Hanoi Thirsty for Big Hotels

Hanoi, one of the two most attractive tourist destinations in Vietnam, is in need of big hotels to meet the increasing demand of international tourists.

 

Statistics show that in 2006, hotel room capacity was 83 per cent, an increase of 1 per cent over 2005. In May and June, the ‘low season’, the room occupancy rate was still around 70 per cent.

 

The increase, however, could not meet the demand of international and domestic visitors.

 

In general, hotels in Hanoi are not big, and hotels which have more than 50 and 100 rooms account for just 8.87 per cent and 3.63 per cent of total accommodation, respectively.

 

Hanoi has strict requirements on setting up hotels in areas with historical and cultural value, like the ancient streets. Therefore, it is understandable why two-star hotels with 20-30 rooms are popular in Hanoi, and they are mostly located in the old inner city.

 

In fact, some hotels in Hanoi are ranked as two-star hotels though they could be ranked as three-star hotels in Europe, due to strict requirements. If counting the rooms in two-star hotels, Hanoi has some 8,000 high-quality rooms.

 

According to Cao Thi Ngoc Lan, Deputy Director of Hanoi Tourism Department, Hanoi has emerged as an attractive and beloved destination, and become the center for MICE tourism in the region.

 

Readers of Travel & Leisure, a leading US tourism magazine, have selected Hanoi as one of the ten most attractive cities in Asia each year for the last five years. The selection is based on landscapes, culture, people, art, tourism services and cuisine.

 

Hanoi has also been chosen by MSN network readers as third among ten cities providing the most delicious and enjoyable dishes in the world. In addition, in 2006, De Loitte & Touche LLP rating company ranked Hanoi third among cities with the highest hotel room capacity in the world.

 

However, Lan said, Hanoi will lose tourists if it cannot meet the high requirements of foreign holiday makers.

 

Investors have become more interested in Hanoi’s hotel market. In the 1996-2000 period, Hanoi did not see any new foreign invested hotel projects, while in only the last few months Hanoi authorities have licensed five domestic and foreign investors to develop high-grade hotels totaling $1.2 billion which, once operational, will provide 2,200 five-star rooms.

 

Several hotel projects have been resumed after a period of interruption. Domestic investors are also hurrying to build new hotels, including Majestic Salute, Zephir, Flower, and Quoc Hoa.

 

However, experts still warn about the lack of hotel rooms for the next few years. Under the tourism development plan for the 1997-2010 period, Hanoi will attract two million foreign tourists by 2010, and it is estimated that 13,000 hotel rooms will be lacking, especially 3-5-star rooms which the city will lack 2-3,000 rooms a year.

 

Therefore, over four years, from 2007 to 2010, Hanoi will have to build 3,300 more hotel rooms per year, including 1,700 4-5-star rooms, or 6-7 hotels