Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Off-season traveling trends to boost tourism for the “smokeless industry”

Quynh Dang • 22/06/2022

Popular travel destinations are feeling the pressure as tourism bounce back from a two-year pent-up

At the height of the pandemic in Vietnam, the tourism and hospitality industry suffered a great deal. Due to social distancing and global mobility restrictions, hotel owners and operators faced unprecedented pressure as revenue plummets.

As the situation eased, Vietnam gradually halted requirements for medical declaration and COVID-19 testing requirements in entry procedures. Vietnam's tourism industry immediately witnessed a spectacular recovery, the first five months of 2022 saw a total of 48.6 million domestic and 365,000 international arrivals, according to the Vietnam National Administration of Tourism. calendar. The total revenue of the whole tourism industry in the first 5 months of the year is estimated at 211,000 billion VND and is expected to continue to grow strongly until the end of the year.

Information from Google's keyword ranking tool shows that international search volume for Vietnam tourism is growing by about 50-75%, the fourth-highest increase in the world. Topping the list are Ho Chi Minh City, Hanoi, Da Nang, Phu Quoc and Hue, Hoi An. The number of tourists from South Korea and the United States travels to Vietnam the most, followed by Taiwan and Japan. While Chinese tourists are still unable to travel due to distance regulations, neighboring markets such as Cambodia, Laos, and Singapore are increased sharply.

Trang Bui, General Manager of Cushman & Wakefield comments: “Tourism is an indispensable activity in life and a driving force for cultural exchange. This is an important spearhead industry for economic growth and is often dubbed the "smokeless industry".”

While a resurgence in tourist arrivals is good news for the industry, too many tourists flocking to the same destination at once can cause over-tourism. “For many years, famous destinations such as Da Nang, Phu Quoc, and Da Lat always operate at full or over capacity on holidays, Tet, and weekends. During these times, accommodation facilities from affordable to luxury are all maxed out. The image of crowded places, and unorganized infrastructure, brings negative experiences to both visitors and local people,” shared Ms. Trang.

Up to now, the total number of accommodation rooms across Vietnam is 650,000 rooms, including 3-4-5 star hotels, apartments and villas. A wide range of high-end luxury domestic and international hotel brands are present in Vietnam's tourism hotspots, including IHG, Accor, Marriott, Hyatt, Reverie, Caravelle, Majestic hotel and Rex hotel , as reported by Cushman & Wakefield Vietnam in Q1.

However, the average occupancy rate is only around 52%, showing a stark contrast between occupancy rates in peak season versus low season. To reduce over-tourism in peak season and promote off-season travel, we note a number of trends that hotel operators can adopt.

  • Staycation, also known as local tourism: More than half a year ago, while the international tourist market was still frozen, the first stop on the road to recovery for the hotel and tourism industry was the domestic market. Domestic hotel chains continuously launched package promotions and received positive feedback. After the situation stabilized, this type of local travel is still favored by families who want to go on a quick vacation, young people who like to change their working sceneries, and couples who want a private romantic getaway. The keyword "staycation" can still be seen promoted by major hotel chains, proving that this is not a temporary trend but an essential need of the people as well as an effective solution to low-season vacancy.
  • Corporate events combined with tourism (Meetings, Incentives, Conferences, Exhibitions - MICE) attracted a lot of attention from investors and operators. This type of program requires a large enough space with a well-organized schedule for a large group of tourists. With many large hotel chains and resorts at beautiful locations that can house up to thousands of guests, Vietnam’s present conditions is suitable to conquer this niche. Demand for MICE is growing, coming from both domestic and foreign businesses. The World Tourism Organization has forecast that by 2025, revenue from MICE tourism will reach over US$1.4 trillion.
  • Sports tourism: A new trend that has been noticed in recent times, especially running and cycling. The first two quarters of 2022 have witnessed races being organized one after another every weekend in many different scenic locations, bringing together thousands of athletes from all over the country. After the event, many athletes choose to stay in the area for the rest of the weekend before returning to work. Recently, according to the Vietnam Statistics Office, the 31st SEA Games event has attracted many international and domestic groups to visit and enjoy the matches.
  • Golf, long considered a high-class sport, is flourishing across Asia, followed by an increase in golf tourism demand. Golf tourism is among the main pillars of Thailand tourism and has brought in more than US$11 billion in revenue for the country in 2020, according to Reuters. Golfers are more willing to spend a premium to travel and play golf. With favorable weather and attractive natural landscapes, Vietnam is fully capable of competing with other countries in the region for a piece of the “golf pie".
  • Destination wedding is a wedding combined with a honeymoon, a trend that is very popular in the Western scene, and it’s recently getting even more popular in Asia. Usually, the wedding will be held at a high-end resort, guests will travel to the destination for the ceremony and stay for the weekend. This concept requires a high level of professionalism and creativity to really create a meaningful ceremony and exciting stay for both the couple and the guests.

Due to seasonality, the industry is increasingly building and developing integrated entertainment and services such as theme parks, water parks, and hot mineral springs… to encourage longer stays and attract visitors throughout the year. The potential of the domestic market is still very promising with a rapidly growing middle class helping to boost the demand for tourism. We believe that the tourism and hospitality industry in Vietnam will recover and regain strong growth momentum by the end of 2022.

Recent Press Release

Hanoi
The Northern Real Estate Market: Ready To Accelerate

Hanoi and the 5 key provinces of the North remain to be in the top 10 hotspots for FDI investment in Vietnam, with a total investment volume of 16,7 billion USD in 2023, according to Ministry of Planning and Investment. 

Trang Bui • 11/04/2024

APAC Data Centre news card image
Data centres: Headroom for growth in Asia Pacific

Data centres across Asia Pacific are growing in scale and new markets are being evaluated for expansion as operators anticipate increased demand from continued digitization and wider adoption of artificial intelligence.

Trang Bui • 08/09/2023

CushWake-ESG-CardImg
Cushman & Wakefield releases 2022 Environmental, Social and Governance Report

Cushman & Wakefield (NYSE: CWK), a leading global commercial real estate services firm, today released its 2022 Environmental, Social and Governance (ESG) Report.

Quynh Dang • 30/08/2023

Asia Reit Market Insight
Asian REIT Market Values Declined by 14.7% to USD263.8 billion at End of 2022

The combined value of the Asian REIT market was at USD263.8 billion at the end of 2022, down 14.7% compared to the end of 2021, according to Cushman & Wakefield’s latest Asia REIT Market Insight for 2022-2023. 

Trang Bui • 22/08/2023

Capital Advisory appointments
Cushman & Wakefield Grows its Capital Advisory business in Australia and Greater China

Cushman & Wakefield (NYSE: CWK) is pleased to announce new senior hires in its Capital Advisory business in Australia and Greater China, augmenting its Capital Advisory platform across Asia Pacific and the globe.

Chek Yee Foo • 26/06/2023

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS