~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 2001]

Tourism takes on new significance in Vietnam

Setting targets can be a tricky business, especially in the fickle tourism industry. In the mid-1990s, Vietnam predicted the number of visitors to its shores in 2000 would top 4 million. In fact, just over half that number - 2,140,100 - showed up, although this represented a 17 percent increase from the 1,781,754 of 1999. The Asian economic crisis, of course, knocked the bottom out of regional travel, except for Thailand, where arrivals rose. Nevertheless, it is just such unforeseen occurences that make forecasting, at best, an inexact science.

Undeterred, though, Vietnamese tourism officials have set themselves some more goals: 2.5 million tourists by the end of 2001, with revenue of US$1 billion, rising to 3-4 million per year by 2005 and 6-7 million by 2010, with projected earnings of $2 billion-$3 billion. Unlike previously, though, the predictions are being backed by positive action, with the government for the first time committing to "gradually taking tourist shopping as an important budget revenue". The Vietnam National Administration of Tourism (VNAT), which oversees tourism in the country, has launched a long-term campaign under the heading "Vietnam - a destination for the new millennium" and formulated an action program to "step by step make our country a high-level tourism and trade-service center in the region". To back the drive, the government has set up a tourism steering board under the chairmanship of Deputy Prime Minister Nguyen Manh Cam. The board includes representatives from a number of ministries and organizations, and will help the industry achieve its goals. An important part of this is to more actively promote Vietnam abroad, as this is recognized as being a weak point in the past. The VNAT has signed bilateral cooperation agreements with 15 countries at the government level and has established cooperative relations with more than 1,000 partners from 50 countries and territories around the world.

At present, the VNAT is awaiting final approval from the government to open representative offices in China, Japan, Thailand and France. The choice of these countries is no accident. Chinese comprise the largest number of visitors to the country (626,476 in 2000) and Vietnam has been officially listed by Chinese authorities as one of 15 destinations to which Chinese package tourists can visit. Chinese citizens are also allowed to use tourist cards to visit the capital city of Hanoi, rather than full passports.

The Japanese, while not the largest group of visitors (152,755 in 2000) are an important target as there is significant room for growth, and they are traditionally big spenders. Further, Japan is the third biggest foreign direct investor in Vietnam, with 301 projects totalling $3.8 billion, so there are already strong ties between the countries. Further, Japan is the tourist sector's biggest investor, with 20 hotel projects with a combined capital of $434 million. This is out of a total of $3.5 billion that has been invested in the tourist sector by foreigners. Vietnam now has an oversupply of accommodation - in 1999 it had 63,580 rooms, with an occupancy of 45 percent. Thailand, while only supplying 26,366 visitors in 2000, is an important strategic partner. It has a well-developed tourist industry and is the most popular destination among the 10 Association of Southeast Asian Nations (Asean) countries, with 9.5 million arrivals in 2000. The VNAT has signed a visa-exemption agreement with Thailand (and the Philippines) which allows its citizens to visit Vietnam for 30 days without having to apply for an entry visa. France is viewed as a gateway to Europe and is a logical choice as the former colonial rulers of Vietnam. In 2000, 86,492 French citizens visited Vietnam, so there is plenty of room for growth. The VNAT is also stepping up its promotional activities in the key markets of the United States, Britain and Germany.

Vietnam is an active member of the World Tourism Organization, the Pacific-Asian Travel Association, the Greater Mekong Sub-region and the Visit Asean Campaign, which was launched in January of this year. All of these bodies help foster the systematic development of the tourism industry and services and aid it in diversifying and enhancing the quality of tourism products. About 150,000 people now work for the industry and 300,000 others benefit from its development by making and selling souvenirs or other services. On the negative side, all tourist development "has to be in line with state security and public safety as well as the Communist Party's and the state's foreign policy propaganda". This has in the past served to cause delays in the implementation of initiatives, and in restricting the free movement of tourists around the country.

New initiatives
* The visa fee for tourists arriving in groups at sea ports has been dropped from $25 to $10.
* Foreign visitors now benefit from a single-price policy for entry to beauty spots and the sites of historic and cultural relics. In this regard, Vietnam is ahead of Thailand, where blatant double pricing continues to be a sore point.
* Re-opening of a number of international air routes, including flights from Ho Chi Minh City to Siem Reap (Angkor Wat) in Cambodia, Tokyo in Japan and Seoul in South Korea, as well as a Danang-Bangkok connection.
* Restored traditional cultural festivals and specially designed tourism routes. These include the United Nations Educational and Scientific Organization-awarded World Heritage Sites route that covers the former imperial city of Hue in Thua Thien Hue province, and Quang Nam province's twin attractions, the ancient port town of Hoi An and the former Champa capital of Myson. Hoi An attracts one third of the country's international tourists and has contributed greatly to Quang Ninh province's 37 percent yearly growth in tourism since 1990.

By Fred Thurlow - Asia Times - March 7, 2001.