Lack of visa vision could hit Vietnam tourism
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If there’s one thing life teaches you, it is that you should never underestimate the short-sightedness of authorities – especially when it comes to the tourism industry.
But every so often a new policy comes along that is so ridiculously unhelpful that really makes you question whether the government actually wants a tourist industry at all. Whether it is a passenger tax or increased airport fees, it often seems like officials deliberately ignore the natural, long-term financial benefits that tourism offers in favour of a simple cash grab.
This was never more apparent than last week, when it was revealed that Vietnam is planning to revoke the visa waiver scheme it currently offers to seven countries. The decision was taken because, according to one official, the tourist revenue generated by visitors “is too small compared to the loss of the visa fees”. Okay, fair enough. They must have done a revenue analysis and worked out they’d make more money by charging for visas. Fine.
BUT; three of the countries that will see the visa waiver revoked are Russia, Japan and South Korea. Not only are these three of Vietnam’s biggest visitor source markets, they are also three of its fastest-growing. Visitation from Russia increased 71% to 174,000 in 2012, and has already contributed 85,000 tourists in the first quarter of 2013. If that continues for the remaining three quarters, Russian arrivals will reach almost 350,000 for the full year – 100% up year-on-year.
So it seems clear that Russian visitors will start paying for themselves pretty soon. But will numbers continue to rise if they are forced to pay for visas? I doubt it.
Russian tourists are pretty spoiled for choice right now, and Thailand, China, Egypt, the UAE and others will all be rubbing their hands together, delighted to welcome hoards of Russian sun-worshippers to their beaches.
And once again, a short-sighted government policy will have undone all the good work done by the travel industry to promote tourism and drive growth.