Tourism revenue sinks as pandemic hammers demand
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 Viet Nam has significantly reduced since March, nearly two months after the first confirmed cases of COVID-19 appeared in Viet 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 Dam Sen Water Park Corporation.
Dam Sen Water Park (DSN) reported a loss of VND4.3 billion in the second quarter. It enjoyed a profit of VND42 billion in the same quarter last year.
In the first six months of this year, the company recorded a profit of a mere VND100 million.
Vietravel (VTR) reported revenue of VND206 billion and a loss of VND38 billion in Q2. In the first half, the company earned VND996 billion in revenue, down 72 per cent year-on-year and suffered a loss of more than VND76 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 VND22 billion, after consecutive years enjoying profits.
BenThanh Tourist Service Corporation (BTV) also suffered a loss of more than VND7 billion in Q2.
It recorded a 60 per cent decrease in revenue and a loss of more than VND15 billion in the first six months.
Hoi An Tourist Service Joint Stock Company (HOT) reported a loss of VND8.4 billion in the second quarter. The Board of Directors forecasts the company may suffer a loss of more than VND6 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 VND8.7 billion and a loss of nearly VND6.2 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 Da Nang two weeks ago and its complicated developments are expected to continue putting pressure on the industry in the future.