Tourism revenue expected to surge to $35b by 2020

21-Jan-2017 Intellasia | The Saigon Times Daily | 6:00 AM Print This Post

Vietnam’s tourism sector is expected to attain revenue of $35 billion by 2020, double last year, according to a resolution issued by the Politburo.

According to the resolution, tourism would become a spearhead economic sector in the next four years, annually serving 17-20 million international and 82 million domestic tourists.

The resolution clarifies tasks and solutions for the sector to achieve the targets. They comprise new approaches, restructuring, institutional and policy improvements, more investment in infrastructure, and tourism development promotion. Favourable conditions will be created for businesses and communities to develop products and services and human resources, and enhance the capacity of State agencies in the sector.

According to the Politburo, tourism is a general economic and service sector crucial to economic growth and job creation, so breakthrough policies will be needed to help turn it into a key sector by 2020. However, the Politburo noted that this does not mean all provinces and cities will embrace tourism as a key industry.

In the years to come, relevant State agencies will build and carry out a scheme to restructure the tourism sector with a focus on the development of infrastructure and key products such as those in coastal areas and on islands, of cultural value, and ecotourism and community-based products.

Policy incentives will be adopted to attract more investors into the sector, particularly in major localities and remote areas with untapped potential and unique products as well as human resource development.

Electricity tariffs applicable to hotels and other lodging facilities will be lowered to the same level for factories. The government will issue appropriate land use tax rates for tourism projects with low construction density.

In addition, Vietnam will relax entry visa procedures for international visitors.

The Politburo said important tasks should be implemented urgently to spur tourism development and that crucial programmes will be executed on a pilot basis if there have not been regulations governing them.

The government will earmark a suitable proportion of the State budget for the development of transport infrastructure, rest stops along the roads on which large numbers of tourists travel, seaports and terminals along rivers for tourist boats and cruises, and railway services for tourists. Airlines are encouraged to open new routes connecting Vietnam and key source markets for the tourism sector.

Vietnam will call for investors to develop integrated tourism and service projects, shopping malls, and recreational centers in key localities.

Relevant agencies are urged to make full use of technology for tourism promotion and update their marketing approaches.

The resolution does not mention opening representative offices of the tourism sector in foreign markets. However, it requires Vietnam’s representative agencies overseas to be more active in tourism marketing and calls for local travel firms to open foreign offices.

Talking with the Daily about the resolution, representatives of local travel agencies expressed optimism, saying recognising tourism as a key economic sector will give a much-needed boost to the sector. To do that, the government should issue practical policies to back the sector and promote cooperation among agencies to carry out programmes more effectively.

Vu The Binh, vice chair of the Vietnam Tourism Association, said the most important point of the resolution is that authorities should recognise the pivotal role of tourism in the nation’s growth.

The sector is already poised to become a key sector, he said. However, he said, the resolution should have set out specific measures and clarified action plans and targets for the sector to help bring more efficient results.

In 2016, international visitors to Vietnam rose to 10 million, a 4.3-fold increase compared to 2001, and domestic tourists numbered 62 million, up 5.2 times over 2001. Last year’s tourism revenue was put at VND400 trillion (around $17.7 billion), accounting for 6.8 percent of gross domestic product (GDP).

With 17-20 million foreign visitors and 82 million domestic tourists by 2020, the sector would contribute more than 10 percent to GDP by then and compete on par with that in regional countries.$35 billion-by-2020.html


Category: Economy, Vietnam

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