Danang crafts strategy to lure high-spending visitors

Danang wishes to reach sustainability by opening up more towards high-end tourism

In recent years, Danang has received a boom in the number of Chinese tourists visiting the city on cheap tour packages and so-called “Zero Dong” tours. Visitors on these budget tours have to follow travel agent itineraries of tourist attractions, restaurants, and shopping sites where they are often overcharged for products and services. Moreover, these visitors are often guided to selected sites that take payment with specific e-commerce systems that sends money straight to parent ­companies abroad.

As a result, the local authorities have been urged to take steps to prevent tourism revenue being adversely affected by these tours. Since last year, the number of tourists from China has surpassed those from Japan and the US, according to the Danang Tourism Department.

Che Viet Dong, a guide to Chinese tourists, told VIR, “There are two main reasons for the existence of cheap tour packages. Firstly, Chinese tourists prefer cheap rates, while the market there is so large that travel agencies are forced to reduce prices, even if it means accepting losses to close the deal.”

“The consequence of cheap tours is that they pressure visitors into purchasing products or services whilst on tour. However, these products are usually made in China but are labeled as “Made in Vietnam” products. Operators often overcharge for products and services to make higher profits that can compensate for the cheap air ticket, accommodation, and guides. Tour guides then become marketers and salespersons for products and services, not only guides introducing the cultural and historical beauty of the destinations,” said Dong.

BUDGET TOURS RISK SUSTAINABLE DEVELOPMENT

According to Huynh Tan Vinh, chairman of the Danang City Tourism Association, there is an urgent need to stop these packages because of the risks they bring to the sustainable development of the city and its tourism industry. “It is now time to focus on high-end tourism markets with high spending. We cannot base an industry on the budget tour market,” Vinh stressed.

Ngo Quang Vinh, director of the Danang Tourism ­Department, said that Danang is not the only Vietnamese city to be facing similar challenges from budget tourists. As recent statistics reveal, the number of budget tourists account for about 30 per cent of the overall tourist markets around the world. To control budget tour packages and promote ­effective tourism towards ­sustainable development, the city has applied strict ­regulations, strengthened penalties, imposed inspections on prices and payments of shopping and eating sites around the city, and intensified control of product origins to make the market fairer.

In addition the local authorities have also mobilised support from shopping and service sites operating legally to create a fair and clean business ­environment. It also helps to create more favourable ­conditions for business. ­Accordingly, both the Danang Tourism Department and Transport Department signed an agreement to install ­cameras on tour buses to ­enhance security for visitors and help state management agencies better oversee travel activities.

Furthermore, Danang has taken steps to open tourism representative offices abroad in markets such as China and South Korea to closely control the implementation of tours from these markets. The ­offices also benefit from ­promoting unique, authentic Vietnamese tourism products that attract more high-end tourists, especially from the Chinese market.

ESTABLISHING TOURISM POLICE FORCE IS A NEED

According to Nguyen Xuan Binh, deputy director of Danang Tourism Department, the recently set up fast-respond team ensures tourism activities are undertaken safely and ­orderly. The department is ­proposing the city submit plans to the state for the approval of a Danang tourism police.

“We must highlight the slogan ‘sustainable development for Danang tourism.’ We must aim to promote high-quality services instead of quantity. We must stop ­snatching business and operate long-term investments that earn stable benefits,” said Dang Viet Dung, Deputy ­Chairman of the Danang People’s Committee.

Dung also emphasised that the city has ­always defined tourism as a key economic industry. ­Therefore, the city is calling on the business community from the travel, service, and shopping sectors to focus on training, innovating, improving, ­upgrading, and diversifying tourism products and services to ensure they can be compared to, and match, ­international standards.

“Furthermore, waterway tourism is a strong point of the visitor ­experience in Danang so we should invest further in order to create new cruise tours that attract more tourists, ­increase the revenue for the city’s budget, and create more jobs for local people,” Dung said.