Tuesday, September 29 2020

VietNamNews

Tourism revenue sinks as pandemic hammers demand

Update: August, 05/2020 - 20:07

 

Staff at a Vietravel branch in Hà Nội. Vietravel (VTR) reported revenue of VNĐ206 billion and a loss of VNĐ38 billion in Q2. — Photo vietravel.com

HÀ NỘI — Tourism companies witnessed revenues dwindling in the second quarter due to border closures and international flight bans amid the COVID-19 pandemic.

The number of international visitors to Việt Nam has significantly reduced since March, nearly two months after the first confirmed cases of COVID-19 appeared in Việt Nam. The number slumped by 99.3 per cent in June compared to the same period last year.

Many tourism companies on the stock market recorded second-quarter revenues falling 70-80 per cent year-on-year, resulting in a sharp decline in profits or huge losses such as Sheraton Danang, Vietravel and Đầm Sen Water Park Corporation.

Đầm Sen Water Park (DSN) reported a loss of VNĐ4.3 billion in the second quarter. It enjoyed a profit of VNĐ42 billion in the same quarter last year.

In the first six months of this year, the company recorded a profit of a mere VNĐ100 million.

Vietravel (VTR) reported revenue of VNĐ206 billion and a loss of VNĐ38 billion in Q2. In the first half, the company earned VNĐ996 billion in revenue, down 72 per cent year-on-year and suffered a loss of more than VNĐ76 billion.

The company is among the largest travel companies in the country with revenue coming mainly from international tours.

This year, the company forecast revenue to fall nearly 60 per cent compared to the previous year. It expects a loss of about VNĐ22 billion, after consecutive years enjoying profits. 

BenThanh Tourist Service Corporation (BTV) also suffered a loss of more than  VNĐ7 billion in Q2.

It recorded a 60 per cent decrease in revenue and a loss of more than VNĐ15 billion in the first six months.

Hội An Tourist Service Joint Stock Company (HOT) reported a loss of VNĐ8.4 billion in the second quarter. The Board of Directors forecasts the company may suffer a loss of more than VNĐ6 billion in the third quarter.

As the tourism market has not yet recovered, the company temporarily approved a third-quarter earning plan with total revenue of VNĐ8.7 billion and a loss of nearly VNĐ6.2 billion.

In the last three months, COVID-19 had been effectively contained in the country, bringing hopes for the tourism industry. Many businesses have launched promotion packages to stimulate domestic customers.

However, the resurgence of the virus in Đà Nẵng two weeks ago and its complicated developments are expected to continue putting pressure on the industry in the future. — VNS

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