HCM City turns down tourist tax proposal

HCM City People's Committee has denied the Department of Tourism's proposal to apply a city tax which charges each tourist USD1 a night.

HCM City People's Committee has denied the Department of Tourism's proposal to apply a city tax which charges each tourist USD1 a night.

 

Tourists in HCM City.

The proposal was signed by the director of the Department of Tourism Bui Ta Hoang Vu on September 1. The fees were to be donated to the city's tourism fund. In the official document, the department pointed out that several countries have applied city tax such as Switzerland's USD2.50 charge per tourist per night.

Tran Van Long, director of Viet Media Travel Corporation, said the Ministry of Culture, Sports and Tourism also shared the idea and had worked with the Vietnam Tourism Association and Vietnam Society of Travel Agents many times but to no avail.

According to Long, state funding for tourism promotion is too low. But if the plan is realised, it must be transparent and need detailed directives and regulations on how to manage and use the fund.

However, according to the HCM City People's Committee, the tax could have a negative effect while the city is still developing tourism into a key economic sector. The Department of Tourism was asked to withdraw the proposal and explain the decision by October 15.

Many people think that HCM City needs to diversify its services and products instead of applying more charges.

Local tourism firms said USD1 was a small amount but without a reasonable explanation, tourists would object. The Department of Tourism should also not charge tourism firms the fees because they have already paid various taxes which could be used for promotion.