The backpacker area in downtown Saigon has been a tourist attraction for foreigners coming to Vietnam for years. Down the neighborhood’s alleys, there are stories about the area’s daily life told by people who have settled here; they know it well and have witnessed how much it has improved.
P1: A convenient home for expats
P2: More than serving food and drinks
P3: Watch, or you shall be the next
“Foreigners account for nearly a half of Vietnam's population”
The area is surrounded by four streets: Pham Ngu Lao, De Tham, Bui Vien and Do Quang Dau, in District 1.Each street specializes in one kind of tourism service. Pham Ngu Lao and De Tham streets provide a large number of travel agencies, while Bui Vien is the place to find hotels and rooms for rent, and Do Quang Dau offers many bars and restaurants.
According to Viet, a hotel owner on Bui Vien Street, the backpacker area was formed in the 1990s when local travel agency Sinh Café opened its first office to transfer foreign tourists in the area. Then local residents started their own tourism service businesses, such as restaurants, accommodation and entertainment services, and the area quickly turned into a zone for foreigners.
“One of my customers said it seemed that foreigners accounted for nearly a half of Vietnam's population when he saw the large amount of foreigners in the place,” Viet added.
Dung, owner of the Saigon Beautiful Group, which has five hotels in the area, said his hotels usually welcome customers who stay for only two or threedays.
He also shared that most of his customers are from English-speaking countries, and the majority are Australian.
While the peak season for European visitors is from August to January, Japanese and Chinese travelers prefer to come from February to April, and September to October, respectively.
In 2011, the area saw an increase in the number of customers from other Asian countries, including the Philippines, Indonesia, and Cambodia.
According to hotel owners in the 40th alley, one of the alleys which has the most hotels and rooms for rent on Bui Vien Street, the manners of the area have improved greatly.
Years ago, foreign tourists who came to the area saw fights between local hotels, which were household businesses, in their attempt to get customers. Unscrupulous brokers also contributed to the rather messy situation.
But now things have changed. Tu, owner of the Mimi hotel, said every hotel in the alley works with the others as a friend, and they share customers.
Still, some owners are seeing a trend in which they have to rent their houses out in order to have enough money to run their hotel, since it’s getting hard to remain in the business due to its high costs versus cheap rent (US$ 8 – US$13).
A convenient second home for expats
Although many people think that tourists just stop by the backpacker area and then go, the region still has its friends who consider Vietnam in general, and the backpacker area in particular, their second home.
Austrian expat Micheal G. James, who is now an English teacher in the city, has lived in the area for five years, while Tudor Calin Cotarta, a Romanian, has spent four months in the Mimi hotel.
According to Tu, her hotel also welcomes regular guests who come once a year, like Japanese photographer M.Yasufumi, who held an exhibition titled “Noi Dau Chien Tranh O Vietnam” (The War Pain in Vietnam) in 2009.
Each time he comes to Vietnam, Yasufumi stays at the hotel for one or two months, and usually goes out early in the morning to take pictures.

Hotels lying in a row in Bui Vien Street (Photo: Ngoc Dong)
Overseas Vietnamese also choose to stay in the area for their few-month vacations, while some foreigners who have decided to settle in Vietnam also stay there and seek jobs.
Most of these regular guests are nice and behave politely. If they come back late, they may sit outside and wait until the early morning when the hotel opens. They also treat the staff at hotels like friends by giving lucky money for the Tet holiday or gifts on Christmas, as well as often tipping them.
However, sometimes customers do pretend to be robbed, or claim that they have lost property in hotels.
“In such cases, though we know their stories are false, we don’t have any proof, so we have to deal with them and discount the rent, or even let them stay for free, in order to save our reputation” Tu shared.
According to some local hotel owners, the reason the area has existed for such a long time is its convenience.
“All hotels provide their customers with all the things they need, from laundry service, to motorbikes for rent, and even bringing their mail or parcels to the local post office,” Tu explained.
Moreover, local businessmen also know how to attract their customers by being flexible in dealing with rent and remaining willing to organize the room as required.
“During the last year, the average price of rooms in the region has actually decreased compared with previous years,” she added.
(To be continued)