Danang will have an additional 1,800 new hotel rooms this year,
the biggest growth compared to other parts of the country, but the central coast
city has shown little concern over a possible oversupply of guest rooms.
Ngo Quang Vinh, director of the city’s Department of Culture, Sports and
Tourism, said that with rapid growth in hotels in recent years, businesses are
afraid that the city would face an imbalance between supply and demand in the
However, he noted, hotels in Danang are still doing good business, and supply
would not exceed demand if the city held tourism events to attract tourists.
“Last year, average room occupancy reached 63-65% with hotels of three- to
five-star standards posting higher occupancy. I think hotel business in Danang
is in the first stage of development, so it is holding great growth potential,”
he told the Daily on the sidelines of the meeting on Danang’s new tourism
products held in HCMC last week.
Danang had 6,089 hotel rooms in 2010 and the figure surged to 10,570 rooms at
326 hotels last year. It is estimated that the number of rooms will rise by
around 5,000 by 2015.
There have been many famous hotel brands entering into Danang, such as Pulchra
Resort, InterContinental, Melia and Brilliant.
Vinh said events like firework performance, international marathon race, the new
cable car system at Ba Na Hills and new air services would help bring more
tourists to the city. Danang will start serving flights from Hong Kong from
March 28 and Bangkok from May as well as other chartered flights from China’s
Chengdu and Fujian.
However, the forecast concerning the excessive investments which may lead to an
abundant supply of guest rooms still needs careful consideration. “I think the
point is we need to carefully study the core market and the quality. If a hotel
was small and of low quality, tourists would not choose to stay there. That’s
the issue, not an oversupply,” said Vinh.
Currently, there are many air services connecting Danang with domestic and
international destinations. If regular and chartered flights were not taken into
account, Danang would have 30 domestic flights operated by Vietnam Airlines,
VietJetAir and Jetstar Pacific a day.
The city got nearly 2.7 million tourists last year, up 12% from the previous
year, with international tourists accounting for nearly 631,000.
This year, Danang will organize several tourism events. Among these, the Danang
International Fireworks Competition 2013 will take place on April 29-30 with the
participation of Russia, the U.S., Japan, Italy and Vietnam teams, and around
30,000 admission tickets would be sold at VND200,000-300,000 per ticket.
The city would be hosting the Danang International Marathon held by U.S.-based
World Marathon Tour Inc. late this year with some 2,000 people expected to take
The third cable car system at Ba Na Mountain consisting of 86 cabins will
officially put into operation on March 29, enabling visitors to move straight to
the top of the mountain instead of stopping halfway to change to another cable
car system. The investment for this project amounts to 30 million euros.