Vietnam may treble tourism promotion budget next year

Foreign tourists stroll on a beach in Phan Thiet City, Binh Thuan Province.

The tourism promotion budget hike is part of an ambitious master plan to turn the sector into the country’s key economic pillar. It has been sent out to get suggestions and comment from cities and provinces.

The plan proposes some solutions to strengthen tourism promotion and establish a national fund for publicity campaigns. The State budget is expected to contribute no more than 30% to the fund while main beneficiaries of tourism activities and non-state sources will represent the rest.

There are also measures proposed to create favorable conditions for entry procedures, such as offering unilateral visa exemptions of one to five years for more countries, extending the visa-free stay from 15 days to 30 days for tourists from key markets, and allowing for electronic visa applications.

Compared to other Southeast Asian nations, Vietnam has many advantages to become a leading travel destination thanks to its multiple cultural and natural heritages and its strategic location in the region, according to a report released at the conference.

But that potential has not been fully unlocked. A tourism competitiveness report of the World Economic Forum (WEF) in 2015 ranked Vietnam’s tourism 75th out of 141 nations. Regionally the country was far behind Singapore, Malaysia, Thailand, Indonesia and the Philippines, and only above Laos, Cambodia, and Myanmar.

Foreign tourist arrivals to Vietnam account for only 27% of Thailand, 31% of Malaysia, and 52% of Singapore. Growth of Vietnam’s tourism sector in Vietnam is not high either, at only 7% in the 2011-2015 period compared to Thailand’s 12% and Singapore’s 10%. That was also lower than the rate recorded by the Philippines (8%), Laos (15%), and Myanmar (51%).

At the conference, Minister of Culture, Sports, and Tourism Nguyen Ngoc Thien said ineffective tourism promotion is partly to blame for the tourism sector’s modest growth.

Besides, Vietnam lacks outstanding tourism products and quality human resources and its tourism services have yet to meet market demand, Thien added.