Proposal to extend the visa exemption policy from 1 year to 5 years

The Tourism Advisory Board (TAB) has just sent a proposal to Prime Minister Nguyen Xuan Phuc on visa policy for international tourists to Vietnam.

Accordingly, the Tourism Advisory Board affirmed that the requirements and convenience in granting visas have a direct impact on the number of tourists coming to Vietnam, therefore, improving visa policies and creating favorable conditions for visitors to Vietnam is extremely necessary.

In 2015, Vietnam had a growth rate of almost zero (0.9%) in the number of international arrivals, reaching nearly 8 million people. Meanwhile, Thailand increased by 20%, welcoming 30 million international arrivals. In 2016, the growth rate of the number of international arrivals in Vietnam was 26%, welcoming over 10 million international arrivals, far exceeding Thailand's 9% increase.

TAB believes that visa requirements and convenience have a direct and strong impact on the number of tourists coming to Vietnam, especially those from developed markets such as Europe, Australia, Canada, the US and other markets.

TAB recommends that the Prime Minister consider extending the current visa exemption policy from 1 year to 5 years, increasing the number of days of stay from 15 to 30 days, and tourists can return within 30 days if they can show that they have a return flight (Illustration photo: VnEconomy)

In July 2015, the Vietnamese Government exempted visas for citizens of five Western European countries (UK, France, Germany, Italy and Spain) for one year, with a temporary stay of no more than 15 days from the date of entry. And then, on June 30, 2016, the Government extended the visa exemption for citizens of the above countries for another year (expiring on June 30, 2017).

According to statistics, the total number of visitors from these 5 countries increased by an average of 15.4% within 12 months since the visa exemption policy was issued. In 2016, the growth rate from these 5 countries was 18.4% despite being adversely affected because the Resolution on visa extension was issued right before the visa exemption expired. Meanwhile, visitors from distant markets often plan their trips and book services several months, even a year in advance.

In the first 4 months of 2017, the total number of visitors from 5 Western European countries reached nearly 333,000, an increase of 15% compared to the same period in 2016. This is a high increase for the distant market, with high spending and long-term stays. Of which, the Spanish market increased by 32%, Germany by 18%, Italy by 16%, France by 13% and the UK by 13%.

The average spending of tourists from these markets is often much higher than that of regional tourists on short-term trips, estimated at US$1,316/person (double the direct and indirect spending of tourists from nearby markets).

In the first year since visa exemption for visitors from 5 Western European countries, Vietnam welcomed 720,000 visitors, an increase of 96,000 visitors compared to the same period last year, with total revenue from this number of visitors being 126 million USD compared to an estimated visa fee deficit of about 21.6 million USD (average fee of 30 USD/person). Similarly, in 2016, the number of visitors from 5 Western European countries increased by 58,000 visitors and the revenue increased by 76 million USD compared to a visa fee reduction of 2.3 million USD.

Furthermore, tourists from these countries do not pose a security risk or a risk of illegal residence in Vietnam.

Based on the above situation, TAB recommends that the Prime Minister consider extending the current visa exemption policy from 1 year to 5 years, increasing the number of days of stay from 15 to 30 days and tourists can return within 30 days if they can show that they have a return flight.

At the same time, TAB continues to propose expanding the list of visa-free countries to include all major European countries and other major trading partners, especially Australia, Canada and New Zealand.

In addition, with the growth of flights from Australia, New Zealand to Vietnam and to connect more effectively long-haul flights to Europe and vice versa (Vietnam Airlines flights), it is recommended that the Government consider a policy of 48 or 72 hour transit visa exemption for passengers with air tickets to Europe to experience the charm of Vietnam to attract them back for their next vacations in the future.

TAB fully supports the e-visa program being piloted for citizens of 40 countries and proposes expanding this program to include Australia and New Zealand, as both countries have direct flights to Vietnam and are major trading partners, along with Canada and other target markets.

In addition, TAB also gave the Government advice on the implementation of the new e-visa in the initial stage, but there were many complaints about the inaccessibility of the website. In addition, to help foreign visitors easily find this website, it is also necessary to consider changing the domain name from “www.evisa.xuatnhapcanh.gov.vn” towww.evisa.gov.vn./.

According to Toquoc