VNEconomyNews.com - Room rates at three- to five- star hotels in Ho Chi Minh City continued their downward trend in the first half, falling 18 percent year on year to US$92 a night.
The city Department of Culture, Sports and Tourism said Tuesday it was because of fierce competition among local hoteliers and an increase in room supply. The city added 600 rooms in the January-June period.
Room rates have been going down in Vietnam since last year under pressure from the global economic downturn, according to UK-based consulting firm Grant Thornton.
But room occupancy has risen 10 percent this year to 63 percent, thanks to a 12 percent year growth in the number of international arrivals to the southern hub.
Some 1.5 million foreigners visited HCMC in the first half of this year, as the tourism sector earned revenues of VND18.5 trillion ($978.8 million), up 16 percent year on year.
Vietnam’s largest tourism hub has 60 three- to five-star hotels with 8,600 rooms.