A street in Hanoi capital during the social distancing period (Photo: VNA)Hanoi (VNS/VNA) - Tourism companies witnessed revenues dwindling in the second quarter due toborder closures and international flight bans amid the COVID-19 pandemic.
Thenumber of international visitors to Vietnam has significantly reduced sinceMarch, nearly two months after the first confirmed cases of COVID-19 appearedin Vietnam. The number slumped by 99.3 percent in June compared to the sameperiod last year.
Manytourism companies on the stock market recorded second-quarter revenues falling70-80 percent year-on-year, resulting in a sharp decline in profits or hugelosses such as Sheraton Danang, Vietravel and Dam Sen Water Park Corporation.
The Dam Sen Water Park (DSN)reported a loss of 4.3 billion VND in thesecond quarter. It enjoyed a profit of 42 billion VND in the same quarter last year.
Inthe first six months of this year, the company recorded a profit of a mere100 million VND.
Vietravel(VTR) reported revenue of 206 billion VND and a loss of 38 billion VND in Q2. In the first half, the companyearned 996 billion VND inrevenue, down 72 percent year-on-year and suffered a loss of more than 76billion VND.
Thecompany is among the largest travel companies in the country with revenuecoming mainly from international tours.
Thisyear, the company forecast revenue to fall nearly 60 percent compared to theprevious year. It expects a loss of about 22 billion VND, after consecutive years enjoying profits.
BenThanhTourist Service Corporation (BTV) also suffered a loss of more than 7billion VND in Q2.
Itrecorded a 60 percent decrease in revenue and a loss of more than 15 billion VND in the first six months.
Hoi An Tourist Service Joint Stock Company(HOT) reported a loss of 8.4 billion VND in the second quarter. The Board ofDirectors forecasts the company may suffer a loss of more than 6 billion VND in the third quarter.
As thetourism market has not yet recovered, the company temporarily approved athird-quarter earning plan with total revenue of 8.7 billion VND anda loss of nearly 6.2 billion VND.
In the lastthree months, COVID-19 had been effectively contained in the country,bringing hopes for the tourism industry. Many businesses have launchedpromotion packages to stimulate domestic customers.
However, theresurgence of the virus in Da Nangtwo weeks ago and its complicated developments are expected to continue puttingpressure on the industry in the future./.
VNA
