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Room rates will not see big change in 2010: hoteliers

2009-12-15 (GMT + 7)

The national tourism department issued a document asking the national tourism association to stabilize hotel room rates while hotels say they made only slight room rate increases for 2010. The VNAT said it launched the request after receiving complaints that many hotels had decided to raise their rates despite commitments to cut prices.

Under the document, the Vietnam National Administration of Tourism (VNAT) said it launched the request after receiving complaints that many hotels had decided to raise their rates despite commitments to cut prices. This situation would result in unstable hotel room rates and loss of prestige of the country’s tourism.
To resolve the situation, VNAT has asked the Vietnam Tourism Association to encourage hotels to continue abiding by terms and conditions in the Impressive Vietnam promotion campaign to attract foreign travelers to the country.
VNAT also said the association would combine with administrative departments to punish hotels that break the agreement.
However, hotel operators said a room rate hike was tentative for 2010 only, and any rate increase must be accepted by partners.
Nguyen Thi Xuan Hong, manager of the Vien Dong Hotel, said the hotel had wanted to raise rates for new contracts for 2010 and was sending announcements to partners to get feedback.
“Partners didn’t agree and it’s difficult to raise rates because the travel industry has not recovered. We think we cannot increase rates more compared with this year’s rate,” she said.
Hoang Thach Thao, director of marketing and communications of the Renaissance Riverside Saigon Hotel, told the Daily the five-star hotel was considering rates for 2010 and had not sent any announcement about 2010 rates to partners.
“We are considering but at the moment we think prices for 2010 may not change compared to this year’s rate,” she said.
Thao also said that the Impressive Vietnam promotion campaign ended on December 31 so raising rates for 2010 should not be a problem.
The campaign was initiated by VNAT early this year to weather the economic storm. Following the call from the department, more than 100 travel agencies, hotels, transportation companies and other travel service provides across the country joined hands to reduce packaged tour prices by 30-50% for foreigners.
VietNamNet/SGT

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