$2.8 mln loan to assist pandemic-hit tourism staff in Da Nang

By Nguyen Dong   June 29, 2021 | 10:54 pm PT
$2.8 mln loan to assist pandemic-hit tourism staff in Da Nang
A street in downtown Da Nang, home to luxury hotels and resorts, is left deserted, June 2021. Photo by VnExpress/Nguyen Dong.
Authorities in central Da Nang city have approved a low-interest, unsecured loan package worth VND65 billion ($2.8 million) to support 1,000 tourism workers heavily affected by the Covid-19 pandemic.

The affected workers will be allowed to take out a maximum loan of VND100 million each with an interest rate of 7.92 percent a year, around half of normal bank rates. The maximum loan term is no more than 10 years.

Dang Viet Dung, chairman of Da Nang Tourism Development Promotion Fund, said this was part of the city's efforts to help pandemic-hit tourism employees overcome difficulties caused by the Covid-19 crisis.

The impact of Covid-19 has severely impacted the tourism industry. Da Nang received more than 8.6 million visitors in 2019 and earned tourism revenues of VND31 trillion.

Due to border closures and flight suspensions, the number of visitors to Da Nang last year fell 45 percent year-on-year to 3.9 million.

As of late last year, more than half of travel and accommodation businesses in the tourist city suspended operation while more than 30,000 tourism staff lost their jobs. Some businesses had cut their employee numbers by 70 percent to reduce costs.

Da Nang was the epicenter of the outbreak in July last year.

During the ongoing wave that hit the country in April, Da Nang has recorded 240 infections, prompting city authorities to close public beaches and only allow eateries to serve takeaways.

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