Vietnam Emerges as a Hotspot for International Hotel Development
Chris · June 02, 2008
The Asia-Pacific region is a hotbed for tourism development activity, and international brands have hundreds of hotel properties currently under construction or in their development pipelines.
Although the People’s Republic of China is the obvious leader in the number of hotels currently being built in the region, other destinations in Asia-Pacific are also experiencing a renaissance in hotel development and tourism growth.
The HVS Hotel Valuation Index 2007 (PDF) recorded some interesting statistics showing excellent tourist arrival growth in destinations such as Japan, Malaysia, Cambodia, Indonesia and Vietnam (among others)—all of whom recorded double digit growth in 2007 over the previous year.
Tourism Vietnam’s website shows international tourist arrivals in Vietnam for the first four months of 2008 to be 1.7 million, outperforming 2007 numbers by 16 percent.
France-based Accor is currently the largest hotel operator in Vietnam. Back in March 2008, the Accor Group announced they would further expand their network in Vietnam from eight hotels to at least twenty by the end of 2010 with the launch of its luxury Pullman and mid-scale Mercure brands, and expansion of its Novotel brand.
Both the InterContinental Hotel Group (IHG) and Hyatt International currently have properties in Vietnam. Hyatt operates the Saigon Park Hyatt, and InterContinental has their Hanoi Westlake hotel. Both operators are also expanding in Vietnam with resorts currently under construction near Danang, Vietnam’s fourth largest city. In April 2008, IHG also announced a third property—a new Crowne Plaza, opening in Nha Trang, the coastal city hosting the Miss Universe pageant this year.
China Beach, Danang
According to Wikitravel, Danang city is “often overlooked by tourists but is one of the most friendly to backpackers in all of Vietnam. China Beach, a former R&R destination for American G.I.’s, is now home to a small community of guest house owners, marble statue shops, and other various trades. Some of the most beautiful and isolated beaches in Vietnam are found here, among some of the friendliest people. This is a must stop for the budget traveller.”
Danang is growing in popularity as a destination, and is home to China Beach, one of Vietnam’s most beautiful (and still underdeveloped) beaches.The Danang area lies at the base of the renowned Marble Mountains, and boasts four UNESCO-designated World Heritage Sites: the former imperial city of Hue, the ancient ‘Silk Road’ trading port of Hoi An, the spiritual center of the Champa civilization called My Son, and the mystical Phong Nha Caves in Quang Binh province. Over the next three years Danang will certainly begin to emerge as a must-stop destination for the luxury traveller, following the opening of the the new Hyatt and Crowne Plaza luxury resorts.
Hyatt International recently announced development of its new Hyatt Regency Danang Resort on China beach.
“Scheduled to open in early 2010, after a US $100 million investment, the resort’s 226 guest rooms will be complemented by residential developments, including 150 condominium and 30 two-storey oceanfront villas for sale.”
The 500 room, $52 Million Crowne Plaza Danang resort, also on China Beach, will be Crowne Plaza’s first location in Vietnam:
“InterContinental Hotels Group has signed an agreement to manage a new-build, 500-room hotel under its Crowne Plaza brand in Danang, Vietnam. Developed by Hoangdat Silver Shores Exceptional International Entertainment Joint Venture Company, Crowne Plaza Danang is expected to open in early 2009.”
Building on China Beach will certainly be favorable for the guest experience and (hopefully) to the local economy, but the environmental impact to the area will always be a concern. Hopefully both brands place a high importance on sustainable development practices during construction and operation phases.
Of the two brands now building on China Beach, InterContinental appears to be the clear front-runner in this regard, with IHG’s clearly defined Corporate Responsibility best practices. Perhaps Hyatt does have a culture of environmental responsibility, but information on what that might entail has proven difficult to source online, and there is little or no mention of any global sustainable practices at all on their corporate website.
The multiple award winning Furama Resort Vietnam is currently the leading resort destination along the beaches outside Danang. Under the leadership of G.M. Duncan MacLean, the Furama has achieved the number one ranking for a resort property on Tripadvisor for China Beach.
Although both Hyatt and Crowne Plaza will undoubtedly provide ample competition to the Furama resort, the presence of these new developments will also help generate increased marketing exposure to the Danang area as a destination. The Furama resort’s extensive efforts in reaching out to the local community, and the fact that it has already scooped up virtually every award imaginable for a local resort should position the property quite nicely against the new competition.
Linkage
China Beach photo thanks to flickr member besar bears
