Digital transformation, smart tourism help Vietnam's smokeless industry making breakthrough: Ha Long Bay, a famous tourist destination of Vietnam. (Photo: Quang Ninh Newspaper)

The inevitable trend

Digital transformation in the tourism industry means bringing the entire industry to the digital environment, building a smart tourism ecosystem; support state management and tourism service business; applying digital technology to enhance tourist experience.

According to research, digital transformation in tourism is expected to contribute up to 305 billion USD in profits by 2025; at the same time, it provides the necessary application tools and technology platforms to optimally support closer access to smart tourism, ensuring sustainable development.

According to the International Telecommunications Union (ITU), the number of global Internet users in 2023 increased by 100 million, reaching 5.4 billion people, equivalent to 67% of the world's population. Statistics from media company Wearesocial show that, as of January 2023, Vietnam has 77.93 million Internet users, equivalent to 79.1% of the population.

According to the Ministry of Information and Communications, the scale of Vietnam's Internet economy in 2022 reached 23 billion USD and is forecast to reach 49 billion USD in 2025. Travel websites and mobile apps, with optimal advantages, allowing reservations anytime, anywhere, providing reviews and general information are increasingly becoming familiar for young people and making smart travel popular trend.

Talking to reporters, Dr. Jackie Ong, Senior Program Manager, Tourism and Hospitality Management, RMIT University, said that smart tourism can completely change customer experience and improve long-term competitiveness for Vietnamese tourist destinations.

According to him, there are more and more countries around the world investing in advanced technology systems to build smart cities, promote sustainable development and improve people's lives. In parallel with this global trend, many tourist destinations are also modernizing and using smart technology in many operations, ranging from booking services, payment methods to interactive activities and resource management.

Destinations currently leading the smart tourism trend which are including Amsterdam (Netherlands), Barcelona (Spain), Dubai (UAE), London (UK), Melbourne (Australia), New York (USA), Oslo (Norway), Singapore (Singapore) and Tokyo (Japan). At these places, tourists can use smartphones to perform simple operations such as self-service and check-in procedures at the airport, paying for taxis, ordering food, determining the waiting time and read information about the destination or sights via the provided QR code.

Meanwhile, according to Dr. Nuno F. Ribeiro, Associate Program Manager, Senior Lecturer, Tourism & Hospitality Management, RMIT University Vietnam: "The rise of digitalization has reshaped the way people travel, book a room and plan the trip."

In fact, in Vietnam alone, according to a report by Statista, a survey of 2,614 Vietnamese people conducted in November 2020 showed that 60% of respondents knew and used online travel agents. “This shift towards digitalization is not just limited to bookings but also extending to the use of technology to enhance the overall travel experience,” said Dr. Ribeiro.

“According to the results of a survey conducted by travel technology platform Egencia in 2021, 74% of travelers use mobile devices to research their travel options. That further confirms businesses in the tourism industry need to adapt to this trend and provide mobile-friendly solutions," he analyzed.

Key tasks and solutions

In May 2023, the Government issued Resolution No. 82/NQ-CP on the main tasks and solutions to accelerate post –pandemic recovery and speed up effective and sustainable tourism development, thereby determining the digital transformation is a key task and solution to promote recovery, development and improve the competitiveness of the tourism industry.

At the High-Level Tourism Forum "Digital transformation to promote tourism development" (September 2023), Minister of Culture, Sports and Tourism Nguyen Van Hung stated: Digital transformation is a strategic task which requires resources, time and other necessary conditions, however, it must also start with specific actions and goals.

The throughout perspective is to focus on developing smart tourism to improve the capacity and efficiency of state management of tourism; Taking tourists as the center of services, attracting more international visitors to Vietnam, promoting an increase of the number of domestic tourists. This is both a driving force and a boost for the tourism industry, as well as promoting achievements, opening up a new space and potential for green, effective and sustainable development.

Digital transformation, smart tourism help Vietnam's smokeless industry making breakthrough: Modern technology is being used to create personalized travel experiences for customers. (Photo: VGP)

Implementing specific solutions, the Ministry of Culture, Sports and Tourism has issued projects and plans to develop digital tourism; launched the Digital Transformation Guidance Document in the tourism industry; Instructions for connecting and integrating into the industry's digital platforms, etc.

The Ministry also coordinates with relevant ministries, branches and localities to organize many training programs and instructions on digital transformation of tourism in provinces and cities nationwide.

To develop tourism into a key economic sector and put Vietnam in the leading group in tourism development in general and tourism digital transformation in particular, the industry continues to improve institutions, policies and laws on smart tourism development; continue to develop applications that exploit information from the tourism data system to support tourists, state management of tourism, destination management, and smart businesses; enhance the promotion and advertisement of digital tourism; communicate to raise awareness and innovative thinking about smart tourism and digital tourism.

Dr. Jackie Ong commented: “As an emerging destination with a young and technology-savvy workforce, the future of Vietnamese tourism is very bright. There is a lot of potential for the tourism industry here to learn from the experiences of global destinations and apply appropriate technology to completely change the customer experience, thereby enhancing the long-term competitiveness of the tourism industry".

According to her, the first obvious task that Vietnamese tourist destinations need to undertake is to invest in information and communications technology (ICT) infrastructure to support the five important elements of tourism, often called the five A's in English including: Accessibility, Attractions, Activities, Amenities, and Ancillary services. However, smart tourism does not only apply technology but also includes many other aspects such as sustainability, efficiency, innovation and governance.

An important requirement is to have smart human resources to manage smart tourism. Future leaders and senior managers of the tourism industry need to be equipped with technological understanding, critical thinking, management and analysis, as well as problem-solving skills, to come up with solutions in global sustainable development issues.

Meanwhile, Dr. Nuno F. Ribeiro commented that a significant development in the tourism industry is the use of AI and machine learning. These technologies are being used to create personalized travel experiences for customers. For example, AI-powered chatbots can help passengers plan their trips, give recommendations on local attractions, and even assist with reservations.

Although digital transformation in the tourism industry still faces many challenges, if it has done properly, it will help enhance competitiveness, enhance customer experience and reduce costs for businesses, helping the smokeless industry develop dramatically.