Vietnam’s growing hospitality industry has been given a huge boost with news that the country is relaxing its gaming industry to allow locals into casinos.
Two locations will start to allow locals in as part of a three year pilot scheme – the first is on Phu Quoc Island and the other is in Van Don. A third site is expected to be added to the list shortly.
The recent news has gained the interest of big international names such as Las Vega Sands, and the local Sun Group who have so far been the only local company to be approved in the development of the casino in Van Don.
In addition, many more hotels across Vietnam are installing electronic gaming machines to help boost their revenues.
With the Melco Crown in the Philippines being recognised as having the best performing casino stock in the world in 2017, it demonstrates, that with the right planning, financial success can be achieved. The success of the Melco Crown has given investors motivation to pursue similar opportunities within Vietnam explains Frank Sorgiovanni, Head of Research for APAC Hotels and Hospitality.
Sorgiovanni goes on to point out that Vietnam’s huge growth in domestic tourism over the last few years is the key for the development of new casinos. In 2015, the country saw an increase of 48% in domestic tourists from the previous year totalling 57 million. It is believed that this increase is in large due to a national initiative that was launched in 2014 and themed “Vietnamese travel in Vietnam”
The country has also seen an industrial renaissance in recent years which has spurred corporate demand for more hotels across the region, whilst the introduction of visa exemptions for many countries has also given a boost to the tourism sector from foreign visitors. There are also more direct flights into the country.
Another thing that is attracting tourists to Vietnam is that it is now becoming a “foodie” destination with a greatly improving food and beverage scene, especially in the main cities of HCMC and Hanoi.
Sorgiovanni says that the outlook for the tourism and hospitality sector is looking very bright and there are many marketing efforts in place for this to continue. Improvements are continuing to infrastructure and there is further development of local services. Foreign investors are showing a lot of interest in Vietnam over the past couple of years. The country is becoming one of the most talked about markets in the Asia Pacific.