Ho Chi Minh City

HCMC devises two scenarios to revive tourism

VNA
Ho Chi Minh City’s Department of Tourism has mapped out two scenarios to kick-start the tourism market post-Covid-19.

People walk in Le Duan Street, Ho Chi Minh City. (Photo: VnExpress)

People walk in Le Duan Street, Ho Chi Minh City. (Photo: VnExpress)

In the first scenario, the pandemic will be controlled in September and the department will resume its domestic travel stimulus programme featuring cooperation between hotels and resorts, travel operators and transport service providers to offer high-quality products at low prices.

The city will foster travel linkage agreements with the Mekong Delta and south-eastern regions. It will also expand linkages with other regions in the country.

Information about Covid-19 safety measures would be promoted to ensure that businesses comply with safety standards to protect staff, guests and the community, said Deputy Director of the Tourism Department Nguyen Thi Anh Hoa.

The other scenario is that the pandemic goes on until year-end, meaning the tourism market remains in a slump and the promotion and marketing activities will focus on restructuring and workforce retraining.

“The department will help businesses restructure their operations and develop new products to prepare for the recovery,” Hoa said.

At least 90 percent of travel agencies have halted operations, according to a report released by the department.

Fewer than 10 percent maintain operations to take care of tour cancellations and debts to customers.

Hotels are suffering from mass cancellation of business events and wedding celebrations and occupancy rates of less than 10 percent, according to the report.

Tourism enterprises face severe financial distress, but the Government’s relief package of VND62 trillion (US$2.67 billion) for people and businesses directly affected by the pandemic has hardly benefited anyone, Hoa said.

“It is very difficult for individuals and businesses to access the relief package.”

To date seven businesses have managed to get the interest rates on their bank loans reduced following meetings between the department and the State Bank of Vietnam.

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