(Luận văn thạc sĩ) a systems approach for sustainable tourism development in sa pa town of lao cai province

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHAN DUY QUANG A SYSTEMS APPROACH FOR SUSTAINABLE TOURISM DEVELOPMENT h IN SA PA TOWN OF LAO CAI PROVINCE MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHAN DUY QUANG A SYSTEMS APPROACH FOR SUSTAINABLE TOURISM DEVELOPMENT h IN SA PA TOWN OF LAO CAI PROVINCE MAJOR: PUBLIC POLICY CODE: 8340402.01 RESEARCH SUPERVISORS: Prof Dr OKAMOTO NAOHISA Dr HA MINH TUAN Hanoi, 2022 COMMITMENT I hereby declare that the master thesis entitled “A Systems Approach for Sustainable Tourism Development in Sa Pa town of Lao Cai province” is my study and does not replicate any other research The data and results presented in this study are completely authentic I will take full responsibility for any problem that might arise, regarding this thesis h ACKNOWLEDGEMENTS This master's thesis could not have been completed without the support and advice of many organizations and individuals First, I would like to express my gratitude to Professor Dr Okamoto Naohisa of Tsukuba University and Dr Ha Minh Tuan of Thai Nguyen University for their dedicated guidance and insightful comments during the research process At the same time, I would like to thank Dr Nam Nguyen from the University of Adelaide for the initial orientation when this project was only at the concept stage Besides, I appreciate the support of the lecturers in the Master's program in Public Policy of Vietnam Japan University for this study, although its approach is not yet familiar to many people It is impossible not to mention the trust and support of Sa Pa town's Department of Culture and Information as well as other organizations and individuals in the town for this research I hope that the results of this study will contribute to the sustainable development of the tourism industry in Sa Pa, a place for which I have a deep affection h Through this acknowledgment, I would also like to show my respect to Professor Phan Dinh Dieu (1936 - 2018) and Professor Vu Cao Dam, two of the Vietnamese pioneers who applied the systems approach in their research more than 40 years ago You are the inspiration for me to persistently pursue this research method As we say “save the best for last”, I would like to express my gratitude to my family: my parents, my wife, and my sister for their understanding, patience, and support during my master’s studies and the implementation of this thesis TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 Background 1.2 Research objective .7 1.3 Scope, methodology, and structure of the thesis .8 CHAPTER 2: LITERATURE REVIEW .10 2.1 Sustainable tourism concept 10 2.2 Tourism development in Sa Pa 12 2.3 Tourism planning approaches 13 2.4 Conceptual and theoretical framework of the research 17 Conceptual framework 17 2.4.2 Refined UNWTO’s sustainable tourism framework .19 2.4.3 Causal loop diagram analysis 20 h 2.4.1 CHAPTER 3: METHODOLOGY 26 3.1 Research design .26 3.2 Sampling and data collection 26 3.3 Data analysis 28 3.4 Systems modeling and analysis .28 3.5 Solutions formulation .29 3.6 Limitations .30 CHAPTER 4: FINDINGS AND DISCUSSIONS .31 4.1 Demographics of informants 31 4.1.1 In-depth interview 31 4.1.2 Focus group discussion 31 4.1.3 Customer survey 32 4.1.4 Consultation sessions .34 4.2 Situation of the Sa Pa tourism sector .35 4.2.1 Sustainability scoring result 35 4.2.2 Pillar 1: Tourism policy and governance .37 4.2.3 Pillar 2: Economic performance, investment, and competitiveness 38 4.2.4 Pillar 3: Employment, decent work, and human capital 41 4.2.5 Pillar 4: Poverty reduction and social inclusion 42 4.2.6 Pillar 5: Sustainability of the natural and cultural environment 44 h 4.3 Systemic analysis of Sa Pa’s tourism situation 47 4.3.1 Systems modeling 47 4.3.2 System archetypes in the causal loop diagram of Sa Pa’s tourism 48 4.4 Identifying key intervention areas 54 CHAPTER 5: POLICY RECOMMENDATIONS 55 5.1 Improving tourism administration capacity .55 5.2 Mitigating adverse impacts of tourism through policy adequacy 62 5.3 Improving human resources capability 64 5.4 Balancing the power between local communities and investors .66 CHAPTER 6: CONCLUSIONS 68 6.1 Research outcome 68 6.2 Contributions of the research 68 6.3 Implications for stakeholders 69 6.4 Prospect 70 REFERENCES 72 ANNEX 78 Annex 1: Master questionnaire 79 Annex 2: Sustainability scoring sheet .94 Annex 3: Problems matrix 98 h LIST OF TABLES Table 3.1 Key stakeholders in the tourism system of Sa Pa and related data 27 Table 4.1 List of informants in the in-depth interviews .31 Table 4.2 List of informants in the focus group discussion 32 Table 4.3 Categorizing participants in consultation sessions .34 Table 4.4 Sustainability scores of the pillars and sub-categories 36 Table 5.1 The role of DMOs at different geographical levels 56 LIST OF FIGURES Figure 1.1 Vietnam’s tourist arrival in the 2015 – 2022 period .5 Figure 2.1 UNWTO’s framework for sustainable tourism 11 h Figure 2.2 Development framework of the National Strategy for Tourism Development of Thailand (2017 – 2021) .14 Figure 2.3 Evolutionary Learning Laboratory framework 16 Figure 2.4 Conceptual framework of the research .18 Figure 2.5 Refined UNWTO’s framework for sustainable tourism .19 Figure 2.6 Causal loop diagram of child safety situation in Japan 20 Figure 2.7 A feedback loop representing relationships among economic factors of a tourism destination 21 Figure 2.8 A feedback loop representing relationships among environmental factors of a tourism destination 22 Figure 2.9 Limit to Success archetype in a tourism destination 23 i Figure 2.10 Balancing Loops with Delays archetype in a tourism destination 23 Figure 3.1 The implementation process of the study 26 Figure 4.1 Respondents’ profile 33 Figure 4.2 Number of respondents’ visits to Sa Pa 34 Figure 4.3 Sustainability scoring result 35 Figure 4.4 Distribution of sustainability scores of Pillar 38 Figure 4.5 Limitations of Sa Pa tourism as evaluated by survey respondents .39 Figure 4.6 Distribution of sustainability scores of Pillar 40 Figure 4.7 Distribution of sustainability scores of Pillar 42 Figure 4.8 Distribution of sustainability scores of Pillar 44 Figure 4.9 Opinions of online survey respondents on impacts of tourism 46 h Figure 4.10 Distribution of sustainability scores of Pillar .46 Figure 4.11 Causal loop diagram of Sa Pa’s tourism situation 47 Figure 4.12 Drivers of growth in Sa Pa tourism sector 48 Figure 4.13 Limit caused by overcrowding to the drivers of growth 49 Figure 4.14 Limit to the growth driven by infrastructure development .49 Figure 4.15 Limit to the growth driven by investment from external sources .50 Figure 4.16 Constraints upon adequate policy formulation and management .51 Figure 4.17 Role of international assistance in the Policy and Governance segment 51 Figure 4.18 Constraints upon job opportunities for local people 52 Figure 4.19 Impacts of external investors on local communities 53 Figure 4.20 Training provision situation 53 ii Figure 4.21 Leverage points in the Sa Pa tourism system 54 Figure 5.1 The role of a DMO in managing a destination 55 Figure 5.2 Suggested structure for Sa Pa MBNTA 58 Figure 5.3 Composition of the Management Committee of Sa Pa MBNTA .59 Figure 5.4 Organization of Sa Pa Tourism Action Group 61 Figure 6.1 Reasons for choosing Sa Pa as a travel destination 69 Figure 6.2 Visitors’ willingness to return to Sa Pa .70 LIST OF BOXES Box DMOs in Japan 57 Box Zalo Official Account 63 Box Wise Academy in Indonesia 65 h Box Mae Kampong village in Chiang Mai, Thailand .67 iii Which supports you need to strengthen adaptability to climate x x x x x change? How you understand sustainability? Do you refer to any standard while applying sustainability criteria to your x x x x business/policies? 10 Are tourism development activities of private sectors and individuals x x h controlled by environmental/social sustainability standards offered by the government and other institutions? 11 Is there any awareness-raising program offered on sustainability issues? 12 x x x Is there any set of indicators and monitoring activities for measuring the environmental/social impacts of x x x x tourism? Who will be in charge of data collection, if any? 93 Annex 2: Sustainability scoring sheet Note: Evaluation scale Description There is still much to improve, and special attention should be paid in the future 1.5 2.5 3.5 4.5 Performance exceeds level but has not reached level Some aspects need to be improved and should be prioritized for addressing in the near future Performance exceeds level but has not reached level Some points need to be improved, but not the ones that need to be prioritized Performance exceeds level but has not reached level Well done and need to maintain the performance Performance exceeds level but has not reached level It is a strength and a model for replication X There is no information on this issue h Scoring sheet: UNWTO's sustainable Question: Sub-category Give the highest score (point 5) if sub-categories tourism pillars meet the following criteria: Tourism policy Adequacy of policy and The current system of policies, planning, and and governance regulatory framework regulations in the tourism field of Sa Pa is very specific, The easy principles (environmental to of understand, and sustainable protection, feasible development landscape, culture, hunger eradication, and poverty reduction ) are integrated and guaranteed to be implemented in tourism development policies in Sa Pa 94 Policy formulation and Tourism development policies and plans for Sa Pa stakeholders are carefully researched and relevant partners engagement (people, businesses, experts, tourists, ) are adequately consulted during the process of formulation Administration capacity The tourism management agency in Sa Pa has enough human, financial and professional resources to meet the requirements of sustainable development of the local tourism industry Economic Quality of growth Excluding the impact of the COVID-19 pandemic, performance, investment, Sa Pa tourism has always maintained stable growth and in the number of visitors as well as the spending level competitiveness of each visitor Investment and the The business environment conditions telecommunications, of infrastructure electricity, and (roads, water ), business opportunities, as well as administrative procedures of Sa Pa, promote investment and h business activities of enterprises in, and from outside of Sa Pa Brand, marketing, and The Sa Pa tourism industry has adequate marketing product development activities that identify target customers to develop and ensure the quality of tourism products Product quality Sa Pa's tourism products (accommodation, experiences, dining, shopping, designing local products for tourism, etc.) have ensured quality, meeting the diverse needs of customers that makes them willing to pay more and come back to Sa Pa Resilience, security, and Sa Pa has ensured security and order as well as risk management measures to prevent disease (COVID-19), respond to natural disasters, etc so that businesses can invest with peace of mind and tourists can travel safely in Sa Pa town 95 Employment, Job opportunities and Job opportunities and working environment (salary, decent work, and working environment compensation) in the Sa Pa tourism industry are human capital attractive to local workers of Sa Pa Human resources The quality of human resources (workers in the capacity tourism sector) in Sa Pa (in terms of qualifications and attitudes) meets the requirements of employers in the tourism industry Human resources Human resource development activities in the local development activities tourism industry are well developed, meeting the and provision of training demand for quantity and quality of human resources for units operating in the tourism industry The town has an appropriate resource development policy The province has an institute that is capable of developing high-quality human resources in the tourism industry reduction Sa Pa has effectively implemented policies to and through tourism social inclusion h reduction Poverty Poverty support people to reduce poverty through tourism activities At the same time, people can easily access information about support policies and benefit from the policies The inclusion of Disadvantaged groups such as women, ethnic disadvantaged groups in minorities, and people with disabilities are enabled the tourism sector to participate in tourism activities and benefit equally The prevention negative social impact of Sa Pa currently has effective measures to prevent and deal with the negative social impacts brought by tourism (For example, there are some negative impacts such as beggars, street vendors, abusing women and children; the situation of outside investors taking away business opportunities of local people, etc.) 96 Sustainability of Cultural preservation The traditional culture of ethnic communities in Sa the Pa is being preserved and promoted thanks to the natural and cultural development of the tourism industry, and has not environment been lost Environmental, landscape and The development of tourism in Sa Pa (especially in protection, the development of infrastructure) is being carried climate change out in parallel with the protection of the environment adaptation and landscape as well as enhancing the adaptation to climate change in an effective way Awareness of Awareness of sustainable tourism development sustainability in tourism among people, businesses, and local government development officials in Sa Pa has been improved thanks to awareness-raising activities by local authorities At the same time, knowledge of sustainable tourism development is based on specific standards issued by the government and international organizations Managing h impacts tourism Currently, Sa Pa has policies to monitor, measure and manage the impacts brought by tourism on the natural, social and cultural environment to provide timely interventions 97 Annex 3: Problems matrix UNWTO sustainable tourism pillars and sub-topics Tourism policy and No Existing challenges within each pillar 1.1 Lack of sustainability Causes Tentative solutions Barriers to Equivalent variables on solutions CLD - Lack of tourism - Empowering local - Applied sustainability standards standards in tourism administration capacity officials and companies - Adequacy of policy and planning - Influences from higher on tourism planning and regulatory framework management level sustainability standards - Policy formulation and - Weak policy - Strengthening stakeholders accessibility accessibility of local - Stakeholders people to policies engagement h governance engagement - Limited tourism administration capacity - Administration - Influences from higher capacity management levels 1.2 Weak policy accessibility - Weak communication - Establishing Lack of tourism - Stakeholders between the government convenient administration engagement and local people communication capacity - Low educational level channels between local of local people people and government - Limited tourism administration capacity - Limited human resources capability 98 1.3 Lack of tourism - Limited financial and - Create a special Influences from - Limited tourism administration human resources for mechanism for tourism higher management administration capacity capacity tourism administration administration of Sa Pa level agency that separate from the - Local officers lack the conventional way capability - Empowering local - Influences from higher officials management levels - Take advantage of - International assistances - Capacity building for local government international assistance performance, 2.1 High tourist arrival but low spending Lack of high-quality - Attracting investment products and services into new projects h Economic investment, and - Increasing assistance competitiveness for community-based - Quality of growth tourism villages - Investment and the - Demand booming - Tourist arrival - Low spending - Tourism revenue business environment - New products and - Brand, marketing, and services product development - Product quality - Investment from external sources 99 - Resilience, security, and risk management 2.2 Lack of high-quality products and services - Weak marketing - Empowering local - Assistance - New products and capacity officials on tourism shortages compare to services - Limited capability of planning and high demand local people sustainability standards - Lack of orientation - Increasing assistance from tourism for community-based - Limited human administration tourism villages resources capability - Adequate marketing activities - Limited tourism administration capacity h - Capacity building for local government - CBT development - International assistances 2.3 Weak marketing capacity Lack of tourism - Empowering local Influences from - Adequate marketing administration capacity officials on tourism higher management activities planning and level sustainability standards - Limited tourism administration capacity - Capacity building for local government 100 - Influences from higher management level 2.4 Decreasing - Degrading - Tightening tourism - Lack of tourism - Destination destination environment and management administration attractiveness attractiveness landscape - Limiting tourist capacity - Overcrowd arrivals that fit - Increasing destination capacity investment into projects - Environmental and cultural impacts - Overcrowd - Adequate policy h formulation and management - Limited tourism administration capacity - Investment from external sources - Infrastructure development 101 2.5 Interrupting foreign COVID-19 tourist arrival - Attracting more - Lack of high- domestic tourists quality products and services, especially - COVID-19 - Tourist arrival in community - New products and tourism villages services - Short stay and low spending of tourists Employment, decent work, and human capital 3.1 Inadequate human resources - Low spending - Low educational level - Provide more training - Lack of training - Limited human - Traditional customs and hand-on assistance and assistance resources capability to local people provision - Job opportunities and - Traditional customs h working environment - Human resources - Training capacity - Limited local training - Human resources capacity development activities and provision of training 3.2 High demand but low supply of training - Limited number and - Calling for more - Limited local training size of local training assistance from a capacity institutions variety of partners (NGOs, central - International assistances governments, international organizations) 102 Poverty reduction and - Profit-seeking - Community-based - Incapable human - Unequal distribution of mentality from the Kinh tourism development resources for CBT benefits from tourism - Poverty reduction people - Provide more training - Increasing number through tourism - Low educational level to integrate local people of external investors - The inclusion of of local people into tourism value - Lack of training disadvantaged groups in - Difficult terrain makes chains and assistance - Limited human the tourism sector some communities be provision resources capability - The prevention of isolated social inclusion 4.1 Unequal access to benefits from tourism - Investment from external sources - CBT development negative social impact - Training h - Limited local training capacity 4.2 Losing economic sovereignty - Unequal access to - Community-based - Incapable human - Unequal distribution of benefits from tourism tourism development resources for CBT benefits from tourism - Increasing number of - Tightening tourism - Lack of tourism external investors management administration - Community building capacity - Investment from external sources - CBT development - Adequate policy formulation and management 103 - Limited human resources capability - Limited tourism administration capacity 4.3 Street hawking - Vocational training - Incapable human - Engagement in formal benefits from tourism - Community-based resources for CBT tourism activities - Incapable human tourism development - Lack of training resources - Law enforcement and assistance - Tourists' sympathy - Educational programs provision for participants and - Weak - Limited human tourists communication resources capability h - Unequal access to - Unequal distribution of benefits from tourism between the government and local people - Training - CBT development - Limited local training capacity - Limited tourism administration capacity 104 Sustainability of the 5.1 Cultural change - Import of external - Community-based - Incapable human - Environmental and natural and cultural culture tourism development resources for CBT cultural impacts environment - Construction activities - Community building - Lack of training - Cultural preservation of local people - Tightening tourism and assistance management provision - Environmental, landscape protection, - Weak and climate change communication adaptation between the - Awareness of government and sustainability in tourism local people development - Infrastructure development - CBT development - Adequate policy formulation and management h - Limited tourism - Managing tourism administration capacity impacts - Limited human resources capability - Limited local training capacity 5.2 Damaged landscape - Increasing investment - Community building - Lack of tourism - Environmental and projects - Tightening tourism administration cultural impacts - Construction activities management, especially capacity of local people through monitoring environmental impact - Investment from external sources 105 - Weak supervision reports from local authority - Commitment from - Infrastructure development companies - Adequate policy formulation and management - Limited tourism administration capacity 5.3 Excessive solid waste and water shortage - Strengthening - Lack of tourism - Environmental and tourists and tourism planning and administration cultural impacts management capacity capacity facilities h - Increasing number of - Tourist arrival - Low capacity of waste - Limiting tourist treatment and water arrivals that fit - Investment from supply destination capacity external sources - Deforestation - Infrastructure development - Adequate policy formulation and management 106 - Limited tourism administration capacity 5.4 Natural hazards - Climate change - Encouraging planting - Lack of tourism - Environmental and - Deforestation trees administration cultural impacts - Tightening tourism capacity management, especially through monitoring environmental impact h reports - Adequate policy formulation and management - Limited tourism administration capacity 107