Vietnam’s tourism sector is experiencing robust expansion fueled by surging domestic travel and a sharp recovery in foreign arrivals, especially from Asia, cementing its position as one of the region’s fastest-growing destinations.

The hotel industry is lagging amid low occupancy rates, though room rates are almost at 2019 levels in most areas, according to Savills Hotels.

A new government decree is expected to help remove difficulties for the domestic leisure property market, which is experiencing a 10-year low in demand, experts have said.

Vietnam’s hotel industry has been slower to bounce back from the COVID-19 pandemic than that of other countries due to a series of factors, including strong reliance on the Chinese market and a large pipeline of hotels, according to Savills Hotels APAC.

The global hotel and resort sector is recovering well from the COVID-19 pandemic with improvements on occupancy and room rates, and Vietnam is no exception, said Mauro Gasparotti, director of Savills Hotels Asia Pacific.

VOV.VN - The number of hotel and resort projects with local and international brands in Vietnam has witnessed impressive growth, increasing from 36 projects in 2010 to 120 as of the end of January this year, according to statistics released by Savills Hotels.

After a gap of two years due to the COVID-19 pandemic, many hotel projects of international brands in Vietnam are expected to be put into operation this year.

VOV.VN - Many experts and leaders of travel firms believe that the local tourism sector will recover quickly from the second quarter of this year following the Government’s decision to reopen borders to travel from March 15.

Many tourism-related firms that have borrowed from banks are facing foreclosure due to the latest outbreak of COVID-19 infections.

Vietnam has tremendous long-term potential to become a leading international destination like Thailand or Indonesia, according to local insiders.