Hotel room tariffs decline on oversupply

Many more hotel rooms have led to price falls in Phan Thiet City, Binh Thuan Province.

Mui Ne Bay Resort has offered rooms at VND1.4-1.5 million per nightwhile hotels on Nguyen Dinh Chieu Street and in the Ham Tien area havesold their rooms at lower tariffs this summer than the same period lastyear.

Nguyen Van Khoa, chairman of the Binh Thuan Tourism Association, saidPhan Thiet City has attracted many holidaygoers this summer but hotelroom prices in this central coast city have gone down by an average 20%.

The falls in room tariffs are attributable to hotel oversupply. As manyhotels and resorts have mushroomed in the seaside resort town, ownershave had to lower prices to compete against rivals.

As Phan Thiet is no longer the only seaside destination in the countryfor resort visitors, service providers must offer competitive prices tocompete with other localities such as Nha Trang and Phu Quoc.

Many new hotels have been up and running in Binh Thuan Province thoughlocal authorities have tried to restrict construction of so many newhotels and resorts. The province has seen nearly 2,000 new rooms beingput into service a year, triggering fiercer competition in the sector,Khoa said.

Many travel companies said hotel bookings have been easier in Nha TrangCity in Khanh Hoa Province, partly due to the recent fall in Russianarrivals. Despite more domestic travelers, room tariffs in the city havedropped by 10% due to higher hotel supply.

Khanh Hoa Province currently has 18,000 hotel rooms, mostly in Nha Trang City.

Hotels in Dalat City have also offered lower prices, with four-starrooms ranging from VND1-1.2 million per night, down byVND200,000-300,000 against last year.

This summer, Hue City has been known for offering lower hotel pricesthan other localities due to low demand. Some four-star hotels havelisted room tariffs at just VND550,000-600,000 per night while popularhotels have quoted prices from VND900,000 to VND1 million per night,only half the levels of similar hotels in HCMC.

Speaking to the , HCMC travel firms said some localitiesare grappling with oversupply for four and five-star hotels. Many hotelrepresentatives have come to the companies to offer promotional programsin the hope of attracting more guests.

However, hotels in other destinations such as Danang and Phu Quoc havebucked the trend, with their room rates getting higher than last yeardue to high demand.

Hotel room tariffs decline on oversupply

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