19 May 2024
Resort real estate is devastated because of Covid-19 4

Resort real estate is devastated because of Covid-19 4

Savills' research shows that resort real estate is facing dire scenarios, with hotel room occupancy in many places plunging.

Savills has just released a study on the impact of the pandemic on Vietnam’s resort real estate industry.

Mr. Mauro Gasparotti, Director of Savills Hotels Asia Pacific, analyzed that China and Korea are the two most important markets for Vietnam’s tourism industry, accounting for 56% of international visitors in 2019. Two weeks

To prevent the spread of the virus, the Vietnamese Government has announced a temporary ban on entry for foreign tourists.

In fact, the number of international visitors to Vietnam decreased sharply in the first two months of the year as Covid-19 became complicated.

Ho Chi Minh City Post Office is empty of visitors due to fear of nCoV.

Many other tourism markets around the globe also experienced a decline in international visitors no less than Vietnam.

In Vietnam, domestic tourism demand has also dropped sharply because people are afraid of going to crowded places such as airports, train stations, restaurants and entertainment areas.

According to STR – a unit that provides data on the global hotel business, in February, room capacity in the Asia Pacific region decreased sharply, of which Vietnam was one of the countries with a decrease.

Hotel room occupancy in Vietnam decreased by 26% in February compared to the same period last year.

Among the coastal resort tourism capitals, Da Nang and Hoi An are being hit the hardest, with many projects only reaching capacity below 10%.

Resort real estate is devastated because of Covid-19

Chart of international visitors to Vietnam, data from the Vietnam National Administration of Tourism.

In March, hotels in major cities have been receiving a large number of cancellation requests, leading to a decline in capacity to only single digits in Ho Chi Minh City.

The fact that the resort real estate industry is facing a spiral of crisis due to the impact of Covid-19 is not an unexpected development.

Normally, after every crisis, the tourism industry always has a strong recovery.

Mr. Mauro assessed that Vietnam’s tourism industry is being heavily affected by the epidemic and this is expected to last until the end of 2020. However, when looking at the situation in a positive way, previous events

In addition, Vietnam has a large proportion of domestic tourist sources as well as tourist sources from the Chinese and Korean markets that promise to recover when the epidemic passes.

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