December 10, 2024 | 10:00 GMT+7

Wellness tourism market growth

Minh Anh -

Wellness tourism is growing in the double digits in Vietnam and both local people and visitors are keen to enjoy the various experiences on offer.

Wellness tourism, identified by the United Nations World Tourism Organization (UNWTO) as one of six key travel trends in the 21st century, is gaining momentum worldwide. Valued at $830 billion, according to the Global Wellness Institute (GWI), a leading organization in the field, the segment increasingly attracts consumers that are willing to spend.

The popularity of wellness tourism is clear to see in Vietnam, especially in the post-pandemic era. According to data from the Vietnam National Authority of Tourism (VNAT), the number of international visitors coming to Vietnam for health and wellness purposes increased by an average of 12 per cent annually from 2017 to 2024. Wellness tourism in the country has recorded an average annual growth rate of 12-15 per cent.

Wellness trend

Vietnam’s aging population is expected to result in nearly one-third of people being over 60 years of age by 2050. Coupled with rising living standards and disposable incomes, people are increasingly prioritizing health maintenance and quality-of-life improvements, especially in the wake of Covid-19. This has driven demand for health-related services, particularly wellness tourism.

According to Mr. Pham Hai Quynh, Director of the Asian Tourism Development Institute, wellness tourism combines travel with health enhancement, offering guests relaxation, improved well-being, and mental balance. “Wellness tourism plays a crucial role in elevating the quality of tourism services, attracting international visitors, and generating income for local communities, thereby contributing to national economic growth,” he explained. “In-depth research and the development of the tourism model will therefore be a significant advantage for Vietnam.”

Ms. Nguyen Thanh Binh, Deputy Director of the Hotel Department at VNAT, said Vietnam currently boasts 38,000 tourism accommodation establishments with over 780,000 rooms, including nearly 600 four- and five-star facilities. Among these, 180 hotels and resorts have integrated spa services and wellness programs for guests. Projections estimate that the wellness sector could generate up to $3 billion in revenue by 2025, making a substantial contribution to national GDP.

Wellness tourism in the country often revolves around outdoor activities combined with therapeutic methods such as hot spring baths, mud baths, saunas, detox programs, meditation, yoga, and hiking. These activities aim to promote physical well-being, soothe one’s mind, and enhance healing capabilities. Geological surveys reveal that Vietnam has approximately 400 hot mineral water sources, eleven of which are noted for their therapeutic properties. With proper investment, these locations could become sought-after wellness retreats for both domestic and international visitors.

There is growing demand from overseas Vietnamese and international tourists for medical services, wellness care, and cosmetic surgery. Destinations like Da Lat in the central highlands’ Lam Dong province, Tam Dao in northern Vinh Phuc province, Sapa in northern Lao Cai province, and Mau Son in northern Lang Son province are actively leveraging their potential in traditional medicine. In Hanoi, Ba Vi district recently launched the Ban Mien community tourism site, home to a Dao ethnic group known for traditional health remedies. Recently, as part of the 2024 Hue Winter Festival, the Thua Thien-Hue Provincial Department of Tourism in the central region organized a Wellness Tourism Weekend to celebrate and promote health-focused tourist offerings, further spotlighting Vietnam’s growing emphasis on this thriving sector.

Despite its vast potential, the scale and organization of wellness tourism in the country remain limited and fragmented at this stage. Explaining the challenges, Dr. Duong Dinh Hien from the Institute for Tourism Development Research noted that Vietnam lacks a comprehensive development policy, incentive mechanisms, and support for businesses, as well as coordination between the tourism industry and wellness services.

To overcome such obstacles, Dr. Hien emphasized the need for a holistic assessment of the potential for developing a wellness tourism network, aiming to maximize the strengths of each locality and region. Furthermore, he highlighted the importance of crafting a long-term, comprehensive policy for wellness tourism development in alignment with the overall national tourism strategy.

To develop wellness tourism products in Vietnam, Associate Professor Pham Hong Long from the University of Social Sciences and Humanities in Hanoi emphasized the importance of connectivity, particularly between service providers and travel agencies. “Wellness tourism exists in Vietnam, but there are still very few specialized tours,” he said. “Most offerings are limited to standalone experiences like hot spring baths or mineral soaks. Modern travelers have diverse health-related needs, not only for physical well-being but also for their mental health.”

The fast-paced and demanding nature of modern life leaves many people facing mental health challenges, prompting a need for self-care. “Stakeholders must therefore collaborate to create products that address the physical and emotional healing and wellness needs of both residents and visitors,” Dr. Long believes.

To support the development of wellness tourism in the country, the Ministry of Health has approved Project 2951, which focuses on expanding traditional medicine-based tourism products by 2030. The initiative leverages the value of traditional medicine in offering diverse services to both domestic and international tourists.

The national tourism development strategy also aims to establish wellness retreats that integrate health services by 2025, with a vision to 2030. The strategy seeks to preserve and enhance the quality of Vietnam’s tourism services, ensuring sustainable growth in this promising sector.

Global matter

The global wellness industry reached a value of $6.32 trillion in 2023, according to the latest report from the GWI. This figure represents a 25 per cent increase compared to 2019, making the wellness sector more valuable than the sports and pharmaceutical industries. The report forecasts that as various sectors continue recovering from the pandemic, the wellness economy could approach $6.8 trillion by the end of 2024.

This impressive growth is driven by GWI’s broad definition of “wellness”. According to the organization, wellness is “the active pursuit of activities, choices, and lifestyles that lead to a state of holistic health.” The Global Wellness Economy Monitor tracks spending across eleven sectors, including tourism, real estate, and public health initiatives.

In its research, GWI breaks down the wellness economy into several broad categories. The largest among them - personal care and beauty - is estimated to be worth $1.08 trillion. Following closely is the healthy eating, nutrition, and weight loss category, valued at $1.07 trillion. Notably, this figure excludes the rapidly-growing market for prescription weight-loss drugs like Ozempic. Other sectors outlined by GWI include wellness tourism, fitness activities such as gym memberships, public health, traditional medicine, and dietary supplements.

The fastest-growing category is wellness real estate, encompassing residential and commercial buildings designed to support the well-being of their occupants. This sector has reached a total value of $438.2 billion, with an average annual growth rate of 18.1 per cent. The report also highlights other popular wellness segments among consumers, such as the spa industry - valued at $137 billion - and hot springs and thermal bathing facilities, which are valued at $63 billion.

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