International visitors flock to Vietnam, resort hotels win big

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International visitors flock to Vietnam, resort hotels win big

Market news

04/09/2024

Experts said that the strong recovery in demand, especially the growth of some international tourist markets, has actively supported the recovery of Vietnam's resort real estate industry.

Resort hotel occupancy growth in 2024 is driven by a strong recovery in international arrivals to Nha Trang, Cam Ranh and Phu Quoc.

Room occupancy up 50%

Entering 2024, the Vietnamese accommodation market recorded a clear improvement in room occupancy month by month. This contributed to improving the revenue per available room (RevPar) index.

In the first 7 months of 2024, the revenue per available room index grew by 15% year-on-year, one of the best growth rates in Southeast Asia.

Room occupancy growth this year is driven by a strong recovery in international arrivals to coastal destinations. Typically, Nha Trang, Cam Ranh and Phu Quoc recorded a 40-50% increase in room occupancy compared to the same period last year.

In the first 8 months of 2024, there were about 27.5 million international visitors traveling by air to Vietnam, an increase of 32% over the same period in 2023. Photo: PHONG DIEN

The number of international visitors to some provinces and cities increased compared to the same period. Specifically, in the first 8 months of 2024, Phu Quoc is estimated to welcome more than 4.5 million visitors, reaching 68% of the plan. Of these, international visitors were more than 653,500, reaching 98% of the yearly plan. Total revenue from tourism was more than VND 14,860 billion.

Of the 8 million visitors to Khanh Hoa in the first 8 months of the year, there were more than 3.2 million international visitors, exceeding the yearly plan by 6.7%, with tourism revenue of more than VND 39,500 billion.

**Hotels seek to reinvent themselves**

Mr. Mauro Gasparotti, Director of Savills Hotels, said that demand has recovered strongly. In particular, the growth of some international tourist markets has actively supported the recovery of the Vietnamese resort industry.

However, the ability to capture demand will depend largely on the capacity of each hotel. To increase their competitive advantage, many owners are more interested in cooperating with international hotel operators to convert or upgrade to a higher-end brand.

From the perspective of hotel operators, signing up for renovation and rebranding projects helps hotel chains increase their portfolio of projects operating in Vietnam more quickly.

Since the pandemic, the market has recorded many rebranding projects. The 2022-2023 period marked a record high in rebranding projects, accounting for 52% of all new international hotel branded projects opened during this period. This trend is expected to continue, with an estimated 30% of all new international hotel branded projects opening in 2024 remaining rebranded projects.

khách quốc tế — Vietnamese resort hotels need to upgrade their brands to meet the increasing demands of international guests. Photo: MINH LONG

Compared to 10 years ago, the hotel industry in Vietnam has developed much more, so hotel operators are also willing to propose higher-end brands if the project quality meets brand standards.

**Mr. Mauro Gasparotti - Director of Savills Hotels**

Ms. Uyen Nguyen, Head of Consulting at Savills Hotels, added: “Some projects that have been stalled for many years are also discussing with hotel operators to restart under new brands. These include some large projects in the Da Nang and Hanoi areas. In addition, some hotels after many years of operation are also working with current operators to upgrade to higher-end brands.

The trend of going hand in hand with international hotel brands is also expanding into the residential real estate sector to develop branded real estate products of higher standards."

Vietnam's luxury hotels and resorts lead the resort market

In terms of hotel and resort development activity, Vietnam ranks second in the number of projects under development in the Asia Pacific region (excluding China), after India.

With 191 projects providing approximately 49,800 rooms expected to open between now and 2028, Vietnam is considered one of the most important markets in the region.

Nearly 75% of the projects under development are in the mid-high-end segment and approximately 70% of the new supply is expected to be branded by international hotel chains.

Many luxury resort projects are developing strongly in all provinces and cities.

According to Savills, the luxury segment currently includes 7 projects in operation, expected to more than double in the next four years. The luxury projects under development will all cooperate in management with long-standing international brands.

Currently, the majority of luxury and high-end hotels are mainly concentrated in Ho Chi Minh City, Hanoi and Phu Quoc, accounting for about 50% of the total number of luxury projects in Vietnam.

In the coming time, the market is expected to welcome luxury resort projects in new destinations such as Phu Yen, Sa Pa, Ninh Binh and Vinh Phuc. These are places known for their unique local culture and natural landscapes.

MINH LONG

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