Vietnam Hotels MarketView - Q2 2014

Hotel performance maintained its momentum due to steady growth in tourist arrivals

HOT TOPICS

• On May 1st, China deployed the Haiyang Shiyou-981 offshore drilling rig in the East Vietnam Sea, in a location 70 miles inside Vietnam’s Exclusive Economic Zone. The tension with China caused a certain impact on the number of international arrivals, especially Chinese tourists and tourists from Chinese speaking countries. Chinese tourists comprise the largest proportion of foreign tourist arrivals in Vietnam. In June 2014, number of Chinese arrivals to Vietnam was 136,724 persons, a decrease by 29.5% m-o-m. Even though this June figure still increased by 5.5% y-o-y, the lowest y-o-y growth since the beginning of 2014.
• Ministry of Finance has issued Circular No. 72/2014/TT-BTC on value added tax refund for purchases made in Vietnam by foreigners and overseas Vietnamese when leaving the country. From 1 July 2014, the VAT refund is officially implemented in 7 border gates including Noi Bai Int’l Airport, Da Nang Int’l Airport & Int’l Seaport, Cam Ranh Int’l Airport, Tan Son Nhat Int’l Airport, Nha Trang Int’l Seaport and Khanh Hoi Int’l Seaport. The VAT refund is applied for valid invoices at one store in one day with the total cost at VND2 million as minimum and the amount equals to 85% of VAT amount of goods.

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CONTACT

Robert McIntosh
Executive Director - CBRE Hotels, Asia Pacific
O: +65 6326 1200
M: +65 8123 0208
E: robert.mcintosh@cbrehotels.com