As competition among global travel destinations intensifies, digital transformation in tourism is no longer just about tools - it’s about rethinking operational models and creating new value for tourists, local communities, and businesses. But several persistent bottlenecks remain and must be addressed.

Breaking barriers in smart tourism

One of the biggest hurdles lies in financing. With tens of thousands of small and medium-sized tourism businesses, limited investment capacity is a major barrier. Pham Tien Dung, CEO of Goldentour Travel and Vice President of the UNESCO Hanoi Travel Club, explained: “Digital transformation is costly. Most domestic firms can only afford off-the-shelf software, lacking the capital for comprehensive, multi-system integrated solutions.”

Many businesses have tried to implement customized software, but ran into compatibility issues and operational inefficiencies. Meanwhile, international platforms like Agoda and Booking.com dominate with superior tech capabilities and stronger capital.

Dung noted that even since 2006, some large travel companies commissioned custom-built accounting and customer management software, only to face technical incompatibilities later. Most agencies still rely on generic platforms such as MISA for accounting and Microsoft Office for operations.

Beyond funding, the sector suffers from a shortage of tech-savvy talent. According to Tran Trung Hieu, Deputy Director of Hanoi’s Department of Tourism, although there have been conferences on AI applications and training partnerships with tech media firms, the majority of public officials and business leaders lack digital expertise.

“The tourism workforce still has limited understanding of digital applications, and there is a lack of dedicated IT personnel,” he noted.

This leads to superficial adoption of technology, inefficient use of software and platforms, and wasted investment. Cities like Hanoi, Da Nang, and Quang Ninh have launched e-ticketing systems, digital maps, and independent tourism databases.

Yet, according to the Vietnam Tourism Association, each locality builds its own system with no shared standards - creating inefficiencies and poor visitor experience.

The absence of a unified national tourism data platform hinders market analysis, policy development, and customer behavior insights.

Legal gaps also persist. Regulations governing digital tourism, data protection, and technical standards for smart ecosystems remain incomplete.

New services like chatbots, virtual/augmented reality (VR/AR), multilingual guides, and local OTA platforms still lack clear operational guidelines.

Coordinated solutions are essential

Experts agree that digital transformation is essential for Vietnam’s tourism breakthrough. First, a transparent and enabling legal framework must be developed to guide innovation.

The upcoming revision of the Law on Tourism should include regulations on managing and protecting national tourism data and digital assets.

At the same time, national technical standards should be established for platforms like destination management systems, e-ticketing, automated narration, chatbots, and digital maps.

According to Pham Van Thuy, Deputy Director of the Vietnam National Authority of Tourism, the sector must invest in digital infrastructure - especially in building a shared national tourism platform that can integrate and connect data across government, localities, and the private sector.

Destination, accommodation, transport, event, and cultural activity data should all be part of a unified ecosystem to support governance and improve user experience.

Vu The Binh, President of the Vietnam Tourism Association, emphasized applying Fourth Industrial Revolution technologies across all operations - from digitizing destinations and offering e-tickets and interactive maps to using chatbots, AI, big data, and VR/AR in attractions.

These tools not only enhance service quality but also promote sustainable cultural preservation through digitalization of heritage, museums, and craft villages.

However, technology must be matched by skilled human capital. The sector needs to integrate digital skills, tech literacy, and data management into formal tourism training programs.

Retraining, workshops, and community education at destinations should be expanded. Only when everyone - from leadership to frontline workers - understands and uses technology fluently will digital transformation take root.

Establishing a Digital Transformation Support Fund for Tourism could provide accessible financing for small and medium-sized businesses.

Technical consulting, training programs, and digitalization roadmaps must accompany funding to help traditional businesses transition to digital models.

Digital tools also offer a major advantage in tourism marketing. Vietnam should develop multi-platform digital marketing campaigns, promote destinations on social media, expand e-commerce tourism channels, and help businesses access domestic and international OTA platforms like Booking, Traveloka, MyTour, and Ivivu.

Building a national tourism e-marketplace would better connect supply and demand and improve market transparency.

To ensure Vietnam’s tourism digital transformation keeps pace with global standards, deeper international cooperation is key.

From adopting successful models and transferring technology to training and data-sharing, the tourism sector must embrace global digital trends to avoid falling behind.

Nhan Dan