Despite the strong growth, the central coastal province said its tourism sector remained heavily reliant on beach resorts and lacked adequate entertainment, nightlife and infrastructure for cruise and tourist boats.
International arrivals also remain concentrated in a few major markets, particularly South Korea, China and Russia.
To boost tourism revenue, the province plans to upgrade seaport and tourist wharf infrastructure, expand the night-time economy and community-based tourism, and develop new products including halal and cruise tourism.
It also aims to diversify its international source markets.
Nguyen Long Bien, standing vice chairman of the provincial People's Committee, said Khanh Hoa was aiming to meet or exceed its target of 20 million visitors this year while encouraging tourists to stay longer and spend more.
The province will focus on new tourism products and services in the remaining months of the year, with the night-time economy seen as a key driver of visitor spending, Bien said.
Khanh Hoa has also been expanding air links and organising events to attract more visitors.