Vietnam golf tourism growth below par for the course

Despite many advantages, localities in Vietnam’s Central Highlands and central region are hampered by several limitations in reaping the full potential of golf tourism, industry insiders say.

The limitations include low competitiveness, untrained human resources and unsophisticated golf tourism products.

Both tourism and golf experts agree that more than 20 years since the first golf course in Vietnam was licensed, the industry’s development has not yet met expectations or matched its potential.

Many policy barriers are seen as a major part of the problems facing the industry.

Nguyen Thi Nga, chairwoman of the BRG Group, which runs golf courses in the central region, said Vietnam has never seen so many foreign tourists coming to play golf as they do now. The country has been recognized worldwide as one of the best golf tourism destinations.

Last year, 300,000 rounds of golf were played on BRG courses and the target for 2023 is 380,000 rounds, Nga said, adding that the group organizes international golf tournaments every year. This is the development direction for Vietnam's tourism to attract international visitors, but the industry has to become more competitive. At present, in addition to 10% VAT, Vietnamese golfers have to pay 20% excise tax, compared to 5-7% in surrounding countries.

"Therefore, the government needs to consider reducing this tax to attract more tourists. Besides, it is necessary to diversify products and improve the quality of tourism services," she said.

Steve Wolstenholme, president and CEO of Hoiana Resort & Golf, said that one of the first difficulties facing the industry is the lack of human resources for golf courses and ancillary services.

As a new industry in Vietnam, finding people with formal training was very difficult. The lack of fluency in foreign languages was also a problem because most golf course customers in the central region were foreigners.

Therefore, Hoiana has cooperated with the Department of Culture, Sports and Tourism of Quang Nam province and the Quang Nam Intermediate School of Culture, Arts, and Tourism to establish a tourism vocational training center which offers courses on technical maintenance and golf course operations.

Poor linkages

Foreign golfers look to experience many different golf courses during their visit to Vietnam, but the lack of information linkages makes this difficult.

Transport connections between the central and Central Highlands provinces are relatively convenient so customers can conduct a tour of different courses in several localities, but the information connection between golf courses is not good, Wolstenholme explained.

The industry also suffers from poor linkages between the travel industry and golf courses. Moreover, golf tourism is not well connected with other types of tourism like MICE (meetings, incentives, conferences, and exhibitions).

Another problem is the lack of professional awards and solutions to promote golf tourism products in a systematic manner.

Wolstenholme said golf can become a key product in developing high-quality tourism in Vietnam. Therefore, stakeholders must focus on golf tourism promotion with specific plans. Golf courses must forge closer links and form a system for mutual support and development, he added.

Concurring with Wolstenholme, Vu The Binh, chairman of the Vietnam Tourism Association, said promoting golf tourism was among several measures that can be taken to make Vietnam a high-end tourism destination.

With an increasing number of tourists coming to Vietnam to play golf, the game has become a very important tourism product, he stressed.

In 2019, among five million visitors from South Korea, over 1 million came to play golf in the country. Their spending was estimated at $2-3 billion, he noted.

"We propose that the government exempts or reduces excise tax for golfer tourists. Twenty years ago, we thought of golf as a luxury, so we levied an excise tax on players, but now, this is a product to lure tourists," Binh said, adding that the government needs to consider reducing the tax from 20% to 10% or 5% or even grant an exemption towards making Vietnam tourism more competitive.

Speaking at a conference on "Golf and Tourism" in the central city of Danang last August, Nguyen Trung Khanh, chairman of the Vietnam National Administration of Tourism, affirmed that the tourism industry will continue to promote golf to attract more domestic and foreign tourists.

He said the industry would also encourage and boost linkages in developing golf tourism, including the organization of golf tournaments and improving the quality of attached facilities such as resorts, restaurants, and healthcare centers.