[PR Newswire] Hotel Market in Vietnam to Grow by USD 2.12 billion | Growing Affordability and Rising Disposable Income to Boost Market Growth.
Key Market Dynamics:
- Market Driver
- Market Challenges
The growing affordability and rising disposable income are some of the key market drivers. The growth is attributed to the significant increase in the per capita disposable income and steady economic growth in Vietnam. The per capita income increased even when the economy was negatively impacted by the COVID-19 pandemic in 2020. Moreover, the gradual reduction in inequality (GINI coefficient) of per capita income across different classes will improve an individual’s spending capability. The increased spending capability of end-users and their rapidly rising population (especially the population of working women) will drive market growth in Vietnam further during the forecast period.
However, factors such as climate change and unexpected weather developments will challenge market growth. The rising incidence of natural disasters such as tropical hurricanes, floods, and rising sea-water levels and the increasing cases of COVID-19 could pose a serious challenge to the revenue of the international tourism industry. This can affect the revenue of the hotel market in Vietnam. Natural disasters severely deteriorate the tourism infrastructure, resources, and buildings. Moreover, rebuilding the tourism infrastructure is an expensive and highly time-consuming process. Such factors are expected to impede the growth of the market in focus during the forecast period.
By type, the hotel market in Vietnam has been segmented into chain hotels and independent hotels. The chain hotels segment will have significant market share growth during the forecast period. The consistent growth in the travel and tourism industry and high investment in 5-star and 4-star hotels owing to a rise in the propensity for leisure stays in Vietnam will drive the growth in this segment.
By application, the hotel market in Vietnam has been segmented into tourist accommodation and official business. The tourism accommodation segment is expected to have significant market share growth during the forecast period. Though domestic tourism contributes to the segment growth, the demand for international tourism is comparatively high in Vietnam.
Some Companies Mentioned ·
- Accor SA
- Central Plaza Hotel Public Co. Ltd.
- Hyatt Hotels Corp.
- InterContinental Hotels Group
- La Siesta Premium Hang Be
- Marriott International Inc.
- Minor International PCL
- Muong Thanh Hospitality
- SALA DANANG BEACH HOTEL