community based tourism development in sapa district lao cai province vietnam

Do Luan Xuan Supervisor’s Signature Abstract: Community-based tourism is considered one of the particular types of tourism toward sustainable development.. Community-based tourism is the

THAI NGUYEN UNIVERSITY

UNIVERSITY OF AGRICULTURAL AND FORESTRY

NECESITO STEFANIE JOY REGALO

COMMUNITY-BASED TOURISM DEVELOPMENT IN SAPA DISTRICT, LAO CAI PROVINCE, VIETNAM

BACHELOR THESIS

Study Mode: Full-Time

Major: Agricultural Economics Faculty: Advance Education Program Batch: 2017-2021

Community-Based Tourism Development In Sapa District, Lao Cai Province, Vietnam

Supervisor (s) Assoc Prof Dr Do Luan Xuan Supervisor’s Signature

Abstract:

Community-based tourism is considered one of the particular types of tourism toward sustainable development CBT provides tourists with an understanding of local life, in which residents are actively engaged in tourism activities, and receive socio-economic benefits from tourism activities Community-based tourism is the management that offers many opportunities for local community empowerment, especially in developing countries Having a green and protecting the environment is a benefit for everyone since it has a positive impact on human well-being, such as increased health and less pollution, and it creates hundreds of entries for a business Preserving harmony as a core organizational aim may have a huge impact on all individuals and the environment This research implied that Improving communication skills is necessary to organize community members for community development purposes, but this can only happen when communication within communities is efficient The demand for Getting a bank loan is high, providing credit and loans to individuals will allow all those who seriously want to put their ideas into reality to do so with competent financial backing from private and governmental institutions The research was conducted in the Northwest Region of Vietnam, family-owned tourism micro businesses were interviewed and the researcher identify and

analyzed the data using Excel and determine the situation of household members and what are the effects of it to develop the Community-Based Tourism, also to identify what policy interventions can be recommend to support the family households from the government This research is funded by Vietnam National Foundation for Science and Technology Development (NAFOSTED)

Keywords: Community-Based Tourism, Online Banking, Natural Resources, Micro businesses, Development,

A number of pages: 58

Date of Submission: October 18, 2022

I would also like to give my warmest thanks to the members of the AEP Office, thank you for the help when we have some questions regarding our thesis and for updates and understanding

To My Friends who helped me to accomplish this throughout the process thank you guys for helping me Especially my family, I would like to thank My Family, for all the love and support that they have given me and shown me throughout my thesis

To my Mommy and Daddy for giving your best to support me To Ninang Aidess and

Ninong Jason, thank you for helping me, believing in me, and inspiring me through your words and advice

STEFANIE JOY REGALO NECESITO

2.1.1 Types of Community-based Tourism 8

2.2.1 The role of CBT in Poverty Reduction and Rural Development 11

2.2 The role of CBT in rural economic development 11

2.2.1 The role of CBT in rural social development 12

2.2.2 The role of CBT in natural preservation 13

2.3 Factors influencing the development of CBT 13

2.3.1 Land Ownership and Control 13

3.4 Materials and Instrument 21

PART IV RESULTS AND DISCUSSION 22

4.1.What is the Actual Situation of Family-owned Tourism Micro Businesses? 22

4.1.1 Current Status of Tourism Business 25

4.2 What are the Advantages and Disadvantages of Community-Based Tourism

Development in Sapa District? 33

LIST OF FIGURES

Figure 1.0 Sapa District, Lao Cai Province Vietnam……… ………19

LIST OF TABLES

Table 1 Membership of Family Members to Organization……… 22

Table 2 Ownership of Residential Land and Agricultural Forestry Land……… 22

Table 3 Access to Durable Goods……….…24

Table 4 Differences in Means of Selected Durable Goods………25

Table 5 Business Situation of Interviewed Households……… ……… 26

Table 6 Usage of Applications for Travel Business……….… 27

Table 7 Homestay Services of Households……… ….27

Table 8 Reasons of Not Owning a Homestay……… … 28

Table 9 Number of Visitors in a Month……….……29

Table 10 Foreign Visitors Visiting the Facility……….……….28

Table 11 Domestic Visitors Visiting the Facility……….… …30

Table 12 Membership to Community Tourism Management Board………31

Table 13 Reasons in Participating in Community-based Tourism Development… 32

Table 14 Advantages of Community-Based Tourism Development……….…33

Table 15 Main Difficulties in Tourism Business……… ……34

Table 16 Recommendations for Connecting Digital Banking Services……….35

LIST OF ABBREVIATIONS CBT- Community-Based Tourism

GDP- Gross Domestic Products

NGO- Non-Governmental Organizations

ODA- Official Development Aid

PART I INTRODUCTION 1.1 Research Rationale

CBT as a tool for poverty reduction of the poor and ethnic minority Tourism's position as a development tool is a trending topic of research At least since the 1960s, scholarly approaches to tourism observations have included a so-called "growth" stream (de Kadt, Peters, & Smith) relying on developing countries and regions (de Kadt E ) recognize Tourism has the potential to build employment, establish backward links with agriculture and other business sectors, provide opportunities for young people and women, promote local entrepreneurial investment, and boost the poor's quality of life by financing basic services, training, and schooling The researcher pointed out that expatriates have a propensity to get the best-paying jobs, that tourism can intensify economic and other disparities, and that the degree to which tourism benefits people in tourist destinations is highly dependent on local factors and is not necessary The researcher did not rely directly on poverty, although he sees that as a function of development, acknowledging there was a realization in the ‘communication research of the time that growth alone would not be enough to end poverty in a specified time, the diffusion of the financial benefits of development among the least developed countries and population groups within local districts became important

Challenges and Constraints for CBT development in general and financial challenges for CBT in particular fact that social scientists have long been the critical concept of culture, it is still commonly used in tourism planning and development

One of the reasons community-based tourism (CBT) projects fail, even though it is seldom understood, is that those in charge of them overlook the faulty concepts found within the community definition itself (Tosun, 2020) The distortion of the definition is, predictably, cleverly used in tourism marketing Though CBT is meant to inspire individuals, the images used to create the targeted "communities," whether imaginary or actual, go virtually unnoticed Because of tourism's speaking capacity, representations of destinations have clear and potentially important effects on those who are viewed, portrayed, and misunderstood, as well as those (sub)groups who are not included in such descriptions

Tourism now forms a major part of national income (7–9% of GDP) and wages Tourism is a labor-intensive enterprise that helps to alleviate poverty The tourism policy of the Lao People's Democratic Republic favors pro-poor, community-based tourism growth, as well as the enhancement of local tourism-related infrastructure development and sub-regional tourism cooperation (Lao PDR, 2004: 104)

1.3.Research Questions

1 What is the actual situation of family-owned tourism micro businesses? 2 What are the advantages and disadvantages of Community-based tourism

development in the Sapa District?

3 What policy interventions can be recommended for Community-based development in Sapa District?

PART II LITERATURE REVIEW 2.1 Community-based Tourism

CBT means Community-based tourism which is a special form of tourism with features somewhat distinct from mass tourism CBT practitioners must have a thorough understanding of the underlying concepts, values, and materials CBT isn't just a travel company looking to maximize money for customers Rather, it is worried about the effect of tourists on the local economy and natural resources CBT is the result of a regional planning approach that uses tourism as a means to improve the capacity of rural community groups to manage tourism services with local involvement CBT, is far from being a perfect, prepackaged approach to neighborhood issues In reality, if used incorrectly, CBT will lead to problems and destruction As a result, populations suitable for CBT implementation must be carefully chosen and adequately planned before CBT can be implemented More particular, the community must be able to modify or suspend CBT if it outgrows the community's management capacity or has uncontrolled negative outcomes

(Salazar, 2012)

2.1.1 Types of Community-based Tourism

For a long time, mass tour services will include brief trips to local areas lasting a few hours A traditional stay includes a couple of hours in an 'exotic' hill tribe village in Northern Thailand or a quick tour of a semi-nomadic fisherfolk group in the south Another indication of a fast visit is "agrotourism," which arose in response to the Thai economy's 1997 crisis Quick trips to popular and unusual farms were encouraged by

the government, with visitors being able to taste and purchase farm produce Then, the "One Tambon (subdistrict) One Product" scheme included several agrotourism destinations Short visits are frequently often labeled as "CBT" in this case because they are essential "arts and crafts" shopping trips Visitors have little to no time to observe; there is little to no scope for them to engage in local events There is little or no contact with the locals to enhance cross-cultural understanding Learning about other cultures and participating in group events are also low Even in the case of tours that come to buy local goods, the city has very little influence Often the use of an outside resource person who is familiar with the surrounding environment and serves as an 'expert' translator is practicable

Homestay is a tourist attraction that encourages contact between visitors and host families Homestays are one of the many lodging solutions open to CBT, and they can be used as a strategic instrument to increase awareness of sanitation and hygiene problems in the destination region The 'rough and ready' possibility of a homestay also assists in ensuring that visitors who visit the city are CBT-ready Aside from a mattress, a cushion, and a mosquito net, planning a homestay needs relatively little investment Many rural village homes also have these things set aside for nearby friends and family members who come to visit Only the wealthiest families have an opportunity to offer to house and receive compensation unless there are regulations in place that require a portion of the income to be donated to charitable programs For the nation, homestay is a delicate social and cultural problem It necessitates a shift of mindset from generously providing lodging to unwanted visitors or family to abruptly

demanding payment for services Social and cultural relationships, as well as hospitality cultures, will deteriorate and then become economically oriented As a result, before creating a homestay as an accommodating alternative, it is important to consider the advantages and disadvantages If the group sets specific goals and adheres to them genuinely, it will establish and also provide homestay accommodations at a fixed price A homestay should not be solely focused on making money while avoiding cultural interaction and reverence for the host's community Gratitude and hospitality should take precedence over "five-star" service Otherwise, the host will be devalued to the detriment of the visitor (Suansri, 2003)

The concept of Community Based Tourism began early in the 20th century There are several different views and interpretations of the concept, with different meanings and descriptions depending on the speaker, geographic area, or particular study/project There are, however, certain commonly applied concepts, such as preservation and local community engagement and benefit CBT provides tourists with an understanding of local life, in which residents are actively engaged in tourism activities, receive socio-economic benefits from tourism activities, and take responsibility for protecting natural resources and the environment, according to a

commonly accepted description

Because of the many possible benefits of community-based tourism, the wide range of stakeholders' interests, and the government's ability to influence its growth, a government policy supporting CBTD is needed The objective should be to boost

the number of tourism projects that include, rather than exclude, residents, as well as the degree of community benefit (financial and social) from those ventures It can be accomplished by engaging communities in planning forums, enabling private ventures to develop dialogue and share revenue locally, ensuring community rights to resources, and eliminating some of the barriers that prevent joint ventures and community enterprises from succeeding The government's job, however, is to provide a constructive policy and structure rather than to impose blueprints Government policy should strive to promote versatile and diverse changes, and the required form of community engagement should be determined locally (Garland &

2.2.2 The role of CBT in rural social development

Community-based tourism (CBT) is often used as part of a larger strategy to boost local development CBT development is described as a type of locally based development that makes use of tourism to generate economic, social, and cultural benefits for a community This happens as a result of greater citizen involvement in decision-making and the long-term development of natural and cultural capital Recent research in the field of community economic growth has demonstrated that social-economy projects, also known as the "third sector," can meet a variety of needs in rural areas while also leading to economic, social, and cultural objectives The social economy is comprised of community-based and collectively managed enterprises that operate to fulfill the established needs of a single community, as compared to utilities and industries owned by private or government interests Worker-owned cooperatives, community banks, population training organizations, and support worker programs are examples of social economy enterprises The scope for social-economy businesses to contribute to the introduction of CBT in the Canadian rural tourism environment is examined in the ar The social economy has two primary functions: support and commodity distribution Each function is represented using examples from all over Canada Each of the challenges and advantages is assessed, highlighting places for more study and the creation of social-economy industries on the ground to sustain rural CBT (Johnson, 2010)

2.2.3 The role of CBT in natural preservation

The role of CBT in poverty reduction and rural development has a very

important role in the context of sustainable tourism development CBT will inspire the community by promoting sustainable tourism management and placing the community at the center of tourism management CBT is the management of community-based tourism, which offers many opportunities for local community empowerment, especially in developing countries (Diharto, Ismail, Iriantini, & Murtadlo, 2018) The community's participation in the management of these tourism areas will also play an important role in the village's survival and growth, as well as in the development of a good regional commercial operation for the household economy and the community's welfare (Feriyanto, Kot, Sugandini, & Uii, 2019)

2.3 Factors influencing the development of CBT 2.3.1 Land Ownership and Control

Land control, which has a long history in developed countries, is another aspect that distinguishes CBT in emerging and developed countries Communities without any property ownership face limitations on the form of usage, permissible practices, and construction allowed (Moscardo, 2005) The challenges are not only related to operations in the city, but also to difficulties in constructing infrastructure on land they don't own and attracting capital to create the facilities and infrastructure needed for tourism growth While communities may often engage in tourism without secure land tenure, this result is contingent on a lot of other desirable factors, and in practice, the lack of community autonomy keeps communities from investing (Coria

& Calfucura, 2012) Because of communal land ownership, indigenous/ethnic and

often rural populations in developed countries face additional constraints for private enterprises, which creates very different implications for the management of the destination, with considerations such as cultural integrity, processes for political decisions, and political machinations playing a key role

2.3.2 Governmental policies

Successful tourist development management systems require public sector intervention and regulations through appropriate policies (Bramwell & Lane, 2010; Ruhanen, 2013) The purpose of regulations is to promote an atmosphere that benefits all stakeholders as much as possible (Ritchie & Crouch, 2003) Although a lack of government policies encouraging local tourism participation is a common constraint in remote areas (Sharpley & Telfer, 2002), Several scenarios of policies in wealthy nations aimed to stimulate economies and rejuvenate rural regions can be found in the literature, such as the use of national or regional money to begin CBT programs (e.g Fletcher et al., 2016; Fuller et al., 2005; Salvatore et al., 2018) Due to limited governmental financing in underdeveloped nations, NGOs and ODA (official development aid) organizations frequently fill this function However, due to the restricted capacity to coordinate activities with local governments and draw scarce public resources or obtain public funding to advertise the destination, short-term project-based assistance is not as successful as long-term government support and proper policies (Zielinski et al., 2020) Governance in many modern nations has been greatly decentralized, reaching rural and isolated places Governments have the

legislative authority to effect change, and they are not restricted by short-term financial goals (Bramwell & Lane, 2010) They also have more robust executive duties, allowing them to participate directly in local rural development projects Given that rural towns rely largely on external aid to establish strategies and launch tourist initiatives (Cole, 2006), the government's technical, financial, and policy support is essential As a result, places with a long history of tourism and rural development under collaborative governance among state and non-state players may have an edge To be there, however, a unique socio-economic and institutional context anchored in a long history of democracy and civil society is required, that also protects personal property, local governance, low levels of corruption, and high levels of public trust (Keyim, 2018) Rural tourism needs some infrastructure development, which is often funded by the government (Lane & Kastenholz, 2015)

2.3.3 External resources

CBT has generally taken the form of a cooperatively owned and controlled enterprise in developing nations' traditional communities (rural, ethnic, or indigenous) This arrangement is for a variety of reasons: (1) insufficient land ownership or communal ownership; (2) planned broad coverage; (3) project-based external support aimed at equitable benefit distribution; (4) lack of community skills to handle several individual projects; (5) lack of knowledge of the current cash-based economy Communities with a high level of cohesion (as a consequence of high social capital and/or a strong social hierarchy) frequently have some form of work/benefit system in place that may be utilized to create tourist infrastructure and, as a result,

share the advantages of tourism (Mayaka et al., 2018) This isn't to argue that communities are constantly united and can be handled as a single unit Individuals in both developing and developed nations have diverse motivations, and they might or might not perceive the procedure for development from really different perspectives (Verbole, 2000) Though modern rural areas in developed countries can demonstrate great levels of cohesion and the ability to work closely together, (e.g., Ateljevic & Doorne, 2003; Forde, 2011; Hashimoto & Telfer, 2011), There is also a noticeable increase in individuality and aspirations to manage small size firms rather than invest money in a single large enterprise Communities in underdeveloped nations with external funding frequently do not have that option or purposefully adopt a model which is based on communal ownership that relies on strong links within the community Aside from honesty, another distinguishing element is the community's capacity to embrace external stakeholders who relocate from metropolitan regions for a rural business/lifestyle opportunity These 'lifestyle entrepreneurs' often possess the necessary skills, education, and financial capabilities to invest, as well as a broad understanding of business and tourism (Ateljevic & Doorne, 2003; Moscardo, 2005) 'Foreign' entrants are regarded as outsiders in tight-knit traditional communities, and cultural assimilation is difficult Lack of assimilation may result in conflict and rejection, resulting in a sharp divide among those who have been recognized as group members and those who are not (Ruiz-Ballesteros & Caceres-Feria, 2016) Following the social exchange hypothesis, the assimilation process is influenced by a variety of variables, including each individual's view of the costs and advantages that

immigrants bring (Ap & Crompton, 1993) The capacity to cooperate and act for the common good leads to the acceptance of 'outsiders,' as well as the development of social capital and a feeling of belonging (Matarrita-Cascante & Brennan, 2012) As a result, many 'lifestyle entrepreneurs' in industrialized nations benefit from knowing the local language and being close to their culture

2.3.4 Online banking

Online banking is one of the factors that can influence to develop the

Community-based Tourism with technological development and changes in lifestyles, dealing with business among consumers and banks are progressively moving from customers conducting business in person in physical banks to having proper access to financial services they require via technologies such as Internet banking or mobile banking According to previous research, almost all Indian banks use internet banking as a transmission platform and a competitive weapon for business growth (Safeena, 2013)

Previous research has discovered the advantages of using the internet banking program, highlighting how useful it is to both banks and their clients Customers' perceptions of net banking service level differ from conventional service As a result, evaluating the service level in internet banking is important As a result, understanding how the service quality aspects of internet banking affect consumer loyalty is critical Previous studies on service quality found that banking service

quality influences customers' perceptions of the banks' overall service quality, allowing them to gain a sustained competitive edge (Stamenkov, 2015)

PART III METHODS 3.1 Research Locale

This study was conducted in Sapa District, Lao Cai Province, Vietnam Lao Cai is a province in the Northwest Region of Vietnam, bordering China Sapa is the most popular and well-known tourist attraction in the province One of the top tourist destinations in Northern Vietnam is the town of Sa Pa, which is at the foot of Mt Fansipan, Vietnam's highest peak

Figure 1.0 Sapa District, Lao Cai Province Vietnam

Source: http://creativecommons.org/licenses/by/4.0/

3.2 Data Collection

The first part of the questionnaire consists of questions that ask about the socio- demographic profile which includes age, gender, membership of family and relatives to political organizations, certification to resident and agricultural or forestry land, ownership and value of durable goods, and tourism experience The second part of the questionnaire classifies the business situation of interviewed households while the third part determines the interviewed households’ needs, level of access to and use of banking services The fourth part of the questionnaire is an assessment of the role of digital banking accessories (for households to get credit access to bank accounts) Lastly, the interviewed households were also asked about proposals and recommendations for connecting digital banking services development to community-based tourism development

3.3 Data Analysis

The information obtained by the researchers from the respondents will be tabulated, tallied, categorized, and interpreted using descriptive statistics specifically, frequency distribution, standard deviation, and weighted mean using Excel The Likert scale was used to determine the respondent’s statements Simple tables, frequencies, percentages, and the weighted mean were utilized in the presentation and analysis of the data to be generated in the subsequent chapter of this study

3.4 Materials and Instrument

The researcher analyzed and interpret the data to find out the gap between the supply and demand of digital banking services to promote sustainable community-based tourism development of ethnic minority households in Sapa District, Lao Cai Province, Vietnam

PART IV RESULTS AND DISCUSSION

4.1.What is the Actual Situation of Family-owned Tourism Micro Businesses? Table 1 Membership of Family Members to Organization

F % F % Farmer’s association 6 20% 24 80% Women’s Union 9 30% 21 70% Veteran’s Association 0 0% 30 100% Youth Group 6 20% 24 80% Tourism Association 12 40% 18 60% Cooperative 0 0% 30 100% Others 0 0% 30 100%

The table above depicts the members of family members of the households to various organizations, The majority of twelve (12) are members of Tourism Association, nine (9) are from Women’s Union, and six (6) are members of Famer’s Association and Youth Group

The highest number of members in the membership of family members to the organization is the Tourism Association with 12 and the highest non-member total are the Veteran’s Association, Cooperative, and others with 30 On the other hand, the lowest number of members are the Veteran’s Association, Cooperative, and others with 0 member, while the lowest non-members are the Tourism Association with 18 in total This table implies that there are more non-members who are involved in the membership to family members to organization instead of those who are actually members

Table 2 Ownership of Residential Land and Agricultural/ Forestry Land

Total area (m2)

Table 3 Access to Durable Goods

Monthly Fees (thousand dong)

Monthly Internet Fee (thousand dong)

1-50 million dong Lastly, there is 151-200 thousand dong is the highest number with 19 votes for the monthly internet fee

Table 4 Differences in Means of Selected Durable Goods

4.1.1 Current Status of Tourism Business

Table 5 Business Situation of Interviewed Households

Table 6 Usage of Applications for Travel Business