The complicated developments of COVID-19 have forced many employees working in the Da Nang tourism industry to be laid-off or furloughed. Many of them had to find other livelihoods to make ends meet in life during the challenging times triggered by the pandemic. In a supportive move, the local authorities have given the green light to the provision of a preferential loan package worth VND 65 billion in total to tourism workers who are financially struggling. This is good news for the needy to get through financial difficulties because of their unemployment over the past 2 years.

Many tourism workers are looking forward to the city's unsecured credit package to solve immediate financial difficulties. Service staff are seen working at the Sheraton Da Nang Hotel at the Da Nang Sunset program. (Photo taken in April 2021 by THU HA)

Through the Da Nang Tourist Guides’ Association -conducted survey, about 40% of the total citywide tour guides have changed professions, 30% are unemployed and the remaining ones are still employed. Besides, 70% of the total said they would return to work after tourism is primarily restored.

Many tourism workers are looking forward to the city's unsecured credit package to solve immediate financial difficulties. After nearly 2 years of being unemployed, Ms. Nguyen Thi Trang, a tour guide living in Hoa An Ward, Cam Le District is running a coffee shop in front of her house to ‘fill her family’s rice bowls at home’. 

“Preferential loan is dubbed as the so-called “lifebuoy” coming in the right time for those who are suffering from long-term unemployment like me. I will make an application for the loan soon and hope to meet the criteria for loan approval”, said Ms. Trang.

Over 1,000 totally eligible tourism employees who are stuck in financial troubles sparked by the virus resurgence are expected to receive a combined estimate of VND65 billion worth of unsecured loans from the Da Nang Branch of the Viet Nam Bank for Social Policies (VBSP) to get through the tough times, said Ms. Mai Thi Thanh Hai, Deputy Director of Da nang Tourism Promotion Centre.

In detail, each eligible person will receive an unsecured loan of up to VND 100 million with an interest rate of 7.93% per annum for a maximum term of 10 years.

The loan package aims to support tourism workers to get through some difficulties triggered by their job loss. The tour guide (who holds the flag) is guiding the group at the Marble Mountains Tourist Area. (Photo taken before April 30, 2021 by THU HA)

The disbursement is expected in later July and August.

The borrowers must be members of the clubs of Tour Guides, Travel Agencies, Hotels and Transport Services.

They are now in desperate need of loans to change their or restoring their production and business in service of tourism such as upgrading their business facilities and repairing means of transport, and to cover their families’ living expenses amid tough times.

The bank will carefully consider the real needs, sources of capital, production cycle and debt repayment ability of the potential borrower to determine specific loan amounts for them.

From July 1 to 9, the Da Nang branch of VBSP is receiving applications held at the headquarters of People's Committees in wards and communes where the employee resides.

Guidance on completing procedures to access loans have been introduced through an online meeting organised by the Da Nang Tourism Development Promotion Fund in collaboration with the Da Nang branch of VBSP.

Currently, the Da Nang Tourism Association is making preparations for offering free training for tourism workers affected by COVID-19. Specifically, the municipal Tour Guides’ Club has registered for 6 training classes worth VND120 million, Hotels’ Club with 10 classes worth about VND400 million.

Reporting by THU HA – Translating by A.T