Hoteliers to prioritise eco-luxury

What opportunities does Vietnam’s current investment environment offer for the eco-luxury tourism and hospitality sector?

Regional general manager for Vietnam, Cambodia, and Myanmar at The Ascott Ltd. David Cumming

Vietnam offers a highly favourable investment environment for eco-luxury tourism, driven by robust economic growth, a youthful and dynamic population, and increasing demand for sustainable travel. The nation’s rich cultural heritage, diverse landscapes, and unique biodiversity provide unparalleled opportunities to develop eco-luxury properties that resonate with global trends in experiential and environmentally conscious travel.

Vietnam, with its young population, more than ever needs to embrace the eco-friendly journey. People classed as Gen Z care about the environment and local environment more than any other generation. They are looking for travel businesses and experiences that preserve natural and cultural heritage.

Given the characteristics of Vietnam’s market, what are the key factors Ascott considers in capturing investment opportunities and implementing a long-term strategy for eco-luxury tourism and hospitality here?

Ascott places a strong emphasis on understanding Vietnam’s market dynamics and consumer trends to develop this strategy.

Key factors include, firstly, location potential - focusing on sites with significant natural appeal and cultural landmarks while minimising environmental disruption. Ascott has been considering several eco-friendly opportunities, including properties close to the sea, in provinces such as Thanh Hoa, or developing glamping in Phong Nha. This would give Ascott a window to moving into the ecotourism luxury market.

Next, in the age of eco-awareness, Gen Z emerges as a diverse and tech-savvy force, reshaping consumer habits. Their strong commitment to sustainability, with over 70 per cent willing to spend more on eco-friendly products, is what will at the end of the day drive the market both domestically and internationally. Vietnam is very much at the forefront of this generational change, and so it is important that not only Ascott, but the entire hospitality industry embraces this.

Ensuring compliance with both Vietnam’s vision and environmental laws while leveraging opportunities within the country’s sustainability frameworks is also at the core of our strategy.

What is Ascott’s vision for balancing sustainable growth with luxury in its ecotourism and hospitality offerings in Vietnam?

This vision is achieved through our commitment to creating unlimited opportunities, choices, and freedom for our guests, while also delivering unlimited good as a sustainable business.

All properties are being assessed under Global Sustainable Tourism Council (GSTC) certification, and our carbon and water footprint management integrates renewable solutions, energy-efficient systems, and water-saving technologies to reduce environmental impact.

Meanwhile, the Somerset Sustainability Passport Programme invites guests to participate in eco-friendly activities, wellness schemes, and community-driven initiatives; our local sourcing supports farm-to-table dining experiences; and we also implement comprehensive recycling, composting, and sourcing strategies.

What are the challenges that Ascott foresees in expanding its eco-luxury offerings in Vietnam, and how does the company plan to overcome these barriers?

Our key challenges include, firstly, high development costs due to green materials and technologies can increase upfront costs. Ascott addresses this by leveraging economies of scale, forming strategic partnerships with green technology providers, and seeking government incentives for related projects.

The second aspect involves regulatory hurdles, as keeping up with evolving environmental laws requires proactive engagement with policymakers and industry stakeholders to ensure alignment with national and local regulations.

Thirdly, building trust of local communities is essential. Ascott invests in community engagement programmes to foster collaboration, thus ensuring long-term success. Another key touchpoint of the local community that Ascott has been at the forefront of with CapitaLand, our parent company, is our ability to bring change and future to local communities through the CapitaLand Hope Foundation.

Towards the global trend in eco-conscious travel, how does Ascott plan to integrate local cultural and environmental elements into its luxury offerings in Vietnam, while maintaining global standards?

Ascott integrates global practices with local authenticity via various strategies. First is cultural preservation, by designing properties that reflect Vietnam’s architectural heritage.

Second is environmental sensitivity, and prioritising low-impact designs to protect local ecosystems, utilising native flora in landscaping, and ensuring biodiversity conservation.

Next is partnering with local artisans, farmers, and businesses to promote Vietnamese craftsmanship, cuisine, and traditions. Local volunteering programmes are also a key addition to Ascott Vietnam’s tourism offering.

The final aspect covers global standards compliance. Four of our properties – Somerset Grand Hanoi, Somerset Ho Chi Minh City, Somerset Chancellor Court Ho Chi Minh City, and Somerset Vista Ho Chi Minh City – achieved GSTC certification in 2023. We aim to have all properties in Vietnam achieve this by 2026, ensuring alignment with our global benchmarks.

Green is the new black for hoteliers Hoteliers and guests in Vietnam are changing their perception of green practices.