Just 279,000 foreign tourists visited Viet Nam in June, down 4.7 per cent on May, according to the Viet Nam National Administration of Tourism.
The total number of foreign holidaymakers visiting Viet Nam in the first half of the year was 1.89 million, well short of the Government's 2009 target of 5 million.

"Everyone recognises that the world recession is the main reason for the decline in the number of foreign visitors coming to Viet Nam. Due to the downturn, holidaymakers are cutting down on their expenditure so demand for travel is also down," said Nguyen Phuc Luu, deputy head of the Foreign Relations Department under the Viet Nam Tourism Association.

Luu said that A/H1N1 flu was another major reason for the reluctance of foreign tourists to visit the region.

The majority of foreign nationals were from China. In the first six months of this year, there were 228,000 visitors from mainland China, 225,000 from the United States and 203,000 from South Korea.

Despite the disappointing figures, Luu said he was confident the tourism industry would recover. "I believe that the number of foreign visitors coming to the country will increase in the last six months of the year," he said.

In a bid to boost tourist numbers, domestic tour companies have cut prices and increased the range of holidays on offer, Luu said. However, he said the main influence on the industry would be the state of the world economy and the swine flu epidemic.

The tourism association has encouraged tour companies to send representatives abroad to encourage visitors to come to Viet Nam.

According to a survey conduced by Ipsos-Europ Assistance in seven European countries, just 64 per cent of those questioned said they planned to travel abroad this year - down 3 per cent on last year.

Meanwhile, holidaymakers from France spent in March an average of 1,822 euros - against 1,934 euros the previous March on foreign travel. In May, their average holiday spending was just 1,717 euros.

Inbound tours

While the number of foreign visitors coming to Viet Nam has fallen, the number of Vietnamese tourists heading to coastal regions such as Da Nang, Quy Nhon, Phan Thiet and Nha Trang has risen.

Nguyen Quynh Trang, from the First Choice Company, said the number of domestic tourists visiting these resorts had risen by 30-40 per cent against the same period last year due to lower costs and more effective promotional campaigns.

The number of visitors to mountainous regions such as Sa Pa in the northern province of Lao Cai and Tam Dao in the northern province of Vinh Phuc have also increased.