HO CHI MINH NATIONAL ACADEMY OF POLITICS AND PUBLIC ADMINISTRATION NGUYEN THI HONG LAM TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL ECONOMIC INTEGRATION PHD THESIS IN ECONOMICS HA NOI - 2013 HO CHI MINH NATIONAL ACADEMY OF POLITICS AND PUBLIC ADMINISTRATION NGUYEN THI HONG LAM TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL ECONOMIC INTEGRATION Specialism : Political economics Code : 62 31 01 01 PHD THESIS IN ECONOMICS Academic Supervisors: ASSOC. PROF. Dr. AN NHU HAI HA NOI – 2013 DECLARATION I hereby declare that this is entirely my own work. All the thesis data are truthful. And the thesis conclusions have never been published in any other research. Thesis author Nguyen Thi Hong Lam TABLE OF CONTENTS Page INTRODUCTION 1 Chapter 1: OVERVIEW OF RESEARCH ON TOURISM ECONOMY 6 1.1. Foreign studies on tourism economy 6 1.2. Domestic studies on tourism economy 11 1.3. Overview of research results of published studies and issues raised for further study on tourism economy 26 Chapter 2: THEORETICAL AND PRACTICAL GROUNDS OF TOURISM ECONOMY IN INTERNATIONAL ECONOMIC INTEGRATION 32 2.1. Tourism economy and components of tourism economy 32 2.2. Relationship between tourism economy and socio-economic development and factors affecting tourism economy in international economic integration 50 2.3. Experience from foreign tourism economy development that can be applied in Vietnam in general and the North Central region in particular 65 Chapter 3: REAL SITUATION OF THE TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL ECONOMIC INTEGRATION 77 3.1. Impacts of natural and socio-economic conditions in the North Central provinces on the development of their tourism economy 77 3.2. Real situation of the tourism economy in the North Central provinces from 2000 to the present 86 3.3. Assessment of the situation of tourism economy of the North Central provinces in international economic integration from 2000 to present 100 Chapter 4: DIRECTIONS AND SOLUTIONS TO IMPROVE DEVELOPMENT OF TOURISM ECONOMY IN THE NORTH CENTRAL PROVINCES IN INTERNATIONAL ECONOMIC INTEGRATION 121 4.1. Context and directions to develop tourism economy in the North Central provinces to 2020 with a vision to 2030 121 4.2. Fundamental solutions to accelerate the development of tourism economy in the North Central provinces in international economic integration 136 CONCLUSION 167 STUDIES RELATED TO THE RESEARCH 170 REFERENCES 171 APPENDIX ABBREVIATIONS USED IN THE THESIS ASEAN The Association of Southeast Asian Nations CNH, HĐH Industrialisation, Modernisation CSVC - HT Material facilities - infrastructure DLST Ecotourism DNDL Tourism enterprises EWEC EAST - WEST Economic Corridor GDP Gross Domestic Product GMS Greater Mekong Subregion HNKTQT International economic integration KH - CN Science - technology KT - XH Socio-economic KTDL Tourism economy KTTT Market economy MICE Meetings, incentives, conferences, and exhibitions Nxb Publishing house NC & PT Research and development QP - AN National Defence - Security UNESCO The United Nations Educational, Scientific and Cultural Organization WTO World Trade Organization XHCN Socialist LIST OF TABLES Page Table 3.1:The number of accommodation establishments in the North Central provinces (2000 - 2011) 92 Table 3.2: The quality of accommodation establishments in the North Central provinces (2009 – 2011) 93 Table 3.3: The development of tourism products in the North Central provinces from 2000 to the present 96 Table 3.4: Income the North Central provinces earned from tourists (2000 – 2011) 100 Table 3.5: Labour percentage in the tourism economy of the North Central provinces as compared to the whole nation (2000 - 2011) 105 Table 3.6: The quality of tourism human resource in the North Central province is classified in terms of qualification (2005 - 2010) 116 Table 4.1: Vietnam’s WTO commitments in tourism services and related services 123 Table 4.2: Forecasted tourism economy development targets in the North Central provinces 129 LIST OF FIGURES Page Figure 3.1: International arrivals to the North Central provinces (2000 - 2011) 87 Figure 3.2: Statistics of major home countries of international arrivals to the North Central provinces (2005 - 2011) 88 Figure 3.3: The number of international arrivals to the North Central provinces in comparison with other regions (2000 - 2011) 89 Figure 3.4: The number of domestic tourists to the North Central provinces (2000 - 2011) 90 Figure 3.5: The number of domestic tourists to the North Central provinces in comparison with other regions (2000 - 2011) 91 Figure 3.6: Total earnings from tourism in the North Central provinces in comparison with those in other regions (2000 - 2011) 101 Figure 3.7: Structure of total earnings from tourism in the North Central provinces (2009 - 2011) 102 Figure 3.8: Structure of total earnings from tourism in the North Central provinces is classified in accordance with economic components (2005 - 2011) 104 Figure 3.9: The job scale in tourism economy in the North Central provinces (2000 – 2011) 105 Figure 3.10: Structure of tourism economy in the North Central region’s GDP (2006 - 2011) 107 1 INTRODUCTION 1. The necessity of the research Tourism is a synthetic industry which is highly intersectoral, interregional and socialised. Performance of this industry not only meets the rising demand for travel of human beings but also plays an essential role in the ”on-the-spot export” of goods and services abroad. Many countries have considered tourism economy as a ”non-smoke industry”, bringing about huge benefits. Tourism economy not only makes contribution to the country’s economic growth but also facilitates the development of other industries, generates job opportunities and income for local people, and becomes a useful means to promote the country’s images, etc. In Vietnam, the tourism industry came into being in 1960, however, until 1990s it was regarded as an economy soon after the country opened door policy. Since then, the tourism economy has grown rapidly and attained certain encouraging achievements. According to the Vietnam National Administration of Tourism, in 2012 Vietnam received more than 6.8 million international arrivals, an increase of nearly 14 percent as compared to 2011; and 32.5 million domestic tourists, an increase of more than 8.3 percent over 2011. Accordingly, the total earnings from tourists reached VND160,000 billion in 2012, an increase of 23 percent over the previous year. In addition, tourism has also paid an important role in promoting images of Vietnam and its people to the outside world, cultural exchanges, and understandings among local ethnic groups and many nations world-wide. The North Central region is an economic zone consisting of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue provinces, with a natural area of 84,163.3sq.km and a population of over 16.5 million. The North Central region is a territory abounding in many valuable potentials in regard to tourism, namely beaches, caves, tombs, and typical natural wonders typically Sam Son, Cua Lo and Thien Cam beaches and 2 Phong Nha - Ke Bang National Park; cultural identities with numerous cultural historical relics, particularly world heritage sites such as the Ho Dynasty Citadel, the Complex of Hue Monuments with court music and many precious vestiges, President Ho Chi Minh vestige in Kim Lien Village, Vinh Moc tunnels, and Quang Tri Citadel, etc. On the other hand, favourable traffic conditions regarding road, rail and waterway transport facilitates the region’s tourism economy to bring into full play its advantages and attract tourists. Over the past years, tourism economy in the North Central provinces has made a remarkable growth which greatly contributes to the industrialisation and modernisation cause of not only the region but also the country as a whole, which is demonstrated through its contribution to the region’s gross economic product. Tourism activities have helped generate many employments and increase income for the community, contributing to region’s social welfare, security and national defence. Nevertheless, the current development of the tourism economy remains limited in regard to demands for international economic integration and the region’s potential. Tourism has not either become a key industry as defined in local Party committees’s resolutions, made a breakthrough development, or exploited the region’s full tourism potential and advantages. Quality of tourism products is still low, and the products themselves are not diverse and characterised with typical cultural features. Also there is a shortage of tourism products of high added value. Charge of certain tourism services remains high, less competitive internationally. Many tourism areas and destinations are spontaneously-established and short of a proper investment. Tourism programmemes remain poorly-designed and identical, failing to meet demand of each particular group of tourists as well as market. Tourism services are not diverse and the service quality is still poor and unattractive. Not many strong and presitigious tourism brands are established in the market. The preservation, repair and upgrading of cultural and revolutionary historical 3 relics; and maintenance of the surroundings have not received proper investment and comprehensive co-operation among relevant authorities and sectors. Tourism promotion operations internally and externally remain limited and unprofessional, and fail to provide sufficient and timely information for tourist and investors. The matter here is how to tap into full potential and advantages of the tourism economy in the whole region to satisfy the demands for international economic integration to bring about high socio-economic effects? Under such circumstances, that the PhD candidate chooses the topic: “Tourism economics in the North Central provinces in international economic integration” to develop into a PhD thesis in the political economics major at the Ho Chi Minh National Academy of Politics and Public Administration is of not only theoretical but also practical significance to the development of tourism economy in the North Central provinces in the coming time. 2. Purpose and task of the research - Purpose: To accelerate the development of tourism economy in the North Central provinces in the context of Vietnam’s deeper and greater integration in international economic relations from the point of political economics. - Task: To fulfill the purpose mentioned above, the thesis will: + Systemise theoretical and practical bases of tourism economy in international economic integration of a certain territory in Vietnam from the point of political economics. + Evaluate the reality of tourism economy in international economic integration in the North Central provinces, and find out results achieved and [...]... affecting tourism economy; change of economic structure in tourism economy including: the industry structure, the region structure, economic sectors’ structure; international economic integration, and opportunities and challenges of international economic integration to tourism economy On the basis of analyses of the relations between tourism economy and socio -economic development, the thesis argues the. .. of the North Central region in particular - Assessing the situation of tourism economy, the thesis analyses achievements and shortcomings of tourism economy in the North Central provinces in international economic integration Hence, the thesis analyses objective and subjective causes to such achievements and shortcomings - Proposing directions and solutions to accelerate the development of tourism economy. .. transportation, tourism site and destination development, and other tourism services in the North Central provinces in international economic integration - Scope of the research: + Space: The thesis studies tourism economy in the North Central provinces from economic approaches defined in Vietnam’s strategy on tourism development for the 2011-2020 period, vision to 2030 This tourism develoment region consists... new economic context of tourism economy in the North Central provinces in the international economic integration Also, the authors have not presented systematically targets, orientations, and solutions to develop tourism economy in the North Central provinces, to enhance competition, and to draw tourists in the context of international economic integration In addition, changes internally and externally... challenges of tourism in the central and Central Highlands region From that point, the research suggests solutions to speed up tourism development in the central and Central Highlands region: i, facilitating tourists to access tourism spots in the central and Central Highlands region; ii, in regards to investment in tourism, all resources should be mobilised to develop tourism in the central and Central. .. seeking solutions to speed up the national tourism economy development at the time being In order to help with addressing the problem, the subject: Tourism Economy in the North Central Provinces in International Economic Integration that the postgraduate has chosen to study is new, and of theoretical and practical significance 1.3.2 Issues raised for further study Firstly, specifying theoretics of tourism. ..4 shortcomings as well as reasons of these shortcomings in the development of tourism economy in these provinces + Propose directions and solutions to promote the development of tourism economy in the North Central provinces in international economic integration to 2020 3 Subject and scope of the research -Subject of the research: All business activities related to tourism economy consists of... Highlands region (2001); The research points out general features of the central and Central Highlands region; the role and position of tourism in the central and Central Highlands region; foundations to propose policies and solutions such as the potential and advantages to develop tourism in the central and Central Highlands; the status quo of tourism development in the central and Central Highlands region; ... city - Thesis of economics by Nguyen Thi Tu of the Vietnam University of Commerce, Ha Noi (2006), “Solutions to develop ecotourism in Vietnam in the integration trend” The research focuses on analysing concepts of tourism, ecotourism, demands and content of ecotourism in the international economic integration The research points out opportunities and challenges to ecotourism development in integration. .. source of reference for tourism accommodation business establishments and State management authorities in the tourism area in the North Central region The author also proposes to State management bodies such as the Ministry of Culture, Sports and Tourism and relevant ministries as well as those involved in the tourism accommodation business in tourism area in the North Central provinces to create a favourable . SITUATION OF THE TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL ECONOMIC INTEGRATION 77 3.1. Impacts of natural and socio -economic conditions in the North Central provinces on the development. Assessing the situation of tourism economy, the thesis analyses achievements and shortcomings of tourism economy in the North Central provinces in international economic integration. Hence, the thesis. of the thesis - Systemising theories of tourism economy in international economic integration in a certain tourism area in Vietnam from the perspective of political economics. Typically, the thesis