Expecting to welcome 500,000 tourists this year (an increase of 180,000 compared to 320,000 in 2010 and continually growing), Central Phu Yen province will see major developments in the tourism aspect as part of Vietnam’s move to expand its tourism scope.

Among the largest investors, the New City Properties Development Company, placed in billions of dollars to come up with a mega tourism joint housing hotels, luxury resorts, office buildings, restaurants, healthcare facilities, golf courses and several sports clubs. Located in a favorable position, near the economic hub of southern Vietnam, the province has at present 88 accommodation facilities with about 2,000 rooms and 10 tourism and entertainment facilities. But this project, which is the largest tourism investment in the province, will make a huge difference in the region’s economy and tourism environment.

Frank Cheung, general manager of New City, however claimed that the company is coming across a number of challenges. Referring to clearing difficulties, the company had already cleared more than 80 per cent of the project site, which was licensed in 2008 and would cover 565 hectares. But clearance is taking more time than they expected. A lot of difficulties surfaced in the process of compensation delaying different construction items. During 2010 New City started the first stage of the project with a road connecting the project site with National Road 1A already completed.

This year, the company will continue with the compensation procedure and to clean up the ground surface as well as building some items such public transportation, infrastructure, recreation parks and vacation villages. But if more challenges on site clearance arise, the construction process will be delayed. Oftentimes, local residents ask for high compensation and may change their minds in the middle of a negotiation, asking for a better price. Some of the remaining land to be cleared are found to be burial sites, which make things more complicated because removing tombs require a lot of time. Government regulations dictate that provincial authorities are in charge of clearing sites for investment projects.

But such is not strictly followed and at present, local authorities most likely ask investors to compensate and clear the site in advance while allowing them tax cuts and land rental exemptions. With the project expected to begin operations by 2013, New City is pushing to hit the deadline while overcoming the challenges along the way.