However, the Department says the number of tourists to the capital city is likely to decrease this year due to negative impacts of price rises. Many foreign tourists have cancelled their tours of Vietnam as these tours cost 20-30 percent more than earlier this year.

The impact of the price hike on the city’s tourist industry is similar to what happened in 2003 when Hanoi was suffering from the SARS (Severe Acute Respiratory Syndrome) epidemic, says Mai Tien Dung, deputy head of the department. However, Hanoi’s authorities have been well-prepared for this unexpected occurrence, he says.