Vietnam to extend tourism stimulus package next year

The national tourism stimulus program “Impressive Vietnam” will be extended to continue paving the way for a recovery of the downturn-hit tourism industry next year.

But local tourism service providers will no longer enjoy big discounts on air tickets like this year, according to Vu The Binh, head of the travel department under the Vietnam National Administration of Tourism (VNAT).

Binh said VNAT would hold a meeting next month to gather opinions from tourism professionals to draw up more effective measures for the national tourism stimulus program.

Vietnam to extend tourism stimulus package next year

“The program will definitely be extended but we will have different approach to assist local tourism businesses,” he told Thoi Bao Kinh Te Sai Gon Online (Saigon Economics Times Online) on Tuesday.

“Previously, we had to do everything we could to attract tourists due to the slumping tourism industry but now we need a program to increase our competitiveness,” Binh said.

Launched since January this year, Impressive Vietnam offers discounts of 30 to 50 percent on package tours, accommodation, shopping and air and bus tickets until December 31, 2009.

Hundreds of airlines, hotels and tourism service providers have registered to take part in the program which resulted in package tours cheaper by up to 40 percent for domestic and foreign travelers since early this year.

Among the incentives for local tours operators were lower airfares by up to 60 percent offered by national flag carrier Vietnam Airlines on domestic routes.

The discounts have enabled domestic travel firms to offer cheaper domestic package tours for Vietnamese, resulting in a growth of 19 percent for the domestic segment in terms of tourist numbers.

But the travel department head said it was impossible for the sector to continue providing such low airfares for local tour operators next year.

Tourism service providers early this year called for an extension of Impressive Vietnam until June 2010.

The companies explained the end of the program on Thursday would leave local tour operators with no option but to raise their tour prices to cope with the rebound of airfares, hotel room rates and other service charges.

The firms said they feared the higher tour prices for domestic trips would cause a number of travelers to turn to outbound tours as many foreign destinations are offering discounts to stimulate international arrivals.

Inbound tourism sector was the hardest hit by the global downturn this year with international arrivals to Vietnam reaching only 3.8 million arrivals, down 11 percent from last year.

But inbound tour operators said they had seen signs of recovery for next year and expected to receive the same number of guests as last year.

VNAT forecast Vietnam would welcome 4.5 to 4.6 million foreign tourists next year, up 18 to 21 percent from 2009 and higher than the figure 4.25 million of last year.

It also expected to receive 28 million Vietnamese travelers next year, up 12 percent from 2009.

Source: Youth Newspaper