Download - Ho Tram, Vietnam - Tourism Market Report
HO TRAM, VIETNAMMARKET REPORTOCTOBER 2016
CONTACT USQUO Indochina140 Nguyen Van Thu Street, Đa Kao WardHo Chi Minh City, [email protected]
Introduction
Overview
Second Homes
The Future of Gaming in Vietnam
The Arrival of International Operators
Ho Tram at a Glance
Foreign and Domestic Tourist Arrivals
Domestic Comparisons
Hotel Supply and RevPAR
Second Home Supply
Ho Tram Infrastructure
Future Projects
Acknowledgements
About QUO
CONTENTS
HO TRAM, WITH ITS POWDERY
WHITE-SAND BEACH, ACCESSIBLE LOCATION
AND WORLD-CLASS RECREATIONAL FACILITIES,
IS ATTRACTING FOREIGN INVESTMENTS AND
ACCELERATED NUMBERS OF TOURISTS.
THIS SMALL COASTAL TOWN IS NOW ON TRACK
TO BECOME ONE OF ASIA'S PREMIER LEISURE
DESTINATIONS.
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ocated in the district of Xuyen Moc in Ba Ria-Vung Tau Province, Ho Tram offers residents of Ho Chi Minh City (HCMC) an exclusive getaway close to the bustling metropolis. In February 2015, the inauguration of the Long Thanh-Dau Giay expressway dramatically shortened the travelling time from HCMC to Ho Tram. Previously taking three to four hours, the expressway reduced the journey to just two hours. This ease of accessibility, combined with its inviting climate – an average yearly temperature of 28 degrees Celsius, with low rainfall and no seasonal typhoons – has already made Ho Tram an attractive place to visit. And its three ports capable of accommodating international cruise ships only amplify the area's impressive tourism prospects.
Since 2011, the number of visitors to Ba Ria-Vung Tau Province has steadily increased. The first six months of 2016 drew nearly 9.5 million arrivals, 307,408 of whom were foreigners, according to the provincial tourism department. Timo Schmidt, the head of International Residential Sales and Leasing at Savills HCMC, predicts that “Ho Tram will become the foremost resort destination for weekenders from HCMC, with a variety of projects at different price points under way”. Ba Ria-Vung Tau Tourism Department has estimated that, by 2020, there will be approximately 25.3 million arrivals per year to the province.
OVERVIEW
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ost industry experts agree that the disparity between international and local tourist numbers is due to the lack of suitable amenities for foreign visitors in Ho Tram and the rest of the Xuyen Moc district. They are confident, however, that this will soon change. Olivier Do Ngoc, managing partner of Dynasty Investments, believes that Ho Tram “is turning into a luxury destination for both Vietnamese and international customers, with subsequent facilities, a casino and a golf course positioning the destination as an emerging luxury destination”. He is also positive about the growth of Vietnam’s tourism prospects as a whole. “Vietnam is still in its early days of tourism development although it has a lot to offer, including beautiful and pristine beaches, renowned local culture and food, and resorts which are increasingly offering attractively priced holidays at international quality standards.”
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HO TRAM CONTINUES TO MAKE A STRONG NAME FOR ITSELF IN THE HOSPITALITY AND REAL ESTATE SECTORS, PROVIDING A BROAD RANGE OF LUXURY ACTIVITIES AND ACCOMMODATION. THERE IS STILL A LOT OF ROOM FOR GROWTH, PARTICULARLY IN TERMS OF AMENITIES AND SERVICE.
SECONDHOMES
Current residential projects in Ho Tram are mostly aimed towards the second home or holiday home market. Existing projects such as The Sanctuary and upcoming projects including The Hamptons Ho Tram and Sanctuary Phase Two offer luxury-standard living at a reasonable cost. Prices currently range between USD350,000 and USD1.1 million for a villa, with many offering net revenue sharing and attractive yields of up to 8%. Marc Townsend, managing director of CBRE Vietnam and a long-time resident of Ho Chi Minh City, is confident that Ho Tram is primed for second-home development. “It’s the closest place to go to the beach [from Ho Chi Minh City] on the weekend, and as more Vietnamese people and families [want to] do that, I think it’s got a huge future.”
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THE FUTURE OF GAMING IN VIETNAM
s the first fully licensed casino in Vietnam, The Grand Casino currently offers 90 tables and 614 slot machines, and is expected to expand to 180 tables and 2,000 slot machines. Only those with foreign passports, however, are currently granted access to casinos within Vietnam. “A casino business in Ho Tram will help to create jobs for local employees, in addition to developing the province’s transportation and infrastructure,” David Lim, a managing partner at ZICOLaw, which advises foreign investors on their investments in Vietnam, explains. “This is seen in Singapore, whereby its two integrated casino resorts have contributed between 1.5 and 2% to Singapore’s GDP, and created more than 20,000 jobs. Vietnam's Grand Ho Tram Strip opened its first international casino resort in 2013, and has attracted many tourists, with tourism turnover increasing by 23% in 2014 compared to the previous year.”
Under Vietnamese law, any form of gambling by Vietnamese citizens is prohibited. A draft decree submitted by the Vietnamese Ministry of Finance to the National Assembly in mid-September 2016 maintained those restrictions, but the issue remains controversial, and any decision is far from final. In an interesting turn of events that may hint towards the future of gaming in Vietnam, officials of Ba Ria-Vung Tau Province have agreed on a site for an airport servicing Ho Tram. The airport will be relatively small at around 200 hectares – designed primarily to serve Vietnamese customers travelling from other provinces – and will be built by The Grand Ho Tram. Before construction can begin, the airport has to be added to the national zoning area for transport development, and then submitted to Vietnam’s Ministry of National Defence and Ministry of Transport for comment.
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nternational operators have clearly recognised the potential of Ho Tram and have begun their entrance into the market. Spanish hotel chain Meliá will manage a five-star resort within The Hamptons Ho Tram that will provide 99 villas and 288 condos, and operate at an international standard. Dynasty Investments plans to introduce international hospitality super-brand Club Med to Vietnam with a 1.2-kilometre beachfront development. The Grand Ho Tram signed an MOU with Coteccons in May 2016 for the construction of a second hotel tower, valued at USD75 million. It also has plans to add a USD200-million condotel with more than 1,000 units, integrating a significant residential component into the resort. According to Gary Martin, head of development at Asia Coast Developments Ltd. (ACDL), the current developer of The Grand Ho Tram, "The second tower, a five-star hotel of 560 rooms, will recommence construction before the year’s end with a completion date projected in late 2017, [and] will add further options to both local and international tourists.”
Currently, there are approximately 1,214 hotel rooms in Ho Tram operating at a three- to five-star standard. It is expected that, by 2019, this number will have increased to approximately 2,085. An overwhelming number of experts envisage Ho Tram as Vietnam’s answer to Thailand’s Hua Hin. With similar proximities to major business centres (Ho Chi Minh City and Bangkok), pristine beachfront and ample opportunities for development, the comparisons come easily and are clearly evident.
THE ARRIVAL OF INTERNATIONAL OPERATORS
I
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INDUSTRY EXPERTS EXPRESS GLOWINGLY POSITIVE VIEWS ON THE FUTURE OF HO TRAM. WITH EVERY NECESSARY ELEMENT TO FULFIL ITS POTENTIAL AS VIETNAM’S ULTIMATE WEEKEND GETAWAY PERFECTLY ALIGNED, IT IS ONLY A MATTER OF TIME BEFORE HO TRAM’S SUCCESS COMES TO FRUITION.
HO TRAMAT A GLANCE
Located within Ba Ria-Vung Tau Province in Xuyen Moc District
1.06 million in 2014 for Ba Ria-Vung Tau Province;162,356 for Xuyen Moc District
From HCMC to Ho Tram:2 hours by car on expressway;
or 75 minutes by ferry to Vung Tau + 45 minutes on road
POPULATIONTRANSPORT
The yearly average temperature is 28 °C
TEMPERATURE
LOCATION
125 kilometres southeast of HCMC
DISTANCE
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Phu Quoc
Ho Chi Minh City
Phan Thiet
Vung TauHo Tram
Nha Trang
Da Nang
CAMBODIA
LAOSTHAILAND
219 kilometres from HCMC 4 hours
95 kilometres from HCMC1 hour 30 minutes
125 kilometres from HCMC 2 hours1 hour 30 minutes
433 kilometres from HCMC 1 hour
858 kilometres from HCMC 1 hour 15 minutes
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FOREIGN AND DOMESTIC TOURIST ARRIVALS
AVERAGE LENGTH OF STAY FOR
TOURISTSIN 2015 ESTIMATED 2020
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
020122011 2013 2014 2015 H1 2016
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Source: Ba Ria-Vung Tau Tourism DepartmentDomestic Arrivals International Arrivals
INTO BA RIA-VUNG TAU
9M 2016: 3.6 million Foreign: 869,985
3–4 days
USD68 per night
2015 – 481 units H1 2016 – 1,648 units
Total 2015: 1.5 million Foreign: 164,000
2.4 days
USD153 per night
2015 – 850 units H1 2016 – 636 units
Total 2015: 4.6 million Foreign: 1.25 million
2 days
USD80 per night
2015 – 180 units H1 2016 – 1,644 units
VISITOR NUMBERS
AVERAGE STAY
AVERAGE ROOM RATE (3-5 STAR)Source: Savills - Phu Quoc Report 2015
SECOND HOME SALES (CONDOS AND VILLAS)Source: CBRE - Vietnam The New Hotspot for Hotels in Asia
DA NANG NHA TRANG PHU QUOC
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DOMESTIC COMPARISONS
2,500
2,000
1,500
1,000
500
0
2012 2016 2017F 2018F 2019F
3-5 STAR HOTEL ROOM SUPPLY 2012-2019F(EXCLUDING VILLAS)
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$42 $56
$58$80
NHATRANG
PHUQUOC
DA NANG
HO TRAM
HOTEL SUPPLY REVENUE PER AVAILABLE ROOM (USD)
Previous Supply
Carmelina
Vietsovpetro
The Grand 1
The Grand 2
The Hamptons 1
The Hamptons 2
Sour
ce: S
avill
s H
1 20
16So
urce
: Sav
ills
H1 2
016
Sour
ce: A
goda
H1 2
016
Sour
ce: S
avill
s H
1 20
16
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SECOND HOME SUPPLY
TOTAL VILLA STOCK H1 2016(EXISTING AND LAUNCHED UNITS)
Source: CBRE
PHU QUOC
DA NANG
NHA TRANG
HO TRAM
1,250 units
1,200 units
800 units
230 units
250200150100500
2016 2017F 2018F 2019F
VILLA SUPPLY 2016-2019F
Sanctuary 1
Sanctuary 2
Gallery 1
The Hamptons 1
Gallery 2
The Hamptons 2
AIRPORTSGAMING LAWS
FOREIGN DIRECT INVESTMENT
Ho Tram Airport: A 200-hectare site has been approved, with construction to be completed by The Grand Ho Tram.
Long Thanh International Airport: With its first phase due to open in 2025, Long Thanh will be the largest airport in Vietnam with a capacity of 100 million guests per year.
Tan Son Nhat Airport: Capacity is being increased at HCMC's main airport to handle up to 40 million guests per year.
Under current laws, any form of gambling by Vietnamese citizens is prohibited. While a draft decree submitted to the National Assembly in mid-September 2016 chose to maintain these restrictions, the issue remains controversial and that decision is far from final.
ROADSOpening of the HCMC-LT expressway reduces travel time to Ho Tram from four hours to two.
Future Ben Luc-Long Thanh highways and Bien Hoa-Vung Tau highways will continue to improve accessibility.
ELECTRICITY AND SANITATION In recent years, the regional authorities have invested in the proper road, electrical and sanitation infrastructure for the area, ensuring sustainable growth in Ho Tram.
GOLF COURSESThe Bluffs Ho Tram Strip offers 18 holes of ‘links style’ championship-quality golf (clubhouse area: 2,300 sqm; practice area: 3,000 sqm). A second golf course is also due to be opened.
International Cai Mep-Thi Vai Port and 15 industrial zones have been developed on a total area of 8,500 hectares.
In 2015, foreign direct investments registered 127 projects worth a total of USD27 billion. Local investment projects tallied at 442 with a total amount of VND240 trillion.
Source: Nguoi Tieu Dung Newspaper
HO TRAM INFRASTRUCTURE
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ACCOMPLISHMENTS AND CHALLENGES
• Developed by ACDL (Canada), USD75 million investment
• 559 five-star hotel rooms; world-class facilities
• 700-900 condo project• Opening in 2017
• Developed by ACDL (Canada)• Branded and operated by The Grand• Located in The Bluffs Ho Tram Strip• Phase 1: 32 luxury villas; Phase 2: 28 luxury villas• Price range: USD1.4 to 1.6
million• Completion in 2017 for Phase 1,
2018 for Phase 2
• Developed by Hai Thuan Tourism Services Investment
• USD47 million investment• World-class all-inclusive
resort• 300 rooms• Scheduled for opening
in 2019
• Developed by Tanzanite Intl., USD80 million investment
• Resort operated by Meliá Hotels (Spain)
• Five-star resort inclusive of 99 villas and 288 condos
• Phase 1: 59 villas and 144 condos; Phase 2: 40 villas and 144 condos
• Scheduled for opening in Q2 2018 for Phase 1 (Phase 2 in 2019)
• Initially developed by Sapphire (Australia)
• 44 semi-detached, high-end villas
• Price range: USD350,000 to 850,000
• Scheduled for opening in Q2 2017
THE GRANDHO TRAM PHASE 2
GALLERY VILLAS CLUB MEDTHE HAMPTONSHO TRAM
THE SANCTUARY PHASE 2
FUTURE PROJECTS
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1 2 34 5
6 7
89
10
1 Vietsovpetro
2 The Hamptons Ho Tram
3 Ho Tram Beach Boutique Resort
4 Club Med
5 The Sanctuary
6 The Sanctuary Phase 2
7 Carmelina Beach Resort
8 Gallery Villas
9 The Grand Ho Tram
10 The Grand Ho Tram Phase 2
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FUTURE AND EXISTING PROJECTS
Future project Existing project
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QUO Indochina wishes to express its sincere thanks to the following people for their invaluable support and insights regarding Ho Tram.
ACKNOWLEDGEMENTS
HEAD OF INTERNATIONAL RESIDENTIAL SALES AND LEASINGSAVILLS HCMC
HEAD OF DEVELOPMENTACDL
CHAIRMANTANZANITE INTERNATIONAL
CHIEF EXECUTIVE OFFICERNORFOLK GROUP
MANAGING DIRECTORVIETHOME
COUNTRY HEADJLL VIETNAM
MANAGING DIRECTORCBRE VIETNAM
MANAGING PARTNERDYNASTY INVESTMENTS
MANAGING PARTNERZICO LAW
TIMO SCHIMDT
GARY MARTIN
SON NAM NGUYEN
PHONG LAI
PHUC PHAMSTEPHEN WYATT
MARC TOWNSEND
OLIVIER DO NGOC
DAVID LIM
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