The growth of tourism is creating opportunities for the hospitality market, especially the mid-end and high-end segments, according to Savills’ latest review.
In 2016, the total rated travel accommodation supply in Vietnam was up 18 per cent year-on-year to 420,000 hotel rooms, commensurate to tourism industry development.
Enhanced tourist flows are creating more opportunities for the hotel market, especially in the upper-mid to high-end segments.
From 2013 to 2016, the supply of four and five-star hotels increased 20 per cent on average to meet international tourist demand for upscale resorts and luxury accommodation.
As major economic hubs, Ho Chi Minh City and Hanoi attract the most tourists. Meetings-Incentives-Conventions-Exhibitions (MICE) and business travelers accounted for over 40 per cent of total international arrivals to Vietnam.
In 2016, there were 5 million visitors to Ho Chi Minh City and 4 million to Hanoi.
Previously the only international points of entry by air, arrivals in Ho Chi Minh City and Hanoi are now being marginally undercut by growth in capacity and the number of direct flight to other key cities.
Emerging coastal destinations such as Da Nang, Nha Trang, and Phu Quoc Island are becoming more competitive, with direct international flights.
Hanoi remains the gateway for tourists to northern provinces and likewise Ho Chi Minh City remains the gateway to Mekong Delta provinces, but the central region is becoming increasingly self-reliant.