JLL Vietnam Gives Prediction For Tourism In Hanoi And HCMC Tourism

JLL Vietnam, the global real estate services firm recently released a port, including news on the latest tourism trends, and an outlook for the future.

Hanoi and Ho Chi Minh City have been noted as a tourist hotspot in the Asia Pacific region, making them both notable cities for the country of Vietnam, showing the appeal of Vietnamese hospitality and the allure of a stay at a luxury hotel in Saigon.

The JLL report covers the news for tourism, supply, demand and outlook.

Tourism

Last year, in 2016, Hanoi experienced a boom in the tourism industry, with total of 4 million international arrivals, a notable 21.2% increase and exceeding the expectations set by the Vietnam National Administration of Tourism, who only expected 3.8 million visitors. Between 2011 and 2016, the combined annual growth rate of the city hit 16.1%.

Meanwhile, Ho Chi Minh City experienced similar, if smaller growth, with 5.2 million international arrivals, representing a 10.6% increase from last year, which is still higher than the expected 8.5%. Between the years of 2011 and 2016, the city had registered a CAGR of 10.9%.

These growths supposedly come from the city’s increased efforts to attract tourists, with more cultural and eco-tourism festivals, as well as overseas travel marts and road shows.

Supply

Last year, only 200 new hotel rooms were added to Hanoi’s hotel markets, plus rebranded supply, whilst this year is expecting at least 800 new hotel rooms, with an additional 2,000 rooms added by 2020, with 1,700 being from the luxury sector.

For Ho Chi Minh city, over 3,500 rooms are planned to be added by 2020, with 1,000 of them added by the year’s end.

Demand

The top tourist traffic sources of Vietnam include mainland China, Japan, the US and South Korea. Hanoi has plans to expand its tourism attraction efforts into the Russia and French, with help from international agencies and diplomats.

Ho Chi Minh plans to aim for the Russian tourist market as well, whilst at the same time promoting itself in Japan and India, hoping to attract visitors for a stay at a luxury hotel in Saigon. If all goes well, international arrivals in the city should hit 6 million by the end of this year.

Outlook

The recent trends, coupled with the VNAT’s efforts to market Hanoi and Ho Chi Minh, complete with a partnership with CNN that will last until the end of next year, show a positive future for the country’s tourism sector, giving the market a very positive outlook.