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.
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