Actively redirecting international tourist markets, strengthening communication on destination in terms of safety and quality, focus on domestic tourist market…are solutions on short and long term in order to develop Danang tourism in the situation of decreasing significantly on Chinese tourist market over the last 2 weeks.
These were issues mentioned on May 24 in the meeting of Ministry of Culture, Sports and Tourism (MCST) with the management board of Danang, travel agencies and hotels and services in Danang, about enhancing management, security for tourists.
International tourists drecreased, tours canceled
With a large market share among the top 10 international tourist market, China is a potential market for Danang Tourism, exploited throught the year. However, the clash in the Ease Sea area has made the situation unsecured when travellers come to Danang and affected the tourism activities of the businesses.
According to Danang Department of Culture, Sports and Tourism, in the first five months of 2014, Chinese tourists coming to Danang are estimated to be more the 49,000 arrivals, accounted for 6.5% lower compared to last year. Particularly from mid May, it has decreased sharply by 50-70%. Moreover, Chinese speaking tourists like Singapore, Hongkong, Taiwan has confused going to Danang with a tour cancelation rate at 50%. The other markets like US, France, Japan…have been affected with a tour cancelation rate at 15-20%
A research on 3 to 5-star hotels shows a result of, before May, room capacity with 60 – 90%, however, from mid-May till now, the figure has droped top 10-20%. The contracts cancelation has put hotels into a situation of “supply exceeds demand” in the difficulty of the currect competitive situation.
According to travel agencies, Chinese market will decrease more in the future, nearly 100% tour coming to Danang in June and July has been canceled, especially the charter flights from China. At the moment, there have been 13 charter flights from other cities shut down due to the shortage of travellers. Only 2 flights from Macau and Shanghai have been remained now. However, with the travellers accounted below 10% of overall flight seats, these flights are forecasted to be terminated in a near future.
Redirecting potential tourist markets
Evaluating the current situation of Chinese tourists coming to Danang and central Vietnam, Minister of Culture, Sports and Tourism, Mr. Hoang Tuan Anh emphasizes on preparing for the upcoming situations.
To make up for the decreasing Chinese tourists, the Minister has asked the travel agencies to redirect to other potential tourists markets such as Japan, Korea, Malaysia, South East Asia by promoting as well as organizing Roadshow, famtrips programs…In addition, opening direct flights like Japan (July 2014), Malaysia (August 2014)…to increase the international marketshare is mentioned. Continuing to promote to further and traditional markets, Europe, Australia, America with suitable products and pricing strategies as well as improve the local human resource.
Focusing on domestic markets was mentioned to implement as soon as possible by the Ministry of Culture, Sports and Tourism. With the target with 2.7 million domestic arrivals in total 3.6 million to Danang, domestic market has been the main income for the tourism sector of Danang City
To have the domestic market operated well in the high season from May to August, the current solutions are demand stimulus program and roadshows to attract the domestic tourists. Travel agencies also proposed to decrease the air ticket, entrance ticket to tourist sites…to attract more tourists coming to Danang.
In long term, solutions for current difficulties of businesses are needed such as decreasing land taxes and bank loan interests…; as well as supporting for promoting Danang at important markets with products and advantages of Danang and central Vietnam like Europe, Us, Russia, Japan, Korea and South East Asia.