Suggestions to mitigate Covid-19 impacts on transport industry

Khanh Hoa Department of Transport has assessed  Covid-19  impacts on the local transportation industry and thus suggested some solutions for post-pandemic recovery.

 

Turned upside down due to Covid-9

 

According to the leader of the Department of Transport, the number of tourists to Khanh Hoa Province used to reach around 6.5 million/year. The Covid-19 epidemic has caused significant drop in tourism with international visitation almost falling to zero, which has adversely affected the passenger transport industry. 

 

 

 

 

There are 13 passenger transport businesses operating on fixed routes with more than 230 vehicles in the province. Many localities are under social distancing restrictions due to the resurgence of Covid-19 infections at the end of 2020 and in the first 6 months of 2021. Many interprovincial fixed bus routes have also ceased. The volume of road passengers decreased by 68.32% in 2020 compared to 2019; down by 15.52% in the first 6 months of 2021 compared to the same period last year.

 

There are more than 1,000 inland waterway vehicles serving island tours with 3.6 million of visitors/ year on average. The number of inland waterway passengers in 2020 fell precipitously by 75% compared with 2019; down by 55% compared with the same period  last year.

 

In 2020 and the first 6 months of 2021, the Covid-19 outbreak severely impacted the local transport industry, especially the passenger transport which was even faced with more difficulties during the social distancing in line with the Prime Minister's Directives 15 and 16 in Khanh Hoa. Many enterprises have nearly come to a halt, according to Nguyen Xuan Thu, Deputy Chief of the Transport Management Office, Khanh Hoa Department of Transport.

 

3 transport recovery solutions suggested

 

 

The passenger transport service, including tourist chartered service, tour buses and taxis, mainly serves tourists. At present, there are 235 charter travel businesses with nearly 1,800 vehicles and 12 taxi businesses with 1,250 vehicles serving tourists in Khanh Hoa.

Cao Tan Loi, Deputy Director of Khanh Hoa Department of Transport says the return of domestic and international tourists to Khanh Hoa depends on Covid-19 situation. However, according  to the World Tourism Organization, the return to 2019 levels in terms of tourist arrivals would take between 2½ to 4 years. Meanwhile, businesses have to pay interests for loans for the purchase of vehicles and depreciation costs  every year.

 

The Department of Transport has suggested some solutions to mitigate difficulties for the transport industry in the province. Specifically, the department recommended that the State Bank of Khanh Hoa branch and some commercial banks and financial units would continue providing support for transport enterprises in terms of debt freezing, debt rescheduling, interest rate exemption and reduction during this period until transport markets basically recover; The Ministry of Finance would continue considering reduction of fees and charges related to transport activities such as tonnage dues; entry and exit fees; road maintenance fees, registration fees, etc. to support businesses to maintain operational and promote resilience and development for recovery in the following years; The Tourism Industry in coordination with other sectors would urgently have synchronous measures to stimulate international tourism, beginning with countries with a high proportion of vaccinations and vaccine passports. 

 

 

M.H

Translated by N.T