Vietnam has seen major growth in the presence of international hotel and resort brands and foreign management companies over the last few years. From 30 hotels and resorts operating under international brands in 2010 there were a total of 79 as at the end of 2017. 2018 has already seen announcements coming from Mandarin Oriental and Movenpick in Ho Chi Minh City and Best Western Premier in Quang Binh and Long Hai in Ba Ria Vung Tau province. It is forecast that more than 30,000 keys will be opened by the end of 2019. More brands such as Holiday Inn and Doubletree by Hilton, Courtyard by Marriott, and Hyatt Place will enter the market. 

   Total international visitors to Vietnam in the first seven months reached 9,080,300 an increase of 25.4  per cent over the same period last year. International visitors in July were estimated at 1,188,800, up 0.5 per cent over June and 14.7 per cent over the same period last year. Vietnamese people are also spending more on travel, with an eye for quality. By 2020, Vietnam expects to welcome more than 20 million international visitors; a remarkable result that will see it recording among the highest tourism growth in the world.

   Hospitality has been vibrant over the past year, with new funds with foreign capital now specifically targeting the sector. FDI in the first seven months of this year reached $22.94 billion, with hotels and tourism receiving $1 billion in 64 new projects, according to the Foreign Investment Agency. Vietnam has also introduced initiatives to improve its transparency, according to JLL’s Global Real Estate Transparency Index. It remains one of the most favorable destinations for foreign investment in Southeast Asia. 

   Our Cover Story this month therefore puts the spotlight on the country’s hospitality sector, with the theme “New trends in the market” and with main angles being innovation in Vietnam’s hospitality sector; the travel business’s increasing reliance on digital information systems and online processes; what hotels are doing to attract more travelers seeking authentic, personalized experiences; the trend towards the home-sharing economy and homestay services; and forecasts on the development of the hospitality sector.

   There can be no doubt that the hospitality industry is changing rapidly, in line with current global megatrends. Technology will completely transform the way people travel. With the arrival of big data, artificial intelligence, automated systems, and building sensors, all market participants should take all of these elements into serious consideration during the planning stage of their products.