Mice tourism

HCM City nominated for Asia’s Best MICE Destination in 2021

June 16, 2021 by dtinews.vn

Ho Chi Minh City has become one of the eight candidates nominated for the title of “Asia’s Best MICE Destination 2021” by World MICE Award.

A corner of Ho Chi Minh City

The World MICE (Meetings, Incentives, Conferences and Exhibitions) Awards 2021 is a category of the prestigious World Travel Awards (WTA).

The other nominated destinations are Bangkok (Thailand), Beijing (China), Hong Kong (China), Kuala Lumpur (Malaysia), Macau (China), Seoul (the Republic of Korea) and Singapore.

This is also the category that Ho Chi Minh City has excellently won in 2020.

The World MICE Awards were launched in 2020, aiming to promote the growth and innovation of MICE tourism on a global scale by honouring leading organisations and destinations with fairness and transparency in the rules and voting.

The voting will be conducted via website https://worldmiceawards.com from June 9 to September 14. The results will be announced on November 1, 2021.

In Vietnam, the MICE tourism form has been exploited by many companies in recent years, gaining positive initial results. Development of MICE market is one of the goals of Vietnamese tourism sector’s development strategy.

HCM City, with a favourable investment and business environment, has long been a choice for international conferences and meetings. The destination is equipped with some admirable establishments for meeting and exhibition all season, which meets the standard of the international guests.

Aviation, tourism industries at brink of collapse on Covid-19: Ministry

June 16, 2021 by hanoitimes.vn

Eight business sectors, including hospitality services, retail, garment, car manufacturing, agriculture, logistics, aviation, and IT are facing an unprecedented crisis.

Up to 90% of tourism companies were forced to suspend operations, making the aviation industry facing financial challenges with the national flag carrier Vietnam Airlines at risk of bankruptcy.

The Ministry of Planning and Investment (MPI) gave a grim look in its report assessing local businesses’ situation in 2020 and the first five months of this year.

Vietnam Airlines is predicted to suffer losses of VND10 trillion in the first six months. File photo

According to the report, eight business sectors, including hospitality services, retail, garment, car manufacturing, agriculture, logistics, aviation, and IT are facing an unprecedented crisis.

According to the MPI, the aviation industry was the most affected sector by the pandemic as demands for air transportation in 2020 went down by 34.5-65.9% year-on-year, while revenue from local airlines also saw a contraction of 61%.

The third Covid-19 outbreak flaring up in early 2021 further put them into a dire situation as revenue plunged by 80% against last year.

“Even when the Covid-19 pandemic is contained this year, it is predicted that the aviation industry would fully recover to its pre-pandemic condition in 2024,” stated the MPI.

Vietnam Airlines estimated its losses in the first quarter to be around VND4.8 trillion (US$209 million), the figure could even go up to VND10 trillion ($436 million) for the first six months of this year.

The MPI noted that the national carrier’s overdue debt of VND6.24 trillion (US$272 million) could push them towards bankruptcy.

“Banks stop providing loans for Vietnam Airlines due to the slow disbursement of the Government rescue package worth VND12 trillion ($523 million),” the ministry added.

Budget airlines such as Vietjet Air, Bamboo Airways are also predicted to face more difficulties as they have used up all financial resources to keep providing air transportation services, it noted, saying Vietjet Air is in need of VND10 trillion ($436 million) for operation.

90% of tourism companies suspending operation

According to the Vietnam Tourism Association (VITA), travel agencies had high expectations for a recovery in 2021, but the resurgence of the pandemic in the Tet holiday put a dent in their hope.

“The number of tourists booking tours during Tet sharply declined, while many tour operators have no income to keep business running,” said the association.

Up to 90% of travel agencies, restaurants, and hotels were forced to close, and the remaining 10% scaled down operation.

The VITA said the majority of travel agencies have laid off 100% of their workforce, meanwhile, the rates for outbound tour operators were around 60-90%.

A Hanoi-based garment factory. File photo

The garment is the second industry facing severe consequences from the Covid-19 pandemic that it has suffered a deceleration of 10.5% in growth for the first time in the past 25 years.

In 2020, garment export value declined by $4 billion compared to the previous year to $35 billion.

The MPI said the pandemic is put under control and garment firms are being able to take advantage of free trade agreements (FTAs). The industry could only fully recover to the 2019 level by the second quarter of 2022, or the fourth quarter of 2023 in a worst-case scenario.

Carriers, tourism firms teeter on the brink

June 17, 2021 by e.vnexpress.net

Aviation revenues last year fell by over 61 percent from 2019, and the third Covid-19 wave in the first quarter of this year caused revenues to plunge 80 percent year-on-year, making it next to impossible for carriers to service their loans, according to a recent report by the Ministry of Planning and Investment.

National flag carrier Vietnam Airlines projected a loss of VND4.8 trillion in the first quarter and VND10 trillion in the first six months. It is now said to be on the verge of bankruptcy.

“The airline is facing legal cases due to high overdue debts and risks in balancing short-term loans.”

Since commercial banks have not received the VND12 trillion ($523 million) support package from the government, they have not been able to grant loans to Vietnam Airlines.

Meanwhile, budget carrier Vietjet is short of VND10 trillion for its operational expenditures.

With experts and industry insiders estimating it would take at least until 2024 for the aviation industry to recover to pre-pandemic levels, the ministry has proposed that the government provides carriers with loans at four percent interest during the 2021-2023 period to help them survive.

Other reductions or scrapping of service fees at airports should be maintained until the end of this year, it added.

Meanwhile, a report by the Vietnam Tourism Association (VITA) says up to 90 percent of tourism companies, restaurants and hotels are in dire straits.

Most of these businesses have had to let their employees stay at home without pay, the report says.

90% of tourism firms in HCMC suspend operations

June 17, 2021 by english.thesaigontimes.vn

90% of tourism firms in HCMC suspend operations

The Saigon Times

The deserted Nguyen Hue Walking Street in HCMC during the pandemic. Up to 90% of tourism firms in HCMC have suspended their operations – PHOTO: PLO

HCMC – Due to the Covid-19 pandemic, 90% of tourism companies in HCMC, including small and medium ones and those specializing in inbound tours, have suspended their operations, according to the HCMC Department of Tourism.

From January 1 last year to March 3 this year, 152 tourism companies had their travel business licenses withdrawn, including 135 international travel ones and 17 domestic travel ones, the local media reported.

Some large private companies have appointed some employees to be on guard at their headquarters, while State-owned ones are operating perfunctorily.

A plunge in the number of tourists has led to a reduction in the number of guest rooms and their prices. As a result, many lodging facilities have reduced the number of employees or even closed temporarily.

In the city, more than half of three-star lodging facilities have suspended their operations. Four- and five-stars ones are operating far below capacity.

In addition, the revenue from lodging services has plummeted 70% against 2019; catering services, 80%; and other services, 68%. The number of laborers in lodging facilities also fell 35% versus 2019.

Providers of tourist transport services are also facing the same fate. Since May last year, their activities dropped 60%-80%. They have sold their vehicles to pay bank loans, maintenance fees and the salaries of drivers.

Some have transported the workers of enterprises and people to centralized quarantine centers.

Therefore, the HCMC Department of Tourism proposed the Government direct the Ministry of Finance to halve the value added tax rate from 10% to 5% in 2021 to reduce the prices of tourism products and services and continue reducing the land rentals for tourism companies this year.

In addition, the Government should ask the Ministry of Labor, Invalids and Social Affairs to consider extending the period to suspend the contribution to the payroll tax for those affected by the pandemic.

Moreover, the minimum working period to be entitled to unemployment allowance should be cut from 12 to three months and the unemployment allowance should be raised from 60% to 80% of the employees’ average monthly salaries subject to the insurance calculation.

The Ministry of Finance should coordinate with the State Bank of Vietnam to propose the Government allow tourism companies to reduce their deposits at banks by 80% to help them maintain their operations.

The HCMC Department of Tourism also proposed the municipal government seek the municipal People’s Council’s approval to use the budget that the city has given to the HCMC Branch of the Vietnam Bank for Social Policies to offer non-collateral loans with no interest for tourism firms facing difficulties.

HCMC currently has more than 5,000 tourism companies with some 31,500 employees. Therefore, the amount needed is nearly VND209 billion.

The department also suggested support policies for public tourist and relic sites and museums to help stimulate the development of the tourism sector after the pandemic is controlled.

Entrance fees to the War Remnants Museum, the Museum of Vietnamese History, the HCMC Museum, the HCMC Museum of Fine Arts and the Cu Chi Tunnels should be exempted from August to the end of this year.

The city has also proposed to pay the salaries of employees and regular expenditures of these five units for five months with a total amount of VND21.7 billion.

The department also expected the municipal government to prioritize Covid-19 vaccines for employees in the tourism sector and speed up the vaccination for all residents to resume tourism activities at the earliest.

In related news, the HCMC Tourism Association on June 15 sent a document to the State Bank of Vietnam, the Ministry of Culture – Sports and Tourism, the HCMC People’s Committee and related units to propose expanding policies to support businesses affected by Covid-19.

Accordingly, Circular 03 of the State Bank of Vietnam needs to be amended and a number of articles of Circular 01 supplemented with more information on rescheduling payments, exemptions and a reduction in the interest and fees.

Commercial banks have considered rescheduling debt payments for another 12 months, but in reality, tourism businesses are having a hard time paying off their debts as the fourth Covid-19 wave is still turning more complicated.

The hardships of the tourism industry, including travel, hospitality, resorts, restaurants and service supply chains have led to a significant impact on other industries such as road transport, aviation, railways and waterways.

Therefore, creating special mechanisms and incentives will help tourism businesses overcome difficulties, while resuming operations will also contribute to creating motivation to revive related industries and fields.

Bac Ninh eases social distancing, Quang Ninh reboots tourism

June 13, 2021 by vietnamnet.vn

The northern province of Bac Ninh eased social distancing measures in several areas, starting from 0am on June 13.

Deputy Director of the provincial Department of Information and Communications and member of the provincial Steering Committee on COVID-19 Prevention and Control Vu Huy Phuong said on June 12 that Tu Son town will be under social distancing in line with the Prime Minister’s Decree No.19/CT-TTg instead of Decree No.15/CT-TTg. Tieu Son street alone in Tuong Giang ward will continue to be under stricter social distancing in line with Decree No. 16/CT-TTg.

Communes of Yen Gia, Que Tan, Phu Lang, Chi Lang, Dao Vien and Viet Hung in Que Vo district as well as 33 villages in eight communes of Thuan Thanh district will shift from the application of social distancing measures under Decree No.16 to those under Decree No. 15.

On June 8, the northern province of Quang Ninh also allowed several business sectors to resume operations, including stimulating local tourism demand in line with pandemic prevention and control regulations.

Director of Sun World Ha Long Tran Van Minh said ticket price will be halved to attract more visitors.

Those coming from pandemic-hit areas must submit certifications proving they are negative for SARS-CoV-2 within 5-7 days.

VNA

VN tourism industry told to promote digital transformation to recover

June 17, 2021 by vietnamnews.vn

A customer search for travel information on the internet. VNA/VNS Photo

HCM CITY The COVID-19 pandemic has had a severe impact on the economy, hitting tourism particularly hard, and the sector needs to accelerate digital transformation to manage the business and reach customers, experts said.

Traditional management and business methods have proven ineffective during the pandemic, requiring them to immediately embrace digital transformation.

Trần Trọng Kiên, chairman and CEO of Thiên Minh Group, one of Việt Nam’s leading travel and hospitality companies, said COVID has forced it on the tourism industry to change itself.

Việt Nam has nearly 44 million smartphone users, more than 67 million internet users, 66 million social media users, and 145 million mobile subscribers.

The Government has approved a national digital transformation programme from now through 2025 at the end of which it expects Việt Nam to become one of the 50 leading countries in information technology and the digital economy to account for 20 per cent of GDP.

These provide a premise for promoting digital transformation in all industries, especially hospitality and tourism.

Digital transformation is seen as one of the solutions to help the tourism sector overcome the slump caused by the epidemic.

Vũ Thế Bình, deputy chairman of the Việt Nam Tourism Association, said through digital transformation tour companies could reach more prospective travellers, provide better care to customers, reduce costs, and increase their business efficiency.

It is an inevitable trend for businesses to improve their competitiveness, he added.

With Gotadi, a flight and hotel booking app belonging to HG Holdings Group, a market leader in hospitality, is considered a successful example of digital transformation.

Hahalolo, an integrated tourism website based on a social network that introduces its services to tour providers and tourism enterprises, has been up for one year with more than six million users now.

It seeks to change Vietnamese travellers’ habits to exclusively booking tours and tickets online. — VNS