US Arrivals to Former Saigon Rocketing up

US Arrivals to Former Saigon Rocketing up 

The number of US tourists arriving in Ho Chi Minh City, formerly known as Saigon, is currently booming, and accounted for the majority out of total arrivals to the southern metropolis in April, the peak time for the 30^th anniversary of the American war ending and Vietnam’s reunification.

The surge in US arrivals now places the country first in terms of the city's tourism markets surpassing Taiwan, Japan, Australia, South Korea, France and the UK from their previous fifth position, local Tourism Service revealed.

According to the Service’s statistics, the local hospitality sector carted up to 185,000 international visitors in April alone, up 94.6 per cent on-year, raising the total number in the first fourth months of this year to 771,602. This number accounts for 42.9 per cent of the year’s plan and represents an increase of 21 per cent over the same period last year

However, the growth is thought to be unsustainable as many obstacles still exist, according to participants at a meeting of Ho Chi Minh City’s Chairman Le Thanh Hai with around 100 local tourism companies and relevant bodies on April 27.

“Work on tourism facilities has been carried out very slowly following complicated administrative procedures,” said Nguyen Huu Tho, executive director of the national top tourism operator Saigontourist.

Only three out of the industry’s 11 major projects in the city have been approved, he said, adding that the city said it had applied a one-stop policy, but in fact businesses still had to navigate many hurdles, with some requirements taking up to two months.

He said the government allowed hotels with stars to do karaoke and dance halls, or sell alcohol and tobacco, but in Ho Chi Minh City, hotels had to get a license from the trade or culture departments in order to offer those services.

The city had also imposed several regulations that discouraged the development of the industry, said Than Hai Thanh, director of Ben Thanh Tourist Company.

The city does not allow entertainment centers to open after midnight and outlaws the sale of strong liquor at dance halls so overseas visitors are discouraged from going out at night as going out after midnight with them is quite normal, said Mr. Thanh.

It showed Ho Chi Minh City was not as “easy” [for going out] as other cities, for example Hanoi, he said.

Other operators added that costs of traveling in Vietnam, particularly airfares, were still too high, therefore the local tourism industry was less competitive than other countries.

Furthermore, only around 300 tour companies have so far registered for operation at the Tourism Service although the Planning and Investment Service has granted more than 3,000 licenses for such businesses. The figure reflects an alarming chaos and leads to poor quality products.

At the meeting, Le Thanh Hai admitted the domestic tourism industry was still moving much slower than other countries and urged the local tourism department to reconsider sub-licensing and other unreasonable regulations that prevent the industry’s growth.

The tourism department would work with city leaders to tackle the problems in mid-May

He also asked relevant bodies to consider the visa issuance right at the Tan Son Nhat Airport and train well-skilled tourist guides as well as keep safety for international arrivals.

As the largest city in Vietnam, Ho Chi Minh City now has more than 700 hotels with 10,000 one-five star rooms, 292 tour operators and 185 international travel companies.

This year, the city targets 1.8 million international tourists, up 15 per cent on 2004 and representing 55 per cent of the national total.

Vietnam & World Economy, News