Non-interest loansĀ for HCM City tourism businesses proposed

The HCM City Department of Tourism has proposed that theĀ municipal Peopleā€™s Committee provide tourism businesses access to aĀ non-interest loan package ofĀ VND208 billion (US$9.06 million).

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Non-interest loansĀ for HCM City tourism businesses proposed
The War Remnants Museum is expected to offer free entrance from August until the end of this year. ā€” File photo courtesy of the museum

TheĀ loans will help tourism companiesĀ pay at least 50 per cent of their employeesā€™Ā salaries forĀ three months. The loans are expected toĀ cover aboutĀ 31,500 employees working in 5,002 tourism businesses in the city.

TheĀ city-fundedĀ loan package willĀ be handled byĀ theĀ Vietnam Bank for Social Policies (VBSP) ā€“ HCM City branch.

Vietravel chairman Nguyen Quoc Ky toldĀ Tuį»•i Trįŗ»Ā (Youth) newspaperĀ that tourism businesses were currently making very little or no profit.

He estimated that tens of thousands of tourism employees have lost or quit theirĀ jobs due to the serious impact ofĀ the COVID-19 pandemic. For example, Vietravel had nearly 1,500 employees, but now has only 50 people to maintain the companyā€™s operation.

Apart from the loan package, the department has proposed that theĀ Peopleā€™s Committee support training expenses for tourism personnel this year.Ā The training expense of VND1.2 billion ($52,295) includes VND1 billion from the city budget and VND200 million from other sources.

The money will be used for 20 training courses for tour guides, and managers and staffĀ working forĀ tourism-serviceĀ providers, food and beverage businesses, andĀ hotels.

The department also suggestedĀ free entrance fees at the cityā€™s main attractions from August untilĀ the end of 2021.Ā The attractions include the War Remnants Museum, the Vietnam History Museum in HCM City, the HCM City Museum, the HCM City Fine Arts Museum, and the Cu Chi Tunnels Relic Site.

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In order to offset losses in ticket sales, the city was also asked to provideĀ VND21 billion ($915,168) to pay for salaries and expenses at these five attractions.

According to the Tourism Department, the total number of domestic travelers to the city in the first five months of this yearĀ was 7.1 million, up 11.4 per cent year on year.Ā The city, however,Ā has had noĀ international tourists this year because of COVID-related travel restrictions.

Total tourism revenue during the period was estimated at VND35.58 trillion (US$1.55 billion), an increase of 23.3 per cent compared to the same period inĀ 2020.

The number of tourism businesses operating in the city dropped by 50 per cent in theĀ first five months, while 171 businesses had theirĀ licenses revoked.

Source: Vietnam News