During the 2010-2016 period, the number of international tourist arrivals in Vietnam doubled to 10 million from 5 million. The number of domestic visitors surged considerably, from 28 million to 62 million.
This period is considered a “golden” time for the resort property market, especially in condotel model, particularly in Nha Trang, Da Nang and Phu Quoc in 2016.
Specifically, Nha Trang welcomed nearly 1.2 million foreign tourists, up about 23% year-on-year while the central city of Da Nang served around 1.7 million vacationers, marking a 33% increase.
Director of Savills Asia Pacific’s Hotel Consulting Department Rudolf Hever attributed the growth to improving infrastructure and easier visa policies for foreigners, saying that Vietnam currently records nine international airports which are being upgraded with more terminals and runways.
Thanks to visa waiver for foreigners, the number of foreign tourists to Phu Quoc, the southern province of Kien Giang, soared 25% in 2014 compared to the previous year.
The department predicted that hotel and resort supply from midscale to luxury segments will grow 29% on average per year in the next three years. Similarly, Da Nang and Phu Quoc will see respective growth of 30% and 27%.
However, experts warned that occupancy and hotel room prices will be put under pressure if demand is yet to keep pace with supply so that investors should thoroughly consider expected occupancy and budget for their projects in the coming years.