HCM City reports VND10 trillion loss due to slumping arrivals

07-Apr-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

Travel companies in HCM City anticipate suffering a VND10 trillion loss in the first three months of this year, as the number of foreign tourist arrivals slumped by a hefty 84 percent due to the ongoing Covid-19 pandemic.

The city’s tourism sector expected to earn nearly VND3.5 trillion in revenue in March, down 65.2 percent over the same period last year, bringing the total number in the first quarter to some VND25.6 trillion, meeting 18.2 percent of the yearly target and marking a 26 percent year-on-year drop, the city’s Tourism Department said on April 3.

Of the figure, travel revenues in March reached VND554 billion, down 64 percent against the previous month and 77.4 percent compared to March 2019. Tourism is now among those sectors hardest hit by the Covid-19 contagion, which has triggered social distancing and lockdowns around the globe.

Many travel companies in the city have seen tourist arrivals fall by 50 percent to 60 percent since the start of the outbreak in January. Given its complicated developments in recent weeks, most firms have reported revenues being reduced by 95 percent to 100%, compared with last year.

Currently, many enterprises in Vietnam have suspended operations for several months, closing offices to save costs and allow staff to work from home. Some firms are still open to handle service cancellation requests from customers and debts with partners. They are not currently offering new tours to travellers.

Accommodation and catering service providers also felt the impacts, with revenues in the first quarter falling 30.3 percent to some VND19.7 trillion. Most hotels have seen occupancy rates dropping sharply, while all restaurants have been closed since the end of March, given the government’s social distancing order to fight the fast-spreading disease.

According to Tuoi Tre Online website, the number of foreign tourist arrivals to the city fell more than 84 percent to 117,000 last month. Between January and March, the city welcomed over 1.3 million travellers, meeting some 14.5 percent of the yearly plan and marking a 42.2 percent decline.

https://english.thesaigontimes.vn/75929/hcmc-reports-vnd10 trillion-loss-due-to-slumping-arrivals.html


Category: Business, Vietnam

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