Opportunities for the international flight

Due to diversified natural and cultural heritages with distinctive and sustainable values, the central province has been an ideal destination for local and foreign holiday-makers. Local authorities also pleased guests of the conference with a special tour to Lang Co Bay, Thien Mu Pagoda, Minh Mang King Mausoleum and the Princess Huyen Tran Cultural Center.

Tourism has developed strongly in the province and plays an important role in the provincial economic structure. The number of international arrivals increased 25% to 30% per year from 1997 to 2007 with most of them being overseas Vietnamese or tourists from France and Eastern Europe, according to Nguyen Quoc Thanh, vice director of the provincial Department of Culture, Sports and Tourism.

This is a chance for local travel agents to cooperate with air carriers to exploit the charms of the province. Many experts say that Hue City sticks in the minds of many foreign vacationers, so enterprises will certainly make profits from marketing activities, travel services and products in the city.

The local government has targeted speed and breakthrough factors in its tourism promotion program. The program must be tied to the development of neighboring localities, Hanoi, HCMC, Southeast Asia and the East-West Economic Corridor to provide special products.

Solutions

Representatives at the conference suggested provincial authorities set up a general strategy for international flights to compete with other regional destinations. Moreover, local government, travel agents and air carriers should join hands for a large-scale and impressive tourism promotion campaign to lure more travelers.

However, many investors are still concerned about profits from international flights to the province, technical infrastructure and the potential of the air service market in central Vietnam. Not only inbound and outbound travelers, but also commercial air transport will impact economic results of the international flights, they say.

Charin Nukornarrarat from Thai Air International says that Thailand used to cooperate with partners to open international flights to Danang City but the project was not effective. From the experience, he advises the province launch seasonal charter flights and improve services in the high season.

Phu Bai International Airport should consider widening its runway as many international airlines prefer to use large aircraft. The province also has to invest in a shopping center to serve visitors, he says.

Meanwhile, Cindy Lam from Cathay Pacific Airlines suggests the province focus on business passengers and the air transport market. Commercial passengers play an important role in the economic effects of international flights. If the province can lure many passengers, many foreign air carriers will take an interest in the project, Le Hoang Ha, director of the central branch of Vietnam Airlines, agreed with Lam.

The two representatives propose the province invest in infrastructure and tourism products and launch a large-scale promotion program with various activities. The products must be attractive enough to keep tourists in the province for a longer time, Lam adds.

Jetstar Pacific Airlines general director Luong Hoai Nam suggests reviewing the shortcomings of international flights to Danang City and collecting experiences for the project in Thua Thien-Hue Province. The city provided air carriers landing fee exemptions in the first year and 50% discounts in the following year but that was not enough to lure investors. So investors in the province should be exempted from all charges in the first five years, he says.

In addition, the airport management unit should reduce ground service charges for the carriers. Airlines should be allowed to provide services customers need instead of trying to sell them what they have. As aircraft at Phu Bai International Airport taxi close to the terminal, Jetstar Pacific asked many times to let passengers walk instead of taking a bus. The suggestion has yet to be approved, Nam says.

Vietnam Airlines says the province should target a potential market to open direct flights there. For a short-term solution, local government should develop the Hue Festival into a world class event. The national flag carrier has pledged to help the province popularize the festival and launch more charter flights to the city.

The provincial tourism department plans to ask the Government to provide charge incentives for direct flights to the province. International air carriers will also receive preferential policies for opening flights to the province or from the province to a third country. Vietnam will remove the regulations on air service franchise charge collection, the most important policy to encourage air carriers to launch direct flights to the central province.

The department will cooperate with local and foreign travel agents to push up the travel and airline industries. Tourism companies have asked to design tours with special marketing and discounts for tourists flying directly to Phu Bai International Airport.

Central Airports Corporation has pledged to launch supporting policies for air carriers opening flights to Phu Bai Airport as well as for travel agents and investors of the flights. The corporation, Vietnam Airlines, the tourism department, the provincial tourism association, other airlines and travel agents all signed a cooperation agreement to develop the project.