High hotel rates and airfares have made domestic tours more expensive than tours to neighbouring countries.
On average, a traveller only pays US$50-60 for a room in a five-star hotel in Cambodia and $100-120 in Thailand, but $200 in Viet Nam.
A recent survey by local travel agencies found that only one domestic tour by air is booked for every three to Thailand.
Worried Ha Noi hotels lowered room rates from VND1.4 million ($70) to VND1.2 million a day in the first quarter of this year. Rates at four-star hotels have dropped from VND1 million to 800,000, and at three-star hotels, from VND600,000 to 400,000. Another 4 per cent cut was reported in the rates in the second quarter.
Analysts also blamed the low demand for domestic tours on reasons like high airfares, lack of promotions, lack of transparency in the services provided, and the complicated visa procedures.-VNS