Known as a "sea tourism paradise", Mui Ne is now deserted.

There are about 20 large and small seafood restaurants along the Mui Ne sea embankment, but more than half are still closed, some only open on weekends. Meanwhile, many 3-4 star resorts have temporarily stopped operating. The few that have just opened in the past month have also seen a sharp decline in the number of visitors.

Affected by the Covid-19 pandemic that has broken out in many waves, the number of visitors to Mui Ne in particular and Binh Thuan in general is decreasing like never before. "There has never been a year at this time with such a lack of Russian, Korean, Chinese... guests," a restaurant owner shared.

Being a familiar destination for domestic and foreign tourists since the 1990s, however, Phan Thiet's tourism activities in recent years have been somewhat quieter than coastal destinations that can be easily connected by air such as Khanh Hoa and Da Nang.

Many beaches are deserted due to the lack of Western tourists

In the period 2015-2020, the market only recorded new room supply from five accommodation establishments. As of March 2021, this area has 51 accommodation establishments in the budget segment and above in operation, providing the market with about 5,800 rooms; compared to the Khanh Hoa and Da Nang markets, this supply is only equivalent to 20% and 30% of the number of rooms here, respectively.

According to statistics from the local tourism management agency, before being affected by the pandemic, Binh Thuan's tourism industry recorded positive growth in the number of visitors staying with a growth rate of 13.7%/year in the period from 2014 to 2019.

Although the number of tourists has increased, the length of stay of tourists is on a downward trend. Accordingly, the number of days domestic visitors stayed decreased from 1.7 days in 2014 to 1.6 days in 2019 while international visitors decreased from 3.3 to 3.1 days.

The impact of the epidemic has affected the business activities of local accommodation establishments as most resorts recorded a room occupancy rate that dropped by more than half compared to the 65-70% achieved in 2019.

According to statistics from the Binh Thuan Tourism Association, in 2020, businesses in the international travel sector lost everything (down 100%), and domestic travel decreased by 90%. Of the 3 5-star resorts in Binh Thuan, one resort has almost stopped operating in the past year, the revenue of these 3 5-star resorts has decreased by more than 100 billion VND, equivalent to 50%, compared to 2019. 4-star resorts only achieved room occupancy of 30% and lost up to 70% of revenue. Resorts and hotels from 3 stars and below only achieved room occupancy of 10%.

Awakening the "sleeping princess"

Mr. Mauro Gasparotti - Director of Savills Hotels APAC - shared that compared to the strong growth rate of supply in Da Nang, Khanh Hoa and Phu Quoc in recent years, Phan Thiet is likened to a "sleeping princess", with very few new projects. Most of the supply here is small-scale resorts, operated by the investors themselves - accounting for 92% of the total number of rooms available.

In addition, the operation of accommodation establishments currently depends heavily on domestic demand, accounting for nearly 90% of annual guest stays. With a large proportion of domestic visitors, 2020 is the first year that Binh Thuan has surpassed Khanh Hoa and Da Nang in terms of the number of guests staying, reaching more than 3 million compared to 1.3 million and 2.7 million in these two localities.

Since the Covid-19 pandemic appeared, Phan Thiet has been deserted by foreign visitors

Mr. Mauro recommended that, in order to achieve the goal of sustainable development with a medium and long-term vision, local authorities and investors need to cooperate closely with competent consulting, management and architectural planning units to be able to offer tourism products that meet market demand while exploiting the potential and characteristics of the locality. Proper planning and orientation will help localities ensure long-term competitiveness in the context of rapidly changing socio-economic and demographic factors.

Mr. Louis Walters - CEO of Sailing Club Leisure Group - specializing in local tourism potential, assessed that, although Phan Thiet is a famous destination for international tourists, it is gradually becoming less attractive than other destinations due to the lack of diversity in entertainment activities and cultural experiences.

The implementation of infrastructure projects in the coming time such as the Phan Thiet - Ho Chi Minh City expressway and the neighboring airport is expected to help Phan Thiet attract a large number of international and domestic visitors, contributing to promoting local tourism activities.

According to Mr. Henry Gray - CEO of Azula International PTE Ltd - Azerai, Phan Thiet is considered a short-term destination, suitable for weekend trips or short holidays with a stay of 1-2 nights. There have been many projects implemented in the area, but there is a lack of diversity in overall planning, project models and products to exploit tourism potential and convey the unique features of the locality.

Building many large-scale projects to compete with other destinations without a thorough study of local infrastructure and resources can lead to oversupply. Therefore, the area needs to focus on developing more entertainment facilities such as restaurants, bars, shopping stores, sea sports activities, etc. to complete the tourism ecosystem, bringing more diverse experiences to tourists.

In addition, public facilities also need to be concerned to meet the basic needs of tourists, including medical services, transportation, hygiene and security factors. Local authorities can consider implementing these activities through cooperation with private enterprises, such as environmentally friendly waste recycling projects.

In recent years, Phan Thiet has been attracting the attention of many regional and international management and operation units such as Absolute Hotel Services, Accor, Azerai, Centara Hotels & Resorts, Minor Hotels, Radisson Hotel Group, Wyndham Hotels & Resorts with many projects under implementation. The presence of these management brands is expected to increase the attractiveness of the market by providing a variety of resort products as well as increasing recognition for international tourists.

Among the four projects under construction and expected to be completed before 2023, there are two prominent large-scale projects being planned and developed into resort complexes, providing a variety of accommodation products as well as entertainment facilities. With an estimated growth rate of 33.8%/year, the market is expected to welcome an additional 8,000 rooms within the next three years.

According to Vietnam Net