More opportunities for resort tourism expected

When operational later this year, Mu Cang Chai Resort will be the first 5-star resort in Mu Cang Chai district, and also the first luxury resort to reach 5-star standards in the mountainous province of Yen Bai. The resort began construction three years ago in the terraced fields of Che Cu Nha commune, 7km from the town centre.

More opportunities for resort tourism expected

Divided into VIP villas, luxury villas, and bungalows, Mu Cang Chai Resort owns a full range of modern services with design focusing on nature-friendly materials such as bamboo, recreating the living space of ethnic minorities in the northwest in the mists of the majestic mountains and forests.

“We are ambitious to turn this place into the most luxurious resort of Yen Bai province and the northwest mountainous region,” said Dao Duc Long, a representative of resort owner Thinh Dat JSC. “The company is also working with a number of partners to develop more high-end experience products for VIP groups such as tours to discover Mu Cang Chai by helicopter, paragliding, and building a treatment area according to the traditional herb remedies of the Mong and Dao ethnic minorities,” Long added.

With the goal of raising the brand name of Yen Bai resort, Long and Thinh Dat JSC had been constantly looking for foreign partners to operate and develop the resort. Finally, the company found Banyan Tree, a group that currently manages nearly 100 luxury hotels and resorts worldwide.

“We hope this cooperation will bring new values to Yen Bai province and help it attract more foreign guests when the resort starts operating,” Long shared.

The number of international tourists did not meet expectations in 2022. According to data from the Vietnam National Administration of Tourism, the country welcomed about 3.5 million international visitors in the year, fewer than the targeted 5 million visitors set at the beginning of the year. However, the number of domestic tourists increased by 1.5 times, reaching 101.3 million.

Vietnam’s hotel and resort market remains attractive to many investors in the region thanks to the rapid recovery of these domestic visitors, and positive reopening signs from key tourist markets of Japan, South Korea, China, and emerging market India.

Fitch Solutions notes that Vietnam’s tourism sector is forecast to record $11.1 billion in revenues in 2024 and this could rise to around $13.2 billion by 2026, with more than 22 million arrivals in the country each year.

Michael Kokalari, VinaCapital’s chief economist, expects the number of Chinese tourists is likely to begin recovering in the second half of 2023. “They could contribute to bringing the number of foreign tourists to Vietnam to over half of the pre-pandemic level for 2023,” he said.

Tourism and resort businesses have expanded development opportunities as tourist travel habits change with the rise of sustainable products and experience-discovery tourism products combined with healthcare activities.

The recovery process of hotels in the high-end and luxury segment is more positive, said Mauro Gasparotti, director of Savills Hotels Asia-Pacific. “Especially, the luxury segment was less volatile than other segments during the pandemic and also recorded a better rate of room rate recovery than the market average,” he said.

Gasparotti believes that the operation of resorts in coastal tourist destinations, especially in markets that depend on foreign visitors, will improve more effectively in the next 12 months.

This is also the reason why regional and international hotel management groups are increasingly focusing on strengthening their presence and expanding their brand portfolio in Vietnam. At the same time, domestic tourism businesses are also paying more attention to combining with international management partners to bring more quality experience to meet new trends.

In 2022, Vietnam’s largest hotel and tourism group Vinpearl transferred the management rights of its 12 hotels and resorts to Meliá Hotels International for a minimum period of 10 years.

Vinpearl Hotel CEO Thai Thanh Nhat Quang said, “The cooperation with international partners in running our properties will effectively facilitate Vinpearl in joining world-famous hotel networks and contribute to raising the bar for Vietnamese tourism.”

Meanwhile, IHG Hotel & Resorts Group – the owner of Six Senses, InterContinental, Regent, and Crowne Plaza – also announced a long-term development plan in Vietnam to make the country a key market in Southeast Asia.

“We have strengthened long-term cooperation with groups such as BIM Group and Sun Hospitality Group as well as new partners such as Con Bap Ecotourism to jointly promote brand growth sustainably when cooperating with the right partners,” said Rajit Sukumaran, managing director of IHG for Southeast Asia and South Korea.

Latest figures say Vietnam has just over 130 hotels and resorts under the brand name of operating corporations. Besides key markets such as Nha Trang, Danang, and Phu Quoc, international and regional operators are also paying more attention to developing destinations such as Ho Tram, Quy Nhon, and Phu Yen.

According to the latest figures by Savills Vietnam, in the next three years, the market is expected to see about 80 more hotels and resorts under the operator chain come into operation. Prominent projects expected to come into operation in 2023 include Angsana & Dhawa Ho Tram, JW Marriott Cam Ranh, Hyatt Regency Nha Trang, La Festa Phu Quoc Curio Collection by Hilton, and Voco Ma Belle Hotel Danang.

Uyen Nguyen, head of consultancy at Savills Hotels Asia-Pacific said, “Partnering with professional hotel operators will help bring value to the projects from the early planning stage through to technical consulting and pre-opening services, to ensure that the project meets design standards and is capable of efficient and cost-effective operation.”

Mu Cang Chai among world’s 50 most beautiful places Mu Cang Chai terrace fields in the northern mountainous province of Yen Bai have been included into the list of the 50 most beautiful places in the world in 2020 by Big 7 Travel.

Yen Bai tourism recovering from the pandemic thanks to new projects During the last months of this year, Yen Bai has become increasingly popular for its tourism experiences thanks to the presence of attractive new offers.

Mu Cang Chai banh day pounding festival about to open The first Mu Cang Chai banh day pounding festival will be held for three days (January 1-3, 2021) on the occasion of the New Year holiday.

Safe, colourful Mu Cang Chai While building Mu Cang Chai’s tourism into and sustainable industry, the district’s authorities in Yen Bai province are actively developing its infrastructure and aims to promote new agro-tourism products to prepare for the first wave of tourists after the pandemic.

Resort investment on the rise with post-pandemic prospects Though the tourism industry has been hit hard, project developers and financiers are preparing for the comeback of the industry. Many investors of small- and medium-sized ventures are now looking into combined service projects, instead of focusing on the hospitality sector or individual products like before.