Businesses need to 'sit together' to work and share profits

7 tasks and solutions to accelerate recovery and accelerate effective and sustainable tourism development

In recent years, the tourism industry has made positive and important contributions to the country's socio-economic development. Before the Covid-19 pandemic, the number of international visitors increased 2.3 times in 4 years, from 7.9 million (2015) to 18 million (2019), an average growth of 22.7%/year.

Meanwhile, domestic visitors increased 1.5 times, from 57 million (2015) to 85 million (2019), an average growth of 10.5% per year. The tourism industry's contribution to the country's GDP is up to 9.2%. Tourism contributes to hunger eradication, poverty reduction, ensuring social security; preserving and promoting cultural values; protecting the environment and maintaining national defense and security.

However, the Covid-19 pandemic outbreak on a global scale has seriously impacted the world tourism industry as well as Vietnam. In 2020, the whole country only welcomed 3.7 million international visitors, served 56 million domestic visitors, down 34% compared to the same period in 2019, the average room capacity nationwide only reached 20%; 52% of tourism workers lost their jobs; total revenue from tourists reached 312,200 billion VND, down 57.8% compared to 2019.

To accelerate tourism development, businesses need to work together to share profits. Image 1 — Vietnam has piloted welcoming international tourists and officially fully reopened tourism from March 15, 2022 - this is an important turning point to promote strong tourism recovery and vibrant return to both domestic and international tourism.

With the close direction of the Government and the Prime Minister, the coordination of ministries, branches and efforts to "break the ice" after nearly 2 years of closure; since November 2021, Vietnam has piloted welcoming international tourists and officially fully reopened tourism from March 15, 2022 - this is an important turning point to promote strong tourism recovery and vibrant return to both domestic and international tourism.

In 2022, the number of domestic visitors will reach 101.3 million (more than 1.5 times higher than the target of 60 million visitors, far exceeding the 85 million domestic visitors in 2019). Total revenue from tourists will reach 495 trillion VND, exceeding the plan by 23% and reaching 66% compared to the record level in 2019.

However, the number of international visitors to Vietnam only reached 3.5 million (still down 80% compared to the same period in 2019), reaching 70% of the plan.

Recently, in order to accelerate recovery and accelerate effective and sustainable tourism development, the Government issued Resolution 82/NQ-CP on key tasks and solutions to accelerate recovery and accelerate effective and sustainable tourism development.

In this Resolution, the Government has clearly stated the following 7 main tasks and solutions: First, promote the restructuring of the tourism industry towards professionalism, modernity, quality and sustainability; Second, continue to facilitate attracting international tourists to Vietnam;

Third, increase investment attraction for tourism development with focus and key points, focusing on national tourist areas; Fourth, develop products and communicate, advertise and promote tourism; Fifth, support tourism businesses;

Sixth, improve the quality of training and human resource development; seventh, accelerate digital transformation, promote startups and innovation in the tourism sector.

To accelerate tourism development, businesses need to work together to share profits. Image 2 — The Government requires continued facilitation to attract international tourists to Vietnam.

Need to sit together to create common strength and divide profits relatively reasonably

Speaking to reporters, economic expert Vu Vinh Phu said that from the fourth quarter of 2022 and the first four months of 2023, the world and domestic economic situation will still face many difficulties in the development process. In this situation, the Government has issued Resolution No. 58/NQ-CP of the Government on a number of key policies and solutions to support businesses to proactively adapt, recover quickly and develop sustainably until 2025.

In this Resolution, the Government proposes policies and solutions such as: Capital, costs, input materials, tax reduction, fees, charges, etc. "This is a great effort of the state while finances and revenue are still limited," Mr. Phu emphasized.

Regarding the tourism industry, Mr. Vu Vinh Phu highly appreciated the Government's issuance of Resolution 82/NQ-CP on key tasks and solutions to accelerate recovery and accelerate effective and sustainable tourism development. In particular, the Government has proposed solutions to support tourism businesses such as assigning the Ministry of Culture, Sports and Tourism to coordinate with relevant ministries, branches and localities to study stimulus policies, support packages for tourism businesses and households to access capital sources and stimulus packages, and submit them to competent authorities for consideration and promulgation in accordance with the new situation.

Along with that, the Ministry of Finance researched and proposed a preferential credit support package, creating favorable conditions to support tourism businesses in accessing preferential loan sources.

To accelerate tourism development, businesses need to work together to share profits. Image 3 — Build new tourism models to attract tourists to Vietnam.

However, the economic expert raised the question: In addition to the support of the Government, ministries and localities, what should each enterprise, individual production and business organization nationwide, including tourism businesses, do to join hands to overcome difficulties in 2023 and possibly the upcoming year 2024?

Emphasizing the need to sit together to work and share profits, Mr. Vu Vinh Phu gave an example, like the Thai tourism industry, which is the four industries of hotel, aviation, trade, food service and land transport sitting together to organize tours, including sharing profits reasonably and harmoniously between participating businesses and departments.

“Just through this story and in addition to many effective ways to welcome visitors to the land of golden temples, while Thailand has few world natural heritages awarded, tourist landscapes and beaches that cannot be compared to the conditions of Vietnam, the average annual number of international visitors to your country is often much higher than ours,” said Mr. Phu.

From the above example, economic expert Vu Vinh Phu wants to suggest that the Vietnamese tourism industry should refer to good experiences to contribute to attracting visitors in the coming time, especially when the number of international visitors to Vietnam in the past 4 months is still modest. This, according to Mr. Phu, has many causes, one of which is: Tourism-related industries have little cooperation, sit together to create common strength and divide profits reasonably after completing tours serving domestic and foreign visitors.

More broadly, Mr. Vu Vinh Phu said that, in addition to the tourism industry, there are other economic sectors such as the production and distribution of agricultural products in Vietnam that are currently in a state of separation and not closely connected with each other. The profits in the production and distribution chain are distributed to whoever receives them, and even enjoys profits unreasonably and unfairly, in which the producers are often the most disadvantaged.

“A quick look at the tourism and agriculture sectors in Vietnam shows that they rarely work together to create a common strength and divide profits relatively reasonably,” Mr. Phu emphasized.

Economist Vu Vinh Phu hopes that the beautiful and humane image of the Thai tourism system are very practical lessons that need to be applied and replicated in Vietnam. “During his lifetime, beloved Uncle Ho taught: “Unity, unity, great unity, success, success, great success”. His teachings are still valuable and have practical significance in the process of building and developing the economy in Vietnam, especially in times when there are still difficulties and obstacles for Vietnamese businesses,” said Mr. Phu.

Source