Eliminating zero-cost tours requires more than just tough measures.

Zero-cost tours are on the rise.

The tourism industry will impose stricter penalties to crack down on zero-cost tours in order to protect the rights of tourists. Photo: Minh Duy

Zero-cost tours are tours sold below cost but profit is made by pressuring tourists to buy goods and services at inflated prices. These tours are usually operated by foreign travel companies or resold to local travel companies and tour guides.

Zero-cost tours exist in many markets, but are most concentrated in the two major markets of China and South Korea. Many travel agencies, tour guides, and shop owners in Quang Ninh, Da Nang, and Khanh Hoa provinces have been fined, and some shops have even been closed, for participating in operating these tours for Chinese tourists.

Since last year, zero-cost tours have subsided after a series of strict penalties imposed by authorities. However, since the beginning of this year, this type of tour has shown signs of resurgence.

Some localities, such as Ha Long City in Quang Ninh province, are continuing to implement strict measures to prevent this. Specifically, the People's Committee of Ha Long City has ordered the immediate closure and cessation of all business activities serving tourists at a shopping establishment belonging to a local enterprise, which is believed to be part of a zero-cost tour package. A few days ago, the People's Committee of Quang Ninh province also issued a document regarding the handling of violations related to receiving Chinese tourists from zero-cost tours.

Many businesses support these strong measures, arguing that tough action is needed to improve the tourism environment, maintain the destination's image, and protect tourists. In particular, authorities need to address domestic businesses that facilitate this service. Regarding the Chinese market, to secure customers, even knowing that excessively low tour prices cannot guarantee quality service, some domestic companies still accept paying partners tens to hundreds of yuan per customer to obtain contracts.

According to the head of the Chinese market for a major travel company in Ho Chi Minh City, not only land tours in Quang Ninh but also many charter flight tours for Chinese tourists are using this service. Therefore, the price of charter tours for Chinese tourists to some localities is now only equivalent to the price of a regular round-trip air ticket, making it impossible for domestic businesses to compete.

"Reputable businesses cannot participate in any link in the service chain for zero-cost tours. We have almost lost the mass tourism market, and can only tap into the higher-spending segment," she said.

Tourists are "hungry" for information.

Talk withPVRegarding zero-cost tours, many businesspeople say that resolving the issue requires a combination of strong punitive measures and programs to develop services, promote information to tourists, and connect with partners from China to access the market more deeply. If localities resolutely penalize shops and companies in the zero-cost service chain without developing more diverse services to cater to and reach customers, then the solution will be ineffective.

Having observed the flow of Chinese tourists to Cam Ranh for a long time, Colin Blackwell, CEO of Nam Anh Import-Export Trading and Service Company Limited – a business providing airport services for several foreign airlines – believes that a lack of information is the main reason why many tourists participate in this type of tour. The majority of tourists on charter flights have little information about the destination and often hear negative reviews from tour leaders about poor service and overcharging vendors, so they tend to shop only at the stores included in the tour. Furthermore, these stores also offer convenient services such as shipping goods back home, allowing tourists to focus on their tours, which is why many choose them.

"Tourists are afraid of being scammed if they use services or shop in places outside of the tour program, and they also don't know which places are reliable. To help customers and stop this kind of tour, the tourism industry must provide them with information," said Mr. Blackwell.

According to him, online promotion is the most effective information channel for Chinese tourists. When they come to Vietnam, tourists will connect to the internet and buy SIM cards, which is an opportunity for vendors to introduce tourists to what they can buy and where to buy it. However, the information must be in Chinese and additional logistical services such as packaging and shipping are needed.

Several other businesspeople shared similar opinions, suggesting that tourism information should be presented in Chinese at air and land gateways and tourist attractions. Furthermore, they argued that training Chinese-speaking tourism staff is necessary to ensure sufficient personnel and prevent shortages that lead to Chinese partners illegally providing tour guides and operating services.

National tourism authorities should also learn from the Thai approach to more effectively access the Chinese market. To crack down on zero-cost tours, Thailand not only cracked down on illegal businesses in this service chain but also collaborated closely with Chinese tourism authorities and businesses.

During a discussion about zero-cost tours, Mr. Tu Quy Thanh, Director of Lien Bang Travelink, stated that even the Chinese tourism authorities do not want their citizens to participate in these types of tours, so cooperation between the two sides is needed to improve the quality of service for customers. "Zero-cost tours are a service that is difficult to eliminate, but if many measures are implemented simultaneously, there will be positive changes, as other destinations have done," Mr. Thanh said.