Hospitality sector in HCM City still not back to 2019 level: Savills
Despite improvement in 2022, occupancy and room rates in Ho Chi Minh City have yet to recover to pre-pandemic levels, according to real estate service provider Savills Vietnam.
Foreign tourists in HCM City's downtown. (Photo: VNA)
HCM City (VNS/VNA) - Despite improvement in 2022,occupancy and room rates in Ho Chi Minh City have yet to recover topre-pandemic levels, according to real estate service provider Savills Vietnam.
The occupancy rate was 45%, up 20 percentage points year-on-yearbut it was still 23 percentage points less than the figure in 2019.
The average room rate reached 1.6 million VND (67 USD) per nightlast year, a year-on-year increase of 21%.
Five-star hotels had the most significant improvement, with theoccupancy rate increasing by 24 percentage points year-on-year and the averageroom rate rising by 44% year-on-year.
The growth was driven by business travelers and MICE (meetings,incentives, conventions and exhibitions) guests.
Cao Thi Thanh Huong, research manager at Savills HCM City, said:“Following strong domestic support, the hospitality sector is returning tosolid performance, enhanced by international and business travellers.”
The city had the highest visitor volume in the country last yearbut it did not reach 2019 levels.
The city welcomed 3.5 million international visitor arrivals lastyear, half the figure in 2019.
The city’s tourism sector is targeting to receive five millioninternational visitor arrivals and 35 million domestic holidaymakers andearning tourism revenue of 160 trillion VND (6.74 billion USD) this year.
By the end of 2022, supply reached more than 15,500 rooms from 111projects in the city, increasing 8% year-on-year, almost reaching thepre-pandemic level, according to Savills’ latest report on the hotel market.
The pipeline is limited with only Sotetsu Hotel and Macxy Hotellaunching by 2025. Other future projects have been postponed or do not have specificconstruction schedules.
New supply of 271 rooms came from the five-star Fusion Originalsand four-star Northern Charm in the city’s District 1./.
Experts have held that the real estate sector will begin a recovery phase in 2023 with many difficulties lying ahead. However, difficult times will present opportunities for long-term investors to buy low.
The recovery of tourism, especially its international segment, is seen to be the driving force for the hotel market to prosper, with improvements in both occupancy and room rates, said experts from the real estate agency Savills Vietnam.
Deputy Prime Minister Mai Van Chinh has instructed the Ministry of Culture, Sports and Tourism (MoCST) to coordinate with other ministries, agencies and localities to effectively implement policies and directives from the Party, Government, and Prime Minister on tourism development.
Da Nang's appeal stems from its numerous outstanding tourist attractions, particularly My Khe Beach, Sun World Ba Na Hills resort, and the ancient town of Hoi An. Additionally, Da Nang tourism is renowned for its affordability, especially attractive to young travellers and couples, according to Chosun Ilbo.
With new direct flights from major Indian cities like Hyderabad and Bengaluru, Vietnam is becoming an increasingly compelling destination for Indian tourists seeking a quick, emotionally rich four-day escape that blends luxury, culture, and natural wonder.
By source market, China continued to lead with 3.1 million visitors, equivalent to 25.5% of all foreign arrivals. The Republic of Korea followed with 2.5 million, or 20.7%. Other major markets included Taiwan (China) with 737,000, the US with 522,000, and Japan with 380,000.
Khanh Hoa has welcomed 16 international cruises so far this year, with more than 19,000 tourists disembarking to explore the province’s scenic landscapes and renowned cultural, religious, and artistic landmarks, as well as to enjoy local cuisine and sightseeing tours.
According to local plans, fireworks shows will be held at multiple locations, with Ha Long Bay as the focal point. More than mere entertainment, these displays are part of a strategic cultural tourism product aimed at strengthening the region’s brand.
Chatbot and virtual assistants support itinerary consultation and tour bookings, and provide around-the-clock response across multiple platforms while AI advertising applications have been used to optimise budgets and target the right customers. AI has been also employed to analyse customer data, enabling the delivery of personalised tour recommendations.
Many Vietnamese regions possess favourable conditions, including natural landscapes, climate, and rich cultural identities, to host sport events that integrate with cultural and tourism experiences.
Dubbed the “land of ancient towers”, Khanh Hoa boasts a rich Cham legacy through architectural masterpieces like the Po Nagar, Hoa Lai, Po Klong Garai, and Po Rome towers.
Vietnam’s e-visa system is now seen as one of the most efficient, convenient, and transparent in the region. Fully online registration, no paperwork or interviews, and fast and flexible processing time have improved foreigners’ entry experience, creating a competitive advantage over countries clinging to complicated and costly visa procedures.
Sunset Town unfolded like a living fairytale. Every street and hidden corner recalls iconic European landmarks – from Venice’s San Marco Bell Tower and Paris’s Arc de Triomphe to Almafi-style squares and cobblestone paths reminiscent of southern Italy.
Its natural advantages have made Mui Ne a magnet for enthusiasts of kitesurfing, windsurfing, surfing, and stand-up paddle boarding (SUP). These activities not only diversify the local tourism offerings but also contribute to the area’s long-term development strategy focused on sustainability.
In July alone, the city welcomed 695,930 international arrivals, surging 75.3% year-on-year. For the seven-month period, international visitors totalled 4.5 million, up 48% year-on-year.
Welcoming the crew on the morning of July 30, Dang Dong Ha, Deputy Director of the provincial Department of Culture, Sports and Tourism, emphasised that the film offers a valuable opportunity to promote Quang Tri’s tourism potential, particularly to Indian visitors, but also to a broader global audience.
With a proactive and creative approach, Hanoi is positioning itself as one of Southeast Asia’s most compelling destinations where tradition meets innovation, and every visit offers a blend of the familiar and the new.
Fostering linkage among regional localities and restructuring the tourism sector towards professionalism are among measures to boost the “smokeless industry” of the Mekong Delta.
Foreign tourists in HCM City's downtown. (Photo: VNA) 
