A report showed that in 2023, Vietnam received 12.6 million foreign travelers, an increase of three times over 2022 and 8 million higher than targeted. However, there is still space for development as the figure was just equal to 70 percent of the number of foreign travelers in 2019, before the pandemic outbreak.

Most foreign travelers came from South Korea (3.6 million), China (1.7 million), and Taiwan (China) (851,000). The other biggest markets included the US, Japan, Malaysia, Cambodia, Australia and India.

Hanoi received 24 million travelers, an increase of 28 percent year on year, including 4 million foreign travelers, up 167 percent, and 20 million domestic travelers, up 16 percent.

Savills Vietnam reported that revenue from accommodation services in Hanoi reached VND10 trillion in 2023, up 106 percent, which was close to the VND11 trillion in 2019.

The occupancy rate reached 64 percent in the fourth quarter, an increase of 15 percentage points year on year. The average room rate was VND2.9 million per room per night, up 16 percent.

In 2023, the occupancy rate was 60 percent, an increase of 21 percentage points. Meanwhile, the average room rate was VND2.7 million, up 28 percent. Business performance improvement has been reported for some 5-star hotels such as Intercontinental Hanoi Westlake and Sofitel Metropole.

There are 11,226 hotel rooms in Hanoi. The supply has increased by 10 percent from two 4-star and four 5-star projects.

According to Do Thu Hang from Savills Hanoi, 13 more hotels with 2,746 rooms will join the market in the next two years. Three hotels have become operational including Dusit Hanoi – Tu Hoa Palace, Fusion Suites, and My Dinh Pearl.

The increase in number of foreign travelers has also benefited serviced apartments with a high occupancy rate of 83 percent, increasing by two percentage points. A-class apartments saw the highest growth rate, 81 percent. The room rate was VND580,000 per sq m per month.

Matthew Powell from Savills Hanoi said serviced apartments had stable performance in 2023. The supply from large projects and infrastructure improvement will have positive impact on demand in the market segment in the future.

It is expected that 3,821 more serviced apartments would be available. Two projects are scheduled to become operational, namely Parkroytal Serviced Suites Hanoi and Fusin Suites Ho Tay which would account for 63 percent of total supply with 2,423 apartments. This is the area well known to foreigners with eateries, entertainment service, schools, hospitals and parks.

Vietnam plans to receive 18 million foreign travelers in 2024 and serve 110 million domestic travelers.

Duy Anh