BackStories » Saigon » Saigon Proposes 50% Tax Cut for Tourism Businesses to Cushion Covid-19 Slump

Saigon Proposes 50% Tax Cut for Tourism Businesses to Cushion Covid-19 Slump

The coronavirus epidemic has had a major impact on tourism-related industries in Vietnam. 

In reaction to the ruinous effects of Covid-19 on tourism, the Ho Chi Minh City Tourism Department has proposed a 50% tax cut for tourism-related businesses, as reported by VnExpress.

In 2019, tourism in Vietnam was at an all-time high, with a total of 18 million foreign tourists visiting the country. This was a 16.2% increase year-on-year. The biggest group of tourists coming into the country were Chinese, who accounted for 32% of visitors. In 2020, these numbers are seeing a sharp decrease, with an accompanying drop in tourism revenue. 

Bui Ta Hoang Vu, the director of the HCMC Tourism Department, told reporters that foreign tourist arrivals had fallen 62% in the first two months of 2020. This has caused a VND920.5 billion (US$39.8 million) decrease in revenue, with 88,000 tourists having canceled plans to visit Vietnam. 

In order to support the businesses that have been most affected by the coronavirus, the HCMC Tourism Department stated that the People's Committee should cut income tax and value-added tax for restaurants, hotels, transport, and tourism companies. Further, the Tourism Department stated that tax collection should be delayed to the third or fourth quarter of the year, and land fees for convention centers and hotels should be cut in half for two years. 

The Tourism Department has also looked to the government to give visa waivers to individuals from Australia, New Zealand, Russia and Canada in order to boost tourism in the country.

This tax cut proposal was made amidst several efforts to quell the side-effects of Covid-19 on tourism in Vietnam. These efforts include the opening of Vietnam's first overseas tourism office in the UK, VietJet offering a 50% discount on tickets for all routes, and two campaigns made by the Vietnam Administration of Tourism to increase domestic and international tourism. 

The Vietnam Tourism Advisory Board projects that the Covid-19 epidemic could cause Vietnam's tourism revenue to drop by US$7–15 billion this year. This projection is based on a speculated 90–100% drop in Chinese tourists and a 50–70% drop in domestic and other tourist markets.

Related Articles

in Saigon

It's Official: Saigon Public Schools to Reopen Starting From Next Week

Masks have played a prominent role in Vietnam's fight against the spread of COVID-19, and will continue to do so moving into the new normal.

in Saigon

Tourist Bookings in Saigon Drop by 50% Post-Tet Due to Covid-19

Since the Tet holiday, tourism has fallen by 50% compared to the same period last year because of fears related to the coronavirus. 

in Music & Arts

A Vietnamese Curator Is the Latest Victim of Discrimination Due to Coronavirus

Discrimination against people of Asian descent has increased with the spread of the coronavirus.

in Saigon

Amid Tourism Slump, Saigon's Hotels Provide Free Stays, Meals to Frontline Workers

Amid Saigon’s most devastating outbreak of COVID-19, the city’s various economic sectors have pivoted to supporting frontline workers in their enduring efforts against the epidemic.

in Health

Coronavirus Update: 30 Cases in Total; 13 New Cases Linked to London–Hanoi Flight

It was a grim weekend for Vietnam as, after three weeks with no new Covid-19 cases and 100% recovery rate, the number of patients who have tested positive for the novel coronavirus ballooned to 30.

in Vietnam

Covid-19 Could Cost Da Nang Tourism $1.1bn This Year

Life in Da Nang is slowly returning to normal after the third wave of COVID-19 infections, though economic ramifications will remain.

Partner Content