Vietnam Has an Oversupply of Hotels
Skift Take
- China hotel RevPAR showed significant year-over-year growth of 50.4% for the week ending July 1, 2023, compared to a decline in 2019 and 7.6% decline in the same period.
- Vietnam's international visitor numbers reached 70% of their 2023 projection but remained below expectations due to fierce competition and an economic recession. Domestic tourism in Vietnam is also experiencing a decline.
- Worldwide Hotels Group made significant acquisitions in Melbourne and Singapore, representing the largest hotel transaction in Melbourne in over six years and the largest single-asset Singapore hotel transaction in Asia Pacific in 2023.
STR reported China hotel data for the week ended July 1. The end of the first half of the calendar year 2023 was a week that had China hotel RevPAR up 50.4% year over year, up against a decline of -7.6% comp. When compared to the same week in 2019, China hotel RevPAR was up 13.2%.
Vietnam’s General Statistics Office said the number of international visitors to Vietnam in the first half of 2023 reached 5.6 million, which is 70% of their 2023 projection and at 66% of 2019 levels at 64 million visits. Total revenue from tourists in the first 6 months was estimated at 343.1 trillion VND. The Vietnam Tourism Association said while the number of international visitors to Vietnam has increased rapidly, it has been below expectations as the competition with other countries is fierce and the economic recession is still in place. The tourism market from China has also not fully recovered. AZA Travel described 2023 as more tragic for the tourism
