Supporting the hardest hit tourism sector will be one of the top priorities in Ho Chi Minh City (HCM) this year, according to Vice-Chairperson of the City’s People’s Committee Phan Thi Thang.

At a recent meeting with the Ministry of Tourism and Travel Agencies, Thang said the sector should develop new signature tourism products this year.

Nguyen Anh Hoa, director of the Ministry of Tourism, said tourism subsidies encourage local residents to buy tours from reputable service providers to avoid poor quality products.

She pointed out that the health of local tourism companies was “very weak” in the first three months of the year.

Hoa suggested that the government continue with the tax increases and cuts for VAT and corporation tax.

She adds that companies should try to gain access to preferential loans and restructure their repayment deadlines.

About 90% of small and medium-sized tourism businesses and inbound travel agencies in the city are temporarily suspended due to the effects of the Covid-19 pandemic, the department said.

Only 40-50% of local tour guides and 10% of overseas tour guides now have jobs. All of them are official employees of the remaining travel agencies while freelance tour guides have switched to other jobs.

Lai Minh Duy, vice chairman of the HCM City Tourism Association, said he was concerned about the low number of tourism agencies here.

“Tourists from the central and northern regions have paid close attention to new destinations, so the city should promote attractive destinations in urban areas, particularly Thu Duc City and Can Gio District,” he said.

Duy added that the Department of Tourism should also work with the Department of Industry and Commerce to launch more travel-related shopping opportunities.

Saigontourist deputy general manager Nguyen Dong Hoa said the company had been on a field trip to Thieng Lieng Island in Can Gio District, a new potential tourist destination, but had difficulty developing new products.

Thang said the city has done many excursions to local heritage sites, but noted that they are not set up for tourists.

“There is a need to research and develop signature products to help businesses attract more tourists,” she said.

Thang asked the department to organize tourism and cultural events. The total number of international visitors to the city in 2020 was 1.3 million, down 84.8% from the previous year, while the number of domestic travelers was 15.8 million, down 48.45% corresponds to the previous year.

The city is targeting 33 million tourists this year. – Vietnam News / ANN