Nhan Dan news, September 18, 2006
There seems to be plenty of room for more hotels to be built as competition is low, a situation quite the reverse to Thailand or Malaysia where a new hotel will go up against a number of well established properties.
Karl Derek John, chief executive officer of consultant group TCK, recommended that investors pour money in Vietnam because "it is a new destination and will have a shelf life that is much longer than Bali, Phuket or Langkawi." As Bali is still suffering from the bomb attacks and Phuket will take some time to recover from the 2004 tsunami, tourists are looking at Vietnam as an alternative. Most hoteliers are confident that sooner or later Vietnam will become one of the major players in the regional tourism market. Developers recognise the opportunities and are building multiple tourism projects. While many are seeking prime land for developing upscale hotels in Hanoi and Ho Chi Minh City, others are heading to the beaches to build resorts.
VinaCapital, which recently bought out the Sofitel Metropole and Hilton in Hanoi, has acquired 260 hectares of land in Danang and will invest $100 million to build a golf resort.
US firm South Fork Development has obtained the investment licence to develop 600 hectares in Phan Thiet into a $1 billion destination with golf courses, resorts and Disneyland-styled theme park. A group of local investors are building a "new Sentosa" in Nha Trang with three resorts along with attractions such as a sea-crossing cable car system, shopping village, amphitheatre, convention centre, golf course, water world and an enormous spa.
