Current situation lights up potential of drive - by destinations

The Potential of Ho Tram and Long Hai

The upcoming “Espresso Shots” will provide an overview on tourism in seaside towns Ho Tram and Long Hai in Ba Ria – Vung Tau. Served by excellent and improving transportation infrastructure and drivable proximity, 120 km from HCMC, both Ho Tram and Long Hai present promising tourism and investment opportunities.

In 2020, Ba Ria- Vung Tau welcomed almost 2.7 million overnight visitors, the same as Da Nang but over double that of Khanh Hoa. Mr. Mauro Gasparotti shared “Historically drive-by destinations were the main vacation option for most European and American city dwellers until the advent of cheap flights made other, more distant destinations accessible. The pandemic raising air travel concerns around the world has reinvigorated the appeal of drive-by destinations”.

Investment potential

Ho Tram and Long Hai, with long sandy beaches and being nearby major infrastructure developments, both have the potential to become leading destinations in the south. Together, they currently supply 2,700 rooms from nineteen 4- and 5-star projects. In the next 3 years, a further 7,600 rooms are expected from 9 projects under-construction, and 5 existing properties under phase expansions.

Source: Savills Hotels APAC

Half of these pipeline projects will be under branded management. Adding further international appeal is the new wave of branded properties such as InterContinental Grand Ho Tram, Holiday Inn Resort Ho Tram, Hyatt Regency Ho Tram, and the Grand Mercure. Proximity with HCMC has seen 90% of these new resort developments also supplying residential components such as condominiums or villas.

As with every new destination, early-stage developers need to be even more entrepreneurial by tapping into longer-term opportunities to ensure others follow. Developing a critical mass of quality developments with premium supporting appeals will result in higher, more constant visitor flows. Mr. Mauro commented: “In the past two years, Ho Tram and Long Hai have come under increasing attention of international operators keen to establish brand presence, compared to their earlier “wait and see” approach to better understand destination potential. Despite the Covid-19 effected global slowdown, Ho Tram and Long Hai were two of the very few destinations whose occupancy and room rates remained around pre-pandemic levels, with in 2021, actual upticks in both metrics for the majority of resorts. This also implies demand for second home properties as weekend vacations become more popular, and buyers increasingly grasp the value of getaway options nearby HCMC. As a result, villa prices have been moving up together with increased quality, and extent, of product offer.”

Source: Savills Hotels APAC

Major new projects in planning by leading developers promise a great deal more entertainment options. Mr. Manuel Ferriol – General Manager of Melia Ho Tram Beach Resort shared “Regional stakeholders need to invest in existing tourism attractions or develop new entertainment options to nurture ongoing international tourism appeal and achieve higher lengths of stay for resorts in the area. The required resources are readily available to develop activities and entertainments that will foster further demand. Resort owner, Tanzanite international, is developing The Hamptons Mall and The Hamptons Pier to realize a more complete tourism experience including leisure and sports activities, F&B, shopping, and entertainments. In planning are over 40 shops and restaurants, and the first walking pier in Viet Nam, 270 meters over the ocean. More innovative initiatives like this, together with increasing numbers of international branded properties, will drive area development until Ho Tram becomes a key international tourism destination.”

Improving infrastructure

Major transportation improvements, adding further optimism and belief to early investors, include the new highway system connecting southeastern with southwestern regions. Furthermore, Long Thanh International Airport (LTIA), Phase 1 with completion scheduled for 2025, is located approximately 40 km east of central Sai Gon and is a 1.5-hour drive from Ho Tram and Long Hai. Alongside serving domestic and international tourists, LTIA being planned as a key entry point for business and MICE travelers is notable for Ho Tram and Long Hai.

Mr. Mauro Gasparotti on tourism potential in the area: “Domestic demand by accounting for almost 90% of overnight visitors will remain the main guest source. Key ongoing infrastructure projects are expected to become promotional catalysts for the destination as well as encouraging more diverse clientele from overseas. Ho Tram and Long Hai, alongside its casino and international standard golf course are increasingly offering more accommodation and entertainment choices to better compete with other more conventional destinations.

However, to establish the best possible market outlook, we encourage developers to examine industry trends that will align with the needs of new generations of travelers before developing more varied accommodation offers. These products require a certain understanding of concepts and ideas as well as cooperative collaboration to ensure feasibility and effective implementation. Overall, we remain optimistic about market potential and look forward to a far more positive year”.

Conclusion

Savills Hotels next “Espresso Shots”, featuring Mui Ne and Phan Thiet Hospitality markets will examine potential effects and implications of major new projects in the area.

See further:

• Phan Thiet - The potential is yet to be fully realized.
• Phu Quoc hopes for tourism revival