Tourism Activities Shift in Phan Thiet

activities - Phan Thiet: May 23, 2014

Tourism Activities Shift in Phan Thiet

activities in phan thietI am often careful when interpreting the feedback received from local actors about the status of their business activities for the season - this year was no different. In November, December and late January, some well known restaurants on the “Muine Strip” rang the bell stating that their business was down substantially, and Santimati restaurant said, “it was down 40%,” at some point. I did wonder if everything mentioned was factually accurate.

To clarify the situation, I picked a panel of chosen owners and managers working in well-known restaurants (international and local), mid-level and high-end shops as well as small and large hotels and resorts in the three to five star category. Following these interviews, visits and discussions, I realised that opinions varied per activity and that the most stable estimations came from hotel and resort professionals.

In terms of markets, most hotels and resorts recorded a steady flow of FIT (Foreign Independent Travellers) Russians originating from a wider range of destinations than ever before. Most resorts also documented growth for the UK, French and Chinese market - the latter being up 400% at some resorts. Most others recorded double digit growth.

activities in phan thietPandanus Resort, who is tracing substantial growth in this market as well.

Apart from Germans, who mainly travel in large groups at a lower price point, Phan Thiet still remains a FIT driven destination. This is good news for the many small businesses on the “Muine Strip”.

Even the Chinese travel individually for the most part, and the documented booking growth is largely channeled by OTAs (Online Travel Agencies) such as Booking.com and Agoda.com. This is good news as it positively affects the bottom line of resorts.

Private small business owners of restaurants, shops and bed & breakfasts, on the other hand, had mixed feelings about their business activities status. Pascal from Jibes recorded good growth in the last three months for his shop and restaurant while Kim Shop reported a 25% decreases in average spending year on year.

To better understand the market situation of these actors (restaurants, shops and activity providers) in Phan Thiet; allow me to list some of the key influencing business activity factors that were reported by many of the interviewed parties.

  1. The number of travellers in Phan Thiet is stable or growing.
  2. Market diversification is increasing.
  3. Behavioral and consumption pattern for each market may differ.
  4. The number of qualitative outlets is on the rise.
  5. The quantitative growth of small outlets out-numbers the increase in demand.
  6. Native Russians tend to spend money at places with Russian speaking staff/owners.
  7. Some Russian travellers do follow instructions given by their travel operators.
  8. Trip Advisor reviews affect the turnover of many travel related businesses.
  9. Travellers are wiser with their shrinking leisure budget.

If small businesses begin to understand how each of the above listed factors can affect their business activities, they may choose to adapt accordingly, adjusting the way they operate in order to tackle challenges and potential business available in their destination.