Ho Chi Minh City: extensive potentials for hotel market
Hotel market in Ho Chi Minh City, The number of foreign visitors travelling to Ho Chi Minh City in the first quarter of 2008 rose by 20% year on year, with hotel occupancy rate averaging 85%. The hotel market, therefore, is very attractive.
According to the Vietnam National Administration of Tourism (VNAT), the city has 872 hotels, including 11 five-star, 8 four-star and 26 three-star hotels, supplying around 22,000 rooms. Last year Ho Chi Minh City welcomed 2.7 million international tourists, a surge of 14.8% compared to 2006.
In the first three months of this year, the city hosted 840,000 foreign visitors, up by 20% compared to the same period of last year, reaching its 28% annual target (3 million).
It is forecast that the need for hotel rooms will greatly increase, especially the demand for five-star hotel rooms. The Ho Chi Minh City Department of Tourism said the city needs to build an additional 12,000 hotel rooms from now to 2010, including around 7,000 rooms of 3 to 5 star standard to satisfy around 7.3 million foreign visitors.
According to a survey by the local Department of Tourism, the demand for luxurious hotels is rising. The room occupancy rate at 3-5 star hotels is at 80 to 90%.
From now to 2013, the city will have around 4,700 new hotel rooms compared to the real need of 12,000 rooms. The new hotels will be mainly put into operation after 2010. As a result, in the next several years, Ho Chi Minh City will lack hotel rooms so room rates may reach $500/day in the travel season.
||Number of hotels
||Number of rooms
||Room occupancy rate
||Average rate/day (USD)
||Predicted average rate/day (USD)
(The above prices don’t include value added tax but include service fee and breakfast)
(Source: CafeF, URL:http://english.vietnamnet.vn/travel/2008/05/784225/)
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