Let aviation and tourism "take wing" and fly high

Rising ticket prices are detrimental to tourism.

In the first 5 months of 2024, Vietnam tourism welcomed nearly 7.6 million international visitors and about 52.5 million domestic visitors, a bright spot and a positive and important contribution to the overall economic and social recovery and development of the country. The role of airlines is indispensable in the recovery of tourism because statistics show that currently, tourists coming to Vietnam by air account for a very high proportion compared to other methods, up to nearly 80%.

However, the global shortage of aircraft, along with strong fluctuations in exchange rates and fuel costs in recent months, has caused airlines to reduce their supply capacity and have to adjust airfares upward. This has had a negative impact on the development of Vietnam's tourism industry.

Để Hàng không và Du lịch — Delegates share at the Workshop

According to Hoang Nhan Chinh, Head of the Tourism Advisory Board (TAB) Secretariat, the increase in domestic airfares has caused adverse impacts on the aviation, tourism, economic sectors and livelihoods of local people. According to analysis by authorities and business representatives, factors contributing to the increase in domestic airfares include fuel costs, exchange rate fluctuations, aircraft shortages, maintenance costs and market supply and demand, aircraft rental costs, VAT, fuel taxes and ground service charges.

According to domestic experts and international experience, some other reasons that have not been mentioned include: the domestic aviation market lacks competitiveness, expensive maintenance costs abroad, and weak cooperation between the aviation and tourism industries.

Sharing the same view, Head of Development Planning of Vietnam Airlines (VNA) Nguyen Quang Trung said that the increase in airfares of airlines is in line with the general trend of the global aviation industry, due to the impact of the following reasons: high fuel prices, an average increase of 34% in 2024 compared to 2019 (from 76.7 USD/barrel to 102.8 USD/barrel); inflation and currency devaluation, in Vietnam, an average increase of 8% in 2024 compared to 2019; the engine recall by manufacturer Pratt & Whitney (PW) led to a global shortage of aircraft, affecting aircraft rental prices (an average increase of 20-30% in 2024 compared to 2019).

In Vietnam, in the past, high ticket prices mainly occurred during peak holidays or good hours and days when the demand for air travel increased. Currently, passengers can still choose low, reasonable prices when choosing flights to avoid peak times, days and hours.

According to Mr. Nguyen Quang Trung, the fact that domestic airfares are higher than normal at certain times only affects a portion of passengers traveling domestically. Overall, many new routes opened by airlines in recent times have greatly contributed to the recovery and international tourism, enhancing the competitiveness of destinations by increasing international routes, not only to Hanoi and Ho Chi Minh City but also to other localities such as Da Nang, Cam Ranh, Phu Quoc, Da Lat.

Need more support mechanisms and policies

Faced with this situation, Head of the Tourism Advisory Board (TAB) Secretariat Hoang Nhan Chinh proposed that in order to reduce airfares and create momentum for tourism development, the Government should consider exempting the 7% import tax on fuel for domestic flights; applying an environmental protection tax on aviation fuel equal to 70% of the current regulation. The Government should also support the Air Traffic Management Company to reduce 50% of the price of aircraft landing and take-off services for airlines for 2 years.

In addition, the Government needs to provide general support to the aviation and tourism industries with a stimulus package to reduce round-trip airfares, support airfares of no more than 30 USD/ticket and subsidize accommodation of no more than 30 USD/night, according to the principle of not exceeding 40% of the value of tickets and rooms for 2 million airfares and 5 million nights of accommodation at key tourist destinations in Vietnam...

Deputy Director of the Civil Aviation Authority of Vietnam Do Hong Cam said that the authorities need to strengthen inspection, supervision, and guidance on the proper implementation of regulations on passenger transport prices, while encouraging airlines to research, reduce costs, and implement promotional policies and preferential fares for passengers on appropriate domestic routes...

According to Mr. Do Hoang Cam, the Civil Aviation Authority of Vietnam is very interested in coordinating with relevant ministries and branches, especially with the Vietnam National Tourism Administration and the People's Committees of provinces and cities to promote and develop aviation - tourism connection activities, focusing on continuing to research support mechanisms and policies, creating favorable conditions for airlines and passengers to travel to/from tourist destinations.

Currently, the Civil Aviation Authority of Vietnam is also considering organizing an interdisciplinary conference on tourism and aviation to promote and introduce programs, locations and products, exchange and share experiences, methods of organizing and operating, and coordinate between the two sectors in developing the tourism economy; refer to international experiences, and propose policies to facilitate the aviation and tourism industries...

On the business side, Chairman of Vietravel Tourism - Aviation Group Nguyen Quoc Ky said that localities need to have mechanisms and policies to encourage airlines to open new routes, especially direct routes to potential tourist destinations. Thereby, helping tourists easily access, plan and travel, promoting the number of visitors. In addition, airlines also expand their networks and increase revenue from tourists.

In particular, localities, tourism businesses and airlines need to coordinate more closely in promoting destinations and tourism products; have tourism stimulus programs such as airfare discounts, package tours, visa exemptions; improve the quality of tourism services, ensure safety for tourists...

Sharing the same view, Luong Thi Hoang Lan, Director of Tourism and Resort Business of Sun Group Corporation, shared: To create a sustainable and harmonious environment for local - aviation - tourism connection, creating a strong effect for tourism to accelerate recovery and development, it is necessary to have a comprehensive national-scale connection plan, in which the "conductor" role of the high-level state management agency, the Government and the Department of Tourism, is needed.

"In addition, there needs to be a meeting of three parties: local, tourism and aviation to discuss short-term and long-term cooperation plans based on sharing benefits and responsibilities among the parties. Not only do aviation and tourism need to come up with good price policies, but localities also need to offer reasonable incentives (on resorts, transportation, restaurants, etc.) to create conditions for building quality resort programs and combos at preferential prices, including air tickets, hotel rooms and tours. This plan helps all three parties: Local, Aviation and Tourism benefit, stabilize the number of visitors and achieve the highest efficiency" - Ms. Luong Thi Hoang Lan said.

Source: https://toquoc.vn/de-hang-khong-va-du-lich-chap-canh-bay-cao-can-ke-hoach-lien-ket-tong-the-quy-mo-quoc-gia-20240612203953289.htm