Many tourism businesses lose their ability to pay interest on bank loans
VietReader 18-09-2020, 19:35

Many tourism businesses lose their ability to pay interest on bank loans

Tourism businesses face many difficulties. Photo: Lobby of a 4-star hotel in Ho Chi Minh City, but quite empty. Photo: Lam Giang

This is one of the recommendations of the Ministry of Culture – Sports and Tourism in its document to the Government on urgent solutions to support tourism businesses in the context of the impact of the Covid-19 pandemic.

According to the Ministry of Culture – Sports and Tourism, tourism businesses are facing many difficulties. The travel and transportation business was almost closed because there were no customers. 95% of the tour operators stopped operating, of which 10% applied for the revocation of the license for travel services business, to terminate their operation.

Room capacity of accommodation businesses, hotels and resorts in Hanoi and Ho Chi Minh City is only 10%; The translation localities such as Da Nang, Quang Nam, and Quang Ngai have almost no guests (except for some experts and isolated guests).

Facing this situation, the Ministry of Culture – Sports and Tourism proposed a series of solutions, including a group of financial and monetary solutions. Specifically, it is recommended that the Government consider having a policy to delay the time to pay interest from banks until December 2021.

The reason given by this ministry is that many tourism businesses do not generate revenue so they cannot pay interest. Banks are currently applying a 1% -2% reduction in lending interest rates or extending or delaying the repayment period for customers affected by Covid-19 and are subject to restructuring, without delay policy on interest payment period. The Ministry also proposed the Government to direct the banking industry to continue restructuring debts, extending debt repayment time, freezing loan interests and not calculating overdue interest for tourism businesses.

Previously, a report by the HCM City Department of Tourism also showed that because there were no collateral, many businesses found it difficult to access preferential loan packages from banks. In addition, tourism is also considered as a high-risk industry, unable to repay debts because tourists are not many, but businesses still have to pay costs to maintain operations

T. Phuong

Source: – Translated by