Life’s not a beach for tourism firms

Tourism firms are facing many difficulties due to rising input costs.

Nguyen Thi Minh Thu, deputy director of Mekong Tourism Company, said the cost of transport increased 50 per cent, while hotel, restaurant and cruise ship prices would be up 30 per cent in March. Therefore, tour prices have added 30 per cent for tourism firms to meet rising input cost.

“If the tour price adds 10 per cent then foreign tourists can accept it, but a higher price will put customers off.

At present, 10 large tourism firms are meeting with transport firms in order to apply the reasonable price increasing,” said Thu.

Luu Duc Ke, director of Hanoitourist Travel Company, said tour prices would add 15 per cent for the time being. Hanoitourist was being pressurised not only rising of transport costs and exchange rate, but also increasing electricity prices and salaries.

“Hanoitourist is considering adding prices to domestic and overseas tours. In terms of signed contracts especially contracts with foreign tourists, it is difficult to increase the price. If input costs boost sharply, we will try to negotiate,” said Ke.

“The increase of tour prices is unavoidable. However, Viettravel will add tour prices at appropriate time in order to avoid shock to customers,” said Nguyen Minh Man, head of media department of Viettravel Company.

Vu The Binh, chairman of Vietnam Tourism Association, said current tour prices is stable but certain to jump 10-15 per cent for domestic tours.

“Most tourism firms are considering suitable price to take measures to overcome difficult period. Predictably, the association will discuss this issue with tourism firms in March,” said Binh.

Thu said next month was the peak month for Chinese tourists to come to Vietnam and they could be sensitive to price jumps.

“At present, we have East West economic region, which enable tourists to easily moving among Vietnam, Thailand and Cambodia. It is opportunity for Vietnam attracts tourists from Thailand and Cambodia, however if tour prices and service costs are high, tourists will likely not choose Vietnam,” said Thu. – VIR

Tags: Vietnam Tourism