Vietnam Resorts Harnessing The Sun To Attract Tourists

In recent years, Vietnam has embraced renewal energy sources, particularly solar, and now its important tourism sector looks set to do the same to reduce carbon emissions and attract guests looking for more sustainable travel options.

Vietnam is the leading country in Southeast Asia in terms of installed solar capacity according to a World Bank report. This has been driven largely by private investment, but it is part of the Vietnamese government’s energy policy with its eight national power development plan for 2021-2030. The plan outlines goals for renewable energy output as well as a share of total capacity.

In the manufacturing sector, many companies have taken advantage of the large rooftop surface areas of their factories and other facilities to install solar panels to reduce electricity costs. Such large-scale projects are now making their way onto the ample rooftops of the country’s coastal resorts.

The thirty-hectare Alma resort at Cam Ranh Bay on Vietnam’s central coast is implementing what it believes is Vietnam’s most ambitious hotel solar power project to date. It will be installing 5,634 solar panels covering 12,500 square meters across the roofs of its 196 pavilions, two V-shaped apartment towers lobby lounge, spa, gymnasium and utility buildings.

It’s estimated the system will save the resort up to $16.85 million (390.85 billion Vietnamese dong) in electricity bills over the next 25 years. It will also reduce Alma’s carbon dioxide (CO₂) emissions by up to 72,670 tonnes over this period.  

Alma’s managing director Herbert Laubichler-Pichler said he believes it will soon be incumbent for five-star resorts across the country to introduce solar power systems to lessen their carbon footprints. “We hope to set a positive example on the solar power front for the rest of Vietnam’s luxury hospitality landscape,” he said. 

Going green is also good for business in the travel industry. Booking.com, one of the largest online travel booking platforms, actively promotes accommodation providers who implement sustainability practices. In November 2021 it launched its Travel Sustainable badge, a credible, globally relevant sustainability measure that will provide highly coveted information to travelers all over the world looking to make more sustainable travel choices. The badge is available to any kind of property that has implemented a combination of sustainable practices that meet the requisite impact threshold for their destination.

The site’s own survey research has found 73% of travelers say they would be more likely to book a property with sustainability practices in place, yet 41% don’t know how to find sustainable travel options. The aim of the badge is to assist eligible properties attract more potential guests looking to travel sustainably.

However, undertaking such an ambitious and costly project might not be feasible for hotel and resort properties still nowhere near emerging from a Covid-ravaged two years. This is why the financing model for the Alma project may also provide an example of how travel destinations may be able to still implement such measures. 

German companies C. Melchers (Vietnam), Aschoff Solar Ltd, who are engineering and installing the solar panels, teamed with Ecoligo GmbH who are a crowd-funding platform for environmentally sustainable projects. Essentially, Ecologio will own the solar installations and sell the power back to the resort at below-market rates, creating a return for investors. After the first 10 years of the project’s 25-year lifespan, the ownership will revert to the resort which will in turn reap even greater savings. 

“After the costs are taken out to pay for the solar technology, Alma will still save an additional $1.96 million (45.18 billion dong) on electricity within this 10-year timeframe,” Laubichler-Pichler said.

The installation of the panels will begin in January 2022, with an expected completion in June. C. Melchers (Vietnam) country head Stephan Pruetzmann noted the technical challenges of building such a system in the corrosive salt air and on a coast regularly battered by seasonal tropical storms. He said that more expensive measures to combat such conditions were being implemented to ultimately extend the life of the project. “There are cheaper competitors than us,” he said, “but then the lifetime of their solar rooftops is only five years, so technically the best solution should last over 20 years.”