Danang Hotel Association is starting a training and assistance programme in December to guide one- and two-star hotel members on transforming their business to attract a more lucrative clientele, in a bid to ensure Danang maintains her reputation as a quality destination.
In an interview in Singapore, Nguyen Duc Quynh, deputy chairman for the steering committee of the Danang Hotel Association, who is also deputy general director of the luxury Furama Resort Danang, said: “The biggest issue we have in Danang is the large supply of one- and two-star hotels. There are 25,570 hotel rooms in Danang, 40 per cent of which are one- and two-star hotels. These hotels tend to attract lower-end tourists who may bring with them certain social issues that will ultimately influence Danang’s destination reputation. Danang needs to be a destination for quality tourists.”
As a solution, Nguyen is recommending that the one- and two-star hotels “convert into long-stay properties that are suitable for business travellers and domestic family groups on holidays”.
He explained: “Following the APEC meetings (in Danang from November 4 to 11), trade and foreign investments will pick up in Danang, which will result in more foreigners coming in for business projects. They will need a place to stay, and one- and two-star hotels could provide that by scaling up their facilities and changing their business structure.
“Going after the long-stay market will also help alleviate these hotels’ poor business during the winter low season.”
The association will provide guidance on business transformation and training on critical knowledge such as revenue management.
When asked where the association will get its funding for these activities, Nguyen said: “They will come from membership fees and sponsorship from businesses that have an interest in our members, for example hotel booking technology companies that hope to introduce their solutions to these one- and two-star hotels.”