The resort real estate sector is facing a shortage of tourism personnel.

09/04/2019

On April 6, 2019, the 2019 Tourism Real Estate Forum was held at the Sheraton Hotel, District 1, Ho Chi Minh City. One of the issues of concern to investors was the challenge of meeting the demand for human resources in the tourism industry.

Vietnam's tourism industry has been developing very strongly in recent years, especially resort tourism. According to statistics from the Vietnam National Administration of Tourism, in 2020, Vietnam's tourism industry will reach a total revenue of US$35 billion, and by 2030, this figure will reach US$70 billion. The number of international tourists visiting Vietnam is increasing: it is projected to reach 20 million by 2020 (double the 2016 figure), with an annual growth rate of approximately 20%. In addition, Vietnam's population of around 100 million and increasing per capita income create a large domestic demand. The growth rate of domestic tourism is approximately 10% per year.

Vietnam possesses favorable natural conditions: numerous beautiful landscapes, a long coastline, a steadily improving standard of living, and a rapidly developing infrastructure. These factors greatly facilitate the development of resort tourism, leading to a growing number of projects: Novaland Group investing in a 500-hectare safari resort in Ho Tram (Ba Ria - Vung Tau), Deawoo Group partnering with TDH for a condotel project in Long Hai (Ba Ria - Vung Tau), Thien Minh Real Estate Investment Joint Stock Company collaborating with Viet Uc Group to develop the Aloha Beach Village project (Phan Thiet), and more.

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Besides hotel apartment projects, resort villas, commercial townhouses, townhouses combining business and accommodation, or branded resorts being built in key tourist areas, large-scale resort complexes or tourist urban areas with diverse real estate and tourism products such as casinos, theme parks, and golf courses have begun to emerge.

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The rapid development of resort real estate also presents numerous challenges: difficulties related to interest rates; determining land prices and land taxes; land access and clearance procedures; and especially the capacity of the tourism workforce to meet demand.

At the 2019 Tourism Real Estate Forum, a survey on human resources was published by The Leader online magazine. According to the survey, out of the top 100 real estate companies, 32 submitted complete questionnaires, all acknowledging the shortage of human resources for the tourism and resort industry.

Considering only the quality of tour guides, who play a crucial role in attracting and promoting the tourism industry (including resort tourism) to tourists and investors, the survey statistics accurately reflect this reality: only about 40% of tour guides are fluent in English, only 5% are fluent in Chinese, and about 2% are fluent in Korean. Furthermore, the skills and qualifications of staff at many hotels and resorts remain weak.

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Mr. Kai Marcus Schroter, General Director of Hospitality Tourism Management (HTM), shared that in some locations like Phu Quoc, HTM often cannot recruit enough staff, so they have to look to other provinces and cities to find and train personnel. The shortage of tourism personnel in Vietnam has not yet been resolved, and to meet the staffing needs in this field for the next 10-15 years, Vietnam needs to invest heavily in education.

Training is not something that happens overnight; it requires certain levels and experiences in this tourism industry. In the long term, developers and operators of resort real estate projects need to collaborate with colleges and universities to establish practical standards and commit to employing graduates. Successfully implementing this will address the problem of a workforce whose skills do not meet the needs of employers.

The Anh
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