Tourism needs boost in hotel, entertainment services: experts
15:16 04/03/2009

      Vietnam tourism industry’s growth has yet to reach its potential due to a distinct shortage of hotels and available recreation activities, experts said at a conference Tuesday in Ho Chi Minh City.

 

 

The conference, entitled “Solutions to intensify international tourism to Vietnam” sponsored by the Vietnam National Administration of Tourism (VNAT) focused on measures to revitalize the industry to 2010.

 

No vacancy

According to a recent survey conducted by VNAT’s Hotels Department, Vietnam has only 90 four-and-five-star hotels totaling 15,000 rooms, only 9 percent of the total hotel rooms.

International standard hotels, mostly located in Hanoi, HCMC, and several other tourist cities have high average occupancy rates.

With some 12,000 foreign tourists coming to the country every day, the lack of vacancy has pushed room prices higher, Director of Exotissmo Travel Company Tran Quang Thuy said, making Vietnam a high-cost travel destination.

Tourism companies also complained at the forum that they had to constantly redo agreements with the hotels because of climbing room rates.

Insufficient recreation

According to Saigontourist, international tourists do not spend much in Vietnam and few are returning due to the lack of entertainment services.

For instance, 84 percent of American tourists are fond of eating at restaurants, 75 percent prefer shopping, while 51 percent like visiting historic sites. Nevertheless, an American on average spends only US$2,916 (including return air tickets of $1,405) for a trip to Vietnam.

Tourists from other neighboring ASEAN countries make up only 14 percent of the total international tourists to Vietnam, compared to the rate of 60-80 percent in the same regional nations such as Singapore, Thailand, or Malaysia.

Beside hotels and recreations shortages, the sector also faced a lack of advertising and promotion, unprofessional management and overall development plans, insufficiency in qualified tourism staff, transports difficulties, among others, experts said.

Possible solutions

Head of VNAT, Hoang Tuan Anh said the country was trying to get more investors to build hotels, especially in major tourist hubs like Ho Chi Minh City, Hanoi, Hue, Danang, Phu Quoc, Quang Ninh.

Anh said by 2010 the country will need 170,000 three- and five-star rooms to serve the increasing number of foreign tourists.

The tourism sector is striving to receive 6 million foreign visitors and 30 million local travelers by 2010 to earn US$4.6 billion in revenue. It also targets to lure $5.5 billion in investment for development.

To these ends, Anh said the authorities would provide investors with favorable conditions and complete its master plan.
The VNAT leader also planned to improve personnel training and force tourism companies to reform in the context of the country’s integration into the global community.

Last month, right after his appointment as VNAT head, in an interview with Tuoi Tre newspaper, Anh said in 2006-2010 the country would spend about VND121 billion (US$7.55 million) on tourism advertising. This compares with the $60 million neighboring Malaysia spends annually.

Vietnam would possibly adopt the Singaporean model, in which tourist agencies contribute to the advertising kitty at a rate of about $1 per foreign tourist they host, Anh said.

Under the model, Vietnam could potentially raise some $4 million to direct towards advertising and perfecting its brand.

Last year, the tourism sector welcomed 3.6 million foreign visitors and 17.5 million domestic tourists. It grossed $3.2 billion in revenues, a 42 percent increase over the previous year.

Source: Thanh Nien, VNA, Tuoi Tre – Compiled by Luu Thi Hong

Source : thanhniennews.com