Will the hotel and resort market flourish more in 2023?

Currently, the hotel market in Vietnam has recorded room occupancy exceeding 60% compared to 2019, but many opinions suggest that in 2023, this market will thrive.

Not Recovered in 2022

According to statistics from research units, the new hotel market in Vietnam has recorded room occupancy exceeding 60% compared to the same period in 2019. As of November 2022, Vietnam welcomed 2.95 million international visitors. With the absence of Chinese tourists, the South Korean market is leading in the number of international visitors to Vietnam. In the first 11 months of 2022, this market reached nearly 764,000 visitors, accounting for 26% of the total international visitors.

In addition, the Indian market has recorded impressive growth with 109,000 visitors from January to November 2022. In November alone, there were 27,000 Indian visitors, an increase of 50% compared to the same period in 2019.

Thị trường khách sạn, nghỉ dưỡng sẽ khởi sắc hơn trong 2023?

Overview-wise, in 2022, the domestic market remains the main driver of Vietnam's tourism industry. Until November 2022, domestic tourism activities recorded impressive growth with 96.3 million domestic visitors, surpassing the total of 85 million domestic visitors for the entire year 2019.

Positive Signals in 2023

In the last days of 2022, China is adjusting its "Zero Covid" policy, considering easing control requirements after a long period of implementation. Additionally, many airlines have announced the resumption of flights between China and Vietnam. According to Savills' assessment, this is seen as a positive signal, helping to accelerate the recovery process of Vietnam's tourism industry.

Before the pandemic, China was the world's largest tourism market, with over 150 million outbound trips in 2019. The opening of borders and the removal of quarantine regulations in China will have a significant impact on the recovery of tourism activities in many Southeast Asian countries, especially destinations highly dependent on this source of tourists like Vietnam.

Efficient Exploitation Strategies

According to experts, the recovery of the tourism industry, especially in international tourism, will be the main driving force to boost the hotel market. However, to exploit the market potential efficiently, aiming for sustainable development, experts believe that investors need to thoroughly research market trends to develop a business model that suits the needs of new generations of tourists. These products require investors to have a clear understanding of concepts, ideas, and collaboration methods among stakeholders to ensure the feasibility and effectiveness of the project.

"In the face of many challenges in the market, the sales and operation of some projects will be delayed compared to the original plan. However, this is also an opportunity for investors to review, evaluate and effectively adjust the business model. Overall, we remain optimistic about the market potential and expect a year with many positive signals for the resort industry, especially anticipating more positive developments after Q1/2023," Mr. Mauro added.