Vietnam hotels accused of “grab for cash”
HANOI – Hoteliers in Vietnam are proposing a 50% plus rate increase for rooms next season, and Exotissimo Travel has united with other destination management companies to protest.
Exotissimo says key properties in Hanoi and Ho Chi Minh City have failed to honour existing contracts, and are increasing their rates to levels as “a grab for cash.”
An Exotissimo spokesman said, “With the recent room shortage, almost every premium hotel (from 3-5 stars) is operating at close to full capacity throughout the year, and the low-season has all but disappeared.
“This problem is most severe in Hanoi and Ho Chi Minh City, where most 4 and 5 star hotels are almost always fully booked.
“Many of the hotels are now taking advantage of this current situation, and are not honoring their prior commitments, including previously negotiated and contracted room rates.
“This problem is not specific to Exotissimo, but instead faced by every single destination management company in Vietnam.”
“Exotissimo Travel is working with the other major destination management companies in Vietnam to resolve this situation and create an equitable solution for all parties.”
The Vietnam National Administration of Tourism has recognised the problem and has proposed major cities and tourism centres nationwide to allocate land for luxury hotel and resort projects.
According to statistics of the VNAT’s Hotel Department, Vietnam has only 90 four and five-star hotels totalling over 15,000 rooms, accounting for nine percent of the country’s total star-rated rooms.
Vietnam, which hosted nearly 3.6 million foreign visitors in 2006, welcomed 1.5 million international arrivals in the first four months of 2007, a year-on-year rise of 12.5%.
The country has targeted about 5.5 million international arrivals and 25 million domestic visitors by 2010.
by Ian Jarrett
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