Conditions for Tourist Accommodation Business

There are conditions, but the law does not set conditions for registering a travel agency business, but sets conditions for operating a travel agency business. Specifically, a travel agency must have an agency contract with a travel business enterprise. The conditions are set to ensure the publicity of travel agency activities regarding program prices and commissions in order to limit unfair competition. With such regulations, travel agencies are not allowed to sell travel programs at a higher price than the principal's price, are not allowed to copy travel programs, and are not allowed to carry out travel programs themselves. The regulations on business conditions of the 2017 Tourism Law have partly met the requirements of practice, creating a favorable legal basis for the development of travel business, attracting domestic and foreign tourism enterprises to participate in investment cooperation [19]. Since then, travel activities in Vietnam have grown increasingly stronger. However, in addition, there are still many shortcomings in the process of applying and implementing conditions for tourism business.

2.2.2. Conditions for tourist accommodation business

Accommodation is one of the main needs of tourists during their trip, which is when tourists stay for a certain period of time at tourist accommodation establishments for the purpose of sightseeing, learning about cultural values, entertainment, relaxation, etc.

Tourist accommodation business is a business activity based on providing accommodation, food and beverage services and additional services for tourists to meet their accommodation and entertainment needs at tourist destinations for the purpose of making a profit. Previously, accommodation business was only a service business activity to ensure overnight accommodation for paying guests, but for the demands to satisfy the higher needs of tourists, tourist accommodation businesses gradually organized additional food and beverage services to meet all the needs of guests. In addition to the two essential services of accommodation and food, tourist accommodation businesses also add services such as entertainment, sports, healthcare, beauty care, laundry, party organization, vehicle rental, etc.

Accommodation business is a special industry, affecting many common interests of the community as well as many other tourism businesses. To ensure freedom of business, as well as harmonize other rights and interests in business

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Economy, security, social order, environment, natural resources... registration of tourism accommodation business must ensure the necessary conditions prescribed by law.

Types of tourist accommodation establishments stipulated in Article 48 of the 2017 Law on Tourism include hotels, tourist villas, tourist apartments, tourist accommodation ships, tourist motels, houses with rooms for tourists to rent, tourist campsites, and other tourist establishments [27]. Thus, there are many types of tourist accommodation for customers to choose from. Which type of tourist accommodation customers choose depends entirely on their personal preferences and economic conditions.

The Investment Law 2014, effective from July 1, 2015, continues to be a conditional business and investment sector, meaning that the freedom to conduct tourism accommodation business is limited. For business conditions requiring a license, business entities must carry out procedures to apply for a business license and must be approved by a competent state agency in the form of a business license or a certificate of eligibility to conduct business.

According to Article 49 of the 2017 Law on Tourism, conditions for doing business in tourist accommodation services include:

“ - Registered business in accordance with the law

- Meet the conditions of security, order, fire prevention and fighting safety, environmental protection, food safety according to the provisions of law.

- Meet the minimum requirements for technical facilities and services for tourists.”

Accordingly:

- Conditions on subjects: Business subjects under the 2017 Tourism Law have been expanded to organizations and individuals who, if they meet the conditions specified in Article 49 of this Law, can conduct tourism accommodation business. However, the problem is that the 2017 Tourism Law does not define or stipulate what an organization is. That also creates many inconsistent understandings of these subjects. If understood in the broadest sense, business subjects are organizations and individuals who conduct business activities. Including organizations and individuals who have completed registration procedures or applied for business licenses and other organizations and individuals who conduct business activities for the purpose of making a profit. If understood

In the sense of positive law, business entities are organizations and individuals that carry out professional business activities, operate under a certain legal form and have completed procedures and been granted a business registration certificate or investment certificate according to the provisions of law.

Thus, it can be understood that an organization that wants to do tourism accommodation business can register as an enterprise or cooperative and choose one of the following four forms: Private enterprise, Limited liability company, Joint stock company or Partnership. If an individual does tourism accommodation business, he or she can register as a sole proprietorship. For business households, according to Article 66 of Decree 78/2015, it is stipulated that: “A business household owned by an individual or a group of individuals who are Vietnamese citizens aged 18 years or older with full civil act capacity or a household, can only register to do business at one location, employ less than ten workers, and be personally responsible for all of its assets for business activities”. For tourism accommodation business, which is one of the conditional business lines, individuals must register so that the state can compile statistics, manage and supervise to ensure business conditions. The place of registration can be the place of permanent or temporary residence registration or the place of business.

According to Article 18 of the Enterprise Law 2015, organizations and individuals who are not allowed to establish, manage, buy shares, or contribute capital to enterprises are of course not eligible to participate in tourism accommodation business activities in the form of enterprises. However, the law has different provisions for business households. Individuals who are in most cases prohibited from establishing, managing, or contributing capital to enterprises are not prohibited from registering as business owners. These subjects can still register to operate tourism accommodation businesses.

In addition to the conditions on the subject, traders in the tourism accommodation business must also ensure other specific conditions, such as:

- Conditions on security and order: According to Clause 22, Article 3 of Decree 96/2016/ND-CP dated July 1, 2016 "Accommodation service business, including: Accommodation establishments according to the provisions of the Law on Tourism and other forms of accommodation rental services (hourly and overnight stays) operating on land or on watercraft

Tourist accommodation must have conditions on security, order and scope of management"[ 6 ]. Organizations and individuals operating in sectors and professions with conditions on security and order, if meeting the conditions specified in Decree 96/2016 and complying with other relevant provisions of law, are allowed to operate and be granted a Certificate of eligibility for security and order. Tourist accommodation establishments must actively and proactively coordinate with local authorities and police on coordination regulations to ensure security and order in tourism business. Strengthen close coordination with local mass organizations to promptly prevent disturbances caused by subjects to tourists during their stay at the accommodation establishment. Educate and promote strongly among service staff as well as tourists about the good implementation of the Road Traffic Law. Organize well the work of on-duty and security to protect security and order in tourist accommodation establishments and be ready to coordinate in handling related incidents.

- Fire safety conditions: Ensure fire prevention and fighting in accommodation establishments. Strictly comply with fire prevention and fighting regulations. Develop fire fighting plans at accommodation establishments. Fully equip fire prevention and fighting equipment according to regulations. For accommodation establishments that are not equipped with fire prevention and fighting water systems, fire extinguishers must be arranged in reasonable and visible areas. Regularly check the quality of fire extinguishers and replace expired ones. Organize training for managers and employees on how to use fire prevention and fighting equipment at accommodation establishments. Check the electrical system at accommodation establishments, electrical safety equipment in guest rooms, offices, rechargeable lighting systems in corridors and emergency exits. Arrange electrical outlets, switches, and circuit breakers reasonably. Strictly implement Government regulations on prohibiting the production, transportation, trading, and use of explosives. For accommodation establishments with catering services when using gas stoves, the gas cylinders must be placed in a suitable location, with a solid fence separating them, away from crowded areas. A contract must be signed with a legal supplier and a plan must be made to regularly check safety equipment to avoid gas leaks, and proper procedures must be followed during use.

- Food safety conditions: To ensure food hygiene and safety, in addition to strictly implementing food safety regulations, accommodation establishments must absolutely not allow food poisoning to occur. Accommodation establishments must develop a plan to prevent poisoning in order to promptly and effectively handle incidents that occur at the accommodation establishment.

- Minimum conditions on technical facilities and services for accommodation establishments are stipulated in Decree 168/2017/ND-CP. Specifically as follows:

 For the hotel type in Article 22, Decree 168/2017/ND-CP stipulates: “There is an electricity system, a clean water supply and drainage system; there is at least 10 bedrooms, a reception desk, a shared restroom, and a parking space for guests for resort hotels and roadside hotels; there is a kitchen, dining room, and food service for resort hotels, floating hotels, and roadside hotels; there are beds, mattresses, blankets, pillows, towels, bath towels, and mattress covers, blanket covers, pillow covers, towels, bath towels, and mattress covers are changed when there are new guests; there are staff on duty 24 hours a day; managers and staff are trained in tourism services”.

 For the type of tourist villas in Article 23, Decree 168/2017/ND-CP stipulates: “There is an electricity system, a clean water supply and drainage system; there are beds, mattresses, blankets, pillows, towels, bath towels; change mattress covers, blanket covers, pillow covers, towels, bath towels when there are new guests; there are staff on duty 24 hours a day; there is a reception area, bedroom, kitchen, bathroom, and toilet”.

 For tourist apartments, Article 24 of Decree 168/2017/ND-CP stipulates: “There is an electricity system, a clean water supply and drainage system; there are beds, mattresses, blankets, pillows, towels, and bath towels; there are beds, mattresses, blankets, pillows, towels, and bath towels; change mattress covers, blanket covers, pillow covers, towels, and bath towels when there are new guests; the apartment manager is trained in tourism services”.

 For tourist accommodation ships, Article 25, Decree 168/2017/ND-CP stipulates: “The ship must be in good condition, with valid inspection; have life jackets, life buoys, means of communication, first aid medicine cabinets; have electricity, clean water; have equipment to collect waste and wastewater to ensure environmental hygiene; have a guest reception area, bedroom (cabin), bathroom, toilet, kitchen, dining room and

Food service; beds, mattresses, blankets, pillows, towels, bath towels; mattress covers, blankets, pillow covers, towels, bath towels are changed when new guests arrive; managers and service staff are trained in tourism services and river rescue skills.”

 For tourist accommodation in Article 26, Decree 168/2017/ND-CP stipulates: “There is electricity, clean water and drainage system; there is a reception area and bedroom; there is a shared bathroom and toilet in case the bedroom does not have a private bathroom and toilet; there is a bed, mattress, blanket, pillow, face towel, bath towel, change the mattress cover, blanket cover, pillow cover, face towel, bath towel when there are new guests; there is staff on duty 24 hours a day; the manager and staff are trained in tourism services”.

 For houses with rooms for tourists to rent, Article 27 of Decree 168/2017/ND-CP stipulates: “there must be lighting, clean water, a common living area, a guest accommodation area, a kitchen, a bathroom, a toilet, a bed, a mattress or mat, a blanket, a pillow, a mosquito net, a face towel, a bath towel; change the mattress or mat covers; change the blanket, pillow covers, face towel, bath towel covers when there are new guests; the owner of the house with rooms for tourists to rent must be trained in tourism services”.

 For tourist camping sites in Article 28, Decree 168/2017/ND-CP stipulates: "there is an area to receive guests, an area to set up tents, camps, parking, bathrooms, and public toilets; there is clean water; there are tools and equipment to set up tents, there is a first aid kit; there are security guards on duty when there are guests; there are staff on duty 24 hours a day"

It can be seen that, for the conditions for registering a tourist accommodation business, the state agency must be responsible for checking and assessing to issue a business license, a business certificate, for the conditions for doing business without a license, the state only records but is not responsible for the business conditions declared by the trader. However, in reality, checking and monitoring the process of creating business conditions without a license is much more difficult and less effective than with a license [38]. However, the author finds that the overly detailed and detailed regulations on the minimum conditions for technical facilities and services for types of accommodation establishments stipulated in Decree 168/2017/ND-CP are not really reasonable, creating many difficulties for business organizations and individuals as well as difficulties in checking and managing for state agencies.

Ranking of tourist accommodation establishments

After more than 10 years, the 1999 Tourism Ordinance has expired, replaced by the 2005 Tourism Law and now the 2017 Tourism Law, each type of accommodation business will be applied a separate standard. Thus, the basis for classifying tourist accommodation establishments is based on the type, scale of the accommodation establishment and business purpose, including hotels; tourist villas; tourist apartments; tourist camping sites; tourist motels; houses with rooms for tourists to rent. The standards for classifying tourist accommodation establishments are issued by the State management agency of tourism at the central level for uniform application throughout the country.

Article 50 of the 2017 Law on Tourism stipulates the registration of tourist accommodation establishment rankings : “Organizations and individuals doing business in tourist accommodation services may voluntarily register for tourist accommodation establishment rankings with competent state agencies;

Hotels, tourist villas, tourist apartments, and tourist cruise ships are ranked according to national standards for ranking tourist accommodation establishments. Tourist accommodation establishments are classified into 01 star, 02 stars, 03 stars, 04 stars, and 05 stars.

The authority to appraise and recognize the rank of tourist accommodation establishments is stipulated as follows: The General Department of Tourism appraises and recognizes 4-star and 5-star tourist accommodation establishments; provincial tourism authorities appraise and recognize 1-star, 2-star and 3-star tourist accommodation establishments.”

Thus, according to the 2017 Tourism Law, registration for classification of accommodation types is not mandatory for organizations and individuals. According to Decision No. 217/QD-TCDL dated May 15, 2009 of the General Director of the General Department of Tourism on National Standards for classification of accommodation establishments:

- Hotel classification applies TCVN 4391:2009

- Tourist accommodation standards apply TCVN 7799:2009

- The standard for accommodation with rooms for tourists to rent applies TCVN 7800:2009. The 2017 Tourism Law stipulates that registration for ranking of tourist accommodation establishments is voluntary instead of mandatory as stipulated in the 2005 Tourism Law. Registration for ranking comes from the need to affirm the brand and service quality to attract tourists. Tourists, based on the advertised information to choose accommodation establishments that have been ranked by competent authorities, will be more assured about the quality of service. But it seems to be "open" but in reality the regulations are accompanied by conditions.

The condition is that “accommodation establishments are only allowed to use the word star or star image for their accommodation establishments after being recognized as tourist accommodation establishments by a competent state agency” . Thus, in essence, the business is still ranked, because the business has no way to attach stars for customers to identify [18].

Rights and obligations of organizations and individuals doing business in tourist accommodation services

The rights of organizations and individuals doing business in tourist accommodation are stipulated in Clause 1, Article 53, Law on Tourism 2017, including: "Refuse to receive tourists who violate the law, violate the regulations of the tourist accommodation establishment or when the tourist accommodation establishment is no longer able to meet the requirements of tourists; cancel the service provision contract for tourists who violate the law, violate the regulations of the tourist accommodation establishment" . Thus, the tourist accommodation establishment has the right to issue regulations. The issuance of a system of regulations is important in the management and operation of the accommodation establishment; however, in order to develop and issue a legal document, suitable to reality, ensuring applicability and science. The regulations of the tourist accommodation establishment must ensure:

- Legality: In accordance with the provisions of law, not contrary to the Constitution and laws.

- Practicality: Suitable for management and operation requirements, suitable for the operations of tourist accommodation establishments in each specific field.

- Effectiveness: Rules and regulations create an internal legal corridor for tourist accommodation establishments, actively contributing to the management and operation as well as the entire operation of the accommodation establishment; when applied, they must be respected and thoroughly implemented by everyone.

The obligations of organizations and individuals doing business in tourist accommodation are stipulated in Clause 2, Article 53, Law on Tourism 2017, including: “Ensure to maintain the conditions for doing business in tourist accommodation services; publicly post the prices of goods and services, and the internal regulations of the tourist accommodation establishment; compensate tourists for damages according to the provisions of civil law; notify in writing the specialized tourism agency at the provincial level where the tourist accommodation establishment is located when there is a change in the name of the establishment, scale, address, or legal representative; only use the word “star” or the image of a star to advertise the class of the tourist accommodation establishment after the competent state agency recognizes the class of the tourist accommodation establishment; implement the reporting, statistical, and accounting regimes according to the provisions of law”.

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