In recent years, the number of international hotel brands in Vietnam has gradually increased.

In recent years, the number of international hotel brands in Vietnam has gradually increased.

Currently, there are nearly 200 international brand hotels on the Vietnamese market, a significant increase from about 50 projects in 2013. Experts believe that there are many reasons for the increasing number of international hotel brands in Vietnam. According to Mauro Gasparotti, director of hotels at Savills, each model will have its own unique benefits depending on the investor’s vision and strategy. Operating hotels on their own can help investors become more independent in the development and operation process; while some specific hotels have more advantages in professional management, brand recognition, distribution systems and marketing. The use of solutions similar to effective commercial standards will provide the market with high-quality products, thus increasing the competitiveness of projects.

However, this also requires complex planning, in-depth technical research and often higher investment costs, Gasparotti said. At the same time, we also need to pay attention to sustainable development factors. The use of environmentally friendly materials is one of the trends that the market is paying attention to. Currently, customers tend to prioritize experiences that align with their personal values. In doing so, projects can communicate commitments regarding sustainability, health factors, and thereby gain more competitive advantage and value-added capabilities in the long term.

Ishan Kala, general manager of Kohler Vietnam & Philippines, said that integrating sustainability principles into the built environment increasingly requires comprehensive and rational designers and architects from manufacturers, investors, operating units, and real estate professionals. For example, Kohler's effective work provides in-depth insights and adds value to the design process, launching products that are environmentally friendly, water-saving, sustainably operated, provide optimal environmental support to customers, and minimize impact on the surrounding environment. Thus underscoring the importance of overall health and soundness in the luxury, high-end vacation experience.

Experts believe that domestic tourism is the main driving force supporting the recovery of the holiday industry during the period affected by the pandemic. This is considered a faster recovery of customers while reducing the likelihood of being affected by changes around the world. At the same time, the international tourist source market provides a better source of income for the domestic tourism ecosystem due to its higher consumption level, but at the same time, this market is also more susceptible to geopolitical factors.

Therefore, the set goal is to maintain and attract domestic and foreign customers; at the same time, policies that are flexible and in line with trends and needs need to be proposed, especially in the post-pandemic stage.

According to Mauro Gasparotti, holiday business activity has almost returned to pre-pandemic levels in most countries around the world starting in 2023, with more than 85% of markets having a higher RevPar index (revenue per available room) than in 2019. In Southeast Asia, Singapore is leading the resort industry's recovery. The country had already achieved outperformance in house prices even before the pandemic due to increased international tourism activity. However, Vietnam's recovery has been slower as the RevPar index is still about 20% lower than in 2019, mainly due to lower room occupancy rates. Gasparotti cited the example of cities like Ho Chi Minh City, where average house prices are close to pre-pandemic levels, and Hanoi, where business activity has resumed faster than seaside destinations.

For the seaside resort market, Da Nang is currently the region with the fastest recovery, contributing to the recovery of the Korean source market and improving the speed of international flights. Currently, Da Nang receives an average of 25 flights from major cities in South Korea every day, accounting for more than 50% of the total international flights in the coastal city. At the same time, the Nha Trang-Cam Ranh market remains highly dependent on Chinese tourists. China is an important international source market for Southeast Asian countries, and the region received approximately 32 million tourists from China in 2019. Currently, although Chinese customers have not yet returned to pre-pandemic levels, the market is seeing positive signs of improvement from this source of customers.

Savills' survey shows that in Southeast Asia, Singapore and Thailand are two countries that strive to provide strong international tourism activities. Thailand has set a target for 2025 to be an impressive year for the country’s tourism industry. Both Singapore and Thailand are committed to investing in infrastructure, improving entry procedures and providing the best experience for tourists. In the seaside area, both countries have promotion strategies to promote the destination's image and attract international tourists. One of them is the promotion strategy of working with international artists, such as Taylor Swift and Bruno Mars, whose performances have attracted the attention of international tourists, thus boosting local tourism activities.

While Vietnam has achieved impressive tourism development before the pandemic and has the potential to become an international tourism destination, it still needs to develop an action plan to become more competitive with other countries in the region. 2024 is regarded as the year of rapid growth in Southeast Asia, thanks to the recovery of China’s source market. In addition, the Indian market is also considered to be a customer source with huge potential for the region in the future. This is also an opportunity for Vietnam because we have a lot of potential customers - suggests Mauro Gasparotti.

For more information about real estate projects in Ho Chi Minh City and neighboring provinces, please contact FTT LAND!

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