A ROOM boom in Danang over the past year has thinned occupancies and spurred hotels to offer hot deals to beat the competition, report Vietnam tour companies.
Danang is now home to eight five-star hotels and resorts with a total inventory of 2,041 rooms, showed data from the Danang Culture, Sports and Tourism Department website.
“In 2012, we saw a nine per cent dip in German roomnights, partly due to the decline in arrivals from Germany and partly because more hotels, such as InterContinental, Vinpearl and Hyatt Regency, opened in Danang, adding more than 1,057 roomnights per day to the four- and five-star categories,” said Nguyen Duc Quynh, executive assistant manager of Furama Resort Danang.
Chloe Chomienne, director of meetings & events of the InterContinental Danang Sun Peninsula Resort, which soft opened last June, said: “We see 25-30 per cent occupancy during the low season, or 60-70 per cent when there are groups. We expect occupancy rates to rise after our official opening in March this year.”
Meanwhile, tour operators are benefiting from an increase in room promotions, particularly during the low season.
Robert Tan, owner of Ho Chi Minh City-based Lac Hong Voyages, said: “The problem of room oversupply is most severe in Danang, particularly in the five-star category. We are seeing a lot more stay-three-pay-two promotions than before; some high-end properties are charging US$140-US$160 and some have dropped rates by up to 35 per cent.”
Frank Hasso Wiegand, managing director Europe, Focus Asia, who has also seen “more deals from resorts than before”, said: “The destination…needs the support of airlines to (grow its air connections).”
Danang also has to vie for tourists with nearby Hoi An and Hue. Doan Huy Long, director of sales, Phoenix Voyages, said: “Danang is not so attractive to tourists as it has only beaches, whereas cultural sightseeing and a beach stay can be combined at Hoi An. Danang needs more attractions.”
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