Trend in vacation ownership in Vietnam

Monday - 27/05/2019 11:38
In recent years, there has been a new concept of vacation onwership or timeshare in Vietnam. However, this type of tourism is not really popular and rather obscure because it is only for the rich.

What do you know about vacation ownership?

Properties for vacation onwership are usually well-designed to accommodate all the daily activities of a family. These properties are often varied. They may be hotel rooms with four-star standard or higher or 4-5 star resorts, luxury apartments in resorts or villas. Another highlight of this type is the ability to exchange timeshare among card holders. This means that vacation property owners in local or one country can exchange another person’s holiday in another local or in another country if they wish as long as they are in a same card issuer system.In this way, traveling around the world becomes easier and more economical.

Holiday ownership is formed from the idea of ??breaking up the time spent on a real estate to get reasonable cost of ownership with the majority of users. In other words, the owner has the right to use a product or service for a limited period of time and to share that product or service with other owners. Buyers who own a holiday or timeshare service will spend a certain amount of money to own a vacation property card at any real estate in the system of card issuer (a corporation that specializes in real estates or a resort club) and have the right to use the property for a certain period of time usually 7 days/year traditionally or seasonally and continuously for many years (from 5 years - 30 years) at the price at the time the card is sold and will be paid only once. The card is in the name of a person but can be used for the whole family.

In order to meet the needs of skiing visitors, some resorts in the Alps (France) have introduced vacation ownership form since the 1960s. Accordingly, families are accommodated at the same resort at a certain time of the year. Since then, the type of timeshare tourism was born. The timeshare was later introduced in Florida in 1970. By 1974, RCI (Resort Condominiums International) was formed. From then on, the concept of Timeshare is understood in broader meaning: vacation ownership or holiday exchange. RCI (USA) - is one of the world's leading corporations dealing in this travel service. Today, the group has about 3.8 million members worldwide. Since its appearance, vacation ownership has rapidly spread across Europe, the Americas, and became a new global trend in just a short time. Despite the economic fluctuations, inflation, price ... holiday ownership is still the developing fastest form and most dynamic of leisure travel in the world.

The vacation onwership service model in Vietnam

Along with the general development trend of the world, vacation ownership model has also appeared in Vietnam. Since the introduction of Vietnam, vacation ownership has been applied first in resorts, holiday clubs such as Sea Links Golf Resort - Mui Ne (Phan Thiet), Ninh Van Holiday Club Furama Resort (Da Nang), Flamingo Dai Lai Resort (Vinh Phuc), Tan Vien Resort (Ha Noi), Manna Resort (Nha Trang) and most recently Diamond Bay Resort 2 (Nha Trang). Among them, Ninh Van Bay Vacation Club, Sea Links Golf Resort - Mui Ne and Manna Resort are three holiday developers occupying a large market share in Vietnam. Ninh Van Bay Holiday Club Co., Ltd is one of the first company to apply the holiday ownership model for high-end resort tourism market in Vietnam. In addition to the four resorts under the system have been affirmed brand as well as class such as Six Senses Ninh Van bay, Evason Ana Mandara Nha Trang, Emerald Resort Ninh Binh, Ana Mandara Villas Dalat, Ninh Van Bay Holiday Club also links with more than 30 domestic, regional and foreign strategic partners of Ninh Van Bay to issue RCI cards which is the world's leading vacation exchange corporation. This corporation has more than 3 million members who are enjoying holidays at more than 4,000 resorts in RCI's luxury resorts system around the globe.

Rang Dong corporation has applied the Vacation Ownership Model at Sea Links Golf Resort in Phan Thiet since 2009. Rang Dong has also signed with Resort Condominium International (RCI) on holiday exchange between Sea Links and any resorts in RCI system worldwide. For the first time there are from 500 to 1,000 card launched with price from $ 12,000 to $ 15,000. Buyers can choose one of the 52 weeks of the year for free stay at Sea Links Golf Resort and this card is valid for 20 years. In addition, the card holder can exchange holiday with one of the 4,000 RCI's worldwide resorts without having to pay for their vacation.

Manna Resort at Cam Ranh Bay, Nha Trang is the first resort applying 100% vacation ownership or Timeshare in Vietnam. Mana resort was invested by Rafaeli-Israel International Group and Vietcombank Investment Fund. There are 550 villas & suites with fixed weekly ownership at Manna Resort. They were designed for up to 5 to 8 people, priced from $ 7,000 to $ 25,000. In addition, other names such as Nha Trang Plaza Hotel, Alma ...  also have this service.

The vacation ownership market is heating up

According to the report "Vacation ownership Market in Southeast Asia" announced by C9 Hotelworks, a real estate consultancy and resort service company, Vacation ownership is starting to develop in South East Asia. Of these, the two striking countries Thailand and Indonesia. At present, 56% of resorts in Southeast Asia belong to Thailand and Indonesia, with Thailand accounting for 31% and Indonesia accounting for 25%. The remaining three countries are the Philippines (22%), Malaysia (20%), Viet Nam (2%). They estimated 500,000 resorts applying this form of business. However, according to C9 Hotelworks, with population size in the region, this figure is still relatively modest compared to other markets

Vietnam resort market is still small in the region. The concept of vacation ownership is new and unfamiliar in Vietnam, many travel enterprises or even real estate investors still do not understand the concept of vacation ownership. And only a very small number of the urban population was heard of this concept and they also did not interest in this. In addition to business owners of vacation ownership models are not interested in promoting their products to consumers. In Vietnam, according to business records, buyers are mostly wealthy entrepreneurs. They usually choice card type of 27 years. It is very rare to use the cards to make a profit but most of them use this card for spiritual use. They consider this card as a place to look after themself, their family, their partners, their close friends and a few use for employees in the company.

Business projects of vacation ownership or timeshare in Vietnam have the quality of service and good management ability because they were operated and managed by major corporations in the world. However, due to the land planning and investment policies of localities as well as investors still have the psychology of "try the market", the timeshare resorts in our country are almost missing quantity  and quality. Like any phenomenon or movement from abroad imported into Vietnam, vacation ownership will take a considerable amount of time for the user to reach out and really understand about it. However, it can be concluded that the market of Vacation ownership and the timeshare exchange is heating up as the trend of convalescence tousirm is increasing. Many Vietnamese tourists choose the resort to really relax. Guests usually choose short journeys, move less (about 1 week or less).

This trend will increase, because the structure of domestic visitors choosing a resort resort has accounted for 20% in many travel businesses due to increasing incomes of Vietnamese people, especially the nobility. In additon to, their lifestyles are increasingly modern, the demand for convalescent travel and enjoyment is also become more and more popular. Also, vacation ownership model providers are using corporation of the World Vacation Exchange (RCI) to exchange vacations across five continents. This makes vacation ownership products more dominant than other resort real estate products.

At present, there are more people interested in the vacation ownership model because of the presence of many suppliers involved in exploiting this early and less competitive segment in Vietnam. That promises vacation ownership will be popular and really boom in Vietnam like countries in the world in the near future.

References

1. PATA Vietnam

2. Ninh Van Bay Holiday Club

3. http://www.sealinkscity.com/en/Golf.html

4. https://vietnamtimeshare.wordpress.com/

5. http://www.c9hotelworks.com/market_research_press.htm

6. http://www.arda.org/news- information/industryinformation/overview.aspx

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