(TIỂU LUẬN) eco tourism destination report an evaluation of the stakeholders and sustainable development of hue

Eco-Tourism Destination Report An Evaluation of the Stakeholders and Sustainable Development of Hue RMIT International University Vietnam Prepared by Team Le Dao Thuy Duong - s3777301 Phan Dieu Linh - s3757861 Le Phuc Khang - s3753194 Tran Trung Kien - s3790309 La Nhu Quynh - s3817836 Nguyen Thuy Ngan - s3817830 STATEMENT OF AUTHORSHIP Course Code BUSM4567 Course Name Eco-tourism and Sustainable Hospitality Management Assignment Title Stakeholders and Sustainable Tourism Destination Report Assignment No 1A Date Due 29th November 2020 Word Count 3495 (excluding titles, statement of authorship, table of contents, references, appendices and summary of teamwork) STUDENT(S) Family Name Given Name Student Name LE PHUC KHANG LE DAO THUY DUONG PHAN DIEU LINH TRAN TRUNG KIEN LA NHU QUYNH NGUYEN THUY NGAN Declaration and Statement of Authorship: I/We hold a photocopy of this assignment which can be produced if the original is lost/damaged This assignment is my/our original work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgment is made No part of this assignment has been written for me/us by any other person except where such collaboration has been authorized by the academic/teacher concerned and as detailed in the assignment I/we have not previously submitted this work for any other course/unit I give permission for my assignment to be scanned for electronic checking of plagiarism I give permission for a copy of my/our marked work to be retained by the Department for review by external examiners I/We understand that Plagiarism is the presentation of the work, idea or creation of another person as though it is one’s own It is a form of cheating and is a very serious academic offense that may lead to expulsion from the University Plagiarized material can be drawn from, and presented in, written, graphic and visual form, including electronic data, and oral presentations Plagiarism occurs when the origin of the material used is not appropriately cited Enabling Plagiarism is the act of assisting or allowing another person to plagiarize or to copy one’s work; this is not acceptable and is also subject to penalty Student Signature(s) LE PHUC KHANG LE DAO THUY DUONG PHAN DIEU LINH TRAN TRUNG KIEN LA NHU QUYNH NGUYEN THUY NGAN Further information relating to the penalties for plagiarism, which range from a notation on your student file to expulsion from the University, is contained in RMIT Statute 6.1 Student Discipline (See Appendix in Student Guide or consult Turing) Table of Content Introduction Key Elements of Stakeholder Theory Stakeholder Concept and Definition Host community residents Government and Administrations Tourism Service Providers Tourists 6 6 7 Key Elements of Triple Bottom Line Performance Evaluations The Triple Bottom Line concept and definition Social Sustainability Environmental Sustainability 7 Governance Interests and TBL Economic Aspect Social Aspect Environmental Aspect 9 10 10 Service Provider Interests and TBL Economic Aspect Social Aspect Environmental Aspect 11 11 11 12 Visitors Interests and TBL Economic Aspect Social Aspect Environmental Aspect 12 12 13 13 Host Community Interests and TBL Economic Aspect Social Aspect Environmental Aspect 14 14 14 15 Conclusion and Recommendations 15 References 17 Appendices 23 I Introduction The tourism industry is changing and evolving as most people who are directly related to this industry are gradually motivated to find new eco-friendly ideas and ways to promote the protection of the environment (Asley, Roe and Goodwin, 2001; Byrd, 2007; Niedziolka, 2012; Stoddard, Pollard and Evans, 2012) Hence, the impact of tourism development has been a major debatable topic for many years whether its impact is positive or negative to the society and environment (Suntikul et al 2016; Pramanik and Ingkadijaya, 2018) In 2017, the United Nations launched a program ‘the Year of Sustainable Tourism’ with the aim to encourage green development globally According to World Tourism Organisation (UNWTO) 2019, the number of international tourists would increase through the years, hence, it is crucial to educate the need of sustainable tourism to travellers and developers There are several concepts which help preserving and developing a strong tourism, these are not limited to the two most important aspects: ‘triple bottom line’ and ‘stakeholder theory’ These two key concepts will be used to apply and analyse toward Thua Thien Hue Hue is a city which is located at the central of Vietnam, the place lies on a plain supported by foothills of the Annamese Cordillera (Chain Annamitique) The Huong river traverses Hue which creates the unique view for this region (The Editors of Encyclopaedia Britannica) The purpose of this report is to apply the theories of ecotourism and sustainable development to the case of Hue city in Vietnam II Key Elements of Stakeholder Theory ● Stakeholder Concept and Definition Freeman (1984; as cited in Byrd, 2007) defined a stakeholder as “any group or individual who can affect or is affected by the achievement of the organization objectives” After that, Donaldson and Preston (1995; as cited in Byrd, 2007) improved that definition by adding “the group or individual must have a legitimate interest in the organization” There are main groups of stakeholders: host community residents, tourism service providers, government and administrations, and tourists ● Host community residents According to Thetsane (2019), local communities play an essential role in the sustainability of the tourism industry since it is one of the crucial elements of tourism development Hue attracts tourists because of the specialties that ethnic minorities provide There are ethnic minorities: Bru-Van Kieu, Co Tu, Ta Oi, and Pa Co (Thua Thien Hue Portal n.d.) They bring benefits to Hue by maintaining and dedicating their houses, sharing their cultures such as making wine, playing folk games Therefore, tourism services providers have the resources to make plans and strategies for tourists ● Government and Administrations In every country, the government plays an essential role in the development of tourism Their missions not only recognize the problem but also plan and try to solve it (Elliott, 1987) The government controls and improves the economy by making policies and rules for tourism activities Thanks to the policies and rules, there would be fewer tourism activities that are conducted against the law ● Tourism service providers The tourism service providers bring more profits to the economy by offering a variety of services and destinations for customers They satisfy tourists with their high quality of services and unique activities in each destination, which gives tourists have more memorable experiences in their destinations ● Tourists It is said that tourists are the factor that brings the biggest profit to the tourism industry By using tourism services, which contain accommodations and entertainment, such as hotels, resorts, restaurants, etc., tourists contribute directly to the local’s revenue Due to the good experiences of tourists, the government has the reason to improve the quality of tourism services in order to attract more tourists to that destination For example, in 2018, there are 4.25 million visitors who went to Hue, includes 2.2 million international visitors, contributes about 4,400 billion VND to the economy This number is 12% higher than that in 2017 (VNAT, 2019) In the first 10 months of 2019, Hue welcomed 4.1 million visitors and brought over 4.1 trillion VND (TTXVN, 2019) III Key Elements of Triple Bottom Line Performance Evaluations ● The Triple Bottom Line concept and definition The “Triple Bottom Line” model (Figure 1) was first coined in the research of John Elkington in 1994 It initially represents an accounting framework and works as a component of Corporate Social Responsibility concept by evaluating the firm accountability toward the dimensions of sustainable development: Profit (Economic), People (Social) and Planet (Environmental) (Elkington 1997) ● Economic Sustainability Economic Sustainability refers to the business performance that creates economic value to the society, the scale of the dimension can be measured based on the traditional financial performance determinants (e.g profit, investment, capital structure, etc.) (Elkington 1997; Stoddard, Pollard and Evans 2012) An organization's sustainability can also be evaluated through its ability in assessing supported resources to generate profit, without negatively affecting the local community and the environment (Stoddard, Pollard and Evans 2012) To achieve economic sustainability, social benefits are a fundamental requirement, so improving the locals quality of life (QOL) (e.g jobs creation, infrastructure facilities renovation, healthcare activities, etc.) is one of the standard activities in which any business organization must perceive (Rogers and Ryan 2001; Suntikul et al 2016) In the case of eco-tourism in Vietnam, Hue is a strategic destination for sustainable development due to its ancient cultural heritage with the support of many NGOs around the world (Asian Development Bank, 2014) By aiming to become a “green” city in the future, the government is implementing the investment calls domestically and internationally for 39 projects including industrial zones, commerce-serviceshotels complex areas and eco-tourism destinations (Thua Thien Hue Portal 2020) Its impacts on Hue city and the citizens are considered to be positive as Niedziółka (2012) highlighted the three important benefits of tourism development were: (1) reduction of unemployment, (2) facilities uplift and (3) financial and non-financial income to the region Another benefit from tourism that could be recognized in Hue is poverty alleviation which is believed to have beneficial economic affection on the residents (Asian Development Bank, 2014) However, it would raise another concern is the unequal accumulation of resources between locals and guests resulting in the conflict in the development process (Niedziółka 2012) ● Social Sustainability Social sustainability is the process of value creation to the society in which sustainable development concentrates on promoting the human wellbings, showing the comprehension to the needs of the local residents by supporting them with capable resources (Stoddard, Pollard & Evans 2012) In the research of Rogers and Ryan (2001), the authors mentioned Max-Neef (1991) framework about the need of human wellbeing as he indicated that there were basic elements to achieve for creating a healthy community: (1) sustenance; (2) protection; (3) affection; (4) idleness; (5) creativity; (6) freedom; (7) understanding; (8) participation; (9) identity Suntikul et al (2016) also emphasized the importance of locals quality of life during the tourism development and their perspective toward the impacts it created Linking to the case of Hue tourism, government actions in attracting FDI is expected to create many opportunities for the growth of infrastructure facilities (Trang Nguyen & Duc Nguyen 2013); the result of it could initially alleviate the poverty rate in Thua Thien Hue province as well as establishing more social amenities such as schools, hospitals, etc for the community Additionally, the Hue government could expand their relationship with various NGOs around the world in advertising the cultural tourism, and collaboration in organizing social activities or charitable fundraising such as heritage protection programs, free healthcare service for locals, educational programs about cultural-environment protection, etc (Asian Development Bank, 2014; Hai Nguyen & Cheung, 2014) ● Environmental Sustainability Environmental sustainability is the term related to the long-term preservation of the environment, it is also considered as the responsibility of any individual or business organization to prevent the exhaustion of the natural resource (Gimenez, Sierra & Rodon, 2012) There are various studies coining the significance of preserving the environment and maintaining sustainability with a focus on achieving sustainable development With the aim to become a “green” city in the near future, the low carbon initiative plan is currently being implemented as it is expected to minimize the amount of carbon creating a cleaner environment for the local people as well as tourists (Kumar et al., 2016) The effectiveness of this sustainability trend could boost the tourism sector dramatically in the coming years (Thua Thien Hue Portal 2019) IV Governance Interests and TBL ● Economic Aspect In the economic aspect, the governance presents a long-term plan including the need for Hue to improve its unique culture According to Thua Thien Hue Portal 2019, the department of sport, culture and tourism associated with the Organization of international cooperation (JICA) chose many craft villages, such as Thanh Toan tile bridge to become a new and durable tourism attraction This action shows the ambition of the government to achieve sustainable growth Furthermore, promoting investment in aquaculture and seafood export will create beneficial growth in the regional economy Additionally, Hue has been speeding up the clearance process for the construction of industrial zones that increase competitiveness for industry investment ● Social Aspect In 2018, the Hue government embellished and improved the quality of Pham Ngu Lao, Chu Van An, and Vo Thi Sau night streets to create a highlight to attract tourists at night in Hue city (Thuathienhue.gov 2019) Besides, at the end of 2019, Hue city will also upgrade and expand Phu Bai International Airport to reach a capacity of million tourists per year because of overcrowding from the increasing number of tourists arriving at the airport (Anh Minh 2019) On the contrary, in Dai Noi, Dong Ba market, Thien Mu pagoda, there is a situation of hassling or overcharging, causing much trouble for tourists (Quang Tien - Duong 2012) Therefore, the People's Committee of Hue City has instructed the functional forces to accelerate the inspection and deal with bothering tourists in the area (Thuy An 2017) As a result, Hue has significantly improved when making visitors more comfortable and impressed; they feel no longer "annoyed" as before (Duc Quang 2019) ● Environmental Aspect Due to the development of tourism in Hue, eco-friendly solutions have been made As seeing the potential of Hue’s tourism industry as well as the aiming to develop sustainably, The United Nations Development Programme (UNDP) signed a Memorandum of Understanding (MOU) with Thua Thien Hue Provincial People’s Committee to strengthen the sustainable development of this province (Climate Business Index 2020) It offers a social benefit program in Hue which consists of 200 e-bikes and e-bicycles Furthermore, UNDP also developed D-Map which is a digital map especially made for disability (Climate Business Index 2020) 10 V Service Provider Interests and TBL ● Economic Aspect Hue is a potential destination attracting 110 Foreign Direct Investment (FDI) projects with a total registered capital of over 3.82 billion USD, and in the top 10 provinces in attracting FDI capital in recent years (NDO 2019) Particularly, Banyan Tree Holdings Limited Singapore, which has implemented the critical project Laguna Lang Co with an investment of $ billion, which is expected to create many employment opportunities for local people (Thai Binh 2018) Furthermore, several leading corporations such as Ecopark, Vingroup, BRG, PSH, Minh Vien, etc increase the Incremental Capital Output Ratio (ICOR) index in Hue from 6.5 in 2011-2015 to 5.7 in 2016-2018 (Nguyen 2020) On the other hand, Hue also has the potential to develop craft village tourism Specifically, in 2012, craft villages in Hue helped create jobs for more than 2,500 workers and improved people's lives in rural areas (Cong Hau 2013) Therefore, service providers and travel agents can generate more tours to craft villages, attract more visitors to visit and experience, and provide more job opportunities for the locals ● Social Aspect In terms of society, Hue has many monuments, temples, palaces, of which UNESCO recognizes seven, and many intangible relics and landscapes are preserved (VOVWORLD 2020) According to the Hue Monuments Conservation Center, service providers coordinate with them to introduce culture, attracting visitors to visit the heritage Therefore, there are many types of tourism created by travel agencies by that goal A typical example is a dragon boat tour on the Huong River, where visitors can enjoy dinner and stop at iconic places in Hue Citadel along with listening to folk music (Wong n.d) Additionally, Hue also has the Hue Festival, which is periodically held every two years in even years, and Hue Traditional Craft Festival is held every two years in odd years (Phan Tien 2019) Based on these advantages, travel agencies can organize tours to explore the heritage of Hue 11 ● Environmental Aspect In terms of environment, this is also an essential factor to be noticed by service providers Typically, Banyan Tree is at the forefront of sustainable business development in Vietnam, emphasizing environmental protection, including organizing waste collection activities, reducing greenhouse gas emissions, etc (Laguna CSR 2019) Also, there is a travel agency Huetourist, which collects tours towards green tourism, including the one day tour on "Thuy Bieu - Tam Giang" helping visitors experience the natural ecosystem in Hue (thuathienhue n.d) VI Visitors Interests and TBL ● Economic Aspect According to Vnexpress, the total number of visitors to Hue imperial citadel in 2019 reached 4.81 million, international visitors were estimated at 2,186,747 arrivals For accommodation tourists was about 2,247,885 arrivals, revenue from tourism is estimated at 4,945 billion VND, up to 10.54 percent (Hanam.gov 2020) Thanks to unique custom and historical destinations, Hue has advantages in exploiting tourism and aquaculture potentials However, until 2019, the number standard room of 3-5 stars is only about 27 foundations with 3,227 rooms It proved that the growth in the number of accommodation rooms was not consistent with the growth of visitors to Hue (Duc Quang 2020) However, the "burning" creates a premise for Hue to increase accommodation service prices If this problem does not have any solutions, it could have a bad impact on sustainable tourism ● Social Aspect In the social aspect, there are opportunities for tourists to discover local customs and habits, such as, the life of ancient Nguyen Kings and the traditional cuisine of Hue like bun Bo Hue, mussel rice, bread flour, etc which simply cannot have the original taste elsewhere According to the Vietnam Guide, most of the Hue’s traditional dishes were once exclusively served to past emperors and royal families of the 12 Nguyen Dynasty Moreover, visitors can know more about the image of Hue people and the good human values from ancient times which were continued and transmitted through more than 100 festivals a year (Thanh Huong 2019) However, English cannot be considered a common language in this area, but international tourists could get assistance from the tourism agencies Due to the influence of the imperial regime, Hue people don't have an open-lifestyle, which is refused to adapt to the new customs and habits which are different from their ancestor (Buu Y 2004) As a result, in spite of having a warming heart, people in Hue take a long time to receive everything new and strange from art to culture, sports ● Environmental Aspect On the environmental side, Hue is one of the best cities that has a good preserving nature in Vietnam With the policies to develop tourism in combination with nature reservation, most science spots have been preserved for years To be famous with the imperial city and king’s tombs, Hue continues attracting many domestic and international visitors In addition, many beautiful beaches have not been exploited for tourism (Viet Toan 2017) For example, Lang Co, Thuan An, Canh Duong, etc are not advertised widely This is the great opportunity for Hue on the way developing its tourism On the other hand, Hue lay in the middle part of Viet Nam, it often suffered from storms and floods, which caused heavy damages to the environment and local residents (Thuathienhue.gov 2019) VII Host Community Interests and TBL ● Economic Aspect The local residents here are receiving significant personal benefits by involving in the tourism industry in many aspects The rapid expansion and massive flow of tourists has led to the development of transportation in the city by offering related jobs such as bikers, taxi drivers, or cyclo drivers (Thuathienhue.gov 2018) Moreover, locals can be a part of the tours like working as a local guide Beside, tourism experience also contribute a huge amount of income for locals such as teaching to make paper 13 flowers at Thanh Tien village and selling handmade products, or investing in the FnB businesses (Thuathienhue.gov.vn 2020) However, there are noticeable drawbacks that can be seen The percentage of work in the tourism industry provided is much lower than locals' expectations (Hoang 2020) In the transportation segment, there are already oligopolies in the market such as Mai Linh Taxi, Taxi Vàng Which makes the market saturated and difficult for small businesses or freelance workers like motorbike drivers (xe om) to grow (Anh 2017) Besides, most of the businesses in the tour and tourism experience segment are owned and operated by companies such as Saigontourist, The Sinh Tourist, and Vietnam Tourism (Thuathienhue.gov 2018) Furthermore, the income from the tourism industry is considered as temporary and lack of consolidation due to the insolid leadership (Hoang 2020) ● Social Aspect Quang (2020) argues that the tourism industry has done a good job revitalizing Hue’s heritage by conserving and restoring activities The Chairman of the provincial People's Committee also indicated the high contribution of this industry in restoring and preserving traditional craft villages that are in danger of being forgotten or lost for a long time (thuathienhue.gov.vn 2020) Part of the revenue from The Imperial Ancient Citadel is reported to preserve the values, assets, and conditions of this site, including intangible heritage such as the worshipping of the Earth and Crop Gods (VNAT 2017) Hue World Heritage reported that the revenue from Hue Citadel is being used in conserving the heritages and improving the living conditions of people involved in that work (Thanh & Nguyen 2018) In contrast, the rapid expansion of the tourism industry has left significant devastations First of all, physical harm to historical sites This type of damage is not directly from the development of the tourism industry but from one of its stakeholders which is the tourists Structural deterioration has been reported to occur in national heritage sites such as Hue Cidental (Cooke 2014), Thien Mu Pagoda, Tomb of Tu Duc King (Dat 2020) The level of damage reported is from drawing, writing on 14 artifacts, national antiques to using sharp objects to carve the surface of monuments (Dat 2020) ● Environmental Aspect There is no significant environmental damage caused by tourism activities As shown in figure 2, greenery is still noticeable from satellite images Furthermore, the development of tourism has called for a lot of investment to conserve nature The MOU which is mentioned above offers a sustainable development program for Hue based on the Triple-win Options (Figure 3) VIII Conclusion and Recommendations In order to properly enhance and improve the way we approach Hue, suitable recommendations must be made to provide an on-going sustainable tourism for the destination Firstly, Hue should have additional 3-5 stars hotels for tourists According to Natiello (2014), identifying the difficulty that leads to the need of the consumers is a designated way for an entrepreneur to start a business, due to the supply and demand, having additional hotels in a suitable amount can be greatly beneficial for the economy Secondly, the value of Hue and its respective cultural heritages should be preserved, promoted, and educated to not just the locals but the tourists who visit Hue The crucial concept is to help the people understand the value of the gifted land in order to help protect it Furthermore, if the government only focuses on implementing laws and not providing the core reasons for it, the chance of citizens and tourists breaking these regulations for personal good and interest is relatively high Thirdly, the authority can utilize the Pro-poor Tourism concept as an sustainable method to alleviate the poverty rate in Hue Specifically, it usually misunderstoods as a specific product or a principle in tourism, pro-poor tourism is a approach that having tourism industries that can generates income for the poor, and the benefits that this approach can bring are various between environmental, social, cultural, and economics (Ashley, Roe and Goodwin, 2001; Chok, Macbeth and Warren, 2007) For example, in specification, from having additional 3-5 stars hotels 15 for tourists, these hotels can help as a staff training centre and further recruit their trainees to the place, this helps creating more jobs and generate incomes for the low, and medium-low-income individuals and families The report has covered the two central principles of ‘Triple Bottom Line’ and ‘Stakeholder Theory’ sustainable tourism of Hue We should acknowledge that Hue is a developed tourism destination which still has flaws, however, with the correct 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Interest and TBL) 100% _ Visitor Interest and TBL Le Dao Thuy Duong _ Key Element of Stakeholder Theory 100% _ Editing and formatting the document Tran Trung Kien _ Introduction 100% _ Conclusion and Recommendation Nguyen Thuy Ngan _ Economic Aspect (of Governance Interest and TBL) 100% _ Service Provider Interest and TBL 24 ... region (The Editors of Encyclopaedia Britannica) The purpose of this report is to apply the theories of ecotourism and sustainable development to the case of Hue city in Vietnam II Key Elements of. .. emperors and royal families of the 12 Nguyen Dynasty Moreover, visitors can know more about the image of Hue people and the good human values from ancient times which were continued and transmitted... is one of the standard activities in which any business organization must perceive (Rogers and Ryan 2001; Suntikul et al 2016) In the case of eco- tourism in Vietnam, Hue is a strategic destination