VIETNAM NATIONAL UNIVERSITY, HANOI

UNIVERSITY OF LANGUAGES AND INTERNATIONAL STUDIES

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ENGLISH FOR TOURISM

CASE STUDY

Lecturer: Trần Thu Hà

Student’s name: Hà Thị Cẩm Tú
Student’s code: 19032622

Ha Noi – July 2023

 CASE STUDY REQUIREMENT
You are supposed to write a report (500-700 words) on the impacts of Covid-19
on ONE sector of the tourism industry (e.g. transportation, accommodation, food
and beverage, recreation and entertainment, and travel services), in which you
should provide/analyze background information, the effects of Covid-19 and
measures that have been taken. Besides, recommendations should be given to
minimize such effects and to support people and businesses through the crisis.

THE IMPACTS OF COVID-19 ON ACCOMMODATION SERVICES

1. Introduction:
The Covid-19 pandemic, which first appeared in late 2019, has significantly
impacted the tourism industries, including those tourist accommodation services.
This essay analyzes the substantial consequences of Covid-19 on
accommodations in Vietnam, assesses the solutions to these issues, and offers
suggestions to mitigate the effects and assist individuals and organizations
through this crisis.
2. Background information:
Accommodation is an essential part of the tourism industry. Accommodation as
a service and the hotel as equipment are components of a much larger tourism
product, in which accommodation is the primary concern for the client once a
specific place has been selected (Nita, V., Butnaru, I., G.,, 2008, p.236-249). The
greatest way to go along with a warm welcome is with a bright, tidy room
(Pood, G., Leisure, J.,, 1964, p.21) While traveling, a spot where tourists may
relax and re-energize is crucial. Businesses regard housing facilities as an
exceptionally essential aspect of the tourism industry in terms of meeting the
needs of tourists. However, the Covid-19 epidemic has significantly impacted
the tourism business. Many hotels are shuttered, and some are permanently
closed. Recently, the Covid epidemic has stabilized again, and many
accommodation facilities have been reopened, but they are still dealing with
significant damage inflicted by Covid-19.
3. Effects of COVID-19:
Among economic sectors, tourism is considered to be the most severely affected.
Vietnam closed international tourism in March 2020. The number of
international visitors to Vietnam in 2020 decreased by 78.7% compared to 2019,
of which more than 96% were international visitors in the first quarter of 2020
(Mai Anh, 2021). By 2021 the number of international visitors to Vietnam will
decrease by 96.3% (Quang Dong, 2021). Besides, domestic tourists in 2020
decreased by 34.1%, down about 58.7% compared to the same period in 2019
(MaiAnh,2021).

Cre: https://special.nhandan.vn/dulich2021/index.html
These numbers show that the accommodation establishments are struggling due
to the sudden tourist drop.
Cre:https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2022/10/dich-vu-luu-tr
u-an-uong-va-du-lich-lu-hanh-9-thang-nam-2022-phuc-hoi-tich-cuc/

From this chart we can see the change in revenue of accommodation, catering
and travel services before and during the Covid-19 pandemic.
Before the pandemic in 2018, accommodation service revenue was VND 396.6
trillion, increasing to VND 44 trillion in 2019. This is a good sign for tourism in
this period. But that all changed when tourism flooded in. By 2020, revenue will
drop to VND 91.5 trillion within just 1 year. This number will continue to
decrease further in 2021 with VND 70.6 trillion compared to 2020. This has
made hotels and restaurants in turmoil. By 2022, when the government applies
many measures to prevent covid, the revenue will show signs of recovery,
increasing by VND 152.4 trillion but still lower than 2019.
The growth rate of accommodation service revenue was 9.4% in 2018,
increasing to 11.1% in 2019. By 2020 the proportion will decrease to 20.8%. By
2021, it will still decrease by 20.2%.
As a result, many establishments, after a period of moderate operation, had to
close. The number of newly established businesses in the accommodation and
food service industry in 2020 decreased by 22%. It fell by 2.8% in the first six
months of 2021 because the number of newly established businesses in the
economy reached a high in 2016-2021 (Mai Anh, 2021). According to data
published by the Ministry of Culture, Sports and Tourism, by the end of June
2021, the number of tourist accommodation establishments nationwide is 37,000
with 780,000 rooms; The average capacity rate of rooms nationwide is only
15%, in many places less than 10%.
In addition, the workforce in the period 2020-2022 also has many changes.
Cre:https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2022/04/bao-cao-tac-do
ng-cua-dich-covid-19-den-tinh-hinh-lao-dong-viec-lam-quy-i-nam-2022/

The chart shows that the number of employees decreased to only 49.4 million in
the second quarter of 2020. By the fourth quarter of 2020, due to some
preventive measures, this number increased to 52.1 but continued to decrease.
Down in the third quarter of 2021 to only 49.1 million people. Recently, this
number has tended to recover into the “new normal.” Thus, we can see that the
labor force is exceptionally volatile during Covid-19, with many people losing
their jobs.
Particularly in the accommodation and food service industry (740 thousand
employees), temporarily laid off59% were laid off, 28% or rotated, and 13% lost
their jobs as of mid-April 2020 (Huy Hue, 2020).
We can see that the impact of Covid-19 on accommodation services is
exceptionally devastating. Many hotels that had to close down did not even
reopen. Besides, the labor force in the accommodation service has also
increased. It is making people face a lot of financial stress.
4. Measures:
Facing the substantial impacts of Covid-19 on accommodation services. We
need to find the appropriate solutions to solve this problem quickly:
Firstly, improve hygiene and keep a safe distance. Accommodation providers
must implement strict hygiene procedures to ensure the safety of guests and
staff. Hotels and other accommodation facilities need to practice effective social
distancing for travelers. Limited capacity to limit the number of guests and
ensure a safe distance.
Secondly, Apply technology to learn safety information about the destination.
Develop a COVID-19 safety assessment and registration system to apply to
tourist attractions, travel businesses, accommodation establishments, guides, and
tourism service businesses in the locality at https://safe.tourism.com.vn (Adim,
2020).
Thirdly, the Government needs to issue specific support policies for the tourism
industry (reducing electricity prices for tourist accommodation establishments
from the retail price of electricity applied for business to the retail price of
electricity used by tourists). For manufacturing industries, a 50% reduction of
appraisal fees for travel business licenses, an 80% reduction of deposits for the
establishment of travel businesses, etc (Nguyen Trung Khanh, 2022).
Lastly, in addition to "domestic" solutions, the "tourist bubble" is a solution that
is attracting the interest of many nations. Simply put, a "tourist bubble" means
that countries coping well with the Covid-19 epidemic connect, travel and trade
activities between these countries return to normal (Jessie Yeung & Jessie Yeung
and Pauline Lockwood, 2021). According to calculations by The Economist, it is
possible to create bubbles that connect countries that account for 35% of global
GDP, 39% of total global trade volume, and 42% of world travel spending.
5. Recommendations:
With the "new normal" context showing promising signals, I think the
challenging days for lodging services are gradually ending, and now is the time
to deal with the effects that COVID has left behind. First and foremost, tourist
and hospitality businesses need to learn more, update their recovery and
development plans in the post-COVID context and devise a plan for resuming
operations after a hiatus. Moreover, To promote people's requirements after a
lengthy period of boring time within their homes, conduct promotion focusing
primarily on domestic visitors. Additionally, discounts are required to draw
travelers. In the long run, vaccination programs and maintaining health after the
pandemic must not be disregarded because it is still possible for the pandemic to
recur.

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