Mr. Do Van Dan, Chairman & CEO of Elegance Hospitality Group, tells VET about the development of Vietnam’s tourism and hospitality sector.
What are your thoughts on the development of Vietnam’s hospitality sector?
Vietnam is rising in popularity as a tourist destination in Southeast Asia. The number of international visitors reached more than 10 million last year, representing a 26 per cent increase. Home to diverse attractions and delicious cuisine, Vietnam appeals to an incredibly wide range of travelers. As interest continues to mount, so too do opportunities for investors catering to the hospitality industry. The demand for leisure activities and accommodation, especially four- and five-star hotels, remains particularly high. Government support programs are also increasingly playing an important role by providing incentives to investors in hospitality-related sectors.
Is tourist spending an issue?
According to the Vietnam National Administration of Tourism (VNAT), international visitor numbers have also increased this year. A significant proportion come from Northeast Asia, especially China, Japan and South Korea. As the number of tourists increases, overall spending increases sharply.
Likewise, living standards are becoming higher. People are now able to spend more time and money on recreation activities. Leisure travel plays an important part in this. For example, on average, Japanese people have twice as much disposable income to spend on travel and leisure compared to ten years ago. These factors have helped stimulate a sharp increase in tourist spending over the years.
Is there potential for more hotels and resorts in Vietnam?
According to the “Overall Plan for Vietnam’s Tourism Development to 2020, with a Vision to 2030”, approved by the Prime Minister, Vietnam targets the development of seven tourism regions, providing diversified products representing the character of each region.
Industry experts believe that Vietnam’s tourism outlook by 2020 will be comprehensive and even more attractive, turning tourism into a major economic sector. By 2020, the tourism industry aims to attract 10.5 million international tourists and serve 47.5 million domestic travelers, with annual growth rates of 7 per cent and 5.1 per cent, respectively. Total revenue from tourism is to reach VND372 trillion ($18.5 billion).
By 2030, the plan is to increase the number of international and domestic tourists to 18 million and 71 million, with annual growth rates of 5.2 per cent and 4.1 per cent, respectively. Expected total revenue is VND708 trillion ($35.2 billion).
With such impressive growth rates, the tourism sector is expected to quickly reach its goals and see positive performance over the forecast period.
Factors shaping Vietnam’s tourism sector include spectacularly varied landscapes, with national parks, forests, and a 3,000-km coastline and beaches, and major cities and secluded villages. Vietnam is a young, vibrant, and developing country, with a well-educated population and diligent workforce. English language skills are high. Of course, we also have a very stable political environment and the country is regarded as a very safe holiday destination.
The hotel industry aims to keep pace with the rise in demand. In the time to come, we expect to see an increase in the hotel and resort industry, especially in the four- and five-star hotel sector, and this of course will help generate a considerable increase in room capacity.
What can you tell us about EHG?
Elegance Hospitality is a group of hotels that have proven popular among the tourist community. Founded in the early 2000s, we have developed from our first hotel in Hanoi to our current chain of eight boutique hotels in Hanoi’s Old Quarter and one outstanding resort in Hoi An ancient town. Our distinctive collection of properties will redefine the very concept of boutique and luxury hospitality.
As we strive to be a renowned brand in hospitality, we commit to nurturing and developing our people to be the best in the industry. In addition to the emphasis on creating a desirable workplace environment, we put our trust in giving back to society and sharing our success with the community. At Elegance Hospitality Group, our success is not appraised by the number of hotels under our chain but by the number of lives we touch and inspire along the way.