Vietnam’s hotel room supply declines while tourism numbers are up

Vietnam’s hotel room supply declines while tourism numbers are up
October 30 16:29 2018

According to real estate management company, Savills Vietnam, Ho Chi Minh City’s hotel room supply was down by 4% year-on-year to 15,800 rooms at 127 hotels. The decrease in rooms is attributed to the fact that one 5-star hotel and two 3-star hotels in with 393 rooms in total, closed for renovation during the period.

According to Savills, average room rates rose by 3% year-on-year, which delighted owners and management companies and was considered a significant improvement in the context of increasing competition between tourism destinations.

Hotel owners and managers are preparing for 2020, when the hotel room supply will increase by almost 20%. In 2020, 15 new hotel properties with 3,000+ rooms will come online and will generate increased completion for all properties in the city.

In 2018, the year-to-date the number of international visitors has increased by 23% to 11.6 million visitors in total. According to the Viet Nam National Administration of Tourism, China, Malaysia, South Korea and Taiwan continuing to be the main source markets.

The Ho Chi Minh City, Department of Tourism, said that the city received more than 5.4 million foreign visitors in the January to September period, a 21% year-on-year increase over 2017. Revenues from international tourists increased 18% year-on-year, to $4.21 billion USD and are expected to reach $4.5 billion USD by the end of the year.