Vietnam tourism companies is complaining that air fares are so high to hinder the domestic tourism development.

" Higher transportation costs seriously affected Vietnam travel agencies as it accounts for up to 70 per  cent of a tour's price on average. Tourism sector have already been hit by rising petrol prices. And tours in Vietnam will continue to face more difficulties if air fares also go up", said Nguyen Van Luat, director of the Phuong Bac Tourism and Advertisement Joint Stock Co.

Mr Luat said “International tourists often choose a 14-21 day tour of various places in Vietnam instead of confining their stay to one town or city. So, tourists will choose to fly from one destination to another. If the air fare increases, the tour price will be more expensive, tourist may choose to visit other countries in the region”.

Ho Lan Vy, a tourism worker, said higher air fares would have a negative impact on tourism, especially in coming Tet holiday. She worried "if air fares are pushed up, domestic tourists will travel by car or choose shorter tours."

A tour operator said “Because of the rising price, many businesses have cut down on their expenses and bonuses to their staff.”

In order to support Vietnam travel companies to overcome the challenge of rising air fares, tourism operators suggested that the Government need thoroughly consider the increasing of the price ceiling for air fares at present.

"Price level is a vital factor of the tourism sector because it creates competitiveness.", said Mr Luat.

 At the end of last month, the Ministry of Transport granted an approval to a proposal for Vietnam Airlines to raise the ceiling price by 1.5 times over current fare levels.

If the new levels are approved, the price for return air fare between Ha Noi-HCM City will be about VND8 million (US$380). 

Source: vietnamnewsagency