Room rates at 3- to 5-star hotels in HCM City rose by 1 per cent year-on-year in the first nine months to VND1.99 million (US$100) per night.

But average room occupancy fell by 3 per cent to 68.7 per cent, according to the HCM City Department of Culture, Sports and Tourism.

Tourism authorities said the number of rooms had significantly increased in recent times, sparking off fierce competition between hotels. There are a round 10,000 hotel rooms in the city.

An estimated 2.72 million foreign visitors came to the city in the last nine months, a year-on-year increase of 12.3 per cent.

Room rates in HCM City remain higher than in neighbouring countries.-VNS