Passport to recovery

Last year?s visitor numbers totalled 3.7 million, a 10.9 per cent drop on 2008.  The global economic crisis and A/H1N1 scare were the key culprits for the decline, but security concerns over the political turmoil in Thailand shifted some travellers to Vietnam.
 
The country?s complicated visa-on-arrival system, however, made last-minute travel difficult. The European Chamber of Commerce has recommended that Vietnam extend visa exemptions to more countries. Currently, passport holders from Japan, South Korea, Russia, Denmark, Norway, Finland and Sweden can stay in the country for 15 days without a visa.

Nevertheless, Vietnam is starting to glimpse signs of recovery, with foreign arrivals in January and February up 27.4 per cent year-on-year to 880,000 visitors.

The Vietnam National Administration of Tourism (VNAT) has launched two promotional initiatives to spur travel this year and reach its 2010 target of 4.2 million foreign arrivals, about 400,000 more than last year.

The first initiative, Vietnam ? Your Destination, was launched last month to encourage overseas Vietnamese to promote their homeland as a travel destination.  Vu The Binh, head of VNAT?s Travel Department, said 80 per cent of foreign arrivals made their decision based on a recommendation from a friend.

VNAT also aims to develop Vietnam into a shopping destination with the Impressive Vietnam Grand Sale 2010 in August and September in Hanoi, Ho Chi Minh City and Danang. 

Under the campaign, tourists will get value-added-tax refunds on purchases and may receive 10 to 50 per cent discounts at retail outlets, restaurants and hotels in the country?s key destinations. 

 Last year, hotel occupancy in Hanoi fell by 21.7 per cent over 2008, to 55.4 per cent, while revenue per room was US$67.50, down 26.5 per cent, according to STR Global. 

Despite this drop, investors remain bullish on Vietnam?s future, given new hotel openings and developments.

In Hanoi, five new luxury hotels and 2,000 rooms are set to open, including Hotel de L?Opera and Mercure Hado Hanoi by Accor. A 450-room JW Marriott hotel is slated to open in 2012. 

Accor is leading the charge with aggressive expansion plans throughout the country.  It unveiled Mercure Hanoi La Gare and Mercure Dalat Hotel Du Parc last year, and is scheduled to open Le Belhamy Hoi An Resort and Spa this month, and the Pullman Vung Tau and Mercure Hado Hanoi later in the year.

The French hotel chain has also announced plans for three new Novotel hotels ? Novotel Imperial Hoi An, Novotel Resort Phu Quoc and Novotel Saigon Centre ? and the introduction of the Ibis brand via the Ibis Saigon and Ibis Saigon South.

Tour operators are working to keep 2010 rates stable, despite rising costs for electricity, water, hotel rooms and service fees.  Hoteliers are also cooperating with operators to maintain rates at 2009 levels. 

Exotissimo Travel Vietnam general manager George Ehrlich-Adam said car service companies and restaurants faced rising rates due to inflation, rising fuel costs and the dong?s devaluation against the US dollar.

?Vietnam needs a period of stability before it can grow again.  The industry still hasn?t recovered from the decline in 2009,? he said.

International air passenger numbers declined by nine per cent between January and September last year, but the loss was balanced by a 20 per cent growth in domestic travellers, resulting in an estimated seven to eight per cent growth in overall air travel last year. 

To maintain and support this level of growth, new airports have been built in Dong Hoi and Can Tho. Upgrades to Tan Son Nhat and Danang international airports are in progress.

Vietnam Airlines opened routes to Yangon and Shanghai in March, and plans to increase frequencies from Hanoi/Ho Chi Minh City to cities in Asia and Europe during the year.