Vietnam : a safe haven feels the pain
Vietnam was crowing over its reputation as the "safest" tourist destination in Asia before Sars came along. Now, in the wake of 63 cases, including five deaths, many corporate and leisure travellers are playing safe by staying at home. Vietnam was among the earliest countries reporting infections, and finds itself included in most travel advisories.
Tourism accounts for 4% of GDP: In Hanoi and Ho Chi Minh City, top hotels have plunged from near- capacity to 30% occupancy or less. There have been no confirmed Sars cases in Ho Chi Minh City, but the country's southern economic hub is still feeling the pain. Some hotels have closed restaurants and other facilities for renovation, while asking staff to work less hours or go on vacation. But the economy is mainly driven by domestic demand, so the tourism shortfall should not be devastating, according to Susan Adams, the IMF representative in Vietnam.
-- The International Monetary Fund scaled down its prediction of 6.2% GDP growth in 2003 and issued a rough, preliminary estimate of 5.75% to 6% growth instead.
-- Malaysian and South Korea companies closed their doors to overseas workers from Vietnam, in the hopes of stopping the spread of Sars.
-- Delays in technical assistance programmes, such as workshops on accession to the World Trade Organization, could set back the country's efforts to integrate with the global economy.
By Margot Cohen - The Far Eastern Economic Review - April 17, 2003.
Hanoi hotel's sars promotion
In the wake of the Sars scare, a five-star hotel room in Hanoi can be occupied for just $1--or even absolutely free. In an eye-catching ploy, the Hilton Hanoi Opera advertised a "Pay As Much as You Like" deal in the Vietnam News on April 9. The promotion, which runs through April 20, is limited to a one-night stay for resident expatriates and Vietnamese. But most readers didn't realize that the gimmick only applies to 15 out of 269 rooms at the swanky hotel.
Hilton Hanoi Opera general manager Jerome Auvity says that as of April 14, a total of 40 guests had shelled out between $1 and $30 for rooms that normally cost $100-130--with a handful paying nothing at all--and the deal is booked solid. Among guests that pounced on the discount were Vietnamese staff at the Hanoi office of the International Monetary Fund. "We've made five times more money on food and beverages than on the rooms," says Auvity, noting that his hotel's total occupancy rate has plunged to 25% compared to 82% before the World Health Organization issued a global health alert on March 15.
The Far Eastern Economic Review - April 17, 2003.
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