Foreign investments in the Real Estate for Tourism Development market have been flowing into Vietnam, according to the Ministry of Planning and Investment (MPI).
According to the MPI, 18 out of 487 projects that were licensed during the first six months of this year were tourism-hotel projects, and capitalized at nearly $4bil. Five out of the eight biggest projects announced by the ministry were projects that fell into the field of real estate for tourism.
Experts believe that the number of projects in the tourism-hotel field will further increase during the last months of this year, and continue to grow for the next 2-3 years.
The experts have every reason to believe this as the number of foreign tourists to Vietnam is expected to increase over the next few years with Vietnam being considered as a new attractive destination.
In 2007, Vietnam received 4.2mil foreign tourists and served 20mil domestic tourists. The Vietnam National Administration of Tourism (VNAT) has forecasted that there would be 6mil foreign tourists to Vietnam by 2010 that would stay for an average of 4.6 days.
As such, Vietnam needs more high-grade accommodations to meet this increasingly high number of tourists. Currently, Vietnam is seriously lacking high-grade hotels. The 5-star Daewoo always sees room occupancy reaching 85-90%, while Melia sees 95% during the high season. The ratio of net profit on the total turnover at luxury hotels in Vietnam is relatively high, at 20-35%, with which Vietnam is described as being an attractive cake for investors.
Experts said that in terms of material facilities and infrastructure, Vietnam nowadays still lags behind where Bali was 28 years ago. Therefore, it is expected that the accommodations in Vietnam will increase rapidly from 9,000 hotels in 2007 to 13,500 in 2010.
On October 2, the project on Vinpearl Hoi An sea ecotourism in the Cua Dai sea area was kicked off. Vinpearl Hoi An Resort will comprise of a 5-star hotel and 35 luxury villas, covering an area of 70,277 sq m. The VND300bil project is expected to be put into operation in the first quarter of 2010.