Hotels put Asian crisis to bed

The new resorts are the first since the 1997 financial crisis

Non Nuoc Tourist Company and Ben Thanh Tourist Corporation of Ho Chi Minh City are to invest $7 million to develop a 17ha tourist complex in Non Nuoc with hotels, conference halls, villas, high-class apartments and souvenir shops.
The five-year project will be divided into two phases. In the first phase, the company will upgrade two tennis courts and two existing hotels to four-star standard and build a resort with 31 bungalows and swimming pool.
In the second phase, a new 120-room, nine-storey hotel will be built as well as 21 villas, two upmarket condominiums, a mini-golf course and another swimming pool.
Sam said the Bahamas-registered Magnum Investment Group would also start construction of a $7.5 million resort in the Marble Mountains in August.
The resort would feature a villa and hotel complex with restaurants, a mini-mart, souvenir shops and entertainment areas.
“In total, there will be seven resorts constructed along our beach in the next few years,” said Sam.
Sam said part of the Son Tra Peninsula was now earmarked for tourism development.
“Son Tra is ideal for tourism development as it has beautiful white sandy beaches, mountains and forest,” he said.
These are the major resorts to be built in Danang’s beach since the opening of Furama, the country’s only five-star beach resort, in 1997. A number of foreign investors had intended to build large resorts in the region but withdrew due to low demand.
Among them was the American BBI Group that planned to invest $248 million in a five-star resort on 217ha. The venture was licensed in 1994 but collapsed in early 1997 after BBI failed to contribute its 70 per cent stake.
Early this year, the city licensed the $27.6 million hotel project to Hong Kong investors. The Majestic Riverside Hotel will replace the abandoned hotel project initially slated for No.74 Bach Dang Street by Accor Group.
Danang, ‘the city on the sea’, is supported by direct flights from Bangkok and Hong Kong in addition to services from Hanoi and Ho Chi Minh City. Danang is the gateway to three World Heritage Sites: Hoi An ancient town, My Son Towers valley and Hue Imperial City.
Danang is planning to expand its airport so it can accommodate 3.5 million visitors each year.