Phu Quoc expected to recover fastest among Vietnam's tourist hotspots

Nha Trang, Cam Ranh and Vung Tau, famous beach destinations, are forecast to make a slower recovery, real estate consultancy Savills Vietnam reported recently.

Resort destinations close to major cities that can be accessed by car are also expected to recover when the pandemic finally contained, the report stated.

A total 72 percent of surveyed experts said the decline in international arrivals would remain the main obstacle for Vietnam's tourism industry in the next two years.

Another 78 percent forecast the 4-star hotel segment would recover faster than the 5-star equivalent, the report added.

A hotel market report by real estate consultant Savills revealed the accommodation service business has been rescued in the second quarter after the fourth Covid-19 outbreak began in Vietnam, as strict distancing measures increased demand for hotels for quarantine purposes.

Many hotels from three to five stars in Hanoi and Ho Chi Minh City have been turned into paid quarantine facilities as Vietnam struggles with its most challenging outbreak.

Phu Quoc, Vietnam's largest island, became a top tourist destination after the government rolled out a 30-day visa-free policy for foreigners in 2014.

In 2019, before the onset of the pandemic, it received over five million visitors, including 541,600 foreigners.

The island is planning to trial a six-month vaccine passport program starting October, welcoming 40,000 foreign tourists from Asia and Europe.

Vietnam’s tourism industry has experienced one of the most difficult periods in its history under Covid-19 impacts. Last year, the number of foreign arrivals was down nearly 79 percent to 3.8 million.

Industry revenues plunged nearly 56 percent to VND17.9 trillion as flights were canceled and people grew reluctant to travel due to fears of contracting the novel coronavirus.