The Role of ICT in Boosting International Tourist Arrivals to Vietnam and its Implications for SMEs

This study examines the role of Information and Communication Technology (ICT) in increasing international tourist arrivals to Vietnam from 2004 to 2023 and investigates its implications for tourism-related Small and Medium Enterprises (SMEs). Utilizing panel data from the 25 largest source markets, both static panel estimators (Pooled OLS, Fixed Effects Model, Random Effects Model, Feasible Generalized Least Squares) and a dynamic panel approach (Generalized Method of Moments), the findings reveal that ICT exerts a statistically significant and positive influence on inbound tourism demand. This effect is particularly evident through three key channels: connectivity infrastructure, smart tourism applications, and the level of digital presence. Based on these empirical findings, the study provides several policy recommendations to promote sustainable digital transformation in the tourism sector. In the public sector, priorities include increasing investment in ICT infrastructure, developing a comprehensive national tourism database, supporting enterprise digitalization, and improving digital marketing initiatives. For small and medium-sized enterprises (SMEs), the study underscores the importance of strengthening digital marketing capacity, adopting advanced technological solutions such as artificial intelligence (AI), big data analytics, and management software, and forging strategic partnerships with global online platforms. This research contributes to the theoretical and practical discourse on digital transformation in tourism and proposes future research avenues that integrate qualitative data and tourist behavior to better understand the evolving impact of ICT in the context of a fully digitized tourism landscape.