VietNamNet Bridge – The
sharp increase in the number of tourists visiting Vietnam is good news for hotel
developers. Real estate developers, anticipating the new wave of tourism
development, have been rushing to build more hotels.

In
the third quarter of 2010, the “gold inlaid” five-star hotel Grand Plaza with
400 rooms was put into operation. Two other three star hotels Oasis and Asean
have also become operational, thus raising the total number of new hotel rooms
to 560. The newly operational hotels increase the total number of rooms ready
to serve tourists by seven percent in comparison with the same period last year
and by 10 percent in comparison with the second quarter of 2010.

According
to Savills Vietnam, a real
estate service provider, to date, Hanoi
has had 41 3-and-higher-star hotels with 6000 rooms, including 5-star hotels,
seven 4-star and 24 3-star hotels.

Also
according to Savills Vietnam,
Hanoi expects
to have 33 more hotels to be put into operation in the time to come. In the
immediate time, three hotels will officially join the market, including
Oriental Pearl Hotel on Phan Chu
Trinh street, Hotel de L’Opera (which was once Dan
Chu Hotel) on Trang Tien street
and Crowne Plaza Hanoi located in the west of the city, which will provide 550
rooms.

Vu
The Binh, Director of the Travel Department under the Vietnam National
Administration of Tourism (VNAT), said that in 2010, the number of foreign
tourists to Vietnam
may reach the record high of five million. These include 770,000 travelers from
China, 400,000 from Japan, and 350,000 from the US. Besides, Vietnam also receives the tourists from Taiwan, Australia,
Cambodia, Thailand, Malaysia
and France.

Robert
Mcintosh, Managing Director of CBRE Asia Pacific, a real estate service
provider, said that the increasing number of tourists to Vietnam should
be seen as the good news for hotel business. However, he said that hotel
developers should draw up clear business strategies right when they decide to
do business in this field. They should point out who will be their target
clients, so that they can have a suitable design, thus allowing to optimize
profit. Every hotel should provide the kinds of services that fit their target
clients. He also said that it is necessary to have specific services for domestic
travelers – the clients with great potentials.

However,
according to CBRE, the turnover of 5-star hotels has decreased by 10 percent in
comparison with the same period last year, while the turnover of 4-star hotels
has decreased more sharply, by 31 percent. The noteworthy thing is that the
turnover has decreased even though the hotel room occupancy has increased. This
can be explained by the fact that the hotel room rates have been decreasing in
all market segments. Especially, the room rates of five star hotels have
dropped most sharply, by 13 percent in comparison with the same period last
year.

Meanwhile,
according to Savills Vietnam,
once new hotel rooms are available, the room capacity may decrease. However,
five star hotels, with their big advantages, will still be able to attract
businessmen and the clients who book room for conferences and workshops.

C.V