The market for 4-5 star hotels in Ho Chi Minh City is on the way to recovery
According to CBRE Vietnam, the strong outbreak of the 4th wave of the epidemic along with the prolonged isolation periods from the end of May has caused many negative impacts on the socio-economic situation of Ho Chi Minh City. Accordingly, the tourism and hotel industries are also subject to new pressures. In 2021, the city only received 9.4 million domestic visitors, down 42% over the same period last year, and new international visitors were almost absent. By the end of 2021, the 4-5 star hotel market in Ho Chi Minh City has a total of 11,182 rooms with 51 projects.
The epidemic continues to be a big challenge for the accommodation service industry, accordingly, the operation situation of the 4-5 star hotel market in Ho Chi Minh City has not recorded many positive changes. In 2021, the average room rate is only 72.4 USD/room/night, down 20.6% over the same period in 2020. The trend of hotels converting their models into paid isolation facilities is still quite popular. As a result, room occupancy is gradually improved compared to the new outbreak period in 2020. The average occupancy in 2021 will reach 28.5%, an increase of 3.6 percentage points (ppt) over the same period. RevPAR for the whole year 2021 only reached 20.3 USD/room/night and recorded a decrease of 15% over the same period.
Especially in the third quarter of 2021, Ho Chi Minh City applied enhanced control measures, which required businesses to implement the “1 route, 2 destinations” plan to maintain operations and at the same time meet safety criteria for epidemic prevention. The average occupancy in this quarter increased sharply to 35.2%, up 8 pts compared to the previous quarter.
However, when the city gradually returned to the “new normal”, the average occupancy rate in the fourth quarter of 2021 had a slight adjustment and remained at 25.4%. The 4-5 star hotel market will still face many difficulties in the short and medium term, mainly due to the fact that room rental rates are still anchored at a relatively low level.
At the beginning of 2022, the Government has issued a document allowing Ho Chi Minh City to welcome international tourists back under the “vaccine passport” pilot program. In terms of vaccine coverage, the city has completed the second vaccination for 100% of the population aged 18 and over and is currently continuing to implement the additional vaccination. This is a positive signal and plays an important role in the city’s plan to gradually restore and reopen tourism.
According to CBRE Vietnam, 2022 will open up many opportunities for HCMC’s 4-5 star hotel market, according to which, the market will have many signs of prosperity in the first half of 2022 and the recovery speed will be strong. stronger in the second half of the year. The Ho Chi Minh City 4-5 star hotel market is expected to have a new supply of about 2,803 rooms from 13 projects, along with the presence of new high-end hotel brands such as Ritz Carlton, Mandarin Oriental, Hotel Indigo, Avani.
According to this unit, from October 2021 when Vietnam begins to restore “the new normal”. After nearly 2 years of shutting down the tourism industry from March 2020, Vietnam welcomed the first international visitors in November 2021, specifically visitors from Korea, Japan, Cambodia…
The Government has approved seven local areas to be piloted to welcome international visitors from the North to the South, including: Quang Ninh, Da Nang, Quang Nam, Binh Dinh, Khanh Hoa, Ho Chi Minh City, and Kien Giang – Phu Quoc.
From January 2022, Vietnam has resumed international flights to countries such as Japan, Korea, Taiwan, Singapore, Thailand, Cambodia, Laos, Australia, Germany, Russia, France, UK, USA, etc. Malaysia, Turkey, Qatar, UAE, Hong Kong, China.
Along with policies to restore international flights, Vietnam has made efforts to speed up the implementation of vaccinations and by the end of 2021, Vietnam has reached more than 70 million doses of vaccines vaccinated on the world. In the whole country, more than 80% of the population has been vaccinated, of which about 79% of Vietnamese people have been vaccinated with 2 doses.
“Increased vaccination coverage has largely contributed to the ‘new normal’ for society. The hotel market will still largely rely on strong domestic tourism demand, but the piloting is gradual. Gradually, localities in welcoming foreign guests are a good opportunity to contribute to speeding up the process of recovering Vietnam’s tourism market quickly”, the representative of this unit emphasized.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
