Emerging destinations: Ho Tram and Long Hai

“Despite the ongoing economic impact of the pandemic, domestic investors remain optimistic and confident in the market's recovery potential, with construction and sales of second-home projects continuing on schedule,” shared Mauro Gasparotti, Director of Savills Hotels APAC. “Besides major tourist destinations like Hanoi, Ho Chi Minh City, Da Nang, Nha Trang, and Phu Quoc, we have observed that new destinations such as Ho Tram, Binh Thuan, and Hoa Binh are also attracting considerable market interest. Savills Hotels will work alongside local authorities and investors to introduce and capitalize on the potential of these new destinations, boosting tourism promotion and investment activities there.”

Savills Hotels apac

Savills Hotels is a specialized division of Savills Group with extensive experience in resort real estate development and investment consulting. The Savills Hotels consulting team not only understands the regional market but also possesses many years of practical experience in the real estate markets of the countries where they operate.

With the goal of supporting and accompanying the recovery process of Vietnam's resort real estate market during this challenging period, Savills Hotels continues its Espresso Shots - Asia Pacific Market News series, providing the latest updates on emerging destinations in Vietnam.

According to statistics from the local tourism authority, Ba Ria-Vung Tau welcomed nearly 2.7 million overnight visitors in 2020, a figure comparable to Da Nang, while Khanh Hoa only recorded 1.3 million. Mr. Mauro Gasparotti shared: “Previously, road-accessible tourist destinations were the top choice for most people in European and American cities until the emergence and boom of low-cost airlines allowed travelers to reach more distant destinations. However, in the current period, due to the impact of the Covid-19 pandemic, locations near major cities, within a few hours' travel, have once again become the preferred choice for many tourists.”

Currently, Long Hai and Ho Tram have 19 operational 4- and 5-star projects, providing 2,700 rooms to the market. Over the next three years, a significant supply is expected to enter the market with 9 new projects under construction and 5 projects undergoing expansion, estimated to provide approximately 7,600 rooms.

Based on the latest research from Savills Hotels, 50% of future supply will be managed by international and regional operators, including brands such as Intercontinental Grand Ho Tram, Holiday Inn Resort Ho Tram, Hyatt Regency Ho Tram, Grand Mercure, etc.

Furthermore, with its advantageous location near Ho Chi Minh City, 90% of new projects are developing a Second Home component, offering a diverse range of products from apartments to resort villas. Having been hidden gems for some time, this area possesses significant potential for tourism development with entertainment, sports, and wellness activities, as well as suitability for developing diverse types of resorts and Second Home products. For emerging markets, investors face more risks and need to conduct thorough research and plan projects with a long-term vision to make informed decisions. In addition, developing high-quality products is crucial for attracting tourists and ensuring stable growth in the area.

Mr. Mauro commented: “In the last two years, Ho Tram and Long Hai have attracted the attention of international operators, whereas a few years prior, they were quite cautious about undertaking projects in this market. Although Covid-19 severely impacted the global tourism market, Ho Tram and Long Hai are two of the few destinations that maintained occupancy rates and room prices at pre-pandemic levels, and most resorts even performed better in 2021. In addition, demand for second-home properties has increased as buyers better understand the value of a place to stay near Ho Chi Minh City for weekend getaways or short trips. Consequently, property values ​​have increased significantly, accompanied by an increase in product quality and amenities.”

Key infrastructure projects such as the highway system connecting the region with the East and Southwest regions and Long Thanh International Airport are considered catalysts for boosting tourism and investment in the area. Phase 1 of the Long Thanh airport project (expected to be completed in 2025) will become an important transportation channel supporting domestic and international tourism activities, especially the MICE segment.

Mr. Mauro further commented on the tourism potential of Ho Tram - Long Hai: “The current market relies heavily on domestic demand, accounting for nearly 90% of annual tourist arrivals. The ongoing infrastructure projects are expected to bring in a more diverse range of visitors. The abundance of accommodation options and entertainment facilities, along with international-standard casinos and golf courses, will contribute to the region's competitiveness compared to other familiar destinations. However, to effectively exploit market potential, we encourage investors to carefully research market trends to understand the needs of the new generation of tourists and diversify accommodation options. These products require investors to have a thorough understanding of concepts, ideas, and collaboration methods among stakeholders to ensure the feasibility and effectiveness of the project. Overall, we remain optimistic about market potential and expect positive results in the near future.”

Savills Hotels will continue its Espresso Shots series with the Mui Ne - Phan Thiet market, an area currently experiencing strong development with large-scale projects.

Lan Oanh