Wednesday, June 2, 2010
Tuesday, March 24, 2009
Domestic tourism increases three fold
VietNamNet Bridge - Since the beginning of the year, the number of domestic tourists has increased three fold over the same period last year, tourist companies in Ho Chi Minh City said.
It is one month since the city participated in a promotion by the Vietnam National Administration of Tourism to stimulate domestic tourism.
Tourist companies participating in the program set up promotional package tours, with flights to southern and central provinces cut by 30-40 percent.
Coach tours have not grown as the promotional price has not been attractive enough with five to 10 percent discounts.
The discount is part of plan drawn up by the Ministry of Culture, Sports and Tourism and a group of domestic travel businesses involving over 200 hotels, resorts, restaurants and transport companies in 18 provinces and cities.
If the plan is taken up fully, the cost of coach tours this summer will be cut by 20 percent.
VietNamNet/SGGP
Tourist companies participating in the program set up promotional package tours, with flights to southern and central provinces cut by 30-40 percent.
Coach tours have not grown as the promotional price has not been attractive enough with five to 10 percent discounts.
The discount is part of plan drawn up by the Ministry of Culture, Sports and Tourism and a group of domestic travel businesses involving over 200 hotels, resorts, restaurants and transport companies in 18 provinces and cities.
If the plan is taken up fully, the cost of coach tours this summer will be cut by 20 percent.
VietNamNet/SGGP
Gambling, fortune-telling and rubbish ruin festivals
VietNamNet Bridge - Gambling, fortune telling and commercialism are ruining northern Viet Nam’s cultural and religious festivals, complains Culture, Sports and Tourism Minister Hoang Tuan Anh. ( Tourists enjoy a traditional dance with Mong ethnic people in the northern province of Lao Cai, where gambling and commercialism have not spoilt the atmosphere.)The minister delivered his judgement at a meeting to assess the quality of the festivals in Ha Noi last Wednesday where he said his ministry intended to provide models for their organisation and management.
Ministry officials would classify the festivals to provide a basis for the models, he said.
The ministry’s chief inspector, Vu Xuan Thanh, told the meeting that the latest checks of festivals showed that documents sent to localities setting guidelines for the festivals had been ignored.
Overcrowded and often disorderly festivals were popular at many pagodas, he said.
These included the historical Dong Pagoda in Thai Binh Province, the Yen Tu Pagoda in Quang Ninh Province, and Ha Noi’s Huong Pagoda.
Gambling, fortune telling and pickpocketing was also rife at Nam Dinh Province’s Vieng Market and Binh Duong Province’s Ba Pagoda.
The pagodas and historic sites were littered with rubbish and some scenic spots were partially destroyed.
The chief inspector said hundreds of violators had been fined a total of VND286 million and more than 40,000 pirated porn discs and unacceptable cultural products confiscated.
Stopping cheats
"But it hasn’t been enough to create order and stop the cheats at the festivals," he said.
Duong Thanh Lan, 60, of Ha Noi echoed the minister and inspector’s views.
"I like taking part in traditional festivals in pagodas and temples that have not been commercialised," she said. "But I have been the victim of cheats and pickpockets and know have to be vigilant in these places. It makes me uncomfortable."
Festival traditions and features were very different from the past, she said.
Bac Ninh Province’s Culture, Sports and Tourism Department director Nguyen Dang Tuc told the meeting specific regulations and punishments were needed to restore order at the festivals.
Interim guidance documents were not enough to stop the illegal activities.
The ministry’s Culture and Information Department Nguyen Dao Toan said the responsibility of each agency in overseeing the festivals was necessary.
Otherwise, the blame was always shifted from one to the other.
Hai Duong City Culture, Sports and Tourism Department director Dang Viet Cuong said municipal officials would now make specific plans for festivals up to 2015.
These would identify those responsible for organising festivals.
VietNamNet/VNS
Ministry officials would classify the festivals to provide a basis for the models, he said.
The ministry’s chief inspector, Vu Xuan Thanh, told the meeting that the latest checks of festivals showed that documents sent to localities setting guidelines for the festivals had been ignored.
Overcrowded and often disorderly festivals were popular at many pagodas, he said.
These included the historical Dong Pagoda in Thai Binh Province, the Yen Tu Pagoda in Quang Ninh Province, and Ha Noi’s Huong Pagoda.
Gambling, fortune telling and pickpocketing was also rife at Nam Dinh Province’s Vieng Market and Binh Duong Province’s Ba Pagoda.
The pagodas and historic sites were littered with rubbish and some scenic spots were partially destroyed.
The chief inspector said hundreds of violators had been fined a total of VND286 million and more than 40,000 pirated porn discs and unacceptable cultural products confiscated.
Stopping cheats
"But it hasn’t been enough to create order and stop the cheats at the festivals," he said.
Duong Thanh Lan, 60, of Ha Noi echoed the minister and inspector’s views.
"I like taking part in traditional festivals in pagodas and temples that have not been commercialised," she said. "But I have been the victim of cheats and pickpockets and know have to be vigilant in these places. It makes me uncomfortable."
Festival traditions and features were very different from the past, she said.
Bac Ninh Province’s Culture, Sports and Tourism Department director Nguyen Dang Tuc told the meeting specific regulations and punishments were needed to restore order at the festivals.
Interim guidance documents were not enough to stop the illegal activities.
The ministry’s Culture and Information Department Nguyen Dao Toan said the responsibility of each agency in overseeing the festivals was necessary.
Otherwise, the blame was always shifted from one to the other.
Hai Duong City Culture, Sports and Tourism Department director Dang Viet Cuong said municipal officials would now make specific plans for festivals up to 2015.
These would identify those responsible for organising festivals.
VietNamNet/VNS
Deferral of tax hike proposed to shore up tourism services
VietNamNet Bridge – The Tourism Working Group has insisted on a delay for the increase of the Special Consumption Tax (SCT) as this will make life more difficult for many companies in the hotel/resort industry.(Last year, Vietnam drew 4.25 million international travelers, up a mere 0.6% over 2007.)From April 1, higher SCT rates will apply to some tourism-related services, including golf associated revenues, from 10 to 20%, and body treatments, from 15 to 30%.
"The Government should be looking for ways to stimulate additional spending on domestic goods and services, not raise taxes so as to deter it," said Baron R. Ah Moo, chairman of the Tourism Working Group under the Vietnam Business Forum.
The upcoming changes in the SCT are not being well received by the tourism community in Vietnam, according to the Tourism Working Group.
Ah Moo said in a statement sent to the Daily that the percentage of repeat international visitors after their initial visit was relatively low compared to Thailand and Indonesia.
"Vietnam's tourism industry already faces difficulties in visas and a lack of proper infrastructure," said Ah Moo, who also serves as chief executive officer for Indochina Hotels and Resorts and Danao International.
"By increasing the SCT, you have now impacted one of Vietnam's last sustainable competitive advantages, its appeal as an affordable leisure destination," he said.
The group said the National Assembly voted to temporarily reduce value-added tax (VAT) from 10 to 5% for hotels and related services in an effort to encourage discretionary spending and the SCT increase seemed to contradict this policy.
The Vietnam National Administration of Tourism reported that Vietnam attracted over 688,700 international visitors in the first two months of this year, down 10% compared to the same period last year.
The tax increase also coincides with the start of the low season for travel to Vietnam, where demand is anticipated to be significantly down.
"I would appeal to the Prime Minister to delay or defer the implementation of the increase in SCT to a later date in an effort to minimize the impact on an already struggling hospitality industry," Ah Moo said.
He said tourism was a US$4.5-billion industry in Vietnam and accounted for 11% of the total employment in the country and suggested that removing burdens such as the SCT should be the country's highest priority.
The tourism sector is looking to around 25 million travelers, including 4.3 international visitors, and revenue of around US$3.7 billion this year. Tourism experts said these targets will be hard to reach.
Last month, the number of Chinese visitors was down nearly 13%, just over 41,000, and the number of international visitors was down 0.8% to nearly 343,000.
Last year, Vietnam drew 4.25 million international travelers, up a mere 0.6% over 2007.
VietNamNet/SGT
"The Government should be looking for ways to stimulate additional spending on domestic goods and services, not raise taxes so as to deter it," said Baron R. Ah Moo, chairman of the Tourism Working Group under the Vietnam Business Forum.
The upcoming changes in the SCT are not being well received by the tourism community in Vietnam, according to the Tourism Working Group.
Ah Moo said in a statement sent to the Daily that the percentage of repeat international visitors after their initial visit was relatively low compared to Thailand and Indonesia.
"Vietnam's tourism industry already faces difficulties in visas and a lack of proper infrastructure," said Ah Moo, who also serves as chief executive officer for Indochina Hotels and Resorts and Danao International.
"By increasing the SCT, you have now impacted one of Vietnam's last sustainable competitive advantages, its appeal as an affordable leisure destination," he said.
The group said the National Assembly voted to temporarily reduce value-added tax (VAT) from 10 to 5% for hotels and related services in an effort to encourage discretionary spending and the SCT increase seemed to contradict this policy.
The Vietnam National Administration of Tourism reported that Vietnam attracted over 688,700 international visitors in the first two months of this year, down 10% compared to the same period last year.
The tax increase also coincides with the start of the low season for travel to Vietnam, where demand is anticipated to be significantly down.
"I would appeal to the Prime Minister to delay or defer the implementation of the increase in SCT to a later date in an effort to minimize the impact on an already struggling hospitality industry," Ah Moo said.
He said tourism was a US$4.5-billion industry in Vietnam and accounted for 11% of the total employment in the country and suggested that removing burdens such as the SCT should be the country's highest priority.
The tourism sector is looking to around 25 million travelers, including 4.3 international visitors, and revenue of around US$3.7 billion this year. Tourism experts said these targets will be hard to reach.
Last month, the number of Chinese visitors was down nearly 13%, just over 41,000, and the number of international visitors was down 0.8% to nearly 343,000.
Last year, Vietnam drew 4.25 million international travelers, up a mere 0.6% over 2007.
VietNamNet/SGT
Hotels spoil plan on low-cost tourism
VietNamNet Bridge – The bottom threatens to fall out of the Viet Nam National Administration of Tourism (VNAT)’s strategy to create low-cost tours amid the economic downturn as hotels fail to honour their commitments to reduce prices.
The VNAT announced the strategy after foreign tourist numbers plunged 12 per cent in January to 370,000 and analysts predicted things to get worse. It announced a national campaign to last until the end of September under which tour package prices are to be cut by 30 to 50 per cent to attract foreign tourists to the country.
It sought a commitment from travel agencies and hotels to cut room charges by up to 50 per cent and persuaded Vietnamese airlines to join.
Seventeen hotels and 14 travel firms in HCM City signed up, promising to offer discounts of 30 to 50 per cent.
But only a handful have so far honoured their commitments, though with much lower discounts than promised.
The Bong Sen-Sai Gon Hotel was one of the earliest to reduce room charges, offering thus far 10 to 25 per cent discount to 50 groups of foreign travellers coming through travel firms.
Tao Van Nghe, general manager of the five-star Majestic Hotel in HCMC, said his hotel too had reduced tariffs but he was worried about the programme’s efficiency.
The HCM City Tourism Association said the discounts of 10 to 30 per cent did not make a "strong impression" on tourists when many countries in the region were offering up to 80 per cent rate cuts.
Defending high rates
The hotels that have failed to honour their commitments justify their action.
Some said they did not honour their commitment because they were still waiting for the Government’s incentives for those involved in the campaign, mainly related to taxes and electricity and water prices.
Dietmar Kielnhofer, general manager of Sheraton Sai Gon - which is not part of the campaign - told Viet Nam News that since all businesses and market segments were affected by their own set of market conditions, rather than participating in an overall rate reduction strategy, the hotels chose to support the initiative by individual case-by-case discussions.
"We are meeting with our stakeholders and customers to access each and every one of their business and market situations, to work out how we can best partner them at this time. This is a very detailed approach, but one we feel ensures what we do at this time is relevant and appropriate for each and every one of our partners," he said.
"For this type of protracted economic crisis, there is no one-size-fits-all solution."
Nguyen Duc Quynh, deputy executive director of the Furama Resort Da Nang, said Furama had not participated in the campaign because its room prices were already reasonable.
"To ensure the hotel’s profit and staff’s income, we have maintained the current rates but sometimes we make some reductions for group tourists," Quynh said.
Some hotels did not want to reduce their prices because it could affect their prestige, while others were afraid that if they cut tariffs now, they would be unable to raise them in the future, he said.
Globally, tourism was hit badly last year and analysts forecast a zero or negative growth rate in the first haft of 2009, adding Viet Nam would be similarly affected.
"It is fair to say that business is not as strong as last year for the entire hotel market," Keilnhofer said.
"I do feel Viet Nam is in a more sheltered position and so the market here may not feel the severe affects that some other Asian centers may feel, however there is certainly a reality to the conditions."
To stimulate growth, the Government needs to be more proactive in marketing Viet Nam overseas and drive the tourism sector more aggressively forward, he said.
It is imperative that the tourism ministry, in conjunction with the private sector, pulls out all stops to generate a positive, tourist friendly image of Viet Nam, he added.
VietNamNet/Viet Nam News
It sought a commitment from travel agencies and hotels to cut room charges by up to 50 per cent and persuaded Vietnamese airlines to join.
Seventeen hotels and 14 travel firms in HCM City signed up, promising to offer discounts of 30 to 50 per cent.
But only a handful have so far honoured their commitments, though with much lower discounts than promised.
The Bong Sen-Sai Gon Hotel was one of the earliest to reduce room charges, offering thus far 10 to 25 per cent discount to 50 groups of foreign travellers coming through travel firms.
Tao Van Nghe, general manager of the five-star Majestic Hotel in HCMC, said his hotel too had reduced tariffs but he was worried about the programme’s efficiency.
The HCM City Tourism Association said the discounts of 10 to 30 per cent did not make a "strong impression" on tourists when many countries in the region were offering up to 80 per cent rate cuts.
Defending high rates
The hotels that have failed to honour their commitments justify their action.
Some said they did not honour their commitment because they were still waiting for the Government’s incentives for those involved in the campaign, mainly related to taxes and electricity and water prices.
Dietmar Kielnhofer, general manager of Sheraton Sai Gon - which is not part of the campaign - told Viet Nam News that since all businesses and market segments were affected by their own set of market conditions, rather than participating in an overall rate reduction strategy, the hotels chose to support the initiative by individual case-by-case discussions.
"We are meeting with our stakeholders and customers to access each and every one of their business and market situations, to work out how we can best partner them at this time. This is a very detailed approach, but one we feel ensures what we do at this time is relevant and appropriate for each and every one of our partners," he said.
"For this type of protracted economic crisis, there is no one-size-fits-all solution."
Nguyen Duc Quynh, deputy executive director of the Furama Resort Da Nang, said Furama had not participated in the campaign because its room prices were already reasonable.
"To ensure the hotel’s profit and staff’s income, we have maintained the current rates but sometimes we make some reductions for group tourists," Quynh said.
Some hotels did not want to reduce their prices because it could affect their prestige, while others were afraid that if they cut tariffs now, they would be unable to raise them in the future, he said.
Globally, tourism was hit badly last year and analysts forecast a zero or negative growth rate in the first haft of 2009, adding Viet Nam would be similarly affected.
"It is fair to say that business is not as strong as last year for the entire hotel market," Keilnhofer said.
"I do feel Viet Nam is in a more sheltered position and so the market here may not feel the severe affects that some other Asian centers may feel, however there is certainly a reality to the conditions."
To stimulate growth, the Government needs to be more proactive in marketing Viet Nam overseas and drive the tourism sector more aggressively forward, he said.
It is imperative that the tourism ministry, in conjunction with the private sector, pulls out all stops to generate a positive, tourist friendly image of Viet Nam, he added.
VietNamNet/Viet Nam News
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