Tourism Recovery Prompts Major Hotel Chains to Expand Operations
Tourism Recovery Prompts Major Hotel Chains to Expand Operations
The resurgence of domestic and international tourism in the first 10 months of 2022, coupled with positive growth prospects for the tourism industry in the medium and long term, continues to attract major hotel chains to expand operations in Vietnam...
Luxury hotel management brands are actively pushing forward their expansion plans in Vietnam to be ready for the anticipated acceleration in the coming years.
IHG Hotel & Resorts, the owner of brands like Six Senses, InterContinental, Regent, and Crowne Plaza, has just announced long-term development plans in Vietnam to make the country a focal market in the Southeast Asia region.
EXPANDING LONG-TERM PLANS
Accordingly, in addition to the 15 hotels under 5 brands currently managed nationwide, IHG plans to open an additional 22 hotels in the next 3-5 years.
"To achieve this goal, we have strengthened long-term cooperation with owning corporations such as BIM Group, Sun Hospitality Group, and new partners like Con Bap Ecotourism Limited Company. Together, we will promote sustainable brand growth by collaborating with suitable partners to develop suitable brands in suitable locations," said Rajit Sukumaran, IHG's Chief Operating Officer for Southeast Asia and Korea.
RAPID RECOVERY OF THE MARKET
Explaining the attractiveness of the hotel market, many experts believe that with the increasing number of tourists, the hotel and resort market in Vietnam is becoming attractive to many investors in the region. This makes Vietnam one of the most mentioned markets in Asia-Pacific.
This indicates that both the domestic and international tourism markets have strongly recovered thanks to the policies of fully reopening tourism from March 15 and a series of events reactivating the market by the Vietnam National Administration of Tourism, the Ministry of Culture, Sports, and Tourism, localities, and businesses...
The recovery of Vietnam's tourism industry is also clearly reflected in foreign statistics. Data from the tourism research company STR shows that room occupancy rates nationwide are growing, with a 65% increase compared to the same period in 2021. In addition, the average daily rate (ADR) has increased by 25% compared to the same period last year. Thus, it can be seen that the demand for tourism in Vietnam is rapidly returning after a compressed period.
GOOD GROWTH PROSPECTS
In the report released in August 2022, Fitch Solutions predicts that Vietnam's tourism sector will achieve revenue of USD 11.1 billion in 2024, surpassing the USD 10.8 billion revenue in 2019, a year before the Covid-19 pandemic erupted. This figure is expected to increase to around USD 13.2 billion in 2026, with more than 22 million tourists visiting the country. According to Fitch Solutions, this is a positive outlook for countries wishing to boost the development of the "smoke-free" industry.
IHG representatives also believe in the recovery and acceleration of this industry in the coming years, especially when looking at the statistical indices over the past 10 months and the recent few years. Accordingly, the double-digit annual growth rate indicates the remarkable development of Vietnam's tourism industry.
