The latest analysis announced by Visa on September 27 noted that Vietnam continues to be a preferred travel destination for South Koreans.

The data showed a significant rise in accommodation spending by South 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 per cent.

According to Visa’s Green Shoots Radar survey, travel among South Koreans has revived over the past year, with 37 per cent travelling for leisure or work, up from 23 per cent of the previous year.

The survey ranks Vietnam as the second most visited destination (16 per cent) by South Korean travelers, trailing only Japan (54 per cent) and tied with Australia (16 per cent).

According the General Statistics Office of Vietnam (GSO), 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 per cent. Notably, Vietnam ranked first among the most favorable foreign destinations for South Korean visitors during the summer holiday season of 2024, forming 13.7 per cent of inbound tourists.

In Vietnam, South Korean tourists' spending on accommodation surged to 21 per cent of total expenditure in the first half of 2024, representing a jump of over 60 per cent 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 per cent of total expenditure, highlighting Vietnam's renown for culinary tourism.

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 per cent, 15 per cent, and 10 per cent of total expenditure, respectively. Emerging hotspots like Nha Trang, Da Lat, and Phu Quoc saw substantial spending growth, up by approximately 90 per cent, 150 per cent, and 160 per cent, respectively.

Visa's analysis underscores the enduring allure of Vietnam for South Korean travelers, with a marked shift towards accommodation spending. The rise of cities like Nha Trang, Da Lat, 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 per cent increase compared to the same period of the previous year.

For the full year, Vietnam aims to attract 17 to 18 million foreign visitors and 110 million domestic visitors, generating VND840 trillion ($34.2 billion) in revenue, an 11 per cent increase from 2019. This growth is bolstered by strategic partnerships, such as with South Korea, which stands as Vietnam's top investor with a registered capital of nearly $87.5 billion, comprising 18 per cent 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 per cent sales surge in 2023, with South Korean tourists making up about 60 per cent of the sales.

"As cross-border travel gains momentum, particularly with South Korean travelers visiting Vietnam, we see a tremendous opportunity for Visa to remain a crucial part of the traveler's journey," said Ms. Dung Dang, Visa Country Manager of Vietnam and Laos. "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. 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."