Vietnam travelling

On April 26, the Private Economic Development Research Committee under the Prime Minister’s Administrative Reform Advisory Council and the Tourism Advisory Council (TAB) shared with the local media some information related to a survey on the resilience of tourism businesses amid the Covid-19 pandemic.

The government’s key role

Answering questions about welcoming foreign tourists, Mr. Hoang Nhan Chinh, Head of the TAB Secretariat, said: “The TAB strongly supports the Government’s policy on not exchanging Vietnamese people’s health for economic benefits.”

The TAB proposed that the Government and relevant authorities pay special attention to how Vietnam can reopen its borders in a safe and sustainable way.

Chinh noted that Vietnam should only open its door to international tourism when we can assure that visitors do not bring the virus to Vietnam and vice versa. Visitors must also be assured that they are not infected with disease when traveling to Vietnam or if there is a risk, they will be insured.

“The tourism industry alone cannot tell when and how to open the door for international visitors to Vietnam. Our point of view is that all parties should sit down to discuss and we must consider the interests of all, not only the interests of the tourism industry,” the TAB Secretariat’s chief said.

According to Chinh, Vietnam should learn lessons from other countries, both lessons of success and failure. The country will also need to create its own way suited to its capabilities.

He admitted that opening the door to foreign tourists is the desire of the tourism industry. Opening up will create jobs, increase revenue, and help Vietnam not lag behind other countries. If international tourists go to tourist markets of other countries, they will not come to Vietnam anymore.

Chinh emphasized the key role of the Government in making the decision.

Expect to gradually open from Q3

Ms. Pham Thi Ngoc Thuy, Director of the Office of the Private Economic Development Research Committee, said that before the outbreak of Covid-19, revenue from international visitors was very high.

In 2019, the tourism industry contributed 9.2% of Vietnam’s GDP, employed about 2.2 million direct workers and a total of 4 million, including indirect laborers. In the same year, Vietnam welcomed 18 million international visitors, earning total revenue of $18.3 billion, accounting for 56% of total tourism revenue. Earnings from 85 million domestic visitors were estimated at $14.5 billion, or 44%

Thuy noted that losses of the tourism industry are not only from the absence of visitors but also from spending to maintain accommodation facilities.

According to Chinh, the specific time for the opening to international tourists depends on Vietnam’s preparation and ability to welcome international tourists in the context of Covid-19 pandemic, and the Covid-19 vaccination campaign in the country and in the partner countries. However, he expected that Vietnam can gradually open its door from the third quarter of 2021.

To prepare for the re-opening, Chinh said that it is necessary to establish a group or organization consisting of experts from different agencies and fields such as health, diplomacy, public security, national defense, culture – sports and tourism to discuss and set up the open-door criteria.

He noted that re-opening needs to be safe and done with a roadmap. The consultant team has suggested tasks to prepare for the re-opening.

First, conduct bilateral negotiations with each country that has already met the disease safety criteria; introduce disease safety policies such as requirement for immunization passports; and require Covid-19 PCR test before flying and arrival check.

Second, the government should have a compulsory travel health insurance policy, which includes Covid-19 insurance for all international tourists to Vietnam and Vietnamese tourists traveling abroad. Covid-19 insurance is needed to ensure the rights and safety of travelers, travel agencies and local authorities if there is tour cancellation or delay. It also ensures medical inspection, treatment, evacuation and repatriation.

Third, the Ministry of Finance should allow insurance firms in Vietnam to sell travel insurance products related to Covid-19 like other epidemics as prescribed by law. The tourism industry needs to develop a process to welcome and serve tourists safely.

Fourth, it is recommended that all hotel and restaurant staff, as well as those working at the tourism and heritage sites and other tourist sites, are prioritized for vaccination.

“We affirm that a vaccine passport is not considered the only and most important solution. This is just one of the solutions to ensure safety. The World Health Organization (WHO) has not yet recognized vaccine passports. Therefore, we do not want the Government of Vietnam to see the vaccine passport as the only safety measure, but to have an overall look,” Chinh said.

Thu Hang

The extension, to take effect from Friday, will apply to visitors arriving from all countries and territories, except Australia, Brunei, mainland China, New Zealand, Taiwan, Hong Kong, and Macau, The Strait Times newspaper reported.

Travelers from Vietnam will have the option of staying the last seven days at their places of residence.

The stay-home notice, issued under the Infectious Diseases Act, requires travelers to remain in their place of residence or dedicated facility for a stipulated period.

Singapore’s Ministry of Health said all visitors will undergo a polymerase chain reaction (PCR) test on arrival, the 14th day and before the end of the quarantine period.

Travelers from Vietnam had earlier been allowed to opt out of dedicated facilities and serve their 14-day stay-home notice period at their place of residence.

Singapore has recently been struggling with new community transmissions as the pandemic situation worsened in Asian countries. It has recorded over 61,000 infections and 31 deaths so far.

Vietnam has reported 38 cases since April 29, when the latest wave began.

The Vietnamese government said Tuesday that people who have completed the mandatory 14-day quarantine and tested negative twice would not be let go immediately, but did not specify the duration of further stay.

The latest outbreak in Vietnam began when a Ha Nam Province man who arrived from Japan tested positive a few days after being released from his 14-day centralized quarantine and testing negative twice while there.

Many tourism establishments and some destinations in Vietnam are also implementing promotional campaigns as well as policies to attract new partners and guests for the local MICE segment.

Vietnam’s MICE tourism expected to explode after COVID-19

Vietnam has emerged as a MICE tourism hub thanks to its advantages of natural landscapes and many attractive destinations and accommodation facilities that can facilitate many tourists, including some 5-star luxury resorts with beautiful beaches, suitable for events and teambuilding.

According to the Vietnam National Administration of Tourism, the revenue from MICE tourism is about six times higher than from other types of tourism. Pre-pandemic, MICE tourists often have a 3-4 times longer stay than ordinary travellers and higher spending as well. On average, each European MICE tourist to Vietnam spends between $700-1,000 per day, while Asian visitors spend more than $400 per day. The number of MICE tourists coming to travel agencies were increasing from 10 per cent to 15 per cent per year up to 2019.

Dr. Nguyen Anh Tuan, director of the Institute for Tourism Development Research said, “Many international organisations predict that when all economic sectors are restored, MICE tourism will be one of the most developed tourism forms. Because companies, after a long period of inactivity due to the pandemic, will need to meet, exchange experiences, and promote investment.”

MICE groups at this time with a scale of several tens of thousands of tourists will bring a great source of income and promise to open a brighter future for Vietnamese tourism.

Nguyen Duc Anh, chairman of Vietnam MICE Club under the Vietnam Tourism Association (VTA), said that the plus point of MICE tourism compared to many other types is that it is less seasonal and can be exploited continuously during the year.

“MICE tours depend on business programmes and activities, which can take place continuously by month and quarter. In addition, for every event or conference held, there are additional tours for delegates,” he said.

According to Do Van Thuc, business director of Dat Viet Tour, many businesses often organise tours in the early months of the year to launch new operations and projects, while the end-year tours are mostly meant for commendation. Most foreign businesses in Vietnam also associate MICE tourism with team building to tighten internal solidarity and motivate and convey corporate culture.

Although the tourism industry is still facing difficulties as it cannot welcome international visitors, the potential of the MICE tourism market has stimulated local businesses to prepare new products and services for MICE guests.

Ngo Thi Nga, director of Postum Travel, said that this year the company will build high-end service packages with comfortable resorts and private spaces to organise MICE tourism. However, this year programmes will be shorter and combined with online meetings.

Meanwhile, the members of the Vietnam MICE Club are also designing more activities and experiences to stimulate tourism demand, such as tourism organisation associated with sports activities such as jogging, cycling, rowing, and others.

Seizing opportunities

Vu The Binh, deputy chairman of the VTA, said that MICE tourism has been serving large groups of tourists and requires high-quality services, so not all localities and accommodation establishments can meet the demand. “To develop this type of tourism, localities and business units need to have a strategic vision, invest in facilities, infrastructure, and upgrade services more professionally,” Binh said.

Moreover, to stimulate MICE tourism, most travel and hotel businesses are offering incentives and discounts for these target groups. Some localities have also issued special policies to attract tourists.

Danang is a model city when it comes to piloting such policies. The city has supported a budget of VND300 billion ($13 million) to attract 100 MICE delegations to visit this year.

The leaders of the Danang People’s Committee will issue welcome and thank you letters, as well as arrange cars for groups of visitors.

Plentiful options

A series of venues such as Ariyana, Furama, Naman Retreat, Sheraton Grand, and Grand Mercure Danang are also offering discounts and specials on facilities such as meeting rooms, accommodation rates, and free admission tickets, as well as transportation costs and reduced tour fees.

Some other localities with outstanding utility systems have gradually become favourite destinations selected by delegations.

In the north, Quang Ninh is considered a highlight of MICE tourism thanks to its heritage of Halong Bay and synchronous development of infrastructure with international-class resorts and hotels such as FLC Halong, Vinpearl Halong, Muong Thanh, Wyndham Halong, and Sun Group’s Quang Hanh Onsen.

In the central region, besides the traditional MICE tourist centre of Danang, Nha Trang, many other localities such as Thanh Hoa, Quang Binh, and Quy Nhon are also becoming prominent destinations for events and exhibitions.

This breakthrough comes from the synchronous infrastructure system, the beautiful natural landscape, and the system of high-end hotels and resorts that meet the rigorous standards of MICE customers.

In the south, Phu Quoc is the meeting point of many delegations thanks to its pristine natural scenery and diverse services, especially after the development of high-end hotels and resorts with conference rooms accommodating 500-1000 people.

MICE tourism could thus be a great opportunity to help travel units get out of the difficulties and finally recover from the pandemic. However, for this type of tourism to develop professionally and attract many tourists, localities and businesses not only need to modernise accommodation facilities but also train their human resources to be capable of organising events professionally – especially as Vietnam aims to welcome international tourists when the pandemic is globally under control.

VIR

Another tourism company named TST also said that travelers often canceled the Northern and Central trips.

On the same day, the Municipal Department of Tourism sent an official instruction letter to districts, heads of tourism destinations to strictly comply with the Covid-19 control and prevention regulations of the Ministry of Health.

Ms. Nguyen Thi Anh Hoa, Director of HCMC Department of Tourism said that the agency required the staff at tourism destinations to follow the Covid-19 control and prevention regulations as well as to establish the Covid-19 prevention and control teams at the entertainment places. In particular, it is recommended to regularly use loudspeakers to remind guests and staff of tourist sites to strictly comply with the 5K regulation, including khau trang (face mask), khu khuan (disinfection), khoang cach (distance), khong tu tap (no gathering) and khai bao y te (health declaration), spraying Cloramin B inside the campus, tourist sites four times a week.

By Thi Hong – Translated by Huyen Huong

While 22 percent of the survey respondents hoped their business would recover by the end of this year, the remaining 22 percent did not make any prediction.

The survey was done recently by Vietnam’s Tourism Advisory Board (TAB) that polled 432 travel companies in the country.

It also found that 79 percent of the respondents have cut their staff to reduce costs while 73 percent have restructured their customer base.

Most of the firms (99 percent) wanted the government to prioritize Covid-19 vaccination for tourism workers while 88 percent wanted tax cuts.

The survey showed that as of March this year, 39 percent of workers in the tourism sector had been unable to resume work, while 61 percent had returned to work with reduced salary and working hours.

Vietnam earned tourism revenues of VND312.2 trillion ($13.5 billion) in 2020, down 56 percent year-on-year. A total of 3.83 million foreign tourists visited the country, a 76 percent drop, according to the Vietnam National Administration of Tourism (VNAT).

The Vietnamese government closed national borders and canceled all international flights on March 25. It has since allowed only Vietnamese repatriates and foreign experts and highly-skilled workers.

While the country has gone for over a month without community transmissions, the government is calling for greater vigilance against Covid-19 amid intensified outbreaks with new variants in neighboring countries like Cambodia, Laos and Thailand.