Why is Da Lat overcrowded with visitors but struggling with low tourism revenue ?
My friend planned a family trip to Da Lat during the Lunar New Year but got stuck in traffic and ended up staying in the nearby town Bao Loc instead.
And traffic is just one of the factors hindering tourism development in the beloved hill town.
According to Vietnam National Administration of Tourism, 12.5 million Vietnamese tourists traveled during the nine-day Lunar New Year holiday from Jan. 25 to Feb. 2, marking a 19% increase from the previous year. Notably, eight cities and provinces surpassed VND1 trillion (US$39.8 million) in tourism revenue.
In the past, only three major cities—Ho Chi Minh City, Hanoi, and Da Nang—reached this milestone. This year, five more joined the list: Khanh Hoa (home to Nha Trang), Kien Giang (Phu Quoc), Quang Ninh (Ha Long), Lao Cai (Sa Pa), and Ninh Binh.
However, Lam Dong Province, home to Da Lat—a top destination for southern Vietnamese tourists—was notably absent.
Despite hotel occupancy in Da Lat reaching 85% during the Tet holiday and online hotel searches surging by 300% compared to the previous year, the city’s tourism revenue did not see a corresponding rise.
So, why is Da Lat struggling to convert visitor numbers into revenue?
One of the biggest challenges facing Da Lat is severe traffic congestion. The city’s road network is ill-equipped to handle the surge in vehicles during peak holiday seasons. National Highway 20, the main route between Ho Chi Minh City and Da Lat, is notorious for bottlenecks, often doubling travel times during holidays.
My friend, like many others, found himself stuck at Bao Loc Pass and, out of frustration, decided to spend Tet in Bao Loc instead. This is not an isolated case—many travelers either reroute to alternative destinations or abandon their plans altogether due to poor road infrastructure.
Another issue is Da Lat’s compact city center, which limits tourist activities. Most visitors flock to a handful of popular spots, such as Xuan Huong Lake, the night market, and local cafés. With few entertainment options, tourists often spend their time strolling around, sampling street food, and heading back to their hotels early.
Unlike destinations such as Nha Trang and Phu Quoc, which boast high-end resorts and premium entertainment that attract big spenders, Da Lat caters more to budget-conscious travelers. Young tourists, in particular, prefer affordable activities like camping or motorbike trips over expensive guided tours. The city’s limited shopping and entertainment options give visitors little incentive to stay longer or spend more.
To turn the tide, Da Lat needs bold changes. Improving traffic infrastructure is critical—especially the completion of the Dau Giay–Lien Khuong Expressway, which would significantly reduce travel time between HCMC and Da Lat.
Diversifying tourist attractions beyond the city center could help ease congestion and encourage visitors to explore more. More importantly, Da Lat should invest in engaging experiences that motivate tourists to extend their stays and spend money. This could include developing theme parks, night entertainment zones, and hosting cultural events and festivals.
Da Lat has immense potential. However, without strategic improvements, it risks remaining an overcrowded yet underperforming tourist destination when it comes to revenue.
By Nguyen Quang – VnExpress.net – February 5, 2025