HOSPITALITY MARKET ENJOYS STRONG GROWTH

The tourism sector is showing strong momentum, driven by favourable visa policies, improved infrastructure, and strategic marketing efforts by both authorities and businesses, a conference has heard.

Vinpearl Resort & Golf Phú Quốc. —VNA/VNS Photo Hồng Đạt

HCM CITY — The tourism sector is showing strong momentum, driven by favourable visa policies, improved infrastructure and strategic marketing efforts by both authorities and businesses, a conference has heard.

The biannual conference on the real estate and hospitality sectors “Meet The Experts,” held in HCM City on Tuesday, brought together over 700 representatives from real estate developers, hotel owners, architects, design consultants, project consultants, hotel operators, and industry experts.

Mauro Gasparotti, senior director, head of SE Asia hotel advisory at Savills Hotels, said: “Việt Nam’s hospitality market developed strongly last year, with international tourist arrivals rebounding to pre-COVID levels.”

Hotel occupancy rose by nearly 15 per cent and room rates by 5 per cent, driven by the luxury segment, he said.

Coastal destinations such as Nha Trang-Cam Ranh and Phú Quốc experienced a surge in international arrivals.

Phú Quốc is set to host the APEC Summit in 2027, affirming its position as a premier destination.

Việt Nam’s tourism landscape is undergoing a rapid transformation, with new business models, brands and resorts redefining the market, he said.

Concepts such as branded residences, ultra-luxury residential developments, rooftop bars, beach clubs, wellness retreats, and all-inclusive resorts illustrate the sector’s evolution.

Meanwhile, according to Gasparotti, emerging technologies like Al (Artificial Intelligence) are poised to revolutionise travel, streamlining processes and personalising experiences for both leisure and business travellers.

These innovations will drive the next phase of hospitality and real estate growth, attracting top-tier brands and shaping the industry's future, he added.

Representatives from Savills, QUO, Group GSA, and Gamuda Land provided insights into the country's growing luxury real estate market.

They said the capital markets continue to attract strong interest, particularly from Asian investors.

However, transaction volumes remain limited due to ownership complexities, regulatory challenges and prolonged negotiation processes.

Investors are particularly drawn to prime locations in key cities with strong infrastructure connectivity, prioritising assets that offer long-term value appreciation and stable demand.

The evolving legal framework and upcoming infrastructure projects such as the Long Thành International Airport and metro system expansion could significantly shape investment trends in the coming years, potentially unlocking new opportunities in both the hospitality and real estate sectors.

Professionals from Savills Vietnam, Lodgis Hospitality, Ares Management, Indochina Capital, Kusto Home, SC Capital, and Group GSA provided insights into regional investment flows. They explored how foreign investors could play a crucial role in redefining Việt Nam’s real estate and hospitality landscape.

The panel emphasised that strategic partnerships and regulatory improvements will be key to moving the market forward, ensuring sustainable growth and increased investor confidence.

In the first two months of this year, Việt Nam recorded nearly four million international arrivals, a year-on-year increase of 30 per cent. —VNS

Source: VNS