Addressing Vietnam water crisis amid tourism boom

Vietnam is facing a severe water crisis, with water levels plummeting across many regions. The crisis is further exacerbated by the heightened consumption of its fast-growing tourism sector, writes RMIT tourism & hospitality lecturer Dr Naresh Nayak.

Current water crisis

Vietnam is facing a severe water crisis, with water levels plummeting across many regions due to prolonged droughts and climate patterns like El Niño and La Niña. This has led to drastic reductions in water supplies in major rivers such as the Red River and the Mekong, creating acute shortages for millions of people.

The crisis is further exacerbated in the Mekong Delta, where saltwater intrusion has made freshwater sources unusable, and the closure of essential facilities like the Da Huoai water factory in Lam Dong province has left entire communities without a reliable water supply.

Impact on tourism

The country has seen a substantial rise in tourism over the past decades, boosting economic growth but also putting a strain on water resources. During the first half of 2024, Vietnam catered to more than 8.8 million foreign tourists and 66 million domestic tourists. This surge in tourism puts a strain on the country's water shortages.

Furthermore, projections indicate that by 2024, the market will achieve revenues nearing $3.25 billion. The sector is expected to maintain a robust annual growth rate of 5.68% from 2024 to 2029, resulting in an estimated market value of nearly $4.29 billion by 2029.

Notably, the hotels segment is anticipated to dominate the market, with forecasts predicting it will generate approximately $1.58 billion in 2024.

The tourism sector in Vietnam faces a significant challenge with the increasing demand for water in hotels, resorts, and other tourist accommodations. Hotels and resorts are major water consumers, driven by guest room use, food services, recreational facilities, and maintenance needs.

Globally, benchmarks for water consumption within the tourism accommodation sector are estimated to be around 350 liters per guest per night. However, luxury hotels can significantly exceed this average, with usage reaching up to 3,423 liters per guest per night.

These figures highlight the substantial water demand of the tourism industry, particularly within the luxury segment.

In Vietnam, especially in tourist hubs like Hanoi, Ho Chi Minh City, Da Nang, and coastal areas, similar high water usage patterns are observed. The heightened consumption strains already limited water resources, particularly in popular tourist destinations.

Coupled with existing challenges such as climate change and salinization, the tourism sector's high-water usage intensifies the competition for water between tourists and local communities, potentially leading to more severe shortages.

To add to the problem many establishments still rely on outdated infrastructure and practices that do not prioritize water conservation, leading to significant water wastage and further stressing limited resources. The high concentration of tourists in certain areas intensifies local water demand, often exceeding supply capabilities, especially during peak seasons.

Sustainable solutions for accommodation sector 

As climate change and tourist development intensify water stress, individual efforts in the accommodation sector become crucial in addressing the rising water demand in Vietnam's booming tourism industry. Although various sustainability measures have been implemented, the role of individual initiatives within hotels is vital for effective water management.

Engaging environments that promote collaboration among stakeholders and integrate water-saving practices into broader business strategies are essential. Such environments can significantly influence guest behaviour, encouraging them to adopt positive actions like water conservation.

This collaborative approach ensures sustainable water management in the hotel sector, balancing the economic benefits of tourism with the need to conserve water resources. Therefore, the tourism and accommodation industries must prepare for future challenges by implementing sustainable water management practices and promoting conservation among guests.

Simple practices can significantly influence guest behaviour, such as engaging guests in polite conversations about reusing towels and linens, installing cost-effective timers in guest bathrooms, training staff on the importance of water conservation and how to communicate it to guests, and offering incentives or rewards for guests who actively participate in water-saving initiatives.

By implementing these strategies, the tourism sector can play a crucial role in conserving water and ensuring sustainability. Government policies and incentives for sustainable tourism practices are crucial in promoting the adoption of water-saving technologies and practices.

As Vietnam continues to attract more visitors, balancing the economic benefits of tourism with the sustainable management of water resources will be critical to ensure that the sector's growth does not come at the expense of the country's water security.