VietNamNet Bridge - Dozens of businesses contribute VND5 billion each a year to a tourism promotion fund expected to reach VND70 billion by 2020. 

Besides the budget allocated by the state, experts believe that funds for tourism promotion could be raised from businesses.

The Vietnam National Administration of Tourism (VNAT) head Nguyen Van Tuan said a tourism investment club has been set up, gathering 10 businesses, including five big names – Vietnam Airlines, Thien Minh, Vingroup, HG and Muong Thanh, each of which contributes VND5 billion a year to the fund. The club now has VND25 billion to spend on tourism promotion. 

The Tourism Consultancy Council has called on to raise a VND70 billion fund from now to 2020.

Dozens of businesses contribute VND5 billion each a year to a tourism promotion fund expected to reach VND70 billion by 2020.

At a 2017 tourism promotion conference held several days ago, participants discussed three major issues: where to get money to promote tourism (the state budget spends $2 million a year only); establishment of a national tourism promotion agency; and upgrading the professionalism of tourism promotion.

According to Hoang Nhan Chinh, head of the secretariat of the Tourism Consultancy Council, Vietnam’s tourism ranks fifth among ASEAN countries in attracting foreign travelers, but its contribution to the economy is lower than the Philippines. Vietnam ranks sixth in tourism development.

Vietnam wants to be among the top 3 in the region by 2020, attracting 20 million foreign travelers and obtaining $35 billion in revenue from tourism. In order to reach that goal, Vietnam needs to have 15-20 percent growth rate in tourism per year.

A modest budget of $2 million is allocated to tourism promotion every year, much lower than the $70 million budget in Thailand, $105 million in Malaysia and $80 million in Singapore.

Vu The Binh, deputy chair of the Vietnam Tourism Association, said that, with such a small amount of money, Vietnam just ‘walks around in promoting tourism’

It is difficult to look for funding to attend international trade fairs as in most cases, as businesses can only receive money at year end.

Also according to Binh, VNAT doesn’t have a national tourism promotion agency, and in some key markets, there are no tourism promotion offices. 

“Vietnam cannot be professional if it doesn’t have professional workers, organization and clear purposes,” Binh said.

The number of international visitors to Vietnam in the first seven months of 2017 was estimated at around 7.24 million, a year-on-year surge of 28.8 percent, according to a VNAT’s report.

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