Vietnam is attracting more international visitors, and more hotel brand groups, as the country’s travel and tourism sector rebuilds following the pandemic.
The sector is supported by a robust economy which saw GDP growth of 6.42% in the first half of 2024, giving investors confidence. Foreign direct investment into the country was up 13.1% year on year, according to a report from agents CBRE, led by Singaporean investors.
Record tourism performance
According to the World Travel & Tourism Council, the country’s tourism sector is set for a record 2024 as GDP, jobs and domestic visitor spend all exceed levels enjoyed prior to the pandemic. Travel and tourism will account for more than 7% of Vietnam’s overall economy, supporting close to 6m jobs.
While domestic travellers will spend record sums, international visitor spending is still behind 2019 levels, providing clear potential for stronger medium term performance. International arrivals have returned to seasonal trends, and totalled 8.8m in the first half of 2024, up 58.4% year on year. But CBRE reports this year’s monthly arrival peak of 1.6m visitors in March 2024 is still well behind the pre-pandemic peak of almost 2m in January 2020. Arrivals from Korea and Taiwan are ahead of 2019 levels, while visitor numbers from China are lagging.
Returning visitors have helped hotel performance. Occupancy in Ho Chi Minh City has recovered to an average 70% in 2024, while in Hanoi performance is still lagging with occupancy at 67%, behind a 2019 comparable figure of 80%. New hotel supply in the country remains good, across all sections of the market.
International brands move in
International brand groups are continuing to make their way into the Vietnam market. IHG recently signed to switch the Bay Resort Hoi An to its Vignette Collection. The 128 room property, owned by Hoi An Pearl Joint Stock Company, will be refurbished ahead of the relaunch.
Marriott, too, is growing its presence. In June 2024, it opened its first Westin branded hotel in Vietnam, the 207 room Westin Resort & Spa Cam Ranh. Hyatt will join the trend, with the opening of the Caption by Hyatt Ba Son Saigon in 2025.
And Hilton has committed to growth with three pipeline signings: Tapestry Hoi An, Hilton Hanoi West, and Hilton Garden Inn Mui Ne Beach. The Tapestry Hoi An will feature 174 rooms and be located in Cam Thanh Village, alongside the Coco River. The first Tapestry branded hotel in the country, it will open in 2026. It will be followed by the 253 room Hilton Hanoi West, opening in 2027. And the Hilton Garden Inn property will open in 2028 n the coastal resort town of Mui Ne, located in southern Vietnam.
