Vietnam’s hospitality industry will remain attractive for the next ten years, experts told the Vietnam Hospitality Forum held by CBRE Vietnam on November 7 in Hanoi.
A report from CBRE shows that growth in Vietnam’s hospitality sector declined this year, increasing only 10.8 per cent compared to more than 20 per cent in 2018, but the figure is still impressive compared to other countries in the region and Asia.
The market has also recorded an explosion in supply since 2015. The five-star hotel segment has seen the largest increase. From 2015 to 2019, the number of five-star hotel rooms more than doubled, from 24,212 to 52,213. The four-star segment also maintained good growth, from 27,379 to 39,023 rooms.
However, according to experts, when comparing supply in Hanoi and Ho Chi Minh City - Vietnam’s two major markets - with Bangkok, for example, the figure remains quite small but shows the prospects and potential the segment holds.
Mr. Gautam Bhandari, Regional Vice President for Development at Marriott APAC, said that Vietnam is benefiting from the US-China trade tensions and more and more foreign investors are coming to the country. “In the next one or two years, investors believe that foreign capital inflows will continue into the market,” he added. “In the next ten years and more, the market will increasingly develop, achieve significant results, and maintain growth. This is also common in other countries in the region, such as Malaysia, Indonesia, and Thailand, while Vietnam in particular still holds major potential for domestic and foreign investors.”
Mr. Christian Low, APAC Regional Strategic Director at SB Architect, said that Vietnam is still a great destination. “Compared with actual potential, however, the level of exploitation is still limited so prospects remain in the future,” he noted. “Vietnam also has potential in its tourism market, which requires developers offer unique products.”
According to Ms. Thuy Nguyen, Chief Business Officer at Silk Path Hotels & Resort, the number of domestic tourists will remain a highlight and maintain growth in the next ten years. She explained that ten years ago, many families hoped to travel once or twice a year, while Generation Y now hope to travel once every two months. “This is the main group of customers and they will have a strong impact on the domestic tourism market,” she added. “Operators and investors therefore need to adjust their products and marketing to meet the lifestyles of this customer group.”
