2008 Vietnam Tourism Declined by the World Economic Woe November 19, 2008 According to Vietnam authorities and travel centers, due to tour price increases caused by exchange rates, the volume of international visitors for many travel agencies has reduced some 50%. According to some travel agencies, external causes of Vietnam tourism degradation pointing to the world economy crisis. In 2008, Vietnam tour prices have increased some 20% - the highest in many years. Recently French tourist delegation canceled the contract because the tour price increased by 100 USD per person. The impact of economic degradation also led many international guests and groups to reduce expenditure in Vietnam. Many 5-star hotels become out-of-reach, instead of the 3 star hotels are being "crowning". According to Ms. Dao Viet Nga, representative of Melia hotel, aound this time last year the capacity of rooms in the hotel Melia often reached 90% but now only roughly 80%. More traditional customers said they made reservations with lower-star-level hotels to reduce costs. “Economic Recession in the world makes international visistors to reduce expenses, and difficult situation can last through all of 2009 ", she commented. According to CB Richard Ellis Vietnam, the 5-star hotels in the third Quarter only reached 59% vacancy rate, a decrease of 19% compared with the same time period last year and the average rental cost 148.5 USD a night. Many high-level hotels have discounts to adapt to conditions of the market. Meanwhile 3 star hotels opted to increase capacity up to 80%. According to the statistics of the General Department of Tourism, international tourists for 9 months of 2008 was 3.3 million. The market is significantly reduced, especially visitors from Japan, Korea, Europe. The Minister of Culture and Sports and Tourism, Mr. Hoang Tuan Anh, said that the world economic crisis has clearly impacted on Vietnam tourism, coupled with long-lasting petrol price increases, cost of flights to Vietnam has nearly doubled. As a consequence, the objective of welcoming 4,8-5 million international visitors to Vietnam in 2008 will be difficult to realize. Vietnam authorities also cited that similar situation has happened in the region. Last year Malaysia attracted 21 million visitors, up 16% from 2006. This year, Malaysia was expected to increase about 20% from last yeas, but the increase for first 9 months of 2008 was only 6%. Singapore last year welcomed 10 million visitors, up 6.7% from 2006, however the first 9 months of this year the increase was only 0.1%. "In time of difficulties, the strategy of tourism is to attract customers in markets such as near Hong Kong, Taiwan, Japan, South Korea, Thailand ... and the coastal provinces such as GuangDong And GuangXi, Yunnan ", the head of Vietnam tourism Vietnam said.