Phu Quoc's position on the international tourist map!

DNHN - Phu Quoc, with its distinctive natural landscape and strategic location near major cities in Southeast Asia, has rapidly become one of Vietnam's most popular tourist destinations.

Since the end of 2012, the improvement of infrastructure and expansion of routes to Phu Quoc have facilitated the formation of tourism activities and the growth of local resort real estate. Currently, the Phu Quoc accommodation industry offers approximately 25,000 rooms, the majority of which are operated by small businesses owned by local families. In which the number of luxury (upper upscale - luxury) rooms accounts for approximately 15% of the total supply.

Compared to other tourist destinations in the region, Phu Quoc has only 27% as many accommodations as Phuket and 31% as many as Bali.

According to Mr. Mauro Gasparotti, Director of Savills Hotels, "Phu Quoc's resort real estate has benefited from the strong growth of tourism." However, in recent years, numerous investors have rushed into the market without careful planning and execution of their projects. Some investors simply replicate existing products and disregard market trends and local culture when developing a distinctive feature for a project. Phu Quoc must create a central highlight area that focuses on sightseeing and discovery activities to increase the experience value for tourists, even though many quality projects are still being developed. Also of concern is the oversupply of certain products, such as commercial townhouses. The fact that many commercial spaces on Phu Quoc are unoccupied and have not been put to use may negatively impact the visitor experience and the reputation of the island's tourism industry."

Ms. Uyen Nguyen, Head of Consulting at Savills Hotels, added, "The pace of hotel and resort development in recent years has increased competitive pressure on business activities, resulting in projects across all market segments. faced numerous obstacles in improving room rates. Even though room demand has begun to recover since June 2023, room rates remain competitive due to the ample supply of rooms relative to the recovery in demand. The average room rate (ADR) of upscale hotels ranges between $100 and $120 per night, with occupancy rates between 30% and 35%."

Before the epidemic, more than 85 percent of Phu Quoc's visitors were domestic. In the context of the slow recovery of the international tourist market, domestic visitors have made a significant contribution to the local tourism industry's recovery with a total of 5.1 million arrivals, which is equivalent to the 2019 level.

In comparison to other tourist islands in the region, the number of international visitors to Phu Quoc remains low. Before the outbreak, international arrivals to Phu Quoc accounted for roughly 6% of those to Phuket, 11% of those to Bali, and 60% of those to Boracay.

In terms of visa-free entry for international visitors, Phu Quoc has a competitive advantage over other tourist destinations in Vietnam. Under this policy, tourists of all nationalities are exempt from obtaining a visa, provided they enter Phu Quoc directly and do not travel to other areas.

"However, the limited number of direct flights and limited frequency of flights connecting Phu Quoc to the international market are barriers for Phu Quoc to effectively promote this policy," said Ngan Pham, Consulting Manager at Savills Hotels.

Phuket and Bali have the most frequent and extensive international air connections in the region, including routes from major cities such as Singapore, Shanghai, and Hong Kong. Compared to Phu Quoc, Phuket, and Bali have 150 percent and 430 percent more daily flights, respectively.

Additionally, Phuket and Bali have more frequent air connections to the national transport hub. Each week, there are an average of 330 flights from Phuket to Bangkok and 400 flights from Bali to Jakarta, whereas Phu Quoc has only 160 flights to Ho Chi Minh City and 90 flights to Hanoi.

Additionally, Ngan emphasized that "currently, flights from Taiwan and India to Phu Quoc have been suspended." In addition, Phu Quoc lacks a flight to Singapore, one of the most important transportation hubs in Asia. This is another disadvantage of Phu Quoc in comparison with Phuket and Bali."

The development of infrastructure in Phu Quoc has not kept pace with the growth of resort real estate. Moreover, projects are implemented independently, without the necessary resonance to form a unified tourism ecosystem. This creates obstacles to the development and promotion of local businesses.

Mr. Mauro stated, "For Phu Quoc to maintain its inherent allure and create an ecosystem that harmoniously combines local identity and tourism, it must pay special attention to sustainability factors from the planning stage onward, taking into account the cultural and environmental characteristics of the community. To become a competitive destination on the international tourist map, Phu Quoc must also improve its infrastructure and transport connections, as well as its communication and marketing efforts. This process necessitates coordination between local authorities, industry organizations, and businesses to promote Phu Quoc's sustainable development."

Nghe Nhan