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

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Vietnam tourism feels impact of tsunami

HANOI - The tsunamis that wreaked havoc on much of South and Southeast Asia left Vietnam's shores mercifully untouched, but will impact the country's tourism sector nonetheless. Local tour operators and hotel managers say they hope to see an upsurge in travel to Vietnam, as foreign tourists seek new destinations in Asia. But travelers may also opt to avoid the entire region after the devastation, which could have the opposite effect.

Officials say it will be several months before the full impact of the tragedy on Vietnam's neighbors is known. "So far, we've seen no direct impact (on bookings)," said Merridy Baconguis, F&B manager at the Victoria Hoi An beach resort on Vietnam's central coast. Vietnam was not directly hit by the Boxing Day tsunamis, but neighboring Thailand and Myanmar were.

Vietnam could benefit

Many officials suggest that Vietnam's developing tourism industry could receive a shot in the arm in coming months as people bypass more traditional destinations in Asia. "Some people who were due to go to the west coast of Thailand are now looking to Vietnam," said Nick Winstone of Mekong Travel, an agency in England which specializes in tours to Thailand, Vietnam, Laos, Cambodia and Myanmar.

Tourist arrivals in Vietnam have been steadily rising in recent years. The country is politically stable, there is no terrorist activity and its tourist infrastructure is improving. The number of foreign visitors rose 21% last year over 2003 despite outbreaks of avian flu, which drove travelers away. The latest assault on Vietnam's neighbors will likely reinforce its reputation as a secure holiday destination, observers said.

But Vietnam may find it hard to capitalize on any increase in visitor numbers. Its long coastline is relatively undeveloped and, although new resorts enter the market regularly, only a limited number offer the quality of service previously offered by the Thai and other resorts. "We were fully booked before it (tsunami) happened and are fully booked now," said the four-star Victoria Hoi An's Baconguis.

Some local agents have upped the ante in their overseas promotion programs. Saigon Tourist, a major state-owned travel company based in Ho Chi Minh City, has launched a program to cooperate with Thai operators who, for a fee, will redirect clients wishing to avoid Thai resorts to Vietnam. The company also plans to increase promotion and advertising in European markets "as part of its long term plans," according to a report posted on an official Vietnam Tourism Web page.

Vietravel, another Ho Chi Minh City-based operator, "will launch an advertising campaign in the European market this month," the report quoted its general director as saying. But other industry participants are wary of appearing to capitalize on the recent tragedy and have no plans to increase sales and promotion in coming months.

Vietnam Airlines is "promoting tourism" in accordance to plans laid out before the tsunamis hit, but plans no new promotion activities, said a company official. Exotissimo, a major Hanoi-based travel agency that sells tours in Vietnam, Laos, Cambodia and Myanmar, will also stick to a development plan laid out before the disaster, General Manager Veronique du Cassy said. The Vietnam Administration of Tourism, also cautious, won't adjust its target of 3.2 million international visitors this year (up from 2.9 million in 2004), an official there said.

May lose out

Despite hopes that its resorts will win clients who might previously have looked elsewhere, there are nonetheless concerns that Vietnam may suffer from the psychological aftershocks of last month's devastation. Tourists may "lump Asia into one" and avoid the entire region, said Mekong Travel's Winstone, noting that if that happens his agency expects to see a change in bookings in a month or so as U.K. travelers start to plan next winter's holiday. The Hilton Hanoi Opera hotel has already seen some cancelations from groups that planned to tour the region but have canceled their entire trip rather than just their stops in tsunami-effected countries, according to Trang Dinh Minh, the hotel's reservations manager. "It's effected Vietnam as well," she said.

In 2003, when SARS devastated the tourism industries of several North and Southeast Asian nations including Vietnam, the country needed several months to draw back tourists even after it was declared clear of the disease because some neighboring countries remained infected.

By Catherine McKinley - Dow Jones Newswires - January 12, 2005