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Few hotels join Danang's program to stimulate tourism
By Nhan Tam
Saturday,  May 16, 2020,13:18 (GMT+7)

Few hotels join Danang's program to stimulate tourism

By Nhan Tam

Guests are seen at a five-star resort in Danang City before the coronavirus outbreak. The number of hotels participating in Danang City’s tourism stimulation packages remains modest - PHOTO: NHAN TAM

DANANG - The number of hotels participating in Danang City’s tourism stimulation packages remains modest, according to Truong Thi Hong Hanh, Director of the municipal Department of Tourism.

Danang is home to nearly 1,000 hotels, homestays and resorts, she said, noting that only ten to 15 percent have registered to offer room packages prepared by the city tourism industry to attract guests in the post-Covid-19 period.

Also, according to Nguyen Duc Quynh, Vice Chairman of Danang Hotel Association, many hotels have not reopened because of concerns about the modest number of tourists available to book rooms, which would likely mean they would not be able to cover the costs of their expenses.

Quynh, who is also Deputy General Manager of Furama Resort Danang, noted that it costs some VND3 to 4 billion per month to operate the resort, though the current daily room capacity is only five to ten percent.

Furama Resort Danang is also seeking to attract tourists by offering special promotional packages in May and June. For example, a garden-view deluxe room for two people is priced at only VND2 million per night.

Meanwhile, two- to four-star hotels account for more than 50% of all hotel rooms in Danang. However, only about half of them are opening their doors again, and are offering guests their own promotional packages. For instance, at the four-star coastal hotel Paracel the room rate per night is now about VND800,000, compared to VND1.3 million before the coronavirus outbreak.

A representative from Star Hotel, a three-star hotel in the city’s Son Tra District, said the supply of three-star rooms in Danang is too high, so the competition, resulting in lower room prices, remains fierce. For this reason, the hotel is not interested in participating in the city's stimulation packages.

The Saigon Times found that not only in Danang City, but also hotels and resorts in other tourism localities prefer running their own promotions, rather than joining in local tourism stimulation programs. Some hotels are also waiting for improved tourism and plan to only reopen in late June.

According to information released by the communication department of the Fusion resort chain, each Fusion resort has its own programs to attract domestic visitors, rather than participating in stimulation programs.

Fusion Resort Phu Quoc, Fusion Suites Vung Tau and Alba Wellness Valley by Fusion in Hue each have different promotions. For example, Fusion Resort Phu Quoc offers a VND4 million discount for booking a one-bedroom villa overlooking the garden, including health care and recreational services, such as kayaking and biking, tai-chi, yoga, airport transfers and breakfast for two.

Dawid Koegelenberg, General Manager of Fusion Resort Cam Ranh, told the Saigon Times that there is great potential in any domestic market, and hotels simply need to be more aggressive to fill their rooms. “There is a price war going on at the moment, as hotels try to “win” the local market, so hotels are extremely competitive right now,” he said.

“At Fusion Cam Ranh we are working at some exciting new packages that will appeal to the local market, and we are confident that with our unique concept of “all spa inclusive” will attract some much wanted attention.”

Commenting on hotel promotions, Phan Xuan Thanh, Chairman of the Quang Nam Tourism Association, said special programs depend upon the policy and cash flow of each business. Some will reopen, while others remain closed, as they focus on restructuring to create new products and services.

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