The Department of Tourism acts as the 'conductor' to bring domestic tourism to reasonable prices.

A representative of the National Tourism Administration said the tourism industry will act as the "conductor" to mobilize and coordinate all parties so that "Vietnamese people travel to Vietnam" at reasonable costs.

According to a survey, during the peak tourist season of April 30 - May 1 and summer, Vietnamese tourists tend to choose mid-range foreign tours priced at 7-15 million VND because domestic travel is expensive when airfares increase. The aviation industry believes that prices must be increased to cover costs, while tourism lacks a mechanism from the destination. Industry experts and businesses say this is not a problem of the tourism and aviation industries alone, but needs a "conductor" to come forward to connect and harmonize the interests of all parties.

Responding to VnExpress , Mr. Ha Van Sieu, Deputy Director The Vietnam National Tourism Administration said it will take on the role of conductor and coordinator, providing solutions to promote domestic tourism.

Kien Trung Palace attracts visitors after 4 years of restoration, opening to welcome visitors on the occasion of Lunar New Year. Photo: Phuoc Tuan

Mr. Sieu said that first of all, the tourism industry will coordinate with the transportation industry to have new tourism products that adapt to market fluctuations, "turning difficulties into opportunities". One of the measures is to diversify means of transport, connecting aviation with waterways, roads and railways, to open up opportunities for new destinations and connect central cities to satellite destinations.

Ms. Huynh Phan Phuong Hoang, Deputy General Director of Vietravel Tourism Company, said that the company is promoting train tours, a new product in 2024. Ms. Hoang said that the train experience journey is bringing a new breeze to domestic tourism during the peak summer season in the context of high airfares.

The tourism industry will coordinate with local tourism agencies, associations, and businesses through events such as the tourism festival in Ho Chi Minh City and the VITM international tourism fair in Hanoi to take action to have specific promotional programs. The products are tour packages and combos, "harmonizing with people's budgets but still creating new experiences," Mr. Sieu said.

In terms of price, domestic tourism products need to be competitive, not only competing between domestic destinations but also competing with foreign destinations. Airlines, hotels, and restaurants become service supply chains. The problem is linking the stages in the chain.

"If each party in the supply chain agrees to join together and commits to reasonable prices, the chain will have competitive prices," according to Mr. Sieu.

To do this, the representative of the Department of Tourism said that there needs to be support from the state on tax policy, so that when businesses lower prices, they can also account for costs . This is the basis for calculating value added tax for businesses. Mr. Sieu said that the Ministry of Culture, Sports and Tourism will have to work with the Ministry of Finance to have specific tax policies during the peak and low tourist seasons.

Tourists enjoy the scenery on the North-South train. Photo: Bike Journey

According to Mr. Sieu, the sharp increase in airfares is the general context of the world aviation industry, affecting the domestic aviation industry and directly affecting domestic tourism. The Department of Tourism has launched the campaign "Vietnamese people travel to Vietnam - Vietnam I love", starting from March 30 in Da Nang. The Da Nang Department of Tourism has worked with businesses to implement the program "Enjoy Danang 2024" to enhance experiences and attract domestic tourists.

Da Nang offers more than 10,000 free vouchers and discounts, worth a total of VND5 billion, to tourists. The city offers 2,000 tickets to the Da Nang International Fireworks Festival when tourists register to buy services on online platforms, the program's website (enjoydanang.vn), and Da Nang tourism's social networking sites.

To bring tourism to a reasonable price, experts believe that there needs to be a synchronous solution between industries. Associate Professor Dr. Nguyen Thien Tong, former Head of the Department of Aviation Engineering at Ho Chi Minh City University of Technology, proposed that there should be more international low-cost airlines linking with Vietnamese airlines to fly domestically. Increased routes and passengers mean an increase in domestic and international tourists in Vietnam.

The chessboard on Ban Co peak, a popular tourist attraction in Da Nang. Photo: Nguyen Dong

Although the number of domestic tourists in 2023 will exceed that of 2022, the number of tourists on tours will decrease sharply due to the global economic recession. Service businesses are facing difficulties due to the sharp decrease in the number of tourists on tours. Some travel agencies in Ho Chi Minh City revealed that the number of domestic tourists will decrease by up to 50% compared to 2022.

In the first three months of 2024, domestic tourism welcomed about 30 million visitors, reaching 27% of the target of serving 110 million domestic visitors. The Department of Tourism said it will work with the Ministry of Culture, Sports and Tourism to join localities and businesses to promote the "Vietnamese people travel to Vietnam" campaign this year.

"How to make destinations not only recover but also be full. Airline tickets are full, hotels are full, entertainment areas and tourist attractions are full," Mr. Sieu said.

Bich Phuong

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