The information was released by Deputy Minister of Informration and Communications Nguyen Van Hung on September 30, 2020 at the forum on digital transformation for Vietnam’s tourism.
Vietnam plans to put ‘Du Lich Viet Nam An Toan’ (Travel Vietnam Safely) app into use
The app will recommend and advertise safe destinations, thus serving the second travel demand stimulus program, under which international tourism will gradually resume.
With the app, travelers will be able to look up the safety levels of the points they plan to go to, check the safety alert levels on a digital map, choose service providers, and get the latest information about destinations.
Covid-19 accelerates digital transformation
The Covid-19 pandemic has paralyzed tourism activities. Vietnam estimates that it will receive 3.7 million foreign travelers this year, a 70 percent fall compared to last year.
As for domestic travelers, though two demand stimulus programs have beenorganized, the figure, according to the deputy chair of the Vietnam Tourism Association (VTA), will be just 50 percent of the last year.
The revenue from tourism in 2020, both from inbound and domestic tourism, is estimated to reach VND300 trillion, a loss of 61 percent compared with 2019.
Analysts warn that travelers’ habits have changed. They tend to go in small groups, and prefer short distance tours. They want good services but with low fees, and they often change their mind and cancel tours.
Travel firms have been hit hard because of Covid-19, and 20-30 percent are in danger of going bankrupt.
If the pandemic lasts until 2021 and foreign travelers cannot enter Vietnam, the proportion could be up to 50-60 percent.
When travel firms have an effective information system about travelers, products and services, they are able to properly design solutions to problems, calculate costs, and manage business based on the analysis of data.
“This can be done only by enterprises conducting digital transformation,” Binh said, adding that the pandemic has forced the tourism industry to step up digital transformation.
According to Tuan Ha, director of Vinalink, a travel firm, some chief executive officers (CEOs) said their firms can overcome difficulties because they can use the database about clients.
Ha believes that digital transformation does not only include complicated or costly solutions such as Big Data, Blockchain or AI (artificial intelligence) technologies. It is about relations with clients through Zalo, Facebook and Google, the client management system, information about safe destinations, and special promotion programs.
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| With the app, travelers will be able to look up the safety levels of the points they plan to go to, check the safety alert levels on a digital map, choose service providers, and get the latest information about destinations. |
Many resorts still sell discount vouchers, and domestic tours can be organized successfully. Tours to resorts on weekends are still fully occupied.
Ha noted that many large corporations and travel firms can exploit the database about clients.
“In many cases, just making the best use of loyal clients is enough to succeed,” he said.
According to Ngo Minh Duc, president of Gotadi, businesses can succeed if they have awareness of the necessity to go digitalized.
The transformation process can be costly and difficult, and Vietnam needs to create a community where businesses cooperate with each other. Support from the government is also important.
The deputy minister asked that the Vietnam National Administration of Tourism (VNAT) implement five tasks immediately, including 1/ promoting the application of digital technology in tourism marketing; 2/ managing tourism destinations in a smart way; 3/ building information systems and big data to put into common use; 4/ calling on businesses to respond to the movement; and 5/ disseminating digital technology to all levels of all industries so that everyone can help develop Vietnam’s tourism.
Ngoc Ha
