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PROPERTY

Notably, stimulus measures for domestic vide a good staycation option for domestic
tourism resulted in the market becoming The hotel and resort tourists and are well-positioned in the current
more competitive, though hotels and resorts segment was one of situation.”
have always had to offer promotions or dis- the most affected by the
counts to attract guests. “A smaller market pandemic and will also likely Looking ahead
and fiercer competition forced everyone to be among the slowest to The Vietnamese Government and the hos-
introduce flexible strategies and promotions,” pitality sector displayed resilience and adapted
Ms. Huong added. “But programs and pack- fully recover. Fortunately, well to the unfavorable conditions in 2020.
ages with deeply reduced prices make it diffi- the domestic market helped Ms. Huong said that Vietnam made a name
cult for us to turn a profit.” cushion the impact for itself by largely controlling Covid-19,
Mr. Jackson said it is clear that hotels and significantly and kept many becoming known as a safe destination. “We
resorts must offer discounts and promotions hotels and resorts afloat.” expect that the first six months of this year
to remain attractive amid the competition. will be a period of recovery in the tourism
“With falling revenue, however, operators are sector, with domestic tourism remaining
also forced to cut certain services or charge dominant,” she added. “There are few inter-
extra for services such as meals, swimming MR. DAVID JACKSON, national tourists at the moment, so we believe
CEO OF REAL ESTATE CONSULTANTS
pool access, or laundry,” he explained. “The COLLIERS. this is an ideal time to invest in the compre-
challenge is for businesses to maintain the hensive maintenance and upgrade of Sun
high-quality service they have provided for Group’s hotels and resorts nationwide.”
years, while at the same time making necessary Without the much-needed revenue from
adjustments to staff and other resources.” domestic visitors, the impact on resorts and
When revenues took a nose-dive, many hotels would be catastrophic. One silver lining
hotels and resorts either had to shut down, Huong said. “Because of promotions, more of the pandemic, according to Colliers, is that
introduce temporary or permanent layoffs, local customers had the opportunity to expe- it provided a chance for Vietnamese people
or use their cash reserves to survive. “As rience our products and services and we and expats in the country to visit places they
many of these have existing loans and rents became more familiar among holiday-makers.” otherwise probably wouldn’t, especially des-
to pay, they will be under increasing pressure With the advantage of being closer to tinations readily accessible by road from
when these become due, so it is important home, “staycations” have become popular nearby cities, such as Phan Thiet, Vung Tau,
for landlords and financial institutions to among Vietnamese tourists. The Sun Group’s Ho Tram, and Da Lat. Younger Vietnamese
understand their difficulties and adjust the hotels and resorts are in prime locations in are also increasingly enjoying the travel expe-
terms to help them through the crisis,” he attractive destinations such as Sapa, Quang rience, and demand for products such as
added. “Covid-19 has affected all revenue Ninh, Da Nang, and Phu Quoc Island, and design-focused hotels, high-end resorts, week-
streams of hotels and resorts, including room offer a diverse and self-contained tourism end getaways, and resorts close to nature has
bookings, F&B, and MICE events. It’s the ecosystem that includes entertainment and been heading ever-upwards.
same all around the world.” other services like F&B and shopping. “Such Colliers forecast that 2021 will continue
destinations are ideal during the pandemic,” to be a challenging and uncertain year for
Doing their best Ms. Huong said. the hotel and resort segment in Vietnam, and
Despite the impact of the pandemic, devel- According to Colliers’ observations, as the domestic visitors will continue to be the main
opers of hotel and resort projects have made staycation market becomes increasingly com- tourism driver. “While any recovery in 2021
every effort to take advantage of whatever petitive it is important to create unique and will depend on the efforts of the government
opportunities there are to stay afloat and interesting experiences to attract visitors and to control Covid-19 and import vaccines, the
grow the segment. In addition to building encourage them to stay longer. Mr. Jackson timeline of a full recovery remains unknown
new projects in new destinations, the FLC said that some hotels and resorts near beaches because the global economic downturn and
Group has also determined that the top priority have launched special tours, such as yachting the evolution of the virus has created uncer-
is offering “combos” that include flights, trips with sizeable discounts, while others tainty everywhere,” Mr. Jackson said. “The
accommodation, and dining, so guests can have cut the rates on their larger hotel rooms, attitudes and needs of tourists will change
freely explore the destination. The Group which were previously targeted at foreign post-pandemic, and it is important these new
also offers combos of flights and hotel and tourists. “The marketing of these rooms on preferences are fully understood.” %
resort stays together with rounds of golf or various platforms
spa treatments. like hotel booking
The Sun Group, meanwhile, continues to apps and the
innovate its products and services and has introduction of
launched new projects and products, including attractive and
the Yoko Onsen Quang Hanh Hot Springs affordable pack-
Resort in northern Quang Ninh province last ages are crucial,”
May. It has also worked with localities and he added. “Natu-
partners to introduce new products and pack- rally, hotels and
ages with preferential prices, encouraging the resorts near cities
travel business community to “shake hands” will have an
and stimulate demand. “Thanks to timely advantage, as they
guidance from the Government, the flexibility are convenient
of the tourism industry and the locality, and, weekend destina-
especially, the acumen and effort of tourism tions. Luxury
businesses, the domestic market quickly hotels in the heart
improved after each Covid-19 outbreak,” Ms. of a city also pro-

MARCH 2021 | VIETNAM ECONOMIC TIMES | 43