Superdong high-speed ferry company loses money again because Phu Quoc tourism has not recovered yet

After three profitable quarters, Superdong Kien Giang lost nearly 7 billion in the fourth quarter of 2023 because the weather and tourism in Phu Quoc have not shown signs of recovery.

A recent financial report shows that Superdong Kien Giang High-Speed Boat Joint Stock Company (SKG) had revenue of about 64.9 billion VND, down nearly 18% compared to the fourth quarter of 2022. Cost of goods sold decreased more slowly, causing gross profit to fall 29%.

After deducting expenses, the company lost more than VND6.8 billion after tax, an increase of about 3% compared to the same period last year. The management board said the reason was that positive factors supporting the tourism market in Phu Quoc have not shown signs of recovery yet. In addition, strong winds on the Phu Quoc - Rach Gia and Phan Thiet - Phu Quy routes forced the company to stop operating for more than 10 days.

Accumulated for the whole year of 2023, SKG's revenue decreased slightly to VND409.4 billion, while profit increased by more than two-thirds to nearly VND70 billion. This enterprise made a profit in the previous three quarters, of which a profit of more than VND30 billion per quarter in the first half of the year - a high level compared to the business results of the previous period. From the third quarter, Superdong Kien Giang's profit began to drip because tourism information in Phu Quoc was often "ripped off", leading tourists to change their destination to a place with lower costs and affected by the weather.

In fact, Phu Quoc tourism is less attractive to domestic tourists - the main group using high-speed boats as a means of transportation. The Phu Quoc Professional Tour Guide Association said that all of its international tour guides work throughout the holiday because there are "a lot of foreign tourists". However, the number of tour guides specializing in domestic tourists who have jobs during the New Year holiday is only about 30%.

During the recent holiday, the People's Committee of Phu Quoc City has strengthened inspection and control of service prices, security and order, and food safety to serve tourists. They established a tourism inspection team to try to restore the beautiful image of Phu Quoc, in addition to issuing a code of conduct for individuals and organizations participating in the tourism service supply chain.

Previously, Superdong Kien Giang said it was expecting the move of the Kien Giang Provincial People's Committee and related departments and agencies in finding solutions to restore Phu Quoc tourism. Internally, the company plans to reallocate the operating schedule of routes in accordance with the current number of visitors to optimize costs. At the same time, the company also implements many promotional programs to stimulate tourism demand.

A Superdong speedboat sailing offshore. Photo: SKG — A Superdong speedboat sailing offshore. Photo: *SKG*

Superdong Kien Giang is a company that operates 16 high-speed boats and two ferries transporting passengers, vehicles, and goods from the mainland to Phu Quoc, Nam Du, Con Dao, and Phu Quy. This is one of the shipping lines holding a large market share in sea transport to the famous tourist islands.

According to the plan, this year Superdong will upgrade four high-speed trains to put them into operation on the Rach Gia - Phu Quoc, Ha Tien - Phu Quoc, and Rach Gia - Nam Du routes. The Rach Gia - Phu Quoc route will be guaranteed to have all high-speed trains. The company also wants to maintain a continuous train schedule with competitive fares.

SKG will also invest in three new ships to operate the Ho Chi Minh City - Vung Tau route, restore the Phu Quoc - Nam Du and Rach Gia - Hon Nghe routes. The company is researching to expand potential routes in Kien Giang and other provinces and cities.

Siddhartha

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