A survey but the accounting and consulting firm said the annual increase of foreigners traveling to the country has been 10-20 percent over the past few years.

Ho Chi Minh City needs 17,000 more international-standard luxury rooms by 2010.

The city now has some 11,000 rooms in 171 hotels, with most being budget or midrange options.

Hanoi’s hotels can only meet 70 percent of needs during the peak tourism season.

Last year 3.6 million foreign arrivals hit Vietnam, nearly 23 percent of which were business travelers, and about 60 percent tourists.

Another 18 million Vietnamese tourists traveled within the country.

Most foreign and domestic travelers chose to stay at luxury hotels, according to the survey conducted at 29 hotels in 10 big cities nationwide over the last two years.

The survey also showed net profits were up 21 and 40 percent at four and five star hotels respectively, much higher than the 4 percent increase at three-star hotels.

The local hotel industry generated US$2.25 billion worth of revenues in 2006.

Source: Tuoi Tre – Translated by Tuong Nhi