Authorities in the southern central coastal province of Khanh Hoa are complaining about challenges in dealing with booming low-cost tours in Nha Trang City.

A shop that allows customers to pay by China's Wechat Pay in Nha Trang City

At a recent meeting held by the Ministry of Planning and Investment and the Khanh Hoa Provincial People's Committee on the issue, director of Khanh Hoa Province's Department of Tourism, Tran Viet Trung revealed that the province received over 6.3 million visitors including 2.8 million foreign tourists in 2018, an increase of 37 per cent against 2017.

"Last year we received nearly 1.9 million Chinese visitors who accounted for 67 per cent of total foreign tourists to the city and showed an increase of 153 per cent against 2017's number," Trung said. 

"The Chinese tourists were mostly sent from low-cost tours organised by local and Chinese travel companies," he said, adding that the tourists were usually taken to shop low-quality products at high prices which were badly affecting the image of Nha Trang tourism.

A representative from the provincial Department of Industry and Trade said that they knew about the issue but found it difficult to manage as most of the local shops were using POS cards issued by Chinese banks or Alipay, Wechat Pay services provided by Chinese firms when selling to Chinese customers.

Deputy head of Khanh Hoa Provincial Department of Taxation, Tran Sy Quan, admitted that it was difficult to manage taxes from travel companies providing low-cost tours.

"These travel companies don't make any profits while selling low-cost tours but they get commissions from the shops that they send tourists to.

Deputy chairman of Khanh Hoa Provincial People's Committee, Tran Son Hai, said that they were facing difficulties in dealing with low-cost tours.

"We cannot set ceiling prices for the products and services in a market economy," Hai explained. "The prices of products can be adjusted based on seasons or the amount purchased as regulated by the Prices Management Law.  Besides, online shopping is also making it more difficult to manage taxes."

A representative from the Ministry of Planning and Investment, Nguyen Hoang Hai, said besides Khanh Hoa, these tours have also been reported in Danang City and Quang Ninh Province.

"We will closely work with local authorities to find measures to deal with the issue," he said. "Firstly we should find ways to manage to the quality of products and the sales methods at local shops."

Nguoi Lao Dong/Dtinews