Unleashing Vietnam's Tourism Boom: A Rising Star in Asia
In a remarkable turn of events, Vietnam is rapidly transforming into a tourism powerhouse in Asia, captivating both domestic and international travelers alike. A recent report by Savills Hotels and Watson Farley & Williams reveals that Vietnam's tourism sector is experiencing a remarkable surge, solidifying its position as one of the region's fastest-growing destinations.
The numbers speak for themselves. In 2024, Vietnam welcomed a staggering 17.6 million foreign visitors, and the momentum continued into 2025, attracting another 15.4 million in the first nine months alone. With this impressive growth trajectory, Vietnam is well on its way to achieving its ambitious target of 25 million visitors by the end of the year.
The country's hotel market is thriving, boasting over 192,000 midscale-to-luxury rooms as of the third quarter, with a compound annual growth rate of 10.9% over the past decade. This growth rate is among the highest in Southeast Asia, indicating a strong and sustainable tourism industry.
Coastal areas dominate the hospitality landscape, with approximately 60% of rooms located along the picturesque coastline. Popular resort destinations like Da Nang and Nha Trang consistently achieve impressive occupancy rates, regularly exceeding 70-75%. Phu Quoc, another coastal gem, has seen remarkable year-over-year occupancy gains of 10-15%.
The tourism sector's resurgence has sparked investor confidence, with a renewed focus on premium offerings. Savills Hotels notes that domestic developers still control a significant 90% of the existing stock, and many hotels remain owner-operated, presenting opportunities for refurbishment, repositioning, or management contracts with international brands.
The influx of foreign hotel brands in Vietnam is expected to surge from 90 to over 130 in the next three years, further enhancing the country's hospitality offerings. Beyond hotel acquisitions, local and international investors are actively seeking coastal land and assets with redevelopment potential, particularly for luxury, upscale, and branded-residence projects.
Major infrastructure projects, such as the Long Thanh International Airport, expansions at Noi Bai, the new Gia Binh airport, and the North-South expressway, are playing a pivotal role in improving regional connectivity and fostering long-term tourism and hospitality growth.
Mauro Gasparotti, Senior Director of Savills Hotels Asia Pacific, emphasizes that Vietnam's improving demand fundamentals and acceptance of diverse product types, especially in Ho Chi Minh City and Hanoi, continue to attract foreign investors seeking high-return opportunities. As Vietnam's tourism industry continues to flourish, it is poised to become an even more significant player in Asia's dynamic tourism landscape.
