Current situation
Due to resort real estate's characteristics are seasonal operations and travelling of international visitors to Vietnam. COVID 19 panemic is keeping influence to resort segment of real estate badly. Moreover, the impact lasting 4 outbreaks so far has caused this segment to still be heavily affected despite the situation.
The figures show international traveller number in each of typical transportation which are down in significant percentage.
CBRE leaders expect that in the last 6 months of 2021, domestic customers will still be the main source of demand for this market while foreigner decreased. Discount packages of hotels, resorts and airlines will continue to increase the number of domestic tourists when the epidemic situation in the country is under control.
Also as real estate expert from Savills, whether this segment can be revived or not depends a lot on the ability to control and repel Covid-19.
During the Covid-19 outbreak, the market was able to see many land and resort real estate speculators in Da Nang, Nha Trang and Phu Quoc facing many difficulties and falling into a situation of waiting for the market to fully recover. In the North, many mountain resorts are also postponed due to Covid 19.
Generally, the resort segment has been frozen. There is only a small increase in mid-range hotels (staycation) being used as centralized quarantine facilities for a fee. In quarter 2 of 2021, capacity was 18%, up slightly by 1% QoQ, due to reduced supply.
Long-term trend
There are some new models appeared such as staycation, boutique hotel, branded hotel, second home...
Tourism is an industry that is constantly changing to adapt to the changes in demographic factors. The rise of the middle class, the elderly population in Vietnam... has been contributing to shaping and creating many new tourist groups with their own characteristics. In addition, I notice the change in tourists' consumption behavior, from spending for the purpose of owning materials and goods to spending on experiences. Therefore, in recent years, domestic tourists have shifted to more experiential types such as wellness resort (resort combined with health care), boutique hotel, poshtel, select-service (limited services), senior living (residence for the elderly) and second home.
SUM UP
Tourism and resort real estate segment, the impact from 4 epidemics so far has made this segment still heavily affected even if the epidemic situation is effectively controlled. This segment is only recommended for more than 5 years investment.