60pct of international visitors head to Saigon

In the first quarter this year, 900,000 international tourists arrived in HCM City, rising 6 percent against the same period last year and accounting for 60 percent of the total number of international visitors to Vietnam, HCM City Department of Culture, Sports and Tourism said.

The total number of local tourists also increased significantly by 30 percent from the same period last year whereby the city’s revenue was estimated to reach 11.8 trillion dong, up 25 percent year-on-year.

Also in Jan-Mar, 3-5 star hotels fulfilled 80 percent of the room capacity, up 5 percent from the previous quarter and 10 percent over the same period last year.

According to the statistics chart on room price on the hotel market, after falling to the bottom price level in Q3, 2010, the price benchmark has gradually recovered. Due to increasing demand for accommodation, so it is also a chance for suppliers to regain the price to withstand the difficult operation situation caused by the heavy impacts from the economic downturn.

Due to the construction price continuously increased in the market, in Q1 2011, the hotel room price also saw a rise of another 6 percent from Q4 2010 and 4 percent over the same period last year. Particularly, the five-star hotel room price exceeded $100 per room per night while it was more than $90 per room per night at four-star hotel and $80 at three-star hotels.

Statistics from Savills Vietnam showed that in HCM City, currently there are 10,000 3-5 star hotel rooms, up 7 percent from the previous quarter and 16 percent on the year including over 4,000 5-star hotel rooms, 2,000 4-star hotel rooms and 3,500 3-star hotel rooms.

In the future, the supply of hotel rooms in HCM City is expected to be in surplus with an anticipated increase in the market of 750 5-star rooms, 628 4-star rooms, and 170 3-star rooms during the 2011-12 period.

As expected by key players, from 2013 onwards, HCM City’s hotel market will see another 15 large scale projects such as Majestic five-star hotel project in Dong Khoi St, Que Huong- Liberty JSC and Invesco Co are jointly building Novotel Saigon Centre hotel at Hai Ba Trung-Nguyen Dinh Chieu (district 1) with 252 4-star rooms that will be managed by Accor Group.

This project is expected to be in operational by middle of 2012. The Pullman hotel project with 310 5-star rooms run by Accor is also expected to start operation by 2013.

Ben Thanh Corp and Accor recently announced a project to co-build ibis Saigon Centre hotel in HCM City’s district 1 that is expected to be inaugurated in 2012. Tien Phuoc Co has recently also kicked off the Le Meridien five-star hotel project at No 3C Ton Duc Thang, district 1. By the middle of March, Diplomat Joint Stock Co announced to start work on a four-star hotel project with 180 rooms in Nguyen Thi Minh Khai St (district 3) that is planned to finish by the end of 2013.

Saigontourist is also planning to cooperate with a partner to jointly build a complex of office building and five-star hotel with about 400 rooms in Le Loi St (district 1).

However, specialists noted that although the supply of hotel room in the future will be relatively plentiful, there is no balance between the product segments. The investors just focus on 4 and 5-star hotels. – Vneconomy

Tags: saigon