HCM City (VNA) – Vietnam’s hoteland resort market will see sustained or even accelerated growth in 2017,according to Alternaty, a real estate service company.
According to the company, Nha Trang, CamRanh and Phu Quoc will receive huge investment in the sector. Investors shouldbe prepared for an upcoming drop in demand, despite the growing number oftourists to the localities.
Hotel mergers andacquisitions (M&A) activities were limited in 2016, with thetransactions of InterContinental Asiana Saigon and Duxton HCM City among thehighlights. Rudolf Hever, executive director at Alternaty, said more M&Aswill take place in the coming years when new projects join the market whileinvestors will have to divest from ineffective projects.
Alternaty highlighted the growth of touristarrivals to Vietnam, saying that Vietnam will become a popular destinationthanks to many resort and hotel names at attractive prices. However, thecompany advised investors to use discretion to ensure sustainable development.
According to Alternaty, the sector reboundafter sluggishness in 2014 and 2015 thanks to a surge in internationalvisitors.
In 2016, Vietnam saw a year-on-year increaseof 26 percent in international visitors. The highest surge was seen from China,up 51 percent, the Republic of Korea (RoK) up 39 percent, Russia 28 percent,and Thailand 26 percent.
The number of tourists from Japan, the US,Taiwan (China), and Malaysia also increased over 10 percent.
However, Vietnam relied mostly on four keymarkets, namely China accounting for 27 percent of Vietnam’s foreign arrivals,followed by the RoK, 15 percent; Japan, seven percent and the US, six percent,according to Alternaty.-VNA