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Covid-19 Could Cost Da Nang Tourism $1.1bn This Year

Life in Da Nang is slowly returning to normal after the third wave of COVID-19 infections, though economic ramifications will remain.

Tuoi Tre cites statistics from the Da Nang Department of Tourism projecting that the city’s tourism revenue will reach VND10 trillion (US$430 million) by the end of 2020, amounting to a 65.1% year-on-year drop.

It’s estimated that the pandemic will cost the sector VND26 trillion (US$1.12 billion) this year. Compared to last year, tourist arrivals are also predicted to decrease by 68.6% to just 2.7 million visitors.

The dearth of tourists so far has caused 250 of around 1,000 hotels and other accommodation services in Da Nang to cease operation and more than 31,000 local workers to be furloughed or laid off.

In the industrial sector, Phạm Trường Sơn, who leads the management committee of Da Nang’s hi-tech and industrial parks, shared that around 150 of 450 local manufacturing plants and factories haven’t been able to resume normal operations due to COVID-19.

Most companies cite shortages in ingredients, demand, and foreign experts as factors preventing them from pumping up production.

Da Nang was Vietnam’s most serious COVID-19 cluster so far this year, accounting for hundreds of cases linked to three major hospitals. The outbreak also led to Vietnam’s first deaths as the disease swept through already-weak patients at the medical facilities.

However, after over a month under compulsory social distancing and active contact tracing, the city hasn’t reported new community cases in weeks. From September 18, Da Nang authorities allowed most businesses and public activities to reopen, with the exception of bars, pubs, karaoke joints, massage parlors and nightclubs.

As of September 19, only two active cases remained in Da Nang. Today, September 22, marks the 20th day since Vietnam’s last community transmission, though over 23,700 citizens are still undergoing mandatory quarantine.