Ho Chi Minh City hotels impacted by supply glut
Despite the fact that Ho Chi Minh City has been able to withstand the impact of a decline in arrivals to Vietnam from China and Russia, the city's hotels have reported a drop in the average rate of reserved rooms in the first half of 2015. A surge in the number rooms available has weighed on the market, particularly the four-star segment.
The latest analysis from property services provider Savills Vietnam indicate that Ho Chi Minh City hotels are feeling the impact of the fierce competition in the local hotel market. According to Savills’ recent report, the average rate of reserved rooms in the first half of 2015 has fallen well below the levels recorded over the previous five years.
Four-star hotels suffered the most with a six per cent year-on year decline in occupancy, this compared to a four per cent drop across both the three and five star segments.
Much of the decline was owed to a continuous increase in supply with 540 three star hotel rooms and 446 luxury five star hotel rooms added to the market during the second quarter of 2015 alone. By the end of the second quarter, the number of hotels in Ho Chi Minh City stood at 106 providing a total of 13,800 rooms, these figures represent a 6 per cent increased quarter-on-quarter and a ten per cent increase year-on-year.
Notably, nine more hotels, three five-star and six three-star hotels, are expected to be launched before the end of year adding a further 1,100+ rooms to the market.
Hoteliers in Ho Chi Minh City will likely be uplifted by the fact that they City has proven to be more resilient to the drop in arrivals from China and Russia to Vietnam than the rest of the country. Vietnam’s Ministry of Culture, Sports and Tourism recently reported an 11 per cent decline in arrivals in Vietnam during the first half of 2015 however Ho Chi Minh City bucked the trend posting a modest three per cent year-on-year increase during this period.
The decision to offer visa free holidays in Vietnam for citizens of the UK, France, Germany, Spain, Italy and Belarus for up to 15 days, which was implemented on 1st July 2015, is expected to have a further positive impact on Ho Chi Minh City’s tourism sector in the second half of 2015.
Reportedly the city tourism department will now lobby for the tourism ministry to double the waiver period to 30 days.
Talk to a specialist
Call 020 7644 1770 to speak with our award-winning travel consultants.
Opening hours 09:00 - 20:00 GMT
Popular Holidays In Vietnam Browse all
Feel at one with the surroundings at the beautiful Mango Bay Resort
- Mango Bay has been supporting wildlife at risk (WAR) since 2006, and has even discovered many new species on Phu Quoc Island
- Revitalise your mind, body and spirit with Yoga and Tai Chi on the beach
- Snorkel and scuba dive around the nearby islands with Flipper Diving Club and discover the truly stunning and beautiful world underwater
An indepth exploration of Vietnam taking in Saigon, the Mekong Delta, Hoi An, Hue and Hanoi with time left over to relax on the beach
- Overnight cruise on a traditional Junk boat on Halong Bay with meals included
- Time to relax on the picturesque beaches of central Vietnam
- Local guides in each destination and entrance fees for all included sightseeing
Get under the skin of Vietnam with an adventurous tour taking in the classic sights as well as getting off the beaten track
- Overnight train to Sapa - hike through the hills and meet remote communities
- Overnight cruise down the Mekong River on a converted rice barge with all modern amenities
- Spend the night in Halong Bay and see the sun rise over the remarkable karst landscape (includes meals)
Experience all the natural beauty and cultural variety of Vietnam on a deluxe tour
- Five-star hotels throughout
- Overnight Halong Bay cruise on a traditionally designed junk boat with meals included
- Time to relax on the stunning beaches of central Vietnam
Exotic and compelling, Vietnam is one of the most remarkable travel destinations in the world. Take in all the classics...
Wander from exciting cities to astonishing scenic beauty via peaceful beaches and the best preserved old towns in...
See all the most iconic sights of Indochina on this trip of a lifetime through Laos, Cambodia and Vietnam. Explore the...
The Merperle Sea Sun hotel is set in the heart of the picturesque seaside city, Nha Trang. Surrounded on all three...
Discover the beauty of a superb Sandy Beach Non Nuoc Resort Danang, located by the pristine stretch of beach and...