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The COVID-19 Pandemic and Its Impacts on Tourism Business in a Developing City: Insight from Vietnam

Author

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  • Da Van Huynh

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

  • Thuy Thi Kim Truong

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

  • Long Hai Duong

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam
    Department of Global Hospitality and Tourism, Kyung Hee University, Seoul 02447, Korea)

  • Nhan Trong Nguyen

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

  • Giang Vu Huong Dao

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

  • Canh Ngoc Dao

    (School of Social Sciences and Humanities, Can Tho University, Can Tho 900000, Vietnam)

Abstract

The COVID-19 pandemic has generally destroyed the global tourism industry and threatened the recovery of destinations in developing countries facing more challenges from increasingly serious waves of the pandemic. Although many studies have attempted to measure the general impacts of COVID-19, very little research has been conducted to assess its overall impact on specific tourism destinations throughout many waves of the pandemic. This research aims to explore how a tourism economy in a developing country context has been damaged after many waves of COVID-19. A typical emerging city in Vietnam experiencing three waves of the COVID-19 pandemic was selected as a case study. The study recruited 40 representatives of tourism-related organizations for in-depth interviews, while 280 questionnaires were distributed to participants from different tourism organizations. The findings indicate that the majority of tourism businesses in the examined case study seriously suffered from the pandemic, and very few tourism-related enterprises were able to recover after the first wave of infection. Unfortunately, the tourism business sectors were found to be on the brink of bankruptcy or facing permanent shutdown after the third wave. All tourism enterprises generally appeared to experience a sharp drop in the number of customers, tourism revenue, service facilities and exploitation, as well as employee downsizing, but the degree of downturn differed among the examined enterprises. Among the tourism enterprises, travel agencies and the accommodation sector were found to suffer the greatest economic losses compared to other stakeholders. In general, the COVID-19 pandemic’s impact on the tourism business in Vietnam is a big concern, which may require a timely economic policy response and financial scheme to better support local enterprises in coping with the challenges during post-pandemic recovery.

Suggested Citation

  • Da Van Huynh & Thuy Thi Kim Truong & Long Hai Duong & Nhan Trong Nguyen & Giang Vu Huong Dao & Canh Ngoc Dao, 2021. "The COVID-19 Pandemic and Its Impacts on Tourism Business in a Developing City: Insight from Vietnam," Economies, MDPI, vol. 9(4), pages 1-17, November.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:4:p:172-:d:673212
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    3. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    4. Da Van Huynh & Long Hai Duong & Nhan Trong Nguyen & Thuy Thi Kim Truong, 2022. "Tourism Vulnerability Amid the Pandemic Crisis: Impacts and Implications for Rebuilding Resilience of a Local Tourism System in Vietnam," Social Sciences, MDPI, vol. 11(10), pages 1-13, September.
    5. Da Van Huynh & Long Hai Duong & Thuy Thi Kim Truong & Nhan Trong Nguyen, 2022. "Destination Responses to COVID-19 Waves: Is “Green Zone” Initiative a Holy Grail for Tourism Recovery?," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    6. Long Hai Duong & Quyet Dinh Phan & Tung Thanh Nguyen & Da Van Huynh & Thong Tri Truong & Khanh Quoc Duong, 2022. "Understanding Tourists’ Behavioral Intention and Destination Support in Post-pandemic Recovery: The Case of the Vietnamese Domestic Market," Sustainability, MDPI, vol. 14(16), pages 1-17, August.
    7. Ajeigbe Kola Benson & Ganda Fortune, 2022. "Sensitivity analysis of the impact of Covid-19 on corporate sustainability and company performance:Recovery strategy for companies and nations around the world," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(3), pages 16-26, April.

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