After reaching a record high of 18 million international arrivals in 2019, Vietnam witnessed a decrease of 18.1% in terms of international arrivals and drop of 18% in domestic traveler-trips in Q1 2020 due to COVID-19.
The main shock within the first quarter of 2020 was felt in March. Hotel occupancy in March declined by 56-60 percentage points (ppts) or approx. 70% y-o-y in HCMC and Hanoi, while international arrivals to Vietnam in March alone plunged by 68.1% y-o-y.
Vietnam National Administration on Tourism estimated a loss of $5.9-$7.7 billion to Vietnam’s tourism for the period February – April 2020.
In Q1 2020, occupancy registered a decrease of 28.9 ppts and 28.4 ppts in Hanoi and HCMC, respectively. Average daily rate (ADR) dropped by 6.6% y-o-y in Hanoi and 12.7% y-o-y in HCMC.
After the end of nationwide social isolation period, the general decline of wealth level and limited international flight connections will push the domestic tourism demand. Corporate transient segment will also be among the first to recover, due to pent-up demand caused by COVID-19.