Vietnam hotel room rates keep foreign tourists away
Hotels in Hanoi and hotels in Ho Chi Minh City all have raised the hotel room rates by 35-50% so far this year, which has raised the fear of losing foreign travellers.
Le Hoang Yen, Director of the CITE Centre under Ben Thanh Tourist, said that the company has failed to serve a delegation of 300 foreign travelers, who plan to arrive in Ho Chi Minh City in the last week of July 2007, due to the overly high room rates.
The five star hotel that CITE booked rooms has raised the room rate by nearly $100/room. “The hotel has agreed to cut 10% of the room rate after many negotiations. The foreign travel firm, which is our partner, has refused the deal as they said the discount was not attractive enough,” Mrs Yen said. Asian Trails also complained that the hotel that the travel firm always book rooms has unilaterally raised the room rates. Bui Viet Thuy Tien, Director of Asian Trails said that though the two sides (the hotel and the travel firm) have signed a contract on hotel room rates right at the beginning of the year, the hotel still decided to raise hotel room rates twice. The first time occurred in March 2007, when the 20% increase was offered, and the second time valid from May 1, when the room rates increase by 66.6% compared to the previously agreed rates.
Travel firms said that they have been trying to negotiate with the hotels, but it was in vain. All the hotels in Vietnam are full of guests and they all raise the room rates.
Patrick Gaveau, Business and Marketing Director of Focus Asia, said that Vietnam has been considered a new destination of foreign tourists partially because of the low hotel room rates. The rate for a room at a four star hotel was just $45-100 two years ago, while it is $65-100 now. Meanwhile, the rates for the similar rooms in Thailand and India are just $70-100. He has warned that if the hotel room rate keeps skyrocketing, foreign tourists may not choose Vietnam as the destination (Vietnam destinations) any more.Deputy Director of the Vietnam National Administration of Tourism (VNAT) said that Vietnam has become attractive in the eyes of foreign tourists. The number of foreign tourists to Vietnam in the first three months has increased by 14% over the same period of the last year, while the operational hotels cannot provide enough rooms. Mr Tu said that VNAT could not intervene the hotel’s business by releasing the orders asking hotels not to raise room rates.
Mr Tu said that travel firms should suggest foreign tourists to go to the neighbouring areas, no need to stay in Hanoi or Ho Chi Minh City. For example, tourists can travel directly to Quang Ninh and Hai Duong, or to Vinh Phuc to play golf.
Analysts said that the room rate increase proved to be unavoidable as there are not enough rooms to serve the increasingly high number of tourists. However, the situation would be improved in several months, when several high-grade hotels become operational.
(Source: Tuoi tre)
Vietnam Skyrocketing hotel room rates keep foreign tourists away (08/05/07)
AirAsia to increase flights to Vietnam, launch new service (07/05/07)
Vietnam history: Road that goes through historical monuments (06/05/07)Vietnam travel sector hunts for harmony with 3-in-1 destination package (05/05/07)
Hon Ong Island: Exploring rural nature Van Phong bay (04/05/07)
An Giang licenses 22 tourism, fish processing projects (04/05/07)
Cua Lo beach ready for new travel season (03/05/07)New tourism resort in Quang Tri province (02/05/07)Vietnam sea travel (02/05/07)Mang Den destination in Central Highlands Vietnam (01/05/07)
Phu Quoc Island Vietnam heats up (30/04/07)
Vietnam welcomes 370,000 foreign tourists in April (29/04/07)
Da Lat: “Valley of love” worth just USD44,000 (28/04/07)
More activities to celebrate Hung Kings Festival (27/04/07)
Hai Phong Travel Festival to feature sea food fair (26/04/07)
Airline offers Hanoi - Hong Kong flights (25/04/07)
Vietnam Pacific Airlines to offer super cheap tickets (24/04/07)Central Vietnam rich in resorts (24/04/07)