At present the number of rooms meeting the 3-star and higher standard accounts for 38.5 per cent of the total number of hotel rooms in Hanoi. The number of deluxe hotels in the city cannot meet the demand of guests, especially when the city hosts major events.
Hanoi is the second largest tourist attraction in Vietnam, just behind Ho Chi Minh City. In 2005, the city received around one million foreign visitors out of a total of 3.2 million of the whole country. Vietnam does not attract many foreign visitors from countries in the region. Even in such a huge market as China, local travel agencies have attracted a modest number of visitors who arrive in Vietnam by cars via border gates. In early months of this year, the number of Chinese visitors to Hanoi fell by 11 per cent against the same period last year.
Foreign visitors find it difficult for them to find hotels and guest houses in the city. As a result, 80 per cent of foreign visitors stay for a short time in Hanoi. Since early this year, the room occupancy rate of Hanoi’s hotels has reached between 85 and 90 per cent. The room rate has increased significantly, between 20 and 25 per cent against 2005. Despite high rates, travel agencies find it difficult to reserve rooms, in particular, when Hanoi hosts major events. From now to December 2006, rooms of deluxe hotels in Hanoi have been basically reserved. Some hotels have even offered rates for 2007.
The 2006 APEC summit will take place in Hanoi in November, but only 25 hotels with 4,296 rooms have been selected by the National APEC Committee for the event. Apart from officials, entrepreneurs and reporters, Hanoi will receive over 6,000 visitors during the event. It has become a real difficulty for the city to have enough hotel rooms for the visitors.
The Hanoi Department of Tourism has developed a list of 109 hotels and guest houses with 4,000 rooms meeting the standard.After the list is approved it will be sent to secretariats of commissions to select and introduce to visitors. The department has checked and developed a list of hotels which need to be upgraded to reach a three-star standard. The list consists of 27 hotels with around 2,000 rooms.
To meet the demand for hotel rooms of foreign visitors, the Hanoi People’s Committee has offered incentives to encourage investors to build deluxe hotels. Accordingly, investors will enjoy priorities in land rent. They do not have join bidding and implement procedures for site clearance compensation. They will be granted with a land use right certificate with maximum duration of 50 years and enjoy other priorities in tax and infrastructure.
Le Kim
Vietnamese
