2009 Tourism under Review: overcoming difficulties, restoring growth rate

Cruise tourists to Ha Long Bay.

Nhan Dan- Last year saw many difficulties for the tourism sector, including the global financial crisis, the world economic recession and epidemic diseases. These have caused adverse impacts on the development of Vietnam’s tourism, leading to the decreasing number of tourists to the country.

Facing these difficulties, the sector has put forth some solutions to stimulate tourism demand in a bid to attract international visitors and also domestic tourists. Thanks to these, the sector has step by step restored its growth rate.

According to the sector, Vietnam welcomed around 400,000 international visitors in December 2009, making up a total of 3.9 million foreign tourists to the country last year, over 10% down as compared with the previous year. Though this failed to meet the target set in advance with 4.5 million international visitors expected to arrive in 2009, the decreasing rate of the number of the visitors to country has been controlled.

Sapa northern mountainous town is an attraction of many foreign tourists.

In the first six months of this year, the decreasing rate over the same period of 2008 was 19.6%. This rate reduced to 16.6% in October and to 12.4% in November. The number of international visitors to the country in November reached 387,000, 70% up over that of the previous month. 

The Ministry of Culture, Sports and Tourism and the Vietnam Administration of Tourism set up a Plan of Action which includes the short term and long term solution with a great promotion campaign named ‘Impression of Vietnam’ implemented nationwide. The promotion campaign attracted the participation of 118 hotels, 85 travel agents, 14 shops, Vietnam Airlines and two transportation companies. Also under the campaign, the Prime Minister made a decision on reducing 50% of VAT for hotels, travel agents and transportation companies and in the same time delaying the corporate income tax for nine months for these businesses.

The promotion campaign helped stimulate the domestic tourism and partly controlled the decrease of the number of international visitors to the country. The reduction of price of air tickets and hotel and resort rooms helped increased the number of domestic visitors by 35-50% as compared with the same period of previous year. The promotion programme was also introduced in France, Germany and Russia and this lured more European visitors to the country.

Many international tourists like buying handmade lanterns in Hoi An ancient town.

In 2010, the sector still faces with challenges from the world economy, the socio-political changes and epidemic diseases in the region and the world. Therefore, the sector should continue to promote initial achievements gained in 2009 and should bring into full play its role as a clue in order to diversify and improve tourism products and advertisement.

After the government’s Decree on permitting the foreign right-handed drive cars on Vietnamese roads for 30 days, this kind of tourism is yet to be promoted in Vietnam while it’s very popular in the world. Visa could be issued right at the border gates or at Noi Bai and Tan Son Nhat airports to facilitate the tours for holiday makers. Some other suggestions for tourism promotion during this year can include free visa fee applied in airline passengers in promotion programmes, free visa fee for cruise passengers, VAT refund for tourists... A tourism consultative group should also be set up to deal promptly with crisis relating to tourism . 

The sector did not achieve its goal of receiving 4.5 million international visitors last year due to the above-mentioned objective impacts. However, now it is high time for the sector to review and adjust its operation in preparation for a long-term plan with a view to avail itself of the opportunities when the recovery and later prosperity of the world economy and tourism happens.

By Hong Viet


 


Nhan Dan