Resort real estate is still "bright" in the long term

The resort real estate market is being supported by the recovery and development opportunities of the tourism industry.

According to the General Statistics Office, in 2023, Vietnam will welcome 12.6 million international visitors - 3.4 times more than in 2022, far exceeding the target of 8 million visitors.

The latest data from the Vietnam National Administration of Tourism shows that international tourists to Vietnam in February 2024 reached more than 1.5 million arrivals, an increase of 1.3% compared to January 2024, and an increase of 64.1% compared to the same period in 2023.

The bustling tourism industry and the results of welcoming international visitors in the first two months of 2024 show a very positive recovery of Vietnam's tourism industry. The recovery of the tourism market has a positive impact on the resort real estate market.

According to experts, tourism and resort real estate has many advantages in both supply and demand, as well as selling prices. Therefore, it is expected that this segment will change for the better in the near future.

“The biggest support for tourism and resort real estate in 2024 comes from the opportunity for recovery and development of the tourism industry. That is the visa relaxation policy that continues to take effect along with the 2% VAT reduction policy for goods and services, along with many support promotion programs and tourism exhibitions being organized,” said Ms. Pham Thi Mien, Deputy Head of Market Research and Investment Promotion Consulting (Vietnam Real Estate Brokers Association - VARS).

This expert added that the beach apartment type will be the highlight of the segment because it both meets the need for ownership and can be exploited for rent, creating cash flow.

A recent report by Savills said that in 2023, resort real estate business activities in most countries have almost recovered to pre-pandemic levels. In Southeast Asia, Singapore is leading the recovery of the resort industry. Meanwhile, the recovery speed in Vietnam is slower, with Revenue Per Available Room (RevPar) still about 20% lower than in 2019, mainly due to low room occupancy.

Mr. Mauro Gasparotti, Director of Savills Hotels, said that for the coastal resort market, Da Nang is leading the recovery speed thanks to the recovery of the Korean tourist market as well as the improvement in the frequency of international flights. Currently, Da Nang receives an average of 25 flights per day from major cities in Korea, accounting for more than 50% of the total number of international flights to this coastal city.

Meanwhile, the Nha Trang - Cam Ranh market still faces many challenges due to its heavy dependence on Chinese visitors before the pandemic. China is an important international tourist market for Southeast Asian countries, as the region welcomed about 32 million Chinese visitors in 2019. Currently, the number of Chinese visitors has not reached pre-pandemic levels, but the market is recording many positive signs of improvement from this source of visitors.

“Vietnam had an impressive tourism development process before the pandemic, as well as possessing great potential to become one of the international tourist destinations. However, Vietnam still needs to have action plans to increase its competitiveness with countries in the region. In particular, 2024 is expected to be a breakthrough year thanks to the recovery of the Chinese and Indian tourist markets,” Mr. Mauro shared.

However, hotel operators and businesses in the industry such as Vinpearl, Sovico Hospitality Group, TIA Wellness Resort, SonKim Land, VinHMS believe that domestic guests are one of the main driving forces supporting the recovery of the resort industry. This is considered a source of guests with the ability to recover faster, as well as less affected by fluctuations in the world.

Meanwhile, the international tourist market with higher spending levels, bringing better revenue to the domestic tourism ecosystem, but is more subject to fluctuations due to geopolitical factors. Therefore, there needs to be flexible policies that are suitable to the trends and needs of each group of customers.

Sharing solutions to attract tourists to Vietnam, Mr. Mauro said that it is necessary to create a highlight on service experience. There are two main factors that need to be prioritized: cultural experience and peaceful and relaxing experience - called lifestyle. These are factors that are expected to contribute to the long-term attractiveness of local tourism in Vietnam.

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