Resort sector lacks sustainable plan

Resorts in central Binh Thuan – Mui Ne region-illustration photo

In recent years, initial success of some popular resorts in the south and the south-central region created a wave of investment into resort projects nationwide.

However, after a short period of hot development, the sector has now cooled. Resorts have not had professional investors, and thus not enough resources and experience to make products that reach international standards.

Phan Huu Thang, deputy chairman of the Vietnam Real Estate Association, said so far, almost all areas located in good places to develop resorts have been occupied by the domestic investors.

Many investors did not have long-term development strategies nor the financial ability, so they waited for an increase in land price to sell the land to foreign investors to develop resorts, Thang said.

Besides that, many resort projects have been built but infrastructure not completed, so those resorts were not operating at their full capacity, Thang said.

Nguyen Tri Dung, chairman of the Song Da Thang Long Corporation, said the resort segment has had aggressive development but on a simple foundation, including poor management policies and legal systems.

Meanwhile, resorts were for customers with large financial potential, knowledge and information about resorts in terms of price, service quality and management, Dung said.

Thang said development of resorts over the past years has been spontaneous and without specific development plans, hindering many resorts from attracting customers due to a lack of services or poor service quality.

There is no connection between resort project development and national tourism promotion.

International visitors to Vietnam grew at an average rate of 11.5 per cent each year, but the number of those visitors to resorts remained low, Thang said.

Due to the lack of development plans, almost all resorts are located in the centre, especially in Binh Thuan, Phan Thiet, Danang, Hoi An and Vung Tau. Thus the coastal regions with a pleasing sea environment and safe living standards have become saturated with resorts.

To have sustainable development of the resort market, deep market research should be promoted, Thang said.

Infrastructure should be built to create favourable conditions for development of resort projects, he said.

The country should have some key services in relation to resorts, including airports, seaports, restaurants and entertainment to attract foreign visitors and put Vietnamese resorts on the world market, Thang said.

Vietnam has 68 resorts in central Binh Thuan – Mui Ne region, 19 resort projects in Danang , 17 resort projects in the south and three resort projects in the north, according to the real estate association.