Summary of doctorial (PH d) thesis in economics tourism economy in the north central region in international economic integration

HO CHI MINH NATIONAL ACADEMY OF POLITICS AND PUBLIC ADMINISTRATION NGUYEN THI HONG LAM TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL ECONOMIC INTEGRATION Specialism : Political economics Code : 62 31 01 01 SUMMARY OF DOCTORIAL (PhD) THESIS IN ECONOMICS HA NOI – 2013 The thesis is completed at the Ho Chi Minh National Academy of Politics and Public Administration Academic Supervisor: Assoc. Prof. Dr. An Nhu Hai Judge 1: Judge 2: Judge 3: The thesis will be defended in front of a panel of examining judges at Ho Chi Minh National Academy of Politics and Public Administration At date month 2013 The thesis is available at: National Library and Library of the Ho Chi Minh National Academy of Politics and Public Administration 1 INTRODUCTION 1. The necessity of the research Tourism is a synthetic industry which is highly intersectoral, interregional and socialised. Performances of this industry not only meets the rising demand for travel of human beings but also plays an essential role in the ”on-the-spot export” of goods and services abroad. In Vietnam, the tourism industry came into being in 1960, however, until 1990s it was regarded as an economy soon after the country’s open door policy. Since then, the tourism economy has grown rapidly and attained certain encouraging achievements. The North Central region is an economic zone consisting of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue provinces, abounding in many valuable tourism potentials with diverse natural wonders and cultural identities. On the other hand, favourable traffic conditions regarding road, rail and waterway transport facilitates the region’s tourism economy to bring into full play its advantages and attract tourists. Over the past years, tourism economy in the North Central provinces has made a remarkable growth. Nevertheless, the current development of the tourism economy remains limited in regard to demands for international economic integration and the region’s potential. The matter here is how to tap into full potential and advantages of the tourism economy in the whole region to satisfy the demands for international economic integration to bring about high socio-economic effects? Under such circumstances, that the PhD candidate chooses the topic: “Tourism economy in the North Central provinces in international economic integration” which is of not only theoretical but also practical significance to the development of tourism economy in the North Central provinces in the coming time. 2. Purpose and task of the research - Purpose: To accelerate the development of tourism economy in the North Central provinces in the context of Vietnam’s deeper and greater integration in international economic relations from the point of political economics. - Task: 1) To systemize theoretical and practical foundations of tourism economy in international economic integration of a certain territory in Vietnam from the point of political economics, 2) To evaluate the reality of tourism economy in international economic integration in the North Central provinces, and 3) To propose directions and solutions to promote the development of tourism economy in the North Central provinces in international economic integration. 3. Subject and scope of the research: 2 - Subject of the research: All business activities related to tourism economy in the North Central provinces in international economic integration. - Scope of the research: + Space: The thesis studies tourism economy in the North Central provinces from economic approaches. The thesis does not study each province individually but considers each province’s tourism economy as a component of tourism economy of the whole North Central region. + Time scope: The situation of tourism economy from 2000 to the present; directions and solutions to 2020 with a vision to 2030. 4. Theoretical foundations and research methods of the thesis - Theoretical foundations: The Marxism - Leninism, Ho Chi Minh ideology, and standpoints, paths, renewal policies of the Party and State of Vietnam in regard to tourism economy development. - Research methods: + Research methods applied include abstractisation, analysis and synthesis, and logic plus historical background, statistical method, quantitative analysis, and comparative method; and selectively acquires some results of published scientific studies. 5. Scientific contributions and values of the thesis 1) Systemizing theories of tourism economy in international economic integration in a certain tourism area in Vietnam from the perspective of political economics. 2) Selecting lessons drawn from foreign countries’ experience in developing tourism economy to refer to the case of Vietnam in general and the case of the North Central region in particular. 3) Assessing the situation of tourism economy, the thesis analyzes achievements and shortcomings of tourism economy in the North Central provinces in international economic integration. 6. Conclusion Besides the introduction, conclusion, list of reference, and appendix the thesis comprises four chapters and eleven sections. Chapter 1 OVERVIEW OF RESEARCH ON TOURISM ECONOMY 1.1. FOREIGN STUDIES ON TOURISM ECONOMY A number of typical foreign researches focusing on tourism and tourism economy include: 1) The book “Tourism in Developing Countries” by Martin Oppermann and Kye - Sung Chon, was published in 1997 by International Thomson Business Press. 2) The research:“The Business of Rural Tourism International Perspectives” by co-authors Stephen J. Page and Don Getz, was printed by International Thomson Business Press in 1997. 3) The research: “Commercial 3 Recreation & Tourism - An Introduction to Business Oriented Recreation” by Susan A.Weston, was printed in 1996 by Brown & Benchmark. 4) The research: “Managing Tourism” was written in 1991 by Prof. S. Medlik and reprinted in 1995 by Butterworth - Heinemann. 5) The work: “The Economics of Leisure and Tourism” by John Tribe was published by Butterworth - Heinemann Ltd in 1995, etc. 1.2. DOMESTIC RESEARCHES ON TOURISM ECONOMY 1.2.1. Scientific researches and PhD theses There has been a great number of researches on tourism and tourism economy in Vietnam so far. Regarding these areas, it should be noted the scientific researches and PhD theses as followed: 1) Ministerial-leveled work (2007): “Research develops Vietnam’s tourism products of high competitiveness in the region and in the world”, is carried out by a group of authors, led by Dr. Do Cam Tho, from the Institute for Tourism Development Research. 2) Ministerial-level research (2008):“Scientific ground to develop coastal tourism in the North Central region”, is carried out by a group of authors led by Assoc Prof. and Dr. Pham Trung Luong of the National Institute for Tourism Development Research. 3) Ministerial-level research (2011) “The status quo of and solutions to develop national sea tourism regions in the North Central region”, is carried out by a group of authors led by Dr. Nguyen Thu Hanh, of the Institute for Tourism Development Research. 4) The Vietnam National Administration of Tourism’s research: “Policy and solutions to promote tourism development in the central and Central Highlands region” (2001). 5) The report: “Master plan on tourism development in the North Central region to 2020, with a vision to 2030” (2012) by the Ministry of Culture, Sports and Tourism. 6) Thesis of economics by Hoang Thi Ngoc Lan of the Ho Chi Minh National Academy of Politics and Public Administration, Ha Noi (2007), “Ha Tay’s tourism market”, etc. 1.2.2. Researches in the form of books and other publications Among these publications, those focusing tourism and tourism economy so far include: 1) The book “Tourism market” by Nguyen Van Luu, Ha Noi National Publishing House, 2009. 2) The “Tourism economy syllabus” book is written by Prof., Dr. NguyenVan Dinh and Assoc. Prof., Dr. Nguyen Van Dinh and published by the National Economics University, Ha Noi, in 2008. 3) The “Travel Business Management Syllabus” text book by co-authors Assoc. Prof., Dr. Nguyen Van Manh and Assoc. Prof., Dr. Pham Hong Chuong, National Economics University’s Publishing House, Ha Noi, 2009, etc. In addition, on the national scientific research forum there are numerous articles related to tourism economy in the context of international economic integration, notably: “Tourism Development in the North Central Region: Issues raised”(2010) by Assoc. Prof., Dr. Pham Trung Luong at the workshop on “Orientations of Tourism Development in the North Central Region” 4 organised in Vinh City, Nghe An Province. “Tourism Development in the Greater Mekong Subregion” (2010) by Dr. Nguyen Van Dung and MA Nguyen Tien Luc, Vietnam Tourism Magazine, 10 th edition. “Tourism Development in the Greater Mekong Subregion” (2010) by Dr. Nguyen Van Dung and MA Nguyen Tien Luc, Vietnam Tourism Magazine, 10 th edition, etc. 1.3 GENERAL RESULTS OF PUBLISHED STUDIES AND ISSUES RAISED FOR FURTHER STUDY ON TOURISM ECONOMY 1.3.1. General results of published studies associated with tourism economy The authors focus on key issues as followed: 1) The authors define fundamental characteristics of tourism economy with comprehension related to tourism economy: concept of tourism, tourism economy, ecotourism, tourists, competition ability of tourism destination, tourism human resources, State management of tourism economy, etc. 2) Characteristics, situation, and development trends of tourism economy in nations all over the world at present. 3) The authors analyse, specify tourism products, tourism product mechanism, the role of components of tourism products, the role of tourism economy to the socio-economic development of the nation and regions in regards to component factors of tourism supply and demand. 4) The reality of tourism market in some cities and provinces in Vietnam. 5) Numerous solutions to diversify and increase the quality of tourism products in some provinces in Vietnam. Nevertheless, in regards to theory, published scientific researches have not specified concepts of tourism economy from the perspective of political economics, and typical features of tourism economy; have not analysed systematically components of tourism economy, the relation between tourism economy and socio- economic development, and factors influencing tourism economy in the international economic integration. The researches have not analysed to the full opportunities and challenges of the international economic integration to Vietnam’s tourism economy in general and to the North Central region’s tourism economy in particular. Regarding practical approach, the researches have not mentioned to the full and comprehensively the reality of tourism economy in the North Central region. The authors have not analysed comprehensively the new economic context of tourism economy in the North Central provinces in the international economic integration. Also, the authors have not presented systematically targets, orientations, and solutions to develop tourism economy in the North Central provinces in the context of international economic integration. In order to help with addressing the problem, the subject: “Tourism Economy in the North Central Provinces in International Economic Integration” that the postgraduate has chosen to study is new, and of theoretical and practical significance. 5 1.3.2. Issues raised for further study: 1) Specifying theories of tourism economy and tourism economy development in the new context of national and international situations, and international economic integration from the perspective of political economics. 2) Studying lessons of success and unsuccessfulness from nations world- wide on the current tourism economy development in the international economic integration to draw valuable lessons of experience for Vietnam in general and for the North Central region in particular to learn from. 3) Specifying the reality of tourism economy in the North Central provinces and indicate strengths and limitations in the development process of this economic sector to propose objectives, orientations, and solutions to accelerate development in the time to come. Chapter 2 THEORETICAL AND PRACTICAL GROUNDS OF TOURISM ECONOMY IN INTERNATIONAL ECONOMIC INTEGRATION 2.1 TOURISM ECONOMY AND COMPONENTS OF TOURISM ECONOMY 2.1.1 Tourism and tourism economy 2.1.1.1 Tourism  Conception From the perspective of political economics, and views it as the general of phenomena and economic relations which arise from the mutual influences between tourists, tourism businesspeople, local authorities, and local community in the process of attracting and retain tourists. Tourism is an activity of many specific characteristics with many participating components, thus, making itself a very complicated general. Tourism operation bears both characteristics of an economic sector, and of an economic-social sector.  Tourism product and its typical features Tourism products are “services and commodities provided to tourists are produced through the combination of exploiting natural and social factors with material and technical facilities as well as labour forces in an establishment, a region or a country. Characteristics of tourism products: Apart from common features of ordinary commodities, tourism products are characterised by special features as followed: Firstly, once an ordinary commodity is sold to a buyer its values will vanish slowly or even be lost after the first use, whilst the values of tourism products are not. The tourism products’ values will exist in the feelings and evaluations of tourists and the values can even be acknowledged through the tourists’ words of mouth. Secondly, the consumption of tourism products does not occur regularly but during certain time in a day (in regards to products offered at a restaurant), in a week (in regards to products 6 offered at the year-end tourism season), during a year (in regards to products of some tourism categories: mountain tourism, and beach tourism, etc ). It is the very these characteristics that tourism is a highly seasonal operation. In facts, in the tourism product mechanism, tourism services make up a considerable percentage (about 80-90%), therefore, it is extremely important to find out about and properly assess characteristics of tourism products.  Tourism service and its typical features Tourism service is “the supply of services on travel, transport, accommodation, food and beverage, amusement, recreation, information, guidance, and other services to meet the demands of tourists. Tourism is a type of services which contains common features of services and typical features of its own: the intangibility of services, the synchronism of tourism service production and consumption, the involvement of tourists in the production of services, the immovability of tourism services, the ownership unchangability of tourism services, and the unequability of the quality.  Types of tourism Depending on different modes of classification, tourism can be classified as follows: 1) In regard to territorial scope of travel, tourism is divided into international and domestic tourism. 2) In regard to tourists’ demands, tourism can be: medical tourism, recreational and relaxation tourism, excursions tourism, sports tourism, MICE (meetings, incentives, conference, and exhibitions), and spiritual tourism, etc. 3) In regard to geographical position of the destination: mountain tourism, beach tourism, river tourism, lake tourism, city tourism, and countryside tourism. 4) In regard to means of transport facilitating tourists’ travel: tourism by bicycle, motorbikes, automobiles, train, and airplane. 5) In regard to the tour organisation, tourism is divided into group and individual tourism. 6) In regard to the length of tourists’ travel, tourism is divided into short-day and long-day tourism, etc. 2.1.1.2. Tourism economy Tourism economy is an economic relation in the field of tourism product supply and consists of relations among travel business, tourism lodging service business, tourism transport business, tourism area and tourism spot development, and other tourism services business in order to satisfy the spiritual demand of tourists and bring bout significant social, economic and political benefits for the tourism enterprises and the country. Tourism economy is a non-smoke industry and a nonmaterial production area but brings about huge material and spiritual values. Tourism economy is a service industry with typical characteristics: being sensitive, highly synthetic, multidisciplinary, multi-sector, expenditure-oriented, interregional and seasonal. On the basis of the objectives of tourism businesses in the 7 world in general and the Law of Tourism in Vietnam in particular, indicators to evaluate tourism economy may include: tourists, earnings from tourists, tourism industry’s gross products, and tourism economy effects, etc. 2.1.2. Tourism economy components Tourism economy is a synthetic industry consisting of relations between such major sectors and businesses as follows: 2.1.2.1. Travel business In fact, related to the travel business, tourism experts often mention major operations as “trading and signing business contracts with internal and external tourism business organisations to build and implement tours which have been sold to tourists”. However, the fact indicates that the travel business mainly involves the two popular operations: travel business and travel agency business. 2.1.2.2. The business of tourism accommodation Accommodation establishments are those who rent out bedrooms to tourists and provide other services to satisfy tourists’ demands during their stay, in which hotel is the most popular type of lodging. Accommodation business is one of important sectors contributing considerable income for tourism economy. 2.1.2.3. The business of tourist transportation The business of tourist transport is an operation enabling tourists to move from their living place to a tourism site as well as to move within the tourism site. There is a number of means of transport available to serve this business, namely automobiles, train, ships, and airplane. 2.1.2.4. The business of tourism area and tourism site development The business of tourism area and tourism site development takes into account: the investment to preserve and upgrade available tourism resources; tapping the full potential of available tourism resources for development new tourism area and site; and building tourism infrastructure, and material and technical facilities. 2.1.2.5. The business of other tourism services Apart from business operations mentioned above, tourism economy components also include the business of recreational activities, advertisement, promotion, and tourism investment consultancy, etc. 2.2. THE RELATIONSHIP BETWEEN TOURISM ECONOMY AND SOCIO-ECONOMIC DEVELOPMENT AND FACTOS AFFECTING TOURISM ECONOMY IN INTERNATIONAL ECONOMIC INTEGRATION 2.2.1. The relationship between tourism economy and socio-economic development 2.2.1.1. The influence of tourism economy on socio-economic development: 1) The development of tourism economy contributes to enhancing the economic growth; 2) Tourism economy develops will advance the transition of the national 8 economic structure; 3) The development of tourism economy contributes to boosting domestic and foreign investment, which eventually increases the whole economy’s total demand; 4) The development of tourism economy contributes to promoting and developing other economic relationships including the relations in investment co- operation, production co-operation, trading, and services between economic subjects and components; 5) The development of tourism economy increases social employment and income; 6) The attraction and expansion of international tourists, the development of tourism economy will be a vital information channel to promote the host country’s images. 2.2.1.2. The socio-economic impacts on the development of tourism economy: The development of economic sectors like industry, agriculture and handicrafts, etc will help improve the society’s material-technical facilities, contributing to enhancing the quality of services in the chain of tourism services. The development of social sectors such as culture, education, and health, etc will promote the attractiveness, and competitiveness of destination brands for tourism economy. Other sectors including telecommunications, electronics, traffic and transport, etc develop will help promote tourism brand names, introduce tourism products, and connect tours for tourism economy. Other service sectors including finance, banking, securities and insurance, etc, if well-developed, will be a major supporting force for the development of tourism economy. Thus, the general socio-economic development will help enhance the infrastructure, intellectual standards of people, and convenient services, etc, speeding up the development of tourism economy. 2.2.2. Factors affecting tourism economy in the international economic integration 2.2.2.1. The State role in tourism economy development * The State creates the socio-economic and political environment. Political environment is presented first and foremost through the nation’s system of legislation, policy and institution. A peaceful and stable politics will be an important premise for the country’s development in general and the development of tourism economy in particular. The socio-economic environment of tourism economy is presented through the development level of sectors and the labour output of the home country. Tourism economy is a synthetic industry, thus, it can only develop when other industries develop. * The State maps out development strategy and planning for tourism economy. Tourism economy development strategy is a component of the State and Party’s socio-economic development strategies. It is a tool to provide a long-term vision of the performance of tourism economy in a particular period of time. [...]... industry in terms of exploiting minerals and construction materials 3.3 ASSESSMENT OF THE SITUATION OF TOURISM ECONOMY OF THE NORTHERN CENTRAL PROVINCES IN THE INTERNATIONAL ECONOMIC INTEGRATION FROM 2000 TO PRESENT 3.3.1 Achievements gained from tourism economy in the northern central provinces in all areas: Firstly, significant increase in income generated from tourists Secondly, there has been a shift in. .. factors influencing tourism economy in the framework of international economic integration Drawing lessons of experience of developing tourism economy in foreign countries in accordance with typical topics, and evidence from China, Thailand and Singapore to apply for Vietnam in general and the North Central region in particular; (3) Indicating and analysing potential, strengths of tourism economy in the North. .. for the development of tourism economy in the international economic integration Nevertheless, Vietnam in general and the North Central provinces in particular should pay attention to special characteristics of their own to put forward proper development policies to bring about the desired effects for tourism economy 11 Chapter 3 REAL SITUATION OF THE TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL. .. INTERNATIONAL ECONOMIC INTEGRATION 3.1 IMPACTS OF NATURAL AND SOCIO -ECONOMIC CONDITIONS IN THE NORTH CENTRAL PROVINCES ON THE DEVELOPMENT OF THEIR TOURISM ECONOMY 3.1.1 Natural and socio -economic conditions in the North Central provinces 3.1.1.1 Natural conditions The North Central Region is narrow, in terms of its horizontal line The region is located between the Tam Diep mountain range in the North and the. .. 4 5 6 Nguyen Thi Hong Lam (2013), Tourism economy in the North Central provinces in international economic integration: shortcomings and reasons”, The Journal of Economics & Management, (7), p.45 - 49 Nguyen Thi Hong Lam (2012), Tourism Economy in the North Central provinces: linkage to develop in the international economic integration , The Journal of Political Theory & Communication, (11), p.52... etc This certainly poses challenges for the tourism economy development in the region 3.2 REAL SITUATION OF THE TOURISM ECONOMY IN THE NORTH CENTRAL PROVINCES IN THE FRAMEWORK OF INTERNATIONAL ECONOMIC INTEGRATION SINCE 2000 UNTIL PRESENT DAY 3.2.1 Real situation of travel business At present, in association with investment projects for socio -economic development in their respective provinces, domestic... tourism economy development between the North Central provinces 4.2.5.1 Forming association to boost tourism economy development in the North Central provinces Tourism economy in the North Central provinces should attach much importance to: i, Conducting propaganda campaigns to increase awareness about benefits of the regional association under requirement of international economic integration ii, The. .. develop tourism economy in the North Central provinces: Accelerated co-operation of tourism economy under the framework of the East-West Economic Corridor, the Greater Mekong Sub -region, ASEAN and WTO 4.2.6 Solutions to develop tourism economy in a sustainable manner 4.2.6.1 Protecting tourism resources and environment: The sustainable development of tourism economy in the North Central provinces should... reach the demand 4) Investment into the tourism economy is still inappropriate 5) The importance of international cooperation in tourism business is underestimated 6) Tourism environment shows shortcomings Chapter 4 DIRECTIONS AND SOLUTIONS TO IMPROVED DEVELOPMENT OF TOURISM ECONOMY IN THE NORTH CENTRAL PROVINCES IN INTERNATIONAL ECONOMIC INTEGRATION 4.1 Context and directions to develop tourism economy. .. implementing action plans of each province in combination with other provinces in the region v, Associating in implementing programmes, duties, plans, projects of the region vi, Associating in inspecting, supervising the regional policy, regulation implementation and standard application of tourism economy 4.1.2.5 Development of tourism sites, destinations - Development of tourism site system: On the basis . tourism economy in the North Central provinces in the context of international economic integration. In order to help with addressing the problem, the subject: Tourism Economy in the North Central. general and the case of the North Central region in particular. 3) Assessing the situation of tourism economy, the thesis analyzes achievements and shortcomings of tourism economy in the North Central. tourism economy in international economic integration of a certain territory in Vietnam from the point of political economics, 2) To evaluate the reality of tourism economy in international economic