Tourism sector faces shortage of accommodation
22/08/2007 -- 4:28 PM
Ha Noi (VNA) – Sharp increases in the number of foreign tourists to Viet Nam and domestic holiday makers have led many hotels to hike prices, but this is putting pressure on the industry that could lead to loss in popularity.According to the National Administration of Tourism’s Hotel Department, the country now has over 8,550 three to five stars hotels with 170,550 rooms. The country welcomes about 13,000 foreign tourists a day.
In the first seven months of 2007, as many as 2.46 million foreigners visited Viet Nam, an increase of 16.2 percent over last year.
Many travel agencies share the view that local holiday makers are boosting luxury domestic tours. In high season June and July, about 1,000 tourists bought resort tours each month at the Ha Noi Tourism Company. Rooms in almost all resorts are booked months ahead.
Similarly, most hotels in Ha Noi and Ho Chi Minh City have an occupancy rate of between 90-99 percent, leading to the rapid increase in room prices. In the first six months of the year, room prices shot up by between 30-50 percent, even 100 percent at large hotels.
A representative of the Ben Thanh Tourist’s Centre of Incentive Tours and Events said he was worried the higher room price threats to affect the competitiveness of Viet Nam’s tourism. According to him, about 44 percent of tourists chose Viet Nam because of its comparative low costs in the region, but the increase in room prices could push cost for MICE (Meetings, Incentives, Conventions and Exhibitions) tours in Viet Nam up to regional level.
Joe Mannix, Head of the Tourism Working Group of the Viet Nam Business Forum said hotels must have a transparent price policies and strictly observe their agreements with travel agencies.
Deputy Director of Ha Noi Tourism Department Cao Thi Ngoc Lan also agreed that room price hike in high-grade hotels in Ho Chi Minh City, Ha Noi and other areas has worried travel companies.
In her opinion, the country needs to establish associations in charge of travel and accommodation to help combine the interests of all service providers in the sector.
According to experts, more high-grade hotels should be built to solve the accommodation shortage as well as meet long-term development of the tourism industry.
For Ha Noi, new high-grade hotels are needed so the capital can achieve its target of 2 million foreign visitors in 2010, Lan said.
In the near future, the city needs an additional 13,000 rooms mostly in three and four-star hotels.
Ho Chi Minh City has recently proposed 23 sites for building luxury hotels. Priority will be given to complexes of high-grade hotels and trade centres to provide 7,000 more rooms from now to 2010, said Dong Thi Kim Vui, Director of the city's Tourism Department.
The ministry of Culture, Sports and Tourism will soon also lend a hand by proposing investment incentives for hotel projects, minister Hoang Tuan Anh confirmed.
If these measures run smoothly, the tourism sector could provide around 15,000-20,000 four and five-star hotel rooms by 2010, sufficient to serve 5.5-6 million foreign visitors and 25-26 million domestic tourists.-Enditem
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