Unlocking the tourism potential of Phan Thiet

Phan Thiet, a familiar destination for both domestic and international tourists since the 1990s, has seen a somewhat quieter tourism season compared to other coastal destinations like Khanh Hoa and Da Nang. As of March 2021, the area has 51 mid-scale and higher-end accommodation establishments offering approximately 5,800 rooms; compared to Khanh Hoa and Da Nang, this supply represents only 20% and 30% of the total room supply in these areas, respectively.

“Compared to the strong supply growth in Da Nang, Khanh Hoa, and Phu Quoc in recent years, Phan Thiet is like a ‘sleeping princess’ with very few new projects and the majority of the supply on the market consists of small-scale resorts operated by the investors themselves – accounting for 92% of the total available rooms on the market,” shared Mr. Mauro Gasparotti – Director of Savills Hotels APAC. “In addition, the operation of accommodation establishments currently depends heavily on domestic demand, accounting for nearly 90% of annual guests. However, with the impact of the Covid-19 pandemic, the business operations of local accommodation establishments have been affected, with most resorts recording occupancy rates down by more than half compared to the 65%-70% achieved in 2019.”

Louis Walters, CEO of Sailing Club Leisure Group, commented on the local tourism potential: “Phan Thiet, once a popular destination for international tourists, is gradually becoming less attractive compared to other destinations due to a lack of diversity in entertainment activities and cultural experiences. The implementation of upcoming infrastructure projects such as the Phan Thiet - Ho Chi Minh City expressway and the nearby airport is expected to help Phan Thiet attract a large number of international and domestic tourists, contributing to the promotion of tourism in the area.”

In recent years, Phan Thiet has been attracting the attention of many regional and international management companies. These investments are expected to increase the market's attractiveness by providing a diverse range of resort products and enhancing its recognition among international tourists.

According to Mr. Henry Gray, CEO of Azula International PTE Ltd - Azerai: “The area has seen many projects underway, but lacks diversity in overall planning, models, and project products to fully exploit its tourism potential and convey the unique characteristics of the locality. Therefore, the area needs to focus on developing more entertainment facilities such as restaurants, bars, shopping stores, water sports activities, etc., to complete the tourism ecosystem and provide more diverse experiences for tourists. In addition, public amenities also need attention to meet the basic needs of tourists, including healthcare services, transportation, sanitation, and security.”

"To achieve sustainable development goals with a medium- and long-term vision, local authorities and investors need to cooperate closely with competent consulting, management, and architectural planning units to create tourism products that meet market demands while exploiting the potential and unique characteristics of the locality," Mr. Mauro emphasized.

Huyen Chau