Vietnam travel firms feel threatened by potential foreign investors ahead of TPP — Talk Vietnam

Vietnam travel firms feel threatened by potential foreign investors ahead of TPP

November 25, 2015 by thanhniennews Leave a Comment

A tourism exhibition in Ho Chi Minh City. Photo: N.Tran Tam

Many travel companies have been seeking to increase market share in anticipation of a Pacific Rim trade pact that will allow investors from 11 foreign countries to provide tour operator services in Vietnam for the first time.

Big agencies such as Vietravel and Fiditour have made the move, expecting the evasion of foreign competitors when Vietnam permits “foreign investment to provide inbound services and domestic travel for inbound tourists” under the Trans-Pacific Partnership (TPP).

The country will only reserve the right to “adopt or maintain any measure with respect to tourist guides services.”

Foreign companies currently are not allowed to operate inbound tours, and have to partner with local businesses instead.

Once the restriction is removed, Vietnamese businesses will face “a huge challenge,” considering that most of local tour operators are small and medium.

Travel agencies from other TPP countries such as Australia, Japan and the US are big, according to local businesses and analysts.

Nguyen Quoc Ky, CEO of Vietravel, expressed his concern that Vietnamese companies will have to compete with many big rivals when TPP takes effect, possibly in 2018.

“Their presence will create a lot of difficulties to local businesses,” he said.

The Ho Chi Minh City-based travel firm recently organized its own exhibition to promote its tours, instead of waiting to take part in promotional events organized by tourism agencies, Ky said.

Fiditour, on the other hand, has shifted its focus to online sales, because it is not only convenient to clients, but costs the company less, allowing it to offer more discounts, representative Tran Bao Thu said.

She said it forecasts that foreign companies will tap the market through online services, given their long experiences in the business.

However, Phan Xuan Anh, chairman of Viet Excursions, a known contract operator for cruise lines, said local travel businesses need to focus on improving their services’ quality and innovating their products, instead.

He warned that even though they are not officially present in Vietnam, many multinationals have been attempting to build up their customer bases through their joint-ventures with local partners and offering competitive prices.

Huynh Van Son, a tourism management lecturer, said businesses need the government’s support to expand their operation not only domestically, but in other TPP participants’ markets so that they can capitalize on overseas markets.

Vietnam reported more than 6.3 million international arrivals in the first 10 months, down 4.1 percent year on year, according to the latest figures released by the Vietnam National Administration of Tourism (VNAT).

Vietnam travel firms feel threatened by potential foreign investors ahead of TPP — Talk Vietnam

New shows that feature Vietnamese musical genres

The theatre on July 19 signed cooperation contracts with travel firms and introduced its new shows that feature various Vietnamese musical genres.

Hanoi lures tourists by cheo

Chèo-pop fusion singer makes triumphant return to Hanoi stage

In-home theaters preserve the past

The theatre will launch its “Spring Festival” show on July 30, performing every Monday, Wednesday and Friday for tourists.

This show emphasizes entertainment rather than just the classical cheo art, advertising the unique features and beauty of various forms of Vietnamese music, song, and dance.

“Spring Festival” is a variety show, introducing quan ho, hat xam, ca tru, chau van and cheo through a story. Before the show, pamphlets in Vietnamese and English will be delivered to audiences to provide them with information about the history of Vietnamese traditional arts.

The show will not be performed by the theatre’s senior artists, but rather by young talents.

To celebrate Hanoi’s 1000^th anniversary, the Hanoi Cheo Theatre is also arranging a cheo drama about a historical character named Cao Ba Quat.

Cheo is a form of generally satirical musical theatre, often encompassing dance, traditionally performed by Vietnamese peasants in northern Vietnam. It is usually performed outdoors by semi-amateur touring groups, stereotypically in a village square or the courtyard of a public building, although it is today increasingly also performed indoors and by professional performers.

Cheo origins date to the 12th century during the Ly Dynasty and has existed in its present form since roughly the 16th century. It derives from folk traditions, and was orally transmitted; unlike courtly theater traditions, it employs no scenery and sparse costumes and makeup. It involves a combination of traditional set pieces and improvisational routines appropriate to amateur theatre. It often carries of a message of satirical criticism of the existing social order. The traditional musical ensemble consisted of fiddle, flute, and drum, though in modern recreations more instruments are used.

PV

Travel firms continue to quote Low Fees/Vietnam

"Travel firms all say they will continue quoting low fees to attract domestic travelers. Home-grown tourists were the main prop of the tourism industry in the aftermath of the world financial crisis, reports VietNamNet.



Several southern firms have announced a 35-40 percent tour fee decrease. A five day tour of central Vietnam (Da Nang – Hoi An – My Son – Ba Na – Hue – Phong Nha) is offered at 3.67 million dong per traveler. A four day itinerary (Da Nang – Hoi An – Ba Na – Hue – Phong Nha) will sell for 3.16 million dong. Pagoda and temple buffs can opt for a six day Hanoi – Ha Long – Trang An – Bai DInh Pagoda – Sa Pa tour costing 5.84 million dong or a four day Hanoi – Ha Long - Bai Dinh Pagoda tour costing 4.32 million dong.



Northern travel firms have said they would match the southern companies’ discounts. According to Nguyen Cong Hoan of Hanoi Redtour, details will soon be made public.



The problem is for the tour operators is that they don’t know what hotels will do in response to higher electricity and water prices. Air fares have risen too. Thus Hoan said that despite the discounting, tour fees overall are fifteen percent above 2009 levels.



Airfare is the largest component in the cost of a tour. Vietnam Airlines and other carriers have been granted permission to raise ticket prices to just over two million dong for Hanoi-HCM City flights. Some experts believe that this should be seen as good news, for it allows air carriers to charge a range of fares. It appears that carriers intend to continue deep discounting (up to 50 percent) on many flights.



Round trip tickets between Saigon-Hanoi , Saigon- VInh or Hanoi-Da Lat are now quoted at 1.8 million dong. The promotional round trip fare from Buon Me Thuot to Can Tho has been slashed to 1.8 million dong – still 400,000 dong more than last year.



The sharp competition in Vietnam’s domestic travel market reflects tour operators’ perception that Vietnamese travelers ‘rescued’ the tourism industry in 2009 when international arrivals dropped dramatically due to the global financial crisis.



Vietnam received only 3.8 million foreign travelers last year, 400,000 less than in 2008. At the same time, the number of domestic travelers rose twenty percent to 25 million. Vu The Binh, Director of the Travel Department at the Vietnam National Administration of Tourism, said the net result of these fluctuations was an increase in industry revenues of nearly ten percent.



Ha Yen"