A Tourism Fund Created for Vietnam

Vietnam, tourism promotion, marketing

Phu Quoc Island would benefit of a new tourism fund.

Tourism promotional campaigns in Vietnam will be boosted thanks to the creation of the Vietnam Tourism Development Fund (VTDF) according to the VNAT.

Nguyen Van Tuan, General Director of the Vietnam National Administration of Tourism (VNAT), recently told to reporters that the Ministry of Culture, Sports and Tourism submitted a project to the country’s Prime Minister to establish a Vietnam Tourism Development Fund.

He said the formation of the VTDF, possibly in the second quarter of this year, would solve obstacles in tourism promotions caused by a lack of funding. Currently, total funds to promote Vietnam represents 2 to 3 million US dollars, but excludes some additional budget for special events. This represents a fraction of its neighbours. Singapore, Malaysia or Thailand have a budget between 50 and 100 million dollars a year.

The objective of the fund is to boost investment in promotion, product development, training of human resources, and improvement of institutional capacity in the tourism sector, he said.

“The budget for tourism development activities will be between VNĐ400-500 billion (US$17.5-21.9 million) each year, about ten times our current budget. We expect that the fund will consequently help improving advertiseming and marketing as well as better organise tourism promotion activities,” Tuan was quoted as saying in Người Lao Động (The Labourer) newspaper.

The fund will get an initial budget of VND300 billion (US$13.1 million) from the State and other sources, including 10 per cent of visa fee revenues and five per cent of entrance fee revenues at tourist sites and corporate contributions.

A key issue in promoting Vietnam as an attractive tourist destination were the resources allocated to agencies involving in promotion. Tuấn said the establishment of the fund would be a positive step for the tourism sector.

According to statistics from the General Statistics Office (GSO), the number of international visitors increased sharply with 4.2 million from January to March 2018, up 30.9 per cent over the same period of 2017.

This is a positive sign of the tourism industry, after the country welcomed nearly 13 million international visitors in 2017, up 29.1 per cent over 2016. The target for 2018 is to welcome between 15 and 17 million international visitors.

According to Nguyen Quoc Ky, Director General of Vietravel Travel Company, once the VTDF is formed, a masterplan should determine the best ways to implement and allocate the appropriate budget . At the same time, tourism promotion agencies should be set up abroad, especially at key markets to effectively carry out programmes on promotion Vietnam’s image. These agencies would also be in places that visitors could receive support before and after traveling to Việt Nam.

“It is necessary to focus promotions on potential markets, studying to find out which market is attractive where tourists can stay longer. A national tourism brand should be built promptly in order to concentrate promotion resources on defined marketing targets such as gastronomy for example and turning it into a Vietnamese tourism brand,” Ky said.

In addition, one of the issues concerning businesses after the Vietnam Tourism Development Fund is established is how to generate funding and how will the funds be managed, he said.

(Source: Vietnam News Service)