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More resources required for Vietnam’s tourism - 05/01/2009
The chairman of the Tourism Working Group under Vietnam Business Forum has called for the Government to invest more resources in tourism to enable the sector to compete with other regional countries in the face of the slowing travel demand worldwide.

Foreign visitors stroll on the boutique shop street Dong Khoi in downtown HCMC on Sunday. Baron R. Ah Moo of the Tourism Working Group says the Government should invest more in tourism to attract more international travelers.

Vietnam will continue to struggle as a travel destination until the Government recognizes the importance of tourism and its contribution to the economy, and invests capital and resources into the industry as it does with banking, financing and manufacturing, Baron R. Ah Moo said.

“As a US$4.5-billion industry and the one that employs one out of every nine people in the country, more focus and resources need to be deployed to develop the marketing and branding of the country,” said Ah Moo, who is also chief executive officer of Indochina Hotels and Resorts.

As 2008 drew to an end, the country has been able to attract only 4.2 million foreign visitors, or the same as last year and far below the year’s target of 4.8-5 million.

Ah Moo said the number of five million international visitors was “an extremely aggressive target for 2008” given that the global economic slump has placed its trail in many parts of the globe.

Vietnam’s tourism sector is looking to only 4.5 million international travelers next year, but Ah Moo warned 2009 would be “one of the worst years for tourism that Vietnam has ever seen.” Therefore, he proposed the measures for the sector to overcome tough times and perform better.

Ah Moo suggested the Ministry of Culture, Sport and Tourism, and the Vietnam National Administration of Tourism (VNAT) to work closer with the private sector to provide a strategic direction for the industry.

“I believe through the joint efforts of the public and private sectors, we can come up with a marketing and promotional campaign that sets realistic expectations for the travelers.

The private hospitality sector has done a tremendous amount of research on travelers’ preferences including their decision criteria on selecting a travel destination, their opinions on Vietnam and their travel patterns,” he said.

Ah Moo said the Group’s recommendations included videos promoting Vietnam’s attractions on all arrival flights, and showing at immigration how to clear immigration and customs, and helpful tips when traveling through Vietnam.

Ah Moo said the visa waiver for Russian visitors and the Ministry of Foreign Affairs’ support of an all-in-one ASEAN visa were the right steps. But, the Group is recommending a complete overhaul of the visa program including an online visa application process, a more efficient and effective visa on arrival and the broader use of multiple entry visas.

He clarified many business and leisure visitors had bypassed Vietnam for other destinations due to numerous hindrances in the country. These include difficulty to access because of visa requirements, poor infrastructure, high costs as a result of exorbitant hotel room rates, and a flawed “Star” rating system that allows for poor service standards and low quality accommodations.

To lure more foreign visitors, Ah Moo suggested seats on domestic flights available for sale at least six months in advance and the implementation of a decree that allows foreign travel representative offices in Vietnam. It is also important to have simple sales and marketing promotions that upgrade Vietnam’s exposure and branding in the global travel community.

Ah Moo said it was difficult for Vietnam to market and advertise a destination effectively with the current budget of some US$2 million compared with US$52 million in Thailand and US$98 million in Malaysia.

(Source: SGT)