Houses and buildings along Han River in Da Nang city (Photo VNA) Hanoi (VNA) - Vietnam’s hotel and resort realestate needs to have a comprehensive plan to ensure its development is on theright track.
According to Mauro Gasparotti, director of Savills HotelsAsia Pacific, the hotel and resort property market of Vietnam was growing,driven by strong increase in the number of foreign tourist arrivals in recentyears.
Recent updates of the Vietnam National Administration ofTourism showed that the country received 11 million foreign tourists so farthis year, representing a rise of 27.8 percent over the same period last year.
The increase was thanks to the launch of a number ofinternational flight routes, together with easier visa policies.
Hotel occupancy rates saw a significant increase in majortourism cities such as Hanoi, Ho Chi Minh City, Da Nang and Nha Trang,according to Savills Hotels.
However, a majority of the hotel rooms were located incoastal areas while condotel count outnumbered resort rooms, Gasparotti said,warning that this would lead to serious competition in hotel room prices.
He said several developers did not pay adequate attention tothe planning of their projects, adding that some focused simply on buildingtheir hotel projects with as many rooms as possible without giving thought tohow to increase the added value of their projects.
It was critical for the hotel and resort real estate segmentof Vietnam to have a comprehensive plan to ensure long-term sustainable growth,he said.
Vo Kim Trang from Savills Hotels also said developers neededto have a long-term vision. “Developers will need to know tourism trends andchanges in tourist demand, which will affect the development of hotel andresort products in the medium and long terms, rather than just focus on revenuein the short-term.”
Savills Hotels also pointed out that Vietnam lackeddiversification in products compared with destinations such as Thailand andIndonesia.
The global market was currently witnessing new kinds ofdevelopments, such as resort wellness, resort spa, poshtel, co-working hub andhi-tech hotel.
Morris Sim from Next Story Group, a hospitality management,marketing, design, franchising, investment and development companyheadquartered in Singapore, said developers in Vietnam should diversify theirhotel and resort products to meet the increasingly diversified demand oftourists.
Sim also said the sharing economy and social marketing weresignificantly affecting the hotel and resort property market with a newtechnology-savvy generation showing a new trend for working and traveling.
Next Story Group said hotels and resorts must make changesto maintain and improve competitiveness.-VNA
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