Vietnam’s luxury hotels survive on domestic tourism wave

Travel Guide

Vietnam’s Luxury Hotel Boom

In the wake of unprecedented challenges brought on by the pandemic, Vietnam’s luxury hotel industry has experienced a renaissance of sorts, thanks to a surprising demographic – domestic tourists. With international visitors dwindling, the rise of local travelers has become a much-needed lifeline for the hospitality sector.

The Domestic Tourism Wave

Despite the bleak economic landscape, Vietnam witnessed an unexpected surge in domestic tourism. The void left by international tourists was quickly filled by local travelers, bringing about a swift revival for hotels and resorts that had been suffering.

Grand Ho Tram Strip’s Expansion

Recent announcements by the Grand Ho Tram Strip, a renowned hospitality entity in Ba Ria – Vung Tau, have sparked excitement. Introducing a new venture that comprises 164 apartments and 46 villas, they aim to cater to the rising number of high-end domestic tourists.

Shift in Demographics

Akshay Moza, VP of The Grand Ho Tram Strip, highlighted an interesting trend. Before COVID, the resort primarily served international tourists from countries like South Korea, China, India, and Indonesia. Vietnamese tourists only constituted about 7-8% of their clientele. Post-pandemic, this shifted dramatically, with Vietnamese bookings skyrocketing to 80%.

Other Major Hotels’ Experience

It’s not just the Grand Ho Tram Strip that’s witnessing this change. In Nha Trang, hotels have reported nearly 90% occupancy rates in the past three months. Zannier Hotels Bai San Ho in Phu Yen and Wink Hotels have also seen a significant rise in domestic tourists.

Domestic vs. International Tourism

Though Vietnam reopened for international tourism, high inflation rates and fewer direct routes have impacted visitor numbers. Michael Wirz aptly put it, emphasizing the pivotal role domestic tourism will continue to play while they wait for the international sector to rebound.

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Economic Impacts

Despite economic challenges, data indicates a speedy recovery for domestic tourism. Astonishingly, the number of overnight stays by domestic tourists in the first seven months surpassed the entirety of 2019.

A Glimmer of Hope for International Visitors

Signs are emerging that the international community is keen on returning. Vietnam welcomed over a million foreign tourists last month, indicating a potentially favorable trend.

Recent Positive Signals for Foreign Guests

With Chinese tourists leading the return, Vietnam’s tourism seems to be regaining its allure for foreign guests. Visa relaxations and policy changes are adding to this positive momentum.

Vietnam’s Visa Policies

Recent alterations in visa regulations, including extended stay durations and visa-free periods, signal Vietnam’s proactive efforts to entice international travelers.

Room for Further Development

Walt Power, of The Grand Ho Tram Strip, acknowledges that while the industry hasn’t fully recuperated, the potential for growth remains vast.

The Road Ahead

With a balanced mix of domestic vigor and international potential, Vietnam’s luxury hotel sector stands at the cusp of a new dawn.


Vietnam’s luxury hotel industry is a testament to resilience, adaptability, and the spirit of reinvention. Through strategic shifts and domestic tourism, the sector has navigated through challenging times, demonstrating the timeless appeal of Vietnam’s hospitality.


  1. How has the demographic of visitors to the Grand Ho Tram Strip changed post-COVID?
    • Previously, the majority were international tourists, but now 80% of bookings come from domestic travelers.
  2. Are other hotels in Vietnam also seeing increased domestic tourism?
    • Yes, many hotels, including those in Nha Trang and Phu Yen, have reported high occupancy rates from domestic tourists.
  3. What recent changes have been made to Vietnam’s visa policies?
    • Tourist visas have been extended from 30 to 90 days, and visa-free periods for selected countries are now 45 days.
  4. How has domestic tourism fared compared to before the pandemic?
    • Domestic tourism has seen a swift rebound, with overnight stays surpassing those in 2019.
  5. Is there an indication of international tourism returning to Vietnam?
    • Yes, last month, Vietnam welcomed over a million international visitors, signaling a positive trend.
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