The hotel sector in Ho Chi Minh City has lost some investment appeal as the city's tourism industry has declined over the last two years, a local offical says.
Truong Vinh Tho, head of the hotel management division at the city Department of Culture, Sports and Tourism, said almost no hotel investor has sought business opportunities here over the past two years.
There will be no new four or five star hotel in the city this year, Tho said, adding that many hotel projects have been delayed or converted to different uses.
The tourism industry posted double digit growth in 2007 and demand for rooms exceeded supply by 4,000 rooms during the year, he said.
"We expected the hotel sector to grow in accordance with the number of tourists. However, as the tourism industry has experienced a downturn, there will be enough hotel rooms this year."
Foreign arrivals to Ho Chi Minh City fell 7 percent last year and the city is targeting a 7 percent rebound this year to around 2.8 million tourists.