Local tourists visit Tam Coc in Ninh Binh Province (Photo; SGGP)

One of the reasons that have made local tourists turn their back on domestic tours was unreasonable flight prices. Tourists found it ridiculous that flights to some countries in Southeast Asia are cheaper than flying from Ho Chi Minh City to Ha Noi.

The number of tourists from Ho Chi Minh City to northern and central provinces travelling by air has risen sharply since VNA reduced the price of domestic flights.

Return tickets were cut to VND1.4 million ($80), down from VND3.4 million ($195), for HCMC to Hanoi, and to VND810,000, down from VND2.2 million, for HCMC to Da Nang.

As a result, tours’ prices from Ho Chi Minh City to northern and central provinces have fallen by VND1.6 - 3.1 million per tour.

The deputy director of Young Generation Travel, Tran The Dung, said that the number of customers has risen by 300-400 people more than the same period last year.

However, only 11 out of 23 tour operators joining the campaign have received the price cuts, so tourism has yet to benefit.

The deputy head of the Domestic Travel Department of Saigon Tourist, Pham Duc Hoa, said that some regulations of VNA haven’t helped tour firms.

“VNA has ordered tour firms to book tickets and pay deposits for at least ten customers 15 days in advance,” he said, “domestic tourists, meanwhile, don’t have a habit of registering early. The earliest is just a week.”

Deputy director of Ho Chi Minh City Department of Culture, Sports and Tourism La Quoc Thang said that VNA is only committed to reducing prices till the end of May 2009.

“Tour firms, as well as the city’s tourism, hope that VNA will travel with them for this stimulus program till the end of September 2009 or longer,” he said.

VNA has also ordered tour firms to present their advertisements to make sure they will not make undue profit from the new flight prices, warning it would cancel the contract with such companies.

Other carriers, like Indochina Airlines and Jetstar Pacific, also plan to reduce their rates to stimulate domestic travel demand.

The number of tourists travelling by air has increased by 50 percent in recent times.

The stimulus program can only run smoothly when all the tour services work together.

The prices of other services, like hotels, restaurants, transport and tourist attractions at northern and central provinces, however, have to rely on the negotiation abilities of tour companies.

Tour firms are afraid that the prices will rise instead of falling, as the cost of electricity and water has risen.

Some tourist attractions have also raised their entrance fees, claiming environmental fees have been added.