic, the market is showing signs of recovery. By 2023, around 140 million Muslims are expected to travel internationally, and this number is predicted to grow to 230 million by 2028, with an estimated $225 billion in spending.

Despite this growth, Vietnam’s share of Muslim travelers remains modest. Between 2015 and the onset of the Covid-19 pandemic, Vietnam welcomed only 1 million Muslim travelers. In contrast, Thailand saw 400,000 travelers from the Middle East in 2022 alone, contributing to a significant increase in tourism revenue. Thailand ranks fourth among non-Islamic countries favored by Muslim travelers, following Malaysia, Singapore, and the UK.

Khanh acknowledged that Halal tourism in Vietnam has not received the attention or investment it deserves. To attract Muslim travelers, Vietnam needs to meet their specific needs. Currently, there is only one prayer room and one Halal food court in the entire country, located at Tan Son Nhat International Airport. However, this facility is reserved for just 70 VIP business-class passengers, a small number compared to the thousands of Muslim travelers passing through daily.

While Ho Chi Minh City has 14 mosques, only three are centrally located, making it convenient for tourists to pray. The southeastern region, including Binh Duong, Dong Nai, Ba Ria – Vung Tau, the Mekong River Delta, and the Central Highlands (including Da Lat City), lacks prayer rooms and Halal restaurants.

Tran Nu Ngoc Anh, president of Dong A Hotel Group, noted that Halal tourism is gaining traction in Southeast Asia, including Vietnam. However, Vietnam has yet to fully recognize the market’s potential or encourage investments in services catering to Muslim travelers.

Nguyen Huyen Anh, deputy director of the Quang Ninh Tourism Department, admitted that while the number of Indian and Muslim tourists to Quang Ninh has increased, it remains relatively low. For example, 113,000 Indian travelers visited in the first eight months of 2023, a fivefold increase from the 22,000 in 2022. Anh attributed this to several barriers, including a lack of communication and advertising, cultural and religious differences, and limited infrastructure tailored to Muslim tourists.

Vietnam is now making a concerted effort to attract wealthy Muslim travelers. Analysts see significant opportunities in this market, which comprises 2.1 billion people and accounts for $10 trillion in annual spending. Attracting affluent Muslim travelers has become a key focus for Vietnamese investors and tourism companies. Vietnam’s tourism development strategy for 2030 emphasizes the need to explore new markets with high potential, particularly in the Middle East and India.

Khanh emphasized that Vietnam is targeting markets where travelers are willing to pay premium prices for extended tours, with a particular focus on the Middle East, which includes 16 countries, notably the six Gulf nations: Saudi Arabia, UAE, Oman, Qatar, Kuwait, and Bahrain.

Source: Ngoc Ha