According to a report by the operator in audit and business advisory services Grant Thornton Vietnam on hotel business in 2008, high end hotel room occupancy in Vietnam is at its lowest level for four years.

Despite a large fall in demand, many hotel rooms have actually increased in cost due to taxes, inflation and increases in electricity and water. Some hotels around the country have increased their room rates to be 30 to 40 % higher than countries in the region.

In response, Vietnam’s tourism industry began a nationwide programme to promote domestic tourism, as well attracting more foreign visitors.

After four months, the programme has had some success, such as raising competitive standards across the country and bringing together tourist companies, tourist destinations and relevant government agencies.

The United Nation’s World Tourism Organisation (UNWTO) forecasted that the service sector, which contributes ten % of global GDP, will overcome negative impacts of global recession by 2010.

According to estimates, international tourist numbers will increase from the current 900 million to more than one billion in 2010, and may increase to 1.6 billion by 2020.

The improvement in tourism is most observable in Asia-Pacific region.

In order to take advantage of this improvement in the region, Vietnam needs to build a sustainable sector within the next two years. (SGGP)