Some major solution to attract the international tourists to savannakhet province, laos pdr

NATIONAL ECONOMIC UNIVERSITY NATIONAL UNIVERSITYOF OF VIETNAM LAO HQCKTQD 77’ THONG TIN THU V/EN [PHONG LUAN AIN TU LIEU Khom DOUANGCHANTHA SOME MAJOR SOLUTIONS TO ATTRACT THE INTERNATIONAL TOURISTS TO SAVANNAKHET PROVINCE, LAOS PDR MASTER OF BUSINESS AND MANAGEMENT THESIS THS- Xi 53 SUPERVISOR: Dr Bounlet VANHNALAT Vientiane, 2013 ffiL- if Abstract Tourism is one of the industrial sectors that rapidly grow widely in many countries around the world At present, many countries have paid special attention to the development and promotion tourism Tourism is key sector for economic development in Laos and it is recognized that tourism has a potential to make positive contributions to poverty reduction and national socio-economic development This study summaries the main finding of Savannakhet tourism development and related tourism industry where the study can get appropriate information what are the resources would attract international tourists to Savannakhet province The research conducted during May to June 2013 which aiming at analyzing the situation of tourism development and promotion, clarifying the demand of international visitors, and tourism supply as well as the suggesting , enhancing tourism development in Savannakhet province This research explores the role of tourism development products, the main resources markets of Savannalkhet’ s tourism industry and tourism suppliers This is done through assessing international tourists visitation at Friendship Bridge II, identifying tourist behavior and expectations while visiting a destination, interviewing local travel agencies and other tourism stakeholders to better understand constraints and weaknesses and, finally, identifying opportunities for the Savannakhet provincial tourism department and other sectors to play an enhanced role in the tourism development of the province As you wear, many countries in the world, one of the problems with development-led tourism initiatives over the last couple of decades has been a lack of understanding of local realities and perspectives, especially relating to the functioning of the private sector and the relationship between the market demand and supply Thus, many of the solutions have inappropriate and ultimately unsuccessful As a result, various recommendations from tourism stakeholders and other relevant agencies to tourism development will be useful information The understanding of the main source of quality of tourism offers and services resulting in satisfied tourist is a key component of development Therefore the analysis of visitors to Savannakhet province and their satisfaction is crucial to development and marketing activities Furthermore, tourism development needs to be approached in a more holistic manner, with the needs of the source markets taken into consideration While tourism offers significant potential for increasing income, it also increases vulnerability to a range of social problems Savannakhet tourism needs to create its own identify rather than passively acquiring the image of a casino destination In order to attract more tourists, the governor of province needs to upgrade its infrastructure, accessibility to tourism sites, improve quality service, human resources development Tourism activities and special events should be promoted and encouraged Acknowledgements First of all, I would like to express my sincere thank to my supervisor, Dr Bounlert VANHNALAT whose has given the valuable advice, instruction, guidance and fully support on final level in writing of this thesis Secondly, I also would like to express my deep thank to Mrs Bounmy KHANTIVONG Director of Provincial Tourism Department of Savannakhet and her staffs, the Tourism Development Depart of the ministry of Information, Culture and Tourism, travel companies, and other organizations concerned for providing useful data and tourism information I wish to deeply thank to all lecturers, professors of the National Economic University of Vietnam, and Lao National University in Vientiane for their valuable knowledge during two years in MBA learning Viet- Lao Take programme Finally, I also would like to thanks all my members of family for their help intellectual support that made me achieve in MBA learning Take programme I would like to welcome the inputs and suggestions from readers, teachers, tourism professionals for improving of any mistake Vientiane, 2013 Student Khom Douangchantha TABLE OF CONTENTS Chapter I: INTRODUCTION 1.1 Rationale for the reasons 1.2 Objectives of the research 1.3 Significant of study 1.4 Research questions 1.5 1.6 Hypothesis Scope of research 4 Chapter II Theoretical framework and LiteratureReviews 2.1 History of tourism 2.1.2 Definition of tourism 2.1.3 Type of tourism 2.1.4 Tourism development and relevant tertiary business 2.2 Review of related literatures Chapter III: Research Methodology 3.1 Research methodology 13 3.1.1 Qualitative analysis 13 Second data 13 Primary data 13 3.1.2 Questionnaire surveys 14 3.1.3 Data Analysis 14 Chapter IV: Overview of International tourists in Laos and Savannakhet Province 15 4.1 Overview of tourism development in Lao PDR 15 4.2 Overview of tourism in Savannakhet Province 21 4.3 Tourism value chain in Savannakhet Province 27 Chapter V: Research findings 5.1 The status of Savannakhet province tourism development 29 5.1.1 Strengths 29 5.1.2 Opportunities and challenges 31 5.2 The problem issues on tourism development in Savannakhet 33 5.2.1 Weak of infrastructure development 33 5.2.2 Lack of human resources development 36 5.2.3 Less product diversification 38 5.2.4 Insufficient tourism promotion and marketing 39 5.2.5 Inconsistent of government policy 40 5.3 The finding from practical survey 42 Chapter VI Conclusions and Recommendations 51 6.1 Conclusions 51 6.2 Recommendations 52 6.3 Future studies 54 References 55 Appendix 56 Appendix 61 ABBREVIATION Abbreviation Completed Script ADB Asia Development Bank JICA Japan International Cooperation Agency PTD Provincial Tourism Department GMS Greater Mekong Sub-region UNWTO United Nations World Tourism Organization TO Tour Operator VFR Visit Friends and Relatives ASEAN Association of Southeast Asian Nations LNTA Lao National Tourism Administration NEW New Economic Mechanism NGO Non Government Organization EWEC East West Economic Corridor PTO Provincial Tourism Office NPA National Protected Area SNV Netherland Development Organization SMEs Small Medium Enterprises UN United Nations Lao PDR Lao People Democratic Republic P.M Prime Minister MCT Ministry of Commerce and Tourism AEC ASEAN Economic Community TMPD Tourism Marketing and Promotion Department Figures and Tables Figure 01: Tourism development related to major tertiary businesses FigureO 2: Summarized research methodology 14 Figure 03: Visitor arrival to Laos 2004-2001 20 Figure 4: The Second Friendship Bridgell between Thailand and Lao PDR alongtheEast-West Economic Corridor Figure 05: 22 Road No (KaysonePhomvihan,Khanthabouly, Outhoumphone, Phin, and Xepone jdistricts 23 Figure 06: Savannakhet Tourist Map 24 FigureO 7: Visitor arrival to Savannakhey province 2004-2011 25 Figure 08: Number of Hotels, Guesthouses, and Resorts, Restaurants and Entertainments, for 2004 and 2011 26 Figure 9: Type of Transportation 44 Figure 10: How you know Savannakhet 45 Figure 11: The Key Satisfaction during the visit 46 Figure 12: Quality tourism services in Savannakhet 47 Figure 13: Breakdown of the main reason for visiting Savannakhet Province 48 Figure 14: Reason to encourage a visitor to Savannakhet 59 Figure 15: Possible of returning to visit Savannakhet by country 50 Table 1: Departing International flight from Bangkok- Savannakhet-Bangkok Table 2: Table 3: 35 Top 10 countries arrival at Savannakhet Border Checkpoints 42 Types of Transport to Savannakhet Province ( Unit person) 44 Abstract Tourism is one of the industrial sectors that rapidly grow widely in many countries around the world At present, many countries have paid special attention to the development and promotion tourism Tourism is key sector for economic development in Laos and it is recognized that tourism has a potential to make positive contributions to poverty reduction and national socio-economic development This study summaries the main finding of Savannakhet tourism development and related tourism industry where the study can get appropriate information what are the resources would attract international tourists to Savannakhet province The research conducted during May to June 2013 which aiming at analyzing the situation of tourism development and promotion, clarifying the demand of international visitors, and tourism supply as well as the suggesting , enhancing tourism development in Savannakhet province This research explores the role of tourism development products, the main resources markets of Savannakhet’s tourism industry and tourism suppliers This is done through assessing international tourists visitation at Friendship Bridge II, identifying tourist behavior and expectations while visiting a destination, interviewing local travel agencies and other tourism stakeholders to better understand constraints and weaknesses and, finally, identifying opportunities for the Savannakhet provincial tourism department and other sectors to play an enhanced role in the tourism development of the province As you wear, many countries in the world, one of the problems with development-led tourism initiatives over the last couple of decades has been a lack of understanding of local realities and perspectives, especially relating to the functioning of the private sector and the relationship between the market demand and supply Thus, many of the solutions have inappropriate and ultimately unsuccessful As a result, various recommendations from tourism stakeholders and other relevant agencies to tourism development will be useful information The understanding of the main source of quality of tourism offers and services resulting in satisfied tourist is a key component of development Therefore the analysis of visitors to Savannakhet province and their satisfaction is crucial to development and marketing activities Furthermore, tourism development needs to be approached in a more holistic manner, with the needs of the source markets taken into consideration While tourism offers significant potential for increasing income, it also increases vulnerability to a range of social problems Savannakhet tourism needs to create its own identify rather than passively acquiring the image of a casino destination In order to attract more tourists, the governor of province needs to upgrade its infrastructure, accessibility to tourism sites, improve quality service, human resources development Tourism activities and special events should be promoted and encouraged 48 Figurel3: Breakdown of the main reason for visiting Savannakhet province ■ Visit temple&Cultural Heritage ■ Eco- tourism ■ Shopping ■ Night-club ■ Food IB Casino Source: Data interview visitors Furthermore, Figure 13 shows that enrich in cultural heritage and Ecotourism are the most important factor to attract foreign tourists to visit Savannakhet province, as illustrated by the two factors accounted more than 50% of total choices After that, various traditional shops and delicious food are also significant factors to motivate tourists to visit this province as well 49 Figure 14: Reason to encourage a visitor to Savannakhet ■ Tourism Activity ■ Night Club ■ Type of Goods ■ Good accommodation Source: Data interview visitors In order to attach a large number of visitors, several tourists suggest that creating many interesting tourist activities is necessary such as mountain climbing, boat adventure, forest trekking, etc In addition, good accommodation with a high quality of service is important to attract more tourists to visit this province 50 Figure 15:Possible of returning to visit Savannakhetby country ■ Yes Absolutely ■ Probably Yes ■ Not decided Absolutely ■ No answer Source: Data interview visitors The finding is consistent to Figure 15, there is only 21% of total observation say that they will come back to this province, while the rest not yet decide or make a decision The important question is why tourists not return to visit Savannakhet? This might be the current tourism promotion strategy is insufficient, so the relevant government authorities have to work hard to develop this province to be the center of tourism in Laos, in accompany with private sectors or travel agents have to improve their service quality to meet the standard level, this is to ensure that when foreign tourists visit Laos, they will tell this appreciate trip to other friends 51 ChapterVI Conclusions and Recommendations 6.1 Conclusions Based on the finding in chapter found that the key elements to attract visitors to stay longer in Savannakhet province need to improve tourism products, access roads to many of the major resources outside, make them in good condition even during rainy season The attractiveness of these sites outside of Savannakhet apparently are not high enough at present, requiring improvement and upgrading them to “must - see” tourist It is poor condition of domestic/intemational flight such as shortage of flight service to Savannakhet, inconvenient flight connections, and many flight delays with Lao Airlines.Tourism Corridor connects to tourism destination However, tourists spend little to no time stopping along the Corridor Tourists take time to visit attractions while en route to their destination and take advantage of shopping and dining opportunities However for tourist stay over nigh international, regional and domestic tourists are willing to travel to the location for the appeal of its historical cultural or national attractions Vietnamese transit visitors are particular looking for Thai products, an increase of diversity is required in Lao-style clothing, handicrafts and local food for Thai transit visitors However, one third of respondents were not likely to buy anything else Hoteliers and restaurants owners in MuangPhin and Sepone for example report a drop in expenditure following the opening of the Friendship Bridge II This is because people get into Lao PDR earlier from Thailand so stop for lunch or for the evening further along the road in Vietnam.Small family businesses claim that, 52 due to the size of their business they have limited training needs and little to invest in training activities The activities will be conducted to follow themes and topics Recently, the demand of Thailand people to Vietnam is rather high, which could open an opportunity for Savannakhet to attract them to stay at least one night in Savannakhet province.Jointly produce new publicity material beneficial to all and make maximum use of the distribution opportunities through any international networks including electronic means Beside road connection, net work development and development in logistic supply chain, product diversification is an issue of market access including niche market access Product diversification refers to value adding and processing in tourism products Not only modem high technology can diversify agriculture products, but traditional technology and know-how to is also significant for product diversification Quality of service can be measured by observing the performance of employees against objective criteria that specify the types and level of technical knowledgean employee must have to perform their job The issue of assessing service quality is addressed in greater detail Quality service, though, is still not sufficient 6.2 Recommendations In order to attract international tourist and stay longer day, Savannakhet tourism office needs for developing special strategies and action plans for destination marketing for target market It is also very important to formulate a policy to improve service quality to meet the standard as well as consider reasonable prices How the strategic tourism plan to attract the middle expenditure tourists It is needed to attract those of tourists who stay overnight in Mucdahan, Thailand which have propose to travel to Vietnam for staying in Savannakhet At 53 the same time, Savannakhet tourism office also closely works with local travel agencies to attract Vietnamese visitors who plan to travel to Thailand for staying in Savannakhet Savannakhet would be developed high quality service in Hotel and restaurant and other related tourism services to ensure the long-term competitiveness of the Lao tourism industry The government of Lao PDR together with local government needs to quickly build up basic infrastructure and quality of service supporting tourism development along the corridor Another important need is to strengthen local human resource development High qualified human resource is necessary to improve tourism Development of local souvenirs should be main responsibility of local government to promote and can also generate higher value added in tourism industry In Savannakhet, there are a plenty of typical local products suitable for the souvenirs as such Phouthai silk and cotton weaving in Vilaboury district, ethnic katang weaving in the Don phouVieng area, and the favorite national meat “sin savanh”govemment should guide local people to develop local brand, improvement of packing and sanitary condition It is recommended that professional designers help to suggest improvement to local materials There should be a good condition for accommodation infrastructure to beupgraded in high quality standard along the road in Savannakhet province It should survey more potential tourism routes which easily integrate existing overland routes The fact-finding mission, once summarized, will be turned over to both the media and travel agents for promotion and marketing Samples of combined routes which could be promoted are: - Bangkok-Mukdahan-Savannakhet-Hue-Danang-Hoi An - Hanoi - Hue- Savannkhet- Mukdahan 54 6.3 Futures’ studies More market should be research and compared Based on the marketing strategy the key region are Region, E4ropean, Asia Pacific and American Therefore, further study should focus on tourists from the US, Korea, Japan and Germany - To assure comparability similar questionnaires should be used and tourists should be interviewed at the same places - Additional analysis should be carried out for the correlation between demographic factors and satisfaction, spending - The survey should be carried out regularly to monitor the evolution of the characteristics and satisfaction of visitors A visitor’s satisfaction index uses in many countries, could be developed for this purpose - For the future it is suggested to carry out more detailed survey or interviews with regard to spending It seems that many visitors understand, but not want to give details Further research is needed to identify local poor producers/supplier, and therefore adapt their products to international or expected standards/ tastes 55 References Motoyashi Suzuki (2008).“ Perspectiveof Lao Economic Development”, p70-71 Townor, J and Wall, G (1985).Annals of tourism research.Volume 12, p297- 333 Consular Department of the Ministry of Foreign Affairs (2010) “ Report on visa exemption” p5-7 Lao National TourismAdministration,( 2009) “ Tourism Strategy 2011-2015 p5-12 Lao Tourism Tanning Center (2010) “ Report on Tourism Human Resources Development”, p 5-10 Tourism Development Department.(2012).“Statistical report on tourism in Laos”,p8-22 Mathieson, and Wall.(1982).Tourism Definition Website www.pecidasea,blogpot Provincial SavannakhetTourism Department, (2010)“Strategy Tourism Development Plan 2006-2020”,p30-45 The United Nations and World Tourism Organization (2009) Tourism Magazine, p2-11 Norbert Vanhone.(2005).“ The economics of tourism destination” p 1-10, AndelkoSimic (2003) “Tourism Policy and Management in the Asia Pacific,p5-12 Stephen, L.J Smith (1994) Annals Tourism Research VOL 21, p 2-11 Kirsten Focken.( 2012) Visitor survey Lao, Lao magazine, p 1-15 BounpongKeorodom, SivilaiButphomvihane and BounlertVanhnalat, 2007” Impact of East West Economic Corridor on Tertiary business and social development in Lao PDR” p 2-8 Netherlands Development Organization (2007) “Tourism value analysis for the trans­ Asian Road in Lao PDR”, p29- 34 56 APPENDIX - SAMPLE OF SURVEY For tourists to Savannakhet Province Please take a few minutes to fill in this questionnaire your answers will be very beneficial to us How to fill in-tick one box or boxes that apply Q1 Nationality. Q2 Entry Point into Lao _ Exit Point Q3 Occupation (only tick one box) Government Private company Student Housewife Retired Self-employed Other Q4 Sex Male Female Q5 Age category 1- -19 20-29 30-39 40-49 50-59 60- 57 Q6 Purpose of visit (only tick one box) Business Holiday Visit fried & relatives Official, convention & seminar Other Q7 Traveled by (only tick one box) Air Land Public bus and tour coaches Own cars Other Q8 Number of visits to Savannakhet (only tick one box) None One Two Three or more Q9 How you know Savannakhetprovince ? (tick boxes that apply) Books or magazines Internet Friends Travel agent Other 58 Q10 Travel arrangement by (only tick one box) Free Independent Traveler(FIT) Group Tour(GT) Other Qll Countries visited on this trip (tick boxes that apply) Only Savannakhet Thailand Cambodia or China or Vietnam Other Southeast Asian Countries Other Q12 Primary accommodation uses (tick boxes that apply) Hotel Guesthouse Private house Other Q13 What is quality tourism service in Savannakhet Province?(tick only box) Very good Good Fair Poor 59 Q14 What is the key satisfaction for you during your visit?(tick only one box) Peaceful Relaxing place Good hospitality Friendly people Reasonable price Q15 Roads access to tourist sites? (tick only one box) Very good Good Poor Very poor Q16.What are the reasons to encourage a visitor to Savannakhet (tick only one box) Tourism events & activities Many night clubs Good accommodations Have various type of goods 60 Q17.Break down of the main reasons for visiting Savannakhet province (tick only one box) Visit temple & Cultural Eco-Tourism Shopping Night Club Food Casino Q18 Possible of returning to visit Savannakhet? (tick only one box) Yes absolutely Probably Yes Not decided Probably not Other Q19 Any comments Thank you very much for your cooperation 61 APPENDIX - Questions Questions forSavannakhet Tourism Office How many staff members are currently working at Savannakhet Tourism Office? What is the tourism strategy to attract international tourists to Savannakhet province? What are the main tourism products in Savannakhet province? Who are the key tourists market to Savannakhet province? What are the main problems to distract international tourists to Savannakhet province? What are the main tourism activitiesthat needs to further develop in Savannakhet province? What is the government policy of local authority to invest into tourism industry alongRoute No9? What is your organization on Human Resource Development in order to provide the tourism growth in Savannakhet province? 62 Questions for Tourism Business How many staff members are currently working in your hotel/travel agency? How did you recruit your staff? What are the main services in your hotel/travel agency? What are your target markets? What are some of your competitors? What is your quality service in your hotel/travel agency? How you promote your products to international market? What is your strategy to attract tourists for using service in your hotel/travel agency? Do you have any plans for further develop your products?