Global hospitality services corporation Accor will cut its upscale Novotel hotel-room rates in Vietnam by half to attract more business, a company executive said recently.

Vietnam’s tourism was suffering as a result of the global economic downturn, and business travelers were also fewer in number this year, he said.

Foreign arrivals in Vietnam may fall 20 percent this year to 3.3 million as a result of the economic crisis and the H1N1 flu scare, the Ministry of Culture, Sports and Tourism said last month.

The number of foreign arrivals fell 19.1 percent year-on-year to 1.9 million in the first six months this year, the ministry said.

The country has not delivered an effective coordinated approach to stimulate tourism, which is affecting the performance of hotels throughout the country, Tangsaijavitoon said.

Tangsaijavitoon told Thanh Nien Daily that by offering reduced hotel rates, Accor was promoting Vietnamese tourism, which is competing with many neighboring countries for tourism expenditure, and providing a much needed tourism stimulus.

He said he expects Vietnam’s tourism to see “signs of recovery” later this year.

France-based Accor is currently the largest international hotel operator in Vietnam with 10 existing hotels and 10 development projects in the works.

Reported by Minh Quang