Hanoi-Vietnam: New regulations specified in the Law on Tourism 2017

a) The Law on Tourism 2017 places tourists at the center

One of the consistent viewpoints of the Law on Tourism 2017 is to place tourists at the center of all tourism activities. Many related contents such as regulations on the management of tourism areas and spots, travel service business, tour guides, and other tourism services have all been adjusted and supplemented to ensure the security, safety, legal rights, and interests of tourists, facilitating tourists in sightseeing and traveling.

b) Regarding tourism development policies

Institutionalizing Resolution 08-NQ/TW dated January 16, 2017, of the Politburo on developing tourism into a spearhead economic sector, the Law on Tourism 2017 has stipulated more specific and feasible policies (Article 5). Organizations and individuals engaged in tourism business are entitled to the highest level of investment incentives and support when the State issues and applies investment incentives and support policies; at the same time, the Law has specified some special policies for tourism activities with prioritized allocation of resources from the budget or State encouragement and support.

To bring this Law into practice, as well as to implement Resolution 08 of the Politburo on developing tourism into a spearhead economic sector, the participation of many ministries and central authorities, as well as local governments, is required through the revision and issuance of some legal documents.

c) Regarding developing tourism products

Tourism products are the basic and crucial elements in tourism business activities. However, the Law on Tourism 2005 lacked regulations for the development of tourism products. To overcome this limitation, the Law on Tourism 2017 has supplemented regulations:

Points b and d, Clause 4, Article 5: The State has policies to encourage and support research activities, orient the development of tourism products; invest in developing new tourism products with a positive impact on the environment, attract the participation of local communities; invest in developing marine tourism products, eco-tourism, community-based tourism, cultural tourism, and other special tourism products.

Article 18: Clause 1 affirms the right of organizations and individuals to create, develop, and do business in tourism products; Clause 2 assigns the Government of Vietnam to provide orientation and policies to support the development of key tourism products suitable for each region and nationwide according to specific periods; Clause 3 assigns the Government of Vietnam to stipulate detailed measures to ensure the safety of tourists for tourism products that may affect the lives and health of tourists.

Notably, Tourism Law 2017 has an article (Article 19) regulating community-based tourism, which is a distinctive tourism product based on promoting the local cultural identity and community management and participation. Developing community-based tourism contributes to the socio-economic development of less advantaged localities, bringing direct benefits to ethnic communities.

Clause 2, Article 19, stipulates that the provincial People's Committee is responsible for selecting potential locations for developing community-based tourism and supporting households to participate in community-based tourism development in those areas.

Clause 3 stipulates the responsibilities of the communal-level People's Committee to educate and promote a civilized attitude among the local community toward tourists, as well as preserve the cultural identity and maintain a healthy, clean tourism environment.

d) Regarding tourism areas and spots

The Law on Tourism 2017 has adjusted the conditions and timing for recognizing national tourism areas, provincial tourism areas, and tourism spots to ensure practicality and feasibility.

Compared to the Law on Tourism 2005, there are no longer provincial-level and national-level tourism spot regulations.

Regarding recognition timing: whereas the Law on Tourism 2005 did not clearly stipulate the recognition timing for tourism areas and spots (whether for attracting investments or after establishment), the Law on Tourism 2017 only recognizes tourism areas once they have met the infrastructure criteria, meaning they have been established and the recognition serves as a brand for the destination. The authority to recognize has also been adjusted. The Minister of Culture, Sports, and Tourism decides to recognize national tourism areas, and the Chairman of the Provincial/Municipal People's Committee decides to recognize provincial tourism areas and tourism spots.

It is expected that after the Law takes effect, many tourist areas and spots will be recognized, contributing significantly to the creation of high-quality tourism products and brand promotion, attracting tourists.

dd) Regarding licensing for domestic travel business

Domestic tourism increasingly plays an important role and is currently a popular demand among Vietnamese people. The Law on Tourism 2005 only regulated the licensing of international travel business, not domestic travel business.

In recent years, domestic tourism has developed rapidly. Due to the lack of licensing regulations, many organizations and individuals have not established enterprises, or if established, do not meet the conditions, do not notify the tourism management agencies at the provincial level of the business start date; during operations, they reduce programs and services, fail to meet the service quality commitments to tourists, leading to disorder, unhealthy competition affecting tourists' rights. Therefore, to ensure the rights of domestic tourists (Vietnamese traveling within Vietnam territory), the Law on Tourism 2017 requires enterprises to obtain a license for domestic travel services.

The procedure for licensing international travel services has also been simplified. Instead of submitting documents through the department, which are appraised and sent to the General Department of Tourism, enterprises only must directly send them to the General Department of Tourism.

e) Regarding the ranking of tourist accommodation establishments

The Law on Tourism 2005 required all tourist accommodation establishments to register for ranking within three months from the start of business operations. Although this regulation facilitated state management of tourism accommodation quality, it heavily relied on administrative management, interfering with the market dynamics in tourism accommodation business operations.

Aiming to encourage organizations and individuals in tourism accommodation services to improve service quality, and ensure tourists' rights based on market dynamics while reducing the impact of administrative measures in business operations, the Law on Tourism 2017 stipulates minimum technical facilities and service conditions to ensure minimum service quality for all tourist accommodation establishments. During operations, accommodation establishments seeking to affirm service quality and create a brand reputation with tourists will register for ranking with competent state agencies.

g) Regarding licensing signs for tourist transport vehicles

According to the Law on Tourism 2005, Departments of Transport are the agencies licensing signs for tourist transport vehicles after obtaining the opinion of the Department of Tourism and the Department of Culture, Sports, and Tourism. To simplify administrative procedures, the Law on Tourism 2017 assigns this task to the Department of Transport. The Tourism sector has cooperated with the Transport sector in drafting the Circular stipulating the conditions for drivers, service staff, equipment, and services on tourist transport vehicles. According to the draft Decree submitted to the Government of Vietnam, licensing signs for tourist transport vehicles only apply to motor vehicles and inland water transport vehicles (with engines and registration) while not applying to rudimentary transport vehicles.

h) Conditions for tour guide operations

Recognizing the importance of tour guides in conveying cultural and historical information, connecting tourism services, and taking care of tourists, contributing to enhancing the national, local, and destination image and tourists' satisfaction, the Law on Tourism 2017 adjusts and supplements regulations on practicing conditions and conditions for issuing tour guide cards.

- Practicing conditions for tour guides are more strictly regulated: In addition to having labor contracts with travel service enterprises, tour guides can practice guiding if they have contracts with enterprises providing tour guide services or are members of social-professional organizations for tour guides. Additionally, when guiding a specific group, tour guides need to have a guiding contract with travel service enterprises or a written assignment of guiding duties according to the travel program; for tour guides at tourist spots, they must have the assignment of the organization or individual managing the tourist spot or area. This regulation also helps prevent the unauthorized operation of "underground" tourism services by tour guides.

- The qualification and professionalism conditions of international tour guides are adjusted from a bachelor's degree to a college degree to meet the practical needs of tourists, workers, and management requirements. The regulation for issuing international tour guide cards with a college degree will help address the shortage of tour guides, especially in some languages during certain periods.

h) Regarding other tourism services

These are supplementary tourism services to basic tourism services such as travel, accommodation, and tourist transport. These services play an important role in increasing the attractiveness of tourism products, prolonging the stay and increasing tourists' spending. Therefore, the Law on Tourism 2017 has added detailed regulations on developing these services. The Law on Tourism 2005 only regulated the issuance of standard signs for service providers within tourism areas and spots. The Law on Tourism 2017 expands eligibility for such signs to all service providers when they meet the criteria and wish to apply, regardless of their location, as many enterprises in urban areas also wish to obtain these signs.

i) Regarding the Tourism Development Support Fund

Establishing the Tourism Development Support Fund is necessary for the tourism sector to implement domestic and international tourism promotion activities; support market research and tourism product development; support training and fostering tourism human resources development; and conduct community tourism communication activities, enhancing the quality of tourism activities.

The establishment of the Tourism Development Support Fund has been regulated in the Law on Tourism 2005 but in a general, non-specific manner regarding revenue sources, lacking feasibility, so over the past 10 years, it has not been possible to establish the Fund.

Addressing this shortcoming, the Law on Tourism 2017 has specified the legal status, purpose, and operating principles of the Fund. Notably, the Law has provided more specific revenue sources to ensure the feasibility of establishing the Fund. The Fund will be formed from: (1) charter capital allocated by the state budget, (2) annual state budget supplements from a portion of revenue from entrance fees, visa issuance fees, and related immigration document fees for foreigners entering Vietnam, (3) voluntary and lawful contributions from enterprises, organizations, individuals domestically and internationally, (4) other lawful revenue sources as prescribed by law. The specific norms and proportions will be detailed by the Government of Vietnam.

This is an important amendment, creating a legal basis for establishing the Fund in the coming time./.

Nguyen Thi Thanh Huong

Deputy Director General of the Vietnam National Administration of Tourism

Source: Vietnam National Administration of Tourism – The Vietnam Ministry of Culture, Sports, and Tourism

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