According to a report from the Department of Tourism of HCM City, the tourism industry has shown positive signs in the first half of 2023, with an estimated revenue of VNĐ80.8 billion and the welcoming of 18.3 million visitors.

Despite an impressive increase in the number of domestic and foreign travelers in the first six months, accommodations are still in distress, and many 4-5-star hotels have been put up for sale.

The hotel industry in HCM City is facing significant challenges with a wave of hotels in the city put up for sale at deep discounts amid the ongoing economic recession and sluggish tourism market.

The return of Chinese tourists and business travelers is expected to help warm up the Hanoi hotel market.

Vietnam hospitality requires innovative products that can cater to the demands of young domestic and international travellers, such as poshtels, entertainment-integrated complexes, limited-service accommodations, and co-living and co-working spaces.

No longer able to make a profit, many hotels in Da Nang have been put up for sale, including 4-5-star hotels worth trillions of VND.

Small- and medium-sized hotels in HCM City are struggling with low occupancy rates and labour shortages, and are in need of support to recover from a COVID-19-induced slump, according to the municipal Department of Tourism.

Vietnam’s hotel industry has been slower to bounce back from the COVID-19 pandemic than that of other countries due to a series of factors, including strong reliance on the Chinese market and a large pipeline of hotels.

Despite improvement in 2022, occupancy and room rates in Ho Chi Minh City have yet to recover to pre-pandemic levels, according to real estate service provider Savills Vietnam.

The increase in supply of resort real estate in the next three years is estimated to be 20% per year, but demand may not recover in time.