06:00 | 16/08/2020 Culture & Tourism
(VEN) - Demand stimulation programs have yielded encouraging signs for the tourism industry. Nguyen Cong Hoan, Head of the Communications Department of the Vietnam Tourism Association (VITA) and General Director of HanoiRedtours, discussed the latest developments with the media.
Vietnam is strongly promoting a demand stimulation campaign for domestic tourism. How do you assess the industry's resilience?
Since the social distancing guidelines were eased in May, the travel business showed signs of recovery.
Products to stimulate tourism demand in the country have been well received and all seats available for flights as part of the Tourism Demand Stimulus Alliance have been fully booked. We are continuing to work with the airlines to expand and add more pre-booked tours.
As an enterprise manager, what are the specific changes you face?
In the past, domestic tourists only accounted for 30 percent of the total number of tourists of HanoiRedtours; however, this year, all our customers are Vietnamese and this trend is on the rise because we have promoted a series of demand stimulation programs with highly attractive incentives.
Firstly, VITA and Vietnam Airlines jointly launched tourism stimulus programs in the center and south of the country at up to 80 percent discount on air fares and a 60 percent discount on package tours.
These products are very well received by tourists, especially marine tourism products offered in Da Nang, Hoi An, Ly Son, Tuy Hoa, Quy Nhon, Nha Trang, Ninh Thuan and Binh Thuan.
Secondly, Vietnam Airlines also offered Free and Easy airfair packages with accommodation services, accounting for 40 percent our customers.
Thirdly, the company also offers many promotions for short-term stays at major resorts around Hanoi at deep discounts of 50 percent.
How does the government's 30 percent reduction of corporate income tax affect businesses, in your opinion?
We think it will be very difficult for tourism businesses to make a profit in 2020, and the 30 percent tax reduction applies only to profitable businesses. For non-profitable businesses, the tax rate is not really meaningful. However, this shows the government’s efforts to encourage business. If businesses do well and yield profits, tax reduction is an excellent way to encourage them to use this resource in order to continue re-investing, promoting tourism, recovering and developing.
How do you assess the recovery speed of the tourism industry?
As we all know, sustainable tourism is made up of three elements: domestic, international and Vietnamese tourism abroad. However, safety is our first priority. We should only organize tours step by step when it is really safe to do so, but we cannot open up massively because we are still carrying out simultaneous tasks: promoting economic development and eliminating the Covid-19 pandemic.