U T T E R W O R T H
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Tourism development in Vietnam
The recent decision by the United States to lift the 20-year-old trade
embargo is a great boost to Vietnam's economic development in general
and to its tourism in particular. The emergence of mass tourism in the.
1960s bypassed Vietnam, and its neighbors Laos and Cambodia, because
of war and political and economic constraints. Vietnam is therefore not
ready for a large influx of tourists. Specifically, it lacks a suitable
infrastructure, accommodation facilities, an appropriate tourism organization and skilled staff. Vietnam's new economic policy of 'openness'
(doi moi) will facilitate tourism development. This report examines
Vietnam's tourism resources, market potential, and the need for government to assume the broad responsibility and policies that should optimize
economic benefits whilst preserving the country's social, cultural and
ecological features.
Background
It has been convincingly argued that
tourism has made a considerable economic contribution to Third World
countries 'and that this contribution
will continue in the future'.l The decision by the United States, in January
1994, to lift the 20-year-old trade
embargo, combined with Vietnam's
efforts to develop an infrastructure for
tourism, affords Vietnam significant
opportunities for economic development that could benefit the Vietnamese people.
At present, Vietnam is very much
moving from a non-existent to the
'embryonic' stage of tourism development. Therefore, it could benefit by
learning from the tourism development experiences of other countries in
the region which have developed tourism more or less successfully. For example, the expansion of tourism in
Thailand with 5.1 million tourist a/Tivals in 1992 provides an illustration of
a 'fast-track' tourism development
model and its commensurate problems, such as crowding, degradation
of the environment, commercialization of the culture and increased prostitution.
Indonesia, with three million tourist
arrivals in 1992, provides an example
of a country which has opted for slowgrowth tourism development. The In-
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handicrafts (lacquerware, embroidery, bamboo ware, reed baskets, pottery and woodwork) and religious customs and festivities. 3
This combination of natural and
cultural resources forms a strong basis
to develop a unique tourist product
and has the potential to make Vietnam an attractive destination for visitors seeking beach holidays and those
who are interested in touring the natural and scenic locations, historic places
and cultural attractions.
Market potential
A major tourism feature of the 1980s
and especially since 1985 has been the
sharply increased share of long-haul
travel. Newly emerging destinations
were strongly promoted whilst at the
same t i m e many short-haul destinations lost much of their attraction
(such as the Mediterranean region for
European travellers). Higher disposable incomes and an increasing interest in 'new' destinations made this
shift practicable. According to tourism
forecasts by the Economic Intelligence
Unit (EIU) long-haul travel is set to
grow, on average, 5.8% in the period
1989-2005, substantially faster than
short- or medium-haul travel. International tourist arrivals in East Asia and
the Pacific region grew faster than any
other region by an average of 8.9%
per annum between 1980 and 1990
whilst receipts increased by 15% during the same period.
Whilst the share of European tourist arrivals is considerable, for example traffic between Europe and East
Asia and the Pacific amounted to eight
million arrivals in 1992, the major
growth factor, however, throughout
Asia, is intra-regional travel which
comprised 73% of all tourist arrivals in
1992. In 1992, the major touristgenerating countries in the region
were: Japan (11.7 million), Taiwan
(4.2 million), Australia (2.2 million),
Hong Kong (2.2 million), India (2.1
million) and Korea (2.1 million).
The future prospects for further
tourism development in Southeast
Asia look very bright. Within this
international context Vietnam is well
positioned, at least geographically, to
obtain its fair share of the expanding
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One
source
has
corroborated
Hanoi's appeal as follows: 5
The city of Hanoi has a history of more
than one thousand years. The most distinctive features of the city, giving it a unique
place among the cities of Vietnam, Asia
and the World, are the buildings and
streetscapes of the Old Sector and Ancient
Quarter, together with the parks, lakes,
Red River and other national features.
Hanoi's built environment reflects the
city's Chinese and Vietnamese feudal past,
the period of French Colonial presence,
and the recent years of independence. The
most noteworthy features include the central Hoan Kiem Lake, the One-column
Temple, the Van Mieu pagodas, the
Ancient Quarter of the 36 Commercial
Streets, north of Hoan Kiem and founded
in 1010, and the public buildings, opera
houses, villas and treelined boulevards,
dating from the French period, 1850-1940,
in the area south and east of Hoan Kiem.
H o w e v e r , a combination of physical
deterioration and rapid economic dev e l o p m e n t pressure and international
business
now
places
Hanoi's
architectural heritage under threat
(4 p 6).
In view of urban tourism development, the protection of the historical
heritage is of vital importance. The
issue of a conservation policy in relation to tourism was also mentioned
explicitly in the W T O Master plan.
The preparation of a tourism development plan for Hanoi implies following
a set of guidelines which is summarized in Table 1 and incorporates the
G o v e r n m e n t policy
Vietnam has recently entered a new
stage of development towards a free
economy but its economy faces a difficult period. In view of the generally
run-down situation in most parts of
the country, every vehicle for economic revitalization, including tourism,
should be used. So far, the Vietnamese g o v e r n m e n t is placing particular emphasis on those sectors which
are likely to generate foreign currency
in the short term such as the oil and
gas industry, agriculture, the transportation sector (including airports,
harbours, railways and roads) and
tourism.
The new perestroika-like policy of
doi moi, implying new arrangements
for i n v e s t m e n t s , o p e n s interesting
perspectives for the d e v e l o p m e n t of
tourism in Vietnam. Doi moi was introduced during the Sixth Party Congress in 1986 and has o p e n e d the door
for the private sector to capitalize on
myriad opportunities.
The use of tourism planning as a
m a n a g e m e n t tool for purposes of integ r a t e d e c o n o m i c d e v e l o p m e n t is
rather new and totally foreign to Vietnamese traditions. ~ Therefore, in dev e l o p i n g tourism in V i e t n a m , the
Sustainability
There is often a tendency, especially
in developing countries, to view tourism d e v e l o p m e n t as the natural outcome of hotel investment. This
approach holds, in essence, that more
hotel beds generate tourist flows and
equal better tourism results. But this
u n i d i m e n s i o n a l sectoral a p p r o a c h
ignores the functioning tourist system
and fails to acknowledge the importance of developing simultaneously a
sound t o u r i s m i n f r a s t r u c t u r e , and
therefore risks the 'ills' inherent in
rapid, ad hoc tourism development,
including possible environmental, social and cultural degradation. 7 The
u n i d i m e n s i o n a l sectoral a p p r o a c h
stands in stark c o n t r a s t with the
strategic approach, which aims to
p r o m o t e sustainable tourism development through the creation of value for
all constituents: the host society, tourists and the (trans)national tourism
industry.
T h e W o r l d C o m m i s s i o n on Environment and D e v e l o p m e n t defined
sustainable development as development that meets the needs of the
p r e s e n t without c o m p r o m i s i n g the
ability to meet similar needs in the
future, s At present, there may be no
consensus on what exactly constitutes
'sustainable' or 'responsible' tourism.
But as C o o p e r and Ozdil pointed out,
'the way ahead is . . . to view responsible tourism as a "way of thinking" to ensure tourism is responsible
to host environments and societies'. 9
Within this context, the principles of
sustainable tourism are to a large extent expressed in P A T A ' s Charter
(Table 2). In particular, sustainable
tourism d e v e l o p m e n t requires that:
Tourism d e v e l o p m e n t is part of an
integrated plan for economic and
social progress.
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Reports
Table 2
tourism
In essence, the code calls for PATA's Association and Chapter members to adopt an
environmental ethic which will enhance:
long-term profitability
product sustainability
intergenerational equity
Adapt the necessary practices to conserve the environment, including the use of
renewable resources in a sustainable manner and the conservation of non-renewable
resources
Contribute to the conservation of any habitat of flora or fauna, and of any site whether
natural or cultural, which may be affected by tourism
Encourage the relevant authorities to identify areas worthy of conservation and to
determine the level of development, if any, which would ensure those areas are
conserved
Ensure that community attitudes, cultural values and concerns, including local customs
and beliefs, are taken into account in the planning of all tourism-related projects
Ensure that assessment procedures recognize the cumulative as well as the individual
effects of all developments on the environment
Comply with all international conventions in relation to the environment
Comply with all national, state and local laws in relation to the environment
Encourage those involved in tourism to comply with local and regional and national
planning policies and to participate in the planning process
Provide the opportunity for the wider community to take part in discussions and
consultations on tourism planning issues insofar as they affect the tourism industry and
community
Acknowledge responsibility for the environmental impacts of all tourism-related
projects and activities and undertake all necessary responsible, remedial and corrective
actions
Encourage regular environmental audits of practices throughout the tourism industry
and encourage necessa~'y changes to those practices; foster environmentally responsible practices including waste management, recycling and energy use
Foster in both management and staff of all tourism-related projects and activities an
awareness of environmental and conservation principles
Support the inclusion of professional conservation principles in tourism education,
training and planning
Encourage an understanding by all those involved in tourism of each community's
customs, cultural values, beliefs and traditions and how they relate to the environment
Enhance the appreciation and understanding by tourists of the environment through
the provision of accurate information and appropriate interpretation
Establish detailed environmental policies and/or guidelines for the various sectors in
the tourism industry
Source: Asia Travel Trade Ecotourism: Going Green (June 1992) 28.
Reports
(Pacific and Asian Tourist Association).
It has b e c o m e a m e m b e r of
ASEAN, in order to develop cooperation with South Asian countries
in the field of tourism.
It has formulated a Tourism Master
Plan, with the help of WTO and
UNDP, which constructs a useful
framework for the future policy of
tourism development in Vietnam.
Summary
The opening up of Vietnam presents
the country with both opportunities
and challenges. The future prospects
for further tourism development in
Southeast Asia look very bright. Within this international context Vietnam
is well positioned, at least geographically, to obtain its fair share of the
expanding tourism market. However,
an approach of just generating and
regenerating a 'stream' of tourists, as
has been the case in other Asian countries, is likely to result in short-term
laxity and encourage long-term problems. The main challenge is therefore
to develop tourism in a sustainable
manner, which is a strategy problem.
A host of issues, and the present (lack
of) expertise seems to make sustainable tourism development almost a
'mission impossible'.
Because of its limited resources,
Vietnam should focus initially on
promoting itself as a 'stop-over' destination for visitors who are on a regional tour. The tourism development
master plan for Vietnam proposed
that projects which are based on the
strongest and unique assets for tourism development and projects for
which the necessary (foreign) investment can be found in the short term
will be designated as priorities.
Four regions were identified because they are most likely to act as
potential catalysts for future development projects. Once these four regions have been more fully developed,
Vietnam might consider marketing itself as a single destination.
The emerging policy indicates that
the government is shouldering the responsibility for managing sustainable
tourism, which will benefit Vietnam
most and become a source of pride
References
qenkins, C L 'Tourism in Third World
Architectural Heritage International Foundation Indochina Financial Services, Sydney, 1993 (15 February) 6
~Getz, D 'Models in tourism planning'
Tourism Management 1986 7 (1) 21-32
7jansen-Verbeke, M 'Tourism: Quo
Vadis?' inaugural lecture, Erasmus University, Rotterdam, 17 February 1994
SWorld Commission on Environment and
Development (WCED) Our Common
Future Oxford University Press, Oxford/
New York (1987)
'~Cooper, C P and Ozdil, I 'From mass to
"responsible" tourism: the Turkish experience' Tourism Management 13 (4) 1992
377-386
H~Mathieson,A and Wall, G Tourism, Economic, Physical and Social Impacts Longman, New York (1982)
~Jenkins, C L "Government involvement
in tourism in developing countries' Annals
of Tourism Research 1982 9 499-521
321