Hanoi hotels lose 49 pct of revenue in Covid-19 impact

By Nguyen Quy   May 3, 2020 | 03:57 pm PT
Hanoi hotels lose 49 pct of revenue in Covid-19 impact
Foreign tourists walk with their suitcases on Ly Thai To Street in Hanoi, March 26 2020. Photo by VnExpress/Giang Huy.
A massive drop in international tourists arrivals saw Q1 revenues of Hanoi’s three to five star hotels fall 49 percent year-on-year.

According to a new Savills Vietnam report, the average occupancy rate of three to five star hotels in Hanoi fell by 30 percent in the first quarter as a result of the steep fall in foreign tourist arrivals as the country imposed strict entry restrictions and also suspended all international flights. The average room rate in the first quarter for these hotels was down 13 percent year-on-year, the report said.

It said the four-star and three-star segments were heavily affected with average revenues plunging 60 percent, forcing many to temporarily suspend operations and let their staff take unpaid leave.

Data from the city’s Department of Tourism show 153 hotels in Hoan Kiem and Dong Da Districts in the downtown area have shut down between February and March.

The capital has approximately 9,950 rooms in 66 hotels, 16 of which are five-star, 19 are four-star and 31 are three-star.

The occupancy rate is unlikely to recover in the second quarter as Vietnam continues restricting entry of foreign nationals and requiring those few who are allowed to enter to be quarantined for 14 days.

Hospitality and tourism have been hit hard by the Covid-19 crisis. Foreign tourist arrivals in Hanoi in the first quarter has been estimated at 756,000, down 37 percent year-on-year. Totally, Hanoi tourist arrivals in the first quarter dropped to a five-year low at 3.85 million and revenues fell 40 percent to VND15.6 trillion ($668.5 million), according to the city’s department of tourism.

Hanoi last year welcomed 29 million tourists and related revenues hit VND103.8 trillion ($4.5 billion) for respective year-on-year increases of 10 percent and 34 percent.

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