Over 3,600 hotel rooms were closed last year as the number of foreign tourist arrivals plunged 85 percent year-on-year to 1.3 million, according to real estate consultancy Savills.

Average room rates fell 29 percent year-on-year to $61 per night, the report said. Total supply fell 5 percent year-on-year to 15,200 rooms in 111 hotels.

The development of Covid-19 vaccines will help the industry improve over the next two years and it is expected to make a full recovery by 2024, the report said.

Vietnam halted all international flights from March 25 in an unprecedented move to stem the spread of the novel coronavirus.