Hotel rates down steeply as COVID-19 keeps away tourists

The hotel industry is facing arguably its greatest challenge as the impacts of COVID-19 keep away foreign visitors from the country.



In major cities like Hanoi and HCM City, many hotels have cut their rates sharply to attract local visitors, with many others, unable to cope, even closing down.

In a report, property consultancy CBRE said COVID-19 triggered lockdowns and travel restrictions on a global scale, sending the tourism and hotel sectors into virtual hibernation mode throughout the first half of this year.

Occupancy rates reached the lowest point in April, when nation-wide social isolation was imposed, before slowly recovering in May and June when local tourists started to hit the road again.

The third quarter is unlikely to see much improvement from previous ones since Vietnam has faced a second wave of COVID-19 starting in late July, and some parts of the country have imposed social isolation to contain the spread./.