Life Resorts reassesses investment priorities in Vietnam

Life Resorts Management Co. is relocating its investment priorities and resources to better capitalize on opportunities in Vietnam at a time when the world's tourism industry is still reeling from the global economic downturn.
Chris Duffy, general director of Life Resorts, told the Daily about the reassessment of investment priorities after the Dutch-owned firm had announced its abortion of a project in Ninh Binh and another in Sapa in northern Vietnam.
"Sapa and Ninh Binh are fully cancelled," Duffy said, attributing this cancellation partly to the global economic turmoil that resulted in a decrease in the number of international visitors to Vietnam.
Figures of the Vietnam National Administration of Tourism (VNAT) showed the country welcomed nearly 3.8 million international visitors in 2009 as against the 4.25 million in 2008.
Duffy explained Life Resorts still believed strongly in Ninh Binh and felt that it had a lot to offer. However, the economic recession has affected everyone over the last 18 months, and the company sees its reverberations continuing for another year at least.
"Thus, we've had to reassess our priorities," Duffy said. "Every company I know is, today, tightening its belt, and we are no different."
As for the project already licensed for life Resorts in Sapa, Duff said the company was dealing with runaway construction costs before the recession even hit, and this made the project unviable though the company had had tremendous support from local authorities.
Instead, Life Resorts is focusing on the destinations in Vietnam that the company sees more opportunities in the near future.
"At present, we're weathering the economic storm, like everyone else, and pouring most of our resources into the Danang and Halong Bay properties," he said.
As scheduled, Life Resort Danang of more than 180 rooms will be up and running in the first quarter of this year and Life Heritage Resort Halong Bay in the northern province of Quang Ninh will be put into service after that.
Duffy acknowledged that it was true that falling international arrivals had affected the company's decision-making for the projects in Danang and Halong Bay.
"Falling revenues affect our budgeting for the coming year. The global economic downturn keeps travelers from coming to Vietnam."
Despite challenges last year, Life Resorts enjoyed encouraging developments and had its resort in Hoi An selected as the top resort in Vietnam in the Conde Nast Traveler Readers' Choice Awards and as one of three properties in Vietnam to win one of CNT's Gold Awards. These give the company hopes to fare well this year.
"We're bullish on 2010. We came out of 2009 with significant gains in life Resorts' reputation among travelers," Duffy said. He expected growing appeal for the company's new properties in Danang and on Halong Bay.
But, Duffy said Life Resorts was still being very cautious, as the current world recession was far from over. Vietnam needs to drive access to the major airports, particularly Danang, from places like Hong Kong and Singapore so the country can begin to draw more travelers over the weekends.
"From a marketing perspective, we need to create broader appeal for Vietnam in key markets," he said.