The growth has been driven by a series of festivals organised in April, including the Hung King's Death Anniversary Festival and Vung Tau Sea Festival.

Additionally, the demand for in- and out-bound tours of both local and foreign tourists during the upcoming national reunification anniversary (April 30) and May Day holidays has risen sharply, according to local travel companies.

Phung Van Khai, Vice Director of the Hanoitourism Company under the Hanoi Tourism Corporation, said the number of tourists heading to Southeast Asian countries, has been on the rise thanks to lower expenses and diminished concerns about the bird flu epidemic.

The Republic of Korea has become a new attractive destination for Vietnamese holiday makers this year, Mr Khai added.

Besides out-bound tours, there will be a series of short in-bound tours, especially to beaches with luxury resorts. However, many tourists have been unable to book tours to these destinations because of full occupancies in hotels.

To lure more local holidaymakers, travel companies have explored new tours, both inside and outside the country, together with offering promotion programmes and new services.

Local airlines also decided to reduce air fares for passengers and increase flights on the routes between Hanoi and Da Nang, Cam Ranh (Khanh Hoa province) and Da Lat, and between Ho Chi Minh City and Da Nang, Thua Thien-Hue, Cam Ranh, Quy Nhon and Phu Quoc.