Vietnam's tourism industry sees healthy boost

Real Estate consultancy CBRE released a report titled "Hotel Investment & Management in Viet Nam – Lessons from Across Asia," finding that there is a greater interest in investing in Vietnam's hotel sector due to the improvement of the country's economy.

According to Vietnam Net, buyers are becoming apparent as investor interest grows in looking for quality hotels based in Southeast Asia. Development and purchase costs continue to rise in areas such as Hong Kong, Singapore and Tokyo, prompting buyers to look for investment opportunities elsewhere. 

Slow but steady growth in international tourism has found its way to Vietnam over the past three years. In the first five months of 2014, however, tourism rose over 26 percent, according to the report. 

Virtual Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

Occupancy rates in Ho Chi Minh City and Ha Noi are now inching closer to that of cities such as Jakarta and Kuala Lumpur. While there is an increase in hotel supply predicted for both Ha Noi and HCM City over the next three years – around 8 percent in total – this is less than the number of projects proposed for Kuala Lumpur and Jakarta, where supply may grow by 20 percent and 40 per cent respectively if all the proposed projects proceed.

According to Bernama, the political turmoil in Thailand could also be providing a boost to Vietnam's tourism industry.

"The longer term outlook appears positive at present. The quality of infrastructure and hotels has improved considerably over the last few years and this has led, and will continue to lead, to a more stable and resilient tourism market," CBRE Hotels (Asia Pacific) executive director Robert McIntosh said. "Hotel performance is expected to improve in the medium term and foreign investors are increasingly attracted to the opportunities and returns Vietnam offers."

Suggested Articles

The management company has retained its Deerfield, Ill., location as a regional office.

Two recent cases address the issue of hotel liability when personnel assist police who have an issue with a guest—here's the lesson for hotels.

Aqua-Aston Hospitality will roll out its new Next Level program of cleaning and service protocols at its 30+ managed hotels and resorts by Aug. 1.