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Current Status of State Management Activities for Tourism Enterprises in Hanoi


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- On the business performance of Hanoi tourism enterprises


If we take a look at the revenue of Hanoi's tourism industry in recent years,

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It can be seen that the business performance of Hanoi enterprises is relatively good. Tourism revenue includes all revenues paid by tourists such as revenue from accommodation, food and beverage, travel, tourist transportation, souvenir sales, etc. Considered a quite attractive business sector and bringing high socio-economic efficiency, in recent years, Hanoi tourism industry has had strong development in both scale and service quality. According to statistics of Hanoi Department of Tourism, in 2006, tourism revenue reached 9,600 billion VND, more than double that of 2003 (reaching 4,452 billion VND). The above figure shows that annual revenue has grown well and is not dependent on a few large markets. For example, in 2005, the number of Chinese visitors to Hanoi decreased sharply (21%), but tourism revenue still nearly doubled compared to 2004. Notably, in the first 6 months of 2007, Hanoi's tourism revenue was equal to 83% (8,000 billion VND) of the whole year of 2006. Thus, it can be seen that tourism is the industry with the highest revenue growth rate compared to other economic sectors of Hanoi.

Hanoi's tourism revenue in 2005 reached 10,211 billion VND, increasing to 13,950 billion VND in 2006, of which revenue from hotels and restaurants reached 5,870 billion VND.

Current Status of State Management Activities for Tourism Enterprises in Hanoi


Chart 2.1: Revenue from Hanoi tourism over the years


Hanoi tourism revenue over the years

2006

2005

Hanoi tourism revenue over the years

2004

2003

0

2,000 4,000 6,000 8,000 10,000 12,000


Source: Hanoi Department of Tourism


However, the business performance of tourism enterprises in Hanoi is still limited due to the following reasons:

Because the organization of tourism businesses in Hanoi is still fragmented and loose, a few companies conduct stable business, specializing in tourism services, while the majority of small tourism businesses register to do business in many service areas. Joint ventures and associations of tourism businesses in Hanoi are at a low level. The relationship between suppliers - such as hotels, accommodation facilities, transportation businesses - and travel businesses is not close, not really respecting each other's interests, the main forms of relationship are consuming products to receive commissions without sharing risks.

For travel companies, the tourism program business process has not been really taken seriously by businesses. Especially in the design, sales organization and after-sales stages. Tourism programs are poor and lack of

In terms of creativity, travel companies mostly copy each other. The marketing department has not been properly positioned as a bridge between customers and travel businesses.

Accommodation establishments, especially large hotels, have seen room prices rise since the beginning of 2006 due to a shortage of high-end hotel rooms. Prices at many hotels have increased by 150% or even 200% in just one year. Although some travel agencies had signed contracts with hotels at the beginning of the year, due to high market prices, the two parties had to re-sign. Previously, low tour prices were an advantage of Hanoi tourism, but now that advantage is gradually disappearing. Services such as food, entertainment, transportation, etc. have mostly changed insignificantly, but mainly due to increased hotel prices, which have pushed up package tour prices. Compared to some cities in the region such as Kunming, Shenzhen, Bangkok, Pattaya, Kuala Lumpur, room prices in Hanoi are currently about 20% higher in hotels of 3 stars or higher. The rapid increase in room prices has caused many difficulties for travel agencies in business. Because in the past, hotels often reserved 60% of their total rooms for travel companies, now due to high demand, hotels only reserve about 30% or less for tourism, the rest is for retail to gain high profits.

- About the number of tourists coming to Hanoi :


The number of international visitors to Hanoi has been increasing steadily, each year higher than the previous year, accounting for 30 to 35% of the total number of international tourists to Vietnam. According to the Hanoi Department of Tourism, in 2006, Hanoi welcomed 5.9 million visitors, an increase of 11% over the previous year, of which international visitors reached 1.1 million. From January to September 2007, Hanoi welcomed 926,400 international visitors. Of which, the Chinese tourist market accounted for the largest number, 14% of the total number of international visitors to the city. Visitors from the Korean market accounted for 9.7%, and Japanese visitors accounted for more than 9%.

Visitors from other traditional markets also increased sharply, such as Australian visitors, up more than 40%, and French visitors, up more than 30% compared to the same period last year. In the last three months of the year, Hanoi is expected to welcome an additional 354,600 international visitors, reaching the target of attracting 1.2 million international visitors this year. The city also welcomed 4.3 million domestic visitors, up 13% compared to the same period last year. In the coming time, the main tourist markets of Hanoi tourism will continue to be stable. The number of Chinese visitors is likely to increase again due to the large number of tourist groups traveling by ship to our country.

The Hanoi Party Committee assigned the city's tourism industry the task of welcoming 2 million international visitors by 2010 (Source: Hanoi Department of Tourism, Program " Developing a number of high-quality service industries in the period 2006-2010 ").

Chart 2.2: International visitors to Hanoi over the years



International visitors to Hanoi

1,200,000


1,000,000


800,000


600,000

International visitors to Hanoi

400,000


200,000


0

2002

2003

2004

2005

2006


With the efforts of the state management agency of tourism and travel agencies, the number of domestic tourists has increased rapidly, tourism services have been expanded, many new programs have been opened to meet the high demands of tourists such as open tours, city tours, village visits, etc.

craft villages, ancient villages... so tourism revenue and budget contribution to the state still achieve a fairly stable growth rate.

2.1.3. Current status of state management of tourism enterprises in Hanoi

2.1.3.1. The implementation of state management of tourism enterprises in Hanoi

State management of tourism enterprises in Hanoi is carried out according to the state function of unified management of tourism activities in the city's socio-economic development plan, in the tourism development planning of Hanoi and the whole country.

- Developed and issued legal documents on tourism and tourism business to standardize tourism business activities and standardize the workforce in tourism enterprises:

State management of tourism enterprises in Hanoi has made significant progress, which is demonstrated through the implementation, development and issuance of documents related to tourism business activities of the General Department of Tourism under the Ministry of Culture, Sports and Tourism. These management documents have contributed significantly to the standardization of tourism business activities and the standardization of the workforce in tourism enterprises in Hanoi.

For travel businesses: The Government issued Decree No. 27/2001/ND-CP dated June 5, 2001 on travel business and tour guiding to guide the organization and implementation of travel business and tour guiding of travel businesses. The clear regulation of conditions for international travel business and domestic travel business has helped to unify the management of travel business contacts, creating a legal corridor for businesses.

travel agencies operate and are the basis for inspection and handling of violations. According to Clause 3/Article 46 of the Law on Tourism, international travel operators must have at least 4 years of experience in the tourism sector and Clause 3/Article 46, each international travel company must have at least 3 tour guides with international tour guide cards. These provisions, if strictly implemented, will contribute significantly to improving the quality of tourism products and improving the operational efficiency of travel businesses in Hanoi.

For tourist accommodation establishments: The Government issued Decree No. 39/2000/ND-CP dated August 24, 2000 on tourist accommodation establishments to guide the organization and implementation of accommodation business. The General Department of Tourism issued documents stipulating conditions on minimum bedroom area and services in tourist accommodation establishments, conditions on minimum equipment and facilities in tourist accommodation establishments, hotel rating standards, hotel rating tables to perfect the standards of tourist accommodation establishments, ensuring compliance with international standards and the current status of accommodation establishments.

For businesses transporting tourists : Hanoi People's Committee issued Regulation No. 100/QD-UBND dated September 6, 2007 on the management of tourist cyclo activities in the area, Hanoi Department of Tourism confirmed that tourist transport cars were transferred to Hanoi City Police to issue permits to enter restricted streets...

- Organize appraisal and grant tourism business licenses in accordance with the provisions of law :

The Government and City's policies create conditions for the formation of new tourism businesses in the city. The organization of appraisal and granting of licenses for tourism businesses, tourist areas, tourist attractions, hotels, and travel agencies is in accordance with the provisions of law, in which tourism businesses are given specific instructions and

full. The processing time for the application for a tour guide card is 15 days, the appraisal of the application for international travel business registration and the conditions for domestic travel business is 10 days. The Hanoi Department of Tourism has a department that regularly answers citizens (one-stop shop) on issues related to tourism law. In addition, the procedures and regulations of the law related to tourism are also fully informed on the website of the Hanoi Department of Tourism, in specialized conferences to disseminate tourism law.

- Conduct periodic inspections and surprise inspections of tourism businesses according to the annual plan, resolve complaints and denunciations in accordance with the law:

The inspection work of the Hanoi Department of Tourism focuses on inspecting the implementation of state regulations on tourism business activities of units, organizations and individuals operating and trading in tourism in the area and resolving requests and recommendations of tourists, especially foreign tourists, related to issues of tourism service provision and tourism service quality of tourism service enterprises. Inspection work is conducted periodically and unscheduled checks according to the annual plan.

Recently, the Hanoi Department of Tourism has also sent many official dispatches to tourism businesses to regulate tourism activities such as: "Official dispatch to organizations and individuals doing business in transporting tourists on reporting the number of tourist transport vehicles". In particular, the City Police Department has worked with the Department of Tourism to regulate the number of tourist vehicles allowed to operate during the day (except rush hours) not exceeding 15% of the total number of vehicles. "Official dispatch to travel businesses in the area on rectifying travel business activities", because in the past, the Department of Tourism has received a lot of information from the press and media agencies reflecting the deterioration in the quality of tourism services in

Some local travel businesses and tourist attractions, especially some travel companies and agents, have offered some poor quality tours to individual tour buyers, causing dissatisfaction among tourists and tarnishing Vietnam's image to international friends, including some travel businesses in Hanoi.

During the inspection and examination process, the Hanoi Department of Tourism has resolutely handled businesses that violated tourism laws. In 2007, through the inspection of the implementation of state regulations on tourism business activities of 48 accommodation establishments in the area, the Hanoi Department of Tourism made a record requesting 18 tourist accommodation establishments that did not meet the conditions for hotel business to switch to motel business or other business models. Many tourism businesses that violated administrative regulations were also punished in accordance with the provisions of the law, specifically, administrative penalties were imposed on 03 travel agencies with a total fine of 08 million VND and 02 accommodation establishments with a total fine of 04 million VND.

- Hanoi Department of Tourism regularly coordinates with other functional Departments, Boards and Branches in managing and supporting tourism businesses to develop:

The management of order, security and safety for tourists in Hanoi is also well coordinated between the tourism industry and the police industry. The management of temporary residence and temporary absence declarations for tourists in tourist accommodation establishments in Hanoi is done very well, deployed to districts, wards and communes of Hanoi. The declaration is carried out quickly by applying information technology, transmitting daily data of accommodation establishments to the police agencies of wards and communes.

- Organize many tourism promotion activities, train and develop human resources, organize market surveys for tourism businesses... to support tourism businesses to develop:

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