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Peak hours

The rising occupancy rate of hotels in Vietnam is a result of promotion and marketing efforts made in the tourism industry, say experts

Times have changed

. "These days, tour operators have to treat hotels to dining out," says Le Duc Thanh, sales and marketing manager of Palace Hotel. "It's quite opposite to previously when hotels laid the red carpet to welcome tour operators." Since the middle of this year, hotels on such streets as Nguyen Hue and Dong Khoi, the main streets in downtown HCM City, have run at an average occupancy rate of over 80%.

And in November, the rate rose to 90%. Some hotels have even claimed a 100% rate. Hotels under the umbrella of Saigontourist have achieved an average rate of 92%, posting a y-o-y growth rate of 13.8%. These high rates have thrown hoteliers into ecstasy as hotels often generate a profit if they achieve a rate between 40% and 60%. The high occupancy rate may extend well to next year, say some observers. That's the situation in HCM City. The same thing happens to Hue, Vietnam's ancient capital and tourist attraction. At this point of time, not many rooms at high-class hotels in Vietnam's ancient capital are available. According to statistics obtained from the Department of Trade and Tourism of Hoi An, up to mid-November 155,000 tourists had visited the ancient town, of which 140,000 are international guests. The number of travelers to Hoi An has helped boost the occupancy rate of local hotels to over 80%. Their average stay is over two days.

"Since the beginning of the tourist season in Hoi An [September], almost the 160 rooms at our hotel have been occupied," says Huynh Thi Kinh, deputy manager of Hoi An Hotel. "Our rooms have been almost fully booked up to April next year." Hoi An-based hotels currently have 2,900 rooms. However, many international guests have sometimes returned to Danang, some 30km from the ancient town, to check in hotels. Dinh Thi Thu Thuy, deputy head of Hoi An Department of Trade and Tourism, says, "The last months of the year are Hoi An's 'peak hours' as tourists keep arriving in the town. The weather this year is favorable, which may trigger a boom in the number of visitors who may stay longer in Hoi An."

Efforts pay off.

According to Luu Dinh Phuc, deputy director of VYC (Volunteer Youth Company), a HCM City-based tourist company, the number of VYC's customers this month increased by 20% over October. Some of the guests decided to visit Vietnam instead of going to Bali (Indonesia) shortly before their trips. Dang Thuy Duong, PR and communication manager of Sofitel Plaza Saigon, says, "Over the past several weeks, Sofitel Plaza's room occupancy rate has reached 90%, and now it is 100%." Duong adds that the increased number of international tourists to Vietnam is due to the country's political stability and high security. "The State and businesses' persistent promotion and marketing efforts over the past few years have begun to pay off." But more importantly," says Duong, Vietnam remains a new destination on the world's tourist map. Sharing Duong's viewpoint, Nguyen Duc Hy, inbound department head of Fiditourist, says, "Most foreign guests have pre-planned schedules. Subsequently, the increased number of tourists to Vietnam stems mostly from promotion campaigns launched by the Vietnam National Administration for Tourism (VNAT), Vietnamese diplomatic corps, Vietnam Airlines and businesses in the industry." Hy supports his argument by exemplifying a case in which a foreign partner decides to buy Fiditourist's tours three years after the company has patiently marketed them.

Although tours of Vietnam still lack additional services, including mainly sightseeing trips to scenic spots and historical sites, they are designed reasonably. Besides, tour operators provide good services in general. "The hotels in Vietnam are relatively new and Vietnamese foods are delicious," adds Hy.

More infrastructure investment needed

Speaking of the better performance of the local tourism industry, Vu Tuan Canh, deputy general director of VNAT, says, "This year's achievements in the tourism sector are brought about by many reasons," says Canh. "Vietnam is considered a safe and friendly destination in the Asia Pacific area. The country has staged several attractions such as Phan Thiet-Mui Ne, Nha Trang, Ha Long and Hoi An." Canh also credits the increased number of international tourists to simplified entry-exit procedures at border gates and better service quality offered by the parties involved. As noted by international tour operators, Vietnam-based hotels with three stars or up are comparable to counterparts worldwide, says Canh. It is not by chance that the local tourism industry has performed better so far. Canh says it is the outcome of a long-term process of promotion and investment. Identifying tourism as a spearhead industry, the Government has invested a considerable amount of capital in building the infrastructure for Vietnam's major tourist destinations. Local governments and enterprises from all economic sectors, says Canh, have actively taken part in the process. "The investment committed by them is ten-time larger than that of the central government," he says. However, tour operators and hoteliers say Vietnam's slice may be bigger should it have better additional services such as attractive recreation and shopping centers.

Some notable marketing efforts in the tourism industry

2000: VNAT launches a national agenda for tourism named Vietnam-A Destination for the New Millennium. Tourist establishments are encouraged to hold/participate in tourism fairs, conferences and forums. Vietnam tourist attractions are introduced on CNN, TV5, and other TV channels in France, Japan and China.
2001: Vietnam Airlines and Saigontourist enhance promotion abroad (Vietnam-a Safe Destination). VNAT focuses promotion on markets with short-distance flights (East and North Asia), and China (sea and overland). 2002: Vietnam Airlines, Saigontourist, tour operators and hotels promote MICE business (Meeting, Incentive Travel, Convention and Exhibition). On July 22, the Government endorses the strategy to identify tourism as a spearhead industry. VNAT builds the national agenda for tourism during 2002-2005.

More Japanese tourists arrive

With 300,000 Japanese tourists expected to arrive in the country this year, Vietnam will take the second position, behind only China, as the most attractive destination for Japanese travelers. According to Japanese experts, Vietnam has become one of the tourist attractions in ASEAN countries. The increased inflow of Japanese tourists has prompted Vietnamese tourism authorities to set an ambitious goal of receiving 500,000 Japanese visitors in 2005.

By K. Chi, N. Duc & K. Van - The saigon Times Weekly - November 30, 2002.