Aviation, tourism sectors join hands for sustainable development

Aircraft shortages, significant exchange rate fluctuations, and rising fuel costs have an impact on airlines’ supply capacity and adjustment of flight ticket prices, leading to detrimental effects on the tourism industry.

Many solutions to overcome this crisis were launched at the “Aviation - Tourism: Joining hands for sustainable development” conference which was held in Hanoi on June 12 by the Nhan Dan (the People)’s Newspaper.

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Minister of Transport Nguyen Van Thang speaks at the conference. (Photo: SGGP)

Speaking at the meeting, Minister of Transport Nguyen Van Thang said that the conference was an opportunity for insiders to seek solutions and propose new mechanisms and policies to support aviation and sustainable tourism development.

In order to reduce airfare costs and create a driving force for the development of the tourism industry, the government needs to consider a 7 percent import tax reduction for jet fuel used for domestic flights, apply the reduced rate of environmental protection tax on jet fuel by 70 percent of the current regulated rate, support Vietnam Air Traffic Management Corporation to reduce landing and takeoff fees by 50 percent in two years, Mr. Hoang Nhan Chinh, a member of the Tourism Advisory Board suggested.

Additionally, the government needs to provide comprehensive support for the aviation and tourism sectors, such as offering lower prices for return trips, giving subsidies that are not more than US$30 for the purchase of a flight ticket and not more than US$30 per night at accommodation facilities according to the principle of subsidies not exceeding 40 percent of the ticket and hotel room. The subsidy program is applied for two million air tickets and five million nights at accommodation establishments in major tourist destinations.

Deputy Director of the Civil Aviation Authority of Vietnam (CAAV) Do Hong Cam said that in the coming time, the functional agencies will strengthen inspections, and supervision and provide instructions for the implementation of regulations on passenger transportation fares as well as encourage carriers to cut costs and launched promotional programs on domestic routes.

The Civil Aviation Authority of Vietnam will also coordinate with the Vietnam National Authority of Tourism, provinces, and cities to promote and develop aviation-tourism connectivity activities.

The Civil Aviation Authority of Vietnam is currently considering the early organization of an inter-sectoral conference on tourism and aviation to promote destinations and products, share coordination experiences between the two sectors in tourism economic development, learn about international experiences, and propose policies to facilitate the aviation-tourism industry.

Businesses’ proposals

Chairman and CEO of Vietravel Group Nguyen Quoc Ky suggested close coordination between localities, travel companies, and airlines in promoting destinations and tourist products, launching tourism stimulus programs, such as offering cheap flights, all-inclusive vacation packages, visa waiver program, and improving the quality of tourism services and ensuring the safety of travelers.

Nguyen Huu Y Yen, General Director of the Saigontourist Travel Service Co. Ltd, said that the government needs to provide appropriate support packages for airlines to reduce costs and subsidy packages for carriers to operate unpopular destinations. Additionally, the tourism and aviation sectors need to collaborate in operating chartered flights, offering preferential pricing policies, regular departures, and ensuring effective two-way passenger operations. It takes from six months to one year for travel companies to promote and introduce their products.

A representative of Vietjet Air proposed the Government, ministries, and departments continue to promote bilateral and multilateral negotiations and agreements with other countries to obtain more favorable policies on visas, facilitate electronic visa issuance, and the opening of new flight routes.

Airlines and localities have developed solutions to enhance connectivity, attract tourists, and stimulate domestic tourism. Specifically, Vietnam Airlines announced that it will provide nearly one million seats on late-night flights on domestic routes at reasonable prices.

Vietnam Airlines also signed a memorandum of understanding with Khanh Hoa province and Da Nang City to participate in promotional programs for night flights. Under the agreement, localities will introduce travel companies, accommodation establishments, amusement parks, and tourist attractions as well as announce a list of service providers on various media platforms to help customers identify and proactively book services.

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