Hanoi: Busy Luxury Hotels

As the country’s capital, Hanoi is the formal place for regional and international conferences, as well as being a tourist transit in northern Vietnam. The Hanoi tourism sector has made significant developments in recent years, however this growth needs “strategic steps” to upgrade and expand hotel sizes to meet demand.

In recent years, a series of important events took place in Hanoi, such as the Francophone Summit, SEA Games 22, Para Games, ASEM V and APEC, which are clear proof of the status of Hanoi. Moreover, Hanoi is gradually becoming a MICE centre in the country and the region, a northern tourist distribution centre and home to many leading travel firms. 

 

With its beauty and hospitability, Hanoi is emerging as a place of interest in the world. The city was rated one of the most attractive cities in Asia by the leading US travel magazine Travel & Leisure. The rating was based on scenery, culture, humanity, arts, tourism service and gastronomy. MNS readers rated Hanoi third in terms of delicious food.

 

Thus, more and more visitors are arriving in Hanoi. In 2006, Hanoi ranked third in the world in terms of hotel room occupancy, according to statistics from De Loitte & Touche LLP. The room occupancy rate was 83 per cent on average, up 1 per cent against 2005. By the end of the first quarter of 2007, Hanoi had a total 516 hotels with 12,894 rooms, including 181 rated hotels with 8,562 rooms.

 

Ms Cao Thi Ngoc Lan, Deputy Director of Hanoi Department of Tourism, said the seasonal factor is fading away. For example, the room occupancy rate remained above 70 per cent in May and June, although this is not the travel season. Most Hanoi hotels are not very big. Hotels with over 100 rooms and over 50 rooms accounted for only 3.63 per cent and 8.87 per cent of the total, respectively.

 

According to the Hanoi Department of Tourism, many tourism projects are being carried out. However, to meet the goal of receiving two million international visitors and 6-7 million domestic visitors in 2010, the challenge remains to develop infrastructure for the sector.

 

Under the Hanoi tourism development master plan for 1997-2010, and the report on amendments to the Hanoi tourism development master plan for 2002-2010, Hanoi will need an additional 13,000 hotel rooms to accommodate two million foreign visitors in 2010. In other words, Hanoi needs to build 2,000-3,000 rooms a year, mainly rated three star and upwards. The city is in need of rooms for hosting Meeting, Incentives, Conventions/Congresses and Events/Exhibitions (MICE).

 

Therefore, from 2007 to 2010, each year Hanoi has to have 3,300 hotel rooms, including 1,700 4 or 5 star rooms. The remaining 1,800-2,300 rooms will be built by various economic sectors.

 

Ms Ngoc Lan said that, unlike in 1996-2000 when there were almost no foreign investors building hotels, from late 2006 to early 2007, the Hanoi City government licensed five investors (both local and foreign) to build five star hotels with 2,200 rooms, valued at some US$1,242million. Many suspended hotels have resumed operations. Domestic investors are also investing in building new hotels like Majestic Salute, Zephir, Flower, Quoc Hoa and Danly. Meanwhile, old hotels have received facelifts to meet new requirements.

 

This is signals bright prospects for Vietnamese tourism, and the Hanoi tourism sector in particular. Hopefully, with wholehearted efforts, the tourism sector will make marvellous progress in coming years.