Why Vietnam tourism sees robust growth?

Tourism in Vietnam continues to be a promising source of income for the country, with growing demand for accommodation, and many new and promising projects in the pipeline for the next decade.

Vietnam tourism sees robust growth

According to data from STR, the worldwide leading hospitality data centre, Vietnam has recorded an impressive hotel performances growth for the first quarter of the year.

Asia-Pacific results were mostly positive when compared with the same period last year, with the region showing a 1.7% increase in occupancy to 66.6%, with average daily rates (ADR) remaining nearly flat.

The RevPAR (revenue per available room) increased on average 1.5% to US$69.93.

Vietnam has led the growth with a recorded 5.6% increase in occupancy to 68.7% and a 4.5% rise in ADR to US$129.67 in the upscale segment.

The country’s ADR was the highest on record for any quarter. As a result, RevPAR grew by double digits (+10.3%) to US$88.98, in the four-and five-star hotel categories.

According to the Vietnam National Administration of Tourism (VNAT), the country welcomed 108,750 visitors from Russia during the first quarter of the year, a year-on-year increase of 13.5%.

STR analysts note that with the Vietnamese Government easing visa policies, Vietnam is now viewed as a more secure destination for Russians, compared with traditional destinations.

Mauro Gasparotti, Director of Alternaty Vietnam, said that “Vietnam is only at the beginning of a long lasting hospitality growth.”
”The country has, for years, been seen as the frontier destination for seasoned travellers looking for culture experience, but has now started to be recognised as an international holiday destination, able to offer excellent climate, food, beaches, cultures, along with all the international standard comforts that foreign travellers are looking for,” he said.

With the expansion of international airports across the country, better infrastructure, higher quality hotels and entertainment, travellers are now finding Vietnam an excellent alternative to more mature destination such as Thailand or Malaysia, he added.

According to statistics by VNAT, more than 3.2 million foreigners have visited Vietnam in the January-April period, up 17.8% over the same period last year, with the highest number of visitors coming from China and the Republic of Korea.

The number of domestic travellers last year also showed a 48% increase, totalling 57 million travellers from 38.5 million in 2014.

Rudolf Hever, co-founder of Alternaty Vietnam, said emerging ‘hot’ new destinations were one of the key incentives for luring local travellers.

“New destinations such as Quang Binh and Ninh Binh have seen significant increase of travellers, who see these places as a worthy travel destination, a clear sign that the Vietnamese are keen to explore their motherland,” he added.

(Source: VNA)