The thesis identifies the factors and discovers new components in the factors affecting the attractiveness of destinations to attract tourism investors.
1 Chapter GENERAL INTRODUCTION TO THE RESEARCH 1.1 Introduction Tourism is a fast-growing integrated industry, covering many social and economic sectors, making it a leverage for other industries to follow suit Not surprisingly, surveys also indicate that tourism is a high priority sector for investment promotion agencies worldwide (UNCTAD, 2009) With the increasing international competition among tourist destinations, and how local competition to attract investors into their localities is a current topical issue worldwide General and Vietnam in particular 1.2 The urgency of the study 1.2.1 Theoretical urgency An overview of the literature on tourism investment shows the need for research "Factors affecting the attractiveness of destinations in attracting tourism investment in the coastal region South Central Vietnam” needs to be supplemented in terms of theory as follows: Firstly, the role of external private capital has been confirmed by many scientists to contribute to building and developing localities, promoting economic growth, creating more jobs and creating effects spreading technology, creating a competitive business environment, promoting business development (Grossman and Helpman, 1991; Hermes and Lensink, 2003; Oecd, 2008) Secondly, many scientific studies indicate that the aim of investors is to seek profits in the market (Agarwal, 1980; Moosa, 2002); or to diversify (Markowitz, 1991; Moosa, 2002; Rose-Ackerman and Tobin, 2005); or affected by market potential of host countries (Moore, 1993; Kreinin et al., 1999) This confirms the influencing factors, the importance of the factors in each locality is different for investors Therefore, the specific study of each locality is a necessary issue today Thirdly, domestic and foreign studies on attracting investment capital in the field of hotels and entertainment areas have not fully mentioned the factors of tourism resources and environment from where - PCI Fourthly, most previous studies have only investigated the relationship between destination's attractiveness in attracting tourists but few have studied the attraction of destination in terms of attract investors in the field of tourism 1.2.2 In practical terms From a practical perspective, attracting tourism investment in tourist areas in Vietnam is posing issues that need to be addressed to develop Vietnam's tourism in the sustainable direction as follows: Firstly, the Prime Minister approved the "Vietnam Tourism Development Strategy to 2020, with a vision to 2030", in which the Government determined that the capital sources invested in the tourism sector accounted for about 8% to 10% (including ODA), the remaining capital that plays a key role for the development of local tourism is private capital (including FDI) This contributes to affirming that the Party and the State determine the development of a country in general and of a locality in particular based on private sector investment Secondly, there is an inconsistent development of tourist attraction and investment attraction among provinces and cities under the South Central Coast So what is the cause of the inequality in attracting tourist investment From this, the reality raises issues for researchers: (1) What are the main factors that influence and attract tourism investors in the South Central Coast; (2) Which factors are the most important and the most decisive in choosing investors' locality? Thirdly, these provinces in the South Central Coast not have any specific empirical research on tourism, so these localities are almost attracted to investment to take care and improve PCI index However, there has been no specific study on the impact of PCI index on investment attraction This study confirms that problem 1.3 Objectives of the study The overall objective of the thesis is to identify factors and discover new components of factors affecting the attractiveness of destinations to attract tourism investors With specific objectives: Firstly, this thesis contributes to perfecting the theory of the attraction of tourist destinations in attracting tourism investment, which domestic and foreign authors have mentioned but relatively incomplete Especially in Vietnam, almost no authors have specifically studied this issue Secondly, this thesis points out the important factors that contribute to the attraction of destinations in attracting tourism investment On that basis, the author quantifies the impact level of the factors; quantify the attractiveness of each province in the Middle South coastal in attracting investment capital Thirdly, based on the results of both qualitative and quantitative research to point out a new part of the factors, which affect the attraction of tourism investment, in accordance with the characteristics and context in Vietnam Previous studies have not mentioned and quantified it Fourthly, determine the relationship between the attractiveness of destinations and tourism investment intentions 1.4 Subject and scope of the study 1.4.1 Research subjects Research the factors affecting the attractiveness of destinations in attracting tourism investment in specific tourism regions and the relationship between destination attractiveness affecting tourism investment intentions 1.4.2 Scope of the research Specifically, the author only focuses on researching sources of investment in the field of hotels, resorts and resorts with standards of stars or more In order to find out the factors that clearly and objectively influence, the author should only study capital sources of foreign direct investment and domestic private capital, with survey data conducted for with investors from March 2017 to 2019 1.4.3 Survey subjects For qualitative research: the study focused on interviewing experts in the field of tourism; experts on tourism investment; investors, managers of hotels, restaurants, and resorts in the provinces of South Central Coast provinces 3 For quantitative research: the study focuses on investors, managers of hotels, resorts and resorts of three or more stars in the South Central Coast 1.5 Research question The main objective of the study is to identify factors that influence the attractiveness of destinations in attracting investors in the tourism sector From the results, the author tries to develop a set of criteria to estimate the level of investment attractiveness for each province in the South Central Coast in particular and for the whole country in general To address this issue, the study focused on answering the following three main research questions: What factors affect the attractiveness of a tourist destination in attracting tourism investment? What is the relationship between the factors that make the destination attractive and the investment intent of the tourism investor? And specifically, in the case of the South Central Coast, what were the results? What is the impact of factors on the attractiveness of the destination? And how is the impact of destination attraction on investment intent? 1.6 Research Methods Research methods applied to this topic include qualitative research methods and quantitative research methods This study is conducted including preliminary and formal research 1.7 New contributions of the thesis 1.7.1 Theoretical and research methodological contributions Firstly, this thesis contributes to the arrangement and systematization of specific theories, specifically for the attractiveness of destinations in attracting tourism investors The majority of studies in the world mention only the factors that attract tourism investment, very few studies mention the attractiveness of destinations in attracting tourism investment Secondly, the author has discovered a new factor that influences the attractiveness of the destination in attracting investment in the tourism sector which is the "Investment environment" This factor is more complete and complete than previous studies based on PCI Thirdly, the research points out the factor "tourism resources" including: "natural tourism resources and cultural resources" that previous studies mostly mentioned were incomplete, mainly focused on factor "natural resources" Fourthly, previous studies on the field of attracting investment for the industry in general and for the tourism industry in particular, all stopped at identifying the factors affecting the attractiveness of the point come in attracting investors The author's research has taken it a step further and more clearly, which indicates the impact of destination attractiveness in attracting investors to investment intent Fifthly, this study uses a combination of qualitative and quantitative research methods, using EFA and CFA to test the relationship between destination attractiveness and investment intention with high reliability, many studies Previous research has not mentioned this relationship 1.7.2 Practical contributions Firstly, this thesis helps the local governments to better understand the travel businesses and hotels they really need and want the localities to provide and facilitate them Secondly, the thesis proposes to build a set of criteria to assess the destination attractiveness of each locality over the years (similar to the calculation of PCI index) Since then, helping businesses capture information more fully and have a basis for comparison, evaluation and investment options between provinces Help local authorities identify the factors that need improvement in the locality to attract tourism investment 1.8 Structure of the thesis The structure of the thesis is divided into chapters Chapter 1: General introduction to research Chapter 2: Theoretical foundations and research models Chapter 3: Research design Chapter 4: Research results Chapter 5: Conclusion and policy implications Chapter THEORETICAL BASIS AND RESEARCH MODEL 2.1 Some basic concepts about the attractiveness of destinations in attracting investment in tourism 2.1.1 Tourism concept In terms of economics, Kalfiotis (1972) said: “Tourism is a temporary movement of individuals or groups from place to place to satisfy the spiritual and moral needs creating economic activities ” Tourism Law (2017): “Tourism is activities related to trips of people outside their place of regular residence for no more than 01 consecutive year to meet the needs of sightseeing, relaxation and prizes location, explore, discover tourism resources or combine with other legal purposes” 2.1.2 Tourist destination Kim (1998) introduced the concept: “Tourism destinations can be considered as a package of tourism services and facilities, like any other goods and services including a number of multi-dimensional attributes together determine its attractiveness to a particular tourist in a given travel situation ” Cracolici and Nijkamp (2009) said: "A tourist destination is a combination of different natural, cultural, artistic and environmental resources that make up an overall product that attracts tourists." 2.1.3 Attracting tourist destination Gartrell (1994) introduced the concept: "Attractive tourism destinations are geographical areas with attractive attributes, features and services" According to Hu and Ritchie (1993: 25) destination attractiveness: "Reflects the feelings, beliefs, and opinions individuals have about the individual ability to please each destination." 2.1.4 Attracting destination in attracting investment 2.14.1 Concept of investment Sachs and Larrain (1993) stated that: "Investment is the amount of production accumulated to increase production capacity in the later period of the economy" 2.1.4.2 The concept of destination attraction attracts investment According to Dunning (1981), he said that the attractiveness of destinations is the advantages of private locations that attract investors He said: “The attraction of private places is the advantages arising from the use of available resources or assets attached to a specific location abroad and also valuable advantages when the company combines them with its own assets (such as technological know-how, marketing or management of the company)” Van de Ven and Walker (1984) "The destination's attractiveness is superior economic benefits, or access to resources to develop a competitive advantage for businesses" (Morgan, 2000) Harris et al (2003) state that: “Investment attraction of a destination is defined as the extent to which its partners find potential destinations in the past, present, future or attraction on the ability to provide economic superiority in terms of benefits, access to important resources and social compatibility” 2.2 Some theories about the attractiveness of destinations in attracting investment capital 2.2.1 Theory of plant location Greenhut (1952) proposed the theory of plant location involving both supply and demand-driven variables affecting the spatial distribution of production, research and development processes, and governance of company Unlike trade theory, it is not related to the division of labor between nations The theory of international production sites has developed in two approaches: The firstly approach, largely originated in Germany Assuming a certain market size and distribution, each company is a profit-maximizing tool operating in the context of general pricing, production will be located in a place with low cost This theory emphasizes the search for low-cost localities It assumes that the price is competitive, costs vary between locations and has a certain shopping center The secondly approach is to find local locations near customers In this theory, buyers are perceived to be scattered over an area instead of limited to a certain point of consumption The cost of purchasing and processing raw materials is assumed to be the same everywhere and each seller charges the same net factory price, but the transaction price varies with the distance between the consumer and the supplier The seller who is closer to the customer will gain control of the buyer located near their factory Both of these approaches emphasize location finding that makes the biggest difference between total cost and total revenue At present, it is generally accepted that any comprehensive theory of location must incorporate both cost and market, and in imperfectly competitive markets, the maximum profit position will not necessarily the lowest cost (Greenhut, 1952) 2.2.2 Theory of investment motives Dunning (1988) with the study: "The eclectic model of international production: recovery and possible extensions", he pointed out three main reasons (3 major investment motives) for the choice of investment locations of multinational companies, they are: (1) resources-seeking; (2) market-Seeking; (3) efficiency-seeking (1) Market prospects often look for the following factors: Having large and developing domestic market and neighboring markets (NAFTA, EU) The availability of skilled and professional labor Presence and competitiveness of related companies such as leading suppliers Quality of national and local infrastructure and institutional capacity Less space-related market distortions, but increasing the role of agglomeration space economy and local service support aspects The macroeconomic policies and macro organizations that the local government pursues An increase in market demand The increase in promotion activities of regional and local agencies (2) Resources-Seeking usually looks for the following: Availability, price and quality of natural resources Infrastructure to allow the exploitation of resources and the products derived from them for export Government restrictions on FDI such as capital, dividends, etc Tax incentives (3) Efficiency-Seeking often looks for the following factors: Mainly related to production costs (labor, materials, machinery ) Freedom to participate in trade in intermediate and final products Transportation costs, tariff and non-tariff barriers, import permits Investment incentives such as tax reduction, rapid depreciation, financing, land Increase the role of the government in eliminating obstacles in restructuring economic activities and facilitating the upgrading of human resources with appropriate education programs Specialized spatial clusters are available, for example, science and industry and specialized inputs Opportunities for new businesses of investment companies; an environment of equal competition, enhance cooperation between companies According to Dunning (1988), most multinational companies will invest in other countries mainly having one of the three engines Because one of the three engines above, there are measurement variables for one engine that belong to the other Therefore, when researching for a model, it is necessary to filter to eliminate this duplication 2.2.2.1 Resources-Seeking a Concept According to Schiffman and Kanuk (2005), "motivation is the force that drives an individual to act" Romando (2007) "motivation is an internal thrust that motivates and manipulates human behavior" Dunning and Lundan (2008) argue that “the motivation of resources-seeking is the incentive for businesses to invest abroad in order to obtain specific and special resources, or with higher quality to achieve spending actual cost is lower than their country” This makes the investment business more profitable and more competitive in the market it serves or intends to serve b Components of Resources-Seeking Dunning and Lundan (2008) suggest that there are three types of resources-seeking in the field of tourism investment: Firstly, seeking physical resources: minerals, metals, oil, coal and gas, diamonds, rubber, tobacco, sugar, coffee, seafood, etc are served as inputs for Business 7 Secondly, finding resources is the supply of labor: usually they look for low-cost workers; or highly qualified workers who are difficult to train Thirdly, seeking tourism resources capable of developing investment, attracting tourists for businesses Such as natural landscape, climate, cultural heritage, events and impressive festivals 2.2.2.2 Market-Seeking a Concept Dunning and Lundan (2008) argue that “Motivation of Market-Seeking are the motivation for businesses to invest in a specific country or region to provide goods or services to markets in countries this or in neighboring countries” b Components of Market-Seeking Dunning and Lundan (2008) think that there are two main reasons why businesses seek markets: Firstly, due to tariffs or other barriers that increase costs imposed by the host country Secondly, seeking markets is to maintain and exploit existing or new markets According to Dunning and Lundan (2008) a normally selected market must consider the following conditions: Market size Market growth prospects Near suppliers or customers Competitors The company's global marketing and business strategy To approach and understand customers' tastes needs in accordance with local customs, habits, lifestyles and legal aspects 2.2.2.3 Efficiency-Seeking a Concept Dunning and Lundan (2008) state that: “The motivation of efficiency-seeking is the motives to rationalize the investment structure based on the resources or markets they target In other words, reduce costs and increase profits for businesses” b Components of Efficiency-Seeking Dunning and Lundan (2008) suggest that there are two types of Efficiency-Seeking: Firstly, the availability and the relative cost of natural resources and labor in the country they seek, are lower than the country currently operating in the business Secondly, taking advantage of various factors in business environment, institutions, infrastructure, laws thereby creating lower costs, more beneficial for businesses Such as: preferential investment policies, tax breaks, transportation costs, infrastructure Thusly, based on the two types of efficiency-seeking engines, experimental researchers also pointed out the components of the efficiency-seeking engine including three main components in the study of attracting capital That tourism is: (1) cost advantage; (2) advantage in infrastructure; (3) advantage of an investment environment 2.3 Relationship between investment destination attractiveness and investment intent There are many theories explaining the relationship between destination attractiveness and investment intent, but the most prominent is Ajzen (1991) with the intended behavior theory Attitude toward action Subjective Norm Intention Behavior Perceived Behavioral Control Figure 2.2: The intended behavioral theory (Ajzen, 1991) Attitude refers to one's opinion about whether a behavior is positive or negative (Ajzen, & Fishbein, 1980) Attitude is defined as a psychological and cognitive behavior that individuals exhibit by assessing any particular factor with a degree of relevance or nonconformity (Eagly and Chaiken, 1993) In this study, the attitude refers to the investor's assessment of the attractiveness of the destination From the attitude of the attraction of the destination will affect the intention to invest The subjective criterion refers to a cognitive social pressure arising from one's perception (Ajzen, & Fishbein, 1980) Cognitive behavioral control refers to individual perceptions of the ease / difficulty of performing a behavior of interest (Ajzen, 1991) In the author's study, only the attitude and belief of investors about the factors that make up the attractiveness of the investment destination affect the investment intention The factors of "subjective standard" and "cognitive behavioral control" were not considered in this study Many studies have confirmed the significant and positive influence of attitude on intentions of behavior (Teo and Pok, 2003; Shih and Fang, 2004; Ramayah and Suki, 2006) Many studies on investment intentions have also shown that the same attitude has the greatest positive impact on investment intentions (Alleyne and Broome, 2010; Ali, 2011; Shanmugham and Ramya, 2012; Ali et al., 2014; Sudarsono, 2015; Cuccinelli et al., 2016) With the theory of behavior intended to affirm investors' attitude and beliefs about the factors that make up the attractiveness of destinations that affect investment intentions However, the intended behavior theory only points to the impact of investor attitudes and beliefs but has not yet shown the factors that make the destination of investment attractive Therefore, the intended behavior theory will be combined with the investment motive theory that will contribute to the author's research 9 10 2.4 Some empirical research on destination attractiveness in attracting investment in the field of tourism - hotel 2.4.1 A number of empirical studies on the attractiveness of destinations in attracting investment capital based on the theory of international production sites Table 2.8: Summary of empirical studies - international production sites search engine of cost advantage has the difference in the impact factors in different studies Although there are differences, but these factors all show the incentive to find cost advantages for businesses The author can group the groups of factors from the above cost-seeking engine into three main groups: (1) availability and cost of using cheap physical and human resources; (2) infrastructure; (3) the investment environment includes favorable policies and investment incentives, regulations and restrictions, political stability Basically, the above studies divide investors' motives into these two main groups is a market search engine and a cost advantage search engine 2.4.2 A number of empirical studies on destination attractiveness in attracting tourist investors according to investment incentive theory Table 2.9: Summary of empirical studies - investment motives Group Impact factor Experimental study Group Market Seeking Impact factor Experimental study Dunning and Kundu (1995); Kundu and Contractor (1999); Dunning (2002); Du Plessis (2002); Aykut and Ratha (2004); Johnson and Vanetti (2005); Newell and Potential tourism Seabrook (2006); Naude and Krugell (2007); Duanmu and Guney (2009); Masron and Shahbudin (2010); Anil market et al (2014); Assaf et al (2015); Santos et al (2016); Tomohara (2016); Kristjánsdóttir (2016); Puciato et al (2017); Li et al (2017) Quality of Assaf & Josiassen (2012); Assaf et al (2015b); human resources Kristjánsdóttir (2016) Market Seeking Potential tourism market Snyman and Saayman (2009); Polyzos and Minetos (2011); Yang and Fik (2011); Ussi and Wei (2011); Guillet et al (2011); Zhang et al (2012); Adam and Amuquandoh (2013); Villaverde and Maza (2015); Puciato (2016) Labor and costs Snyman and Saayman (2009); Ussi and Wei (2011); Zhang et al (2012); Adam and Amuquandoh (2013); Villaverde and Maza (2015); Puciato (2016) Infrastructure Snyman and Saayman (2009); Polyzos and Minetos (2011); Ussi and Wei (2011); Adam and Amuquandoh (2013) Laws and regulations Yang and Fik (2011); Guillet et al (2011); Adam and Amuquandoh (2013); Zhang et al (2012); Puciato (2016) Business environment Polyzos & Minetos (2011) Dunning (2002); Endo (2006); Masron and Shahbudin Availability (2010); Lu et al (2011); Anil et al (2014); Puciato et al and cost (2017); Falk (2016) Infrastructure Looking for cost Attracting advantages policies and investment incentives Dunning and Kundu (1995); UNESCAP (1991); Urata and Kawai (2000); Endo (2006); Nguyen Manh Toan (2010); Dunning (2002); Aykut et al (2004); Beerli and Martin (2004); Assaf et al (2015); Lu et al (2011); Kristjánsdóttir (2016); Puciato et al (2017) Aykut and Ratha (2004); Johnson and Vanetti (2005); Endo (2006); Duanmu and Guney (2009); Masron and Shahbudin (2010); Lu et al (2011); Kristjánsdóttir (2016); Puciato et al (2017) Efficiency Seeking Restrictions Brouthers et al (2000); Johnson and Vanetti (2005); and regulations Villaverde and Maza (2015); Assaf et al (2015); Falk (2016) Political Dunning and Kundu (1995); Urata and Kawai (2000); stability Anil et al (2014) Kundu and Contractor (1999); Dunning (2002); Endo Investment (2006); Santos et al (2016); Tomohara (2016); Li et al environment (2017); Li et al (2018) Source: Author summarizes previous empirical studies The empirical studies mostly use quantitative research with exploratory factor analysis, a small number of SEM analysis and table data analysis Mostly, the tourism resources Seeking Natural resources Snyman and Saayman (2009); Polyzos (landscape, flora and fauna, and Minetos (2011); Ussi and Wei beach ) (2011); Adam and Amuquandoh (2013) Polyzos and Minetos (2011); Yang and Cultural heritage and Fik (2011); Guillet et al (2011); Zhang et major events al (2012); Puciato (2016) Source: Author summarizes previous empirical studies Basically, the investment motive theory with the addition of motivation for tourism resources-seeking is completely consistent and more complete than the theory of plant location the theory of plant location refers to the search for physical resources: the 11 12 materials of cigarettes, oil, gold, metals however, it is classified as a search engine of cost advantage 2.5 Research model and research hypotheses 2.5.1 Research model Objectives of the study Research background theory and recent experimental research synthesis Potential tourism market Advantage of tourism resources Tourism infrastructure Attitude about the overall attractiveness of the tourism destination Proposal of research model and scale Investment environment (PCI) Cost advantage Investment intent Source: author proposed Figure 2.3: Proposed research model 2.5.2 Research hypotheses H1: The advantage of tourism resources has a positive impact on the attractiveness of tourism in attracting tourism investment H2: Tourism infrastructure has a positive impact on the attractiveness of tourism in attracting tourism investment H3: Economic advantage (potential tourism market) has a positive effect on the attractiveness of tourism in attracting tourism investment H4: The investment environment has a positive impact on the attractiveness of tourism in attracting tourism investment H5: The cost advantage has a positive effect on the attractiveness of tourism in attracting tourism investment H6: The overall attractiveness of investment destinations has a positive impact on tourism investment intentions Chapter RESEARCH DESIGN 3.1 General overview Based on the research model and the hypotheses proposed by the author in the research overview, in this section, the research focuses on two main issues Firstly, design research process Second, present the scale development results 3.2 The process of studying the attractiveness of destinations in attracting tourism investment To achieve the research goal, the author conducted the study in two stages: preliminary research and formal research For the official study, the author conducted a survey of 500 samples, obtaining 359 valid observations Preliminary research Qualitative research Official quantitative research (N =359) (In-depth interview with expert) Calibrate models and scales Proposing measurement variables for preliminary quantitative research Preliminary quantitative research (N = 162) Evaluate the scale reliability by Cronbach’s Alpha coefficient Exploratory Factor Analysis EFA Evaluate the scale reliability by Cronbach’s Alpha coefficient Exploratory Factor Analysis EFA Confirmatory Factor Analysis CFA Testing models and research hypotheses SEM Post-quantitative interview to confirm research results Proposal of formal measurement variables (questionnaire) Source: Author's proposal Figure 3.1: Research sequence 13 14 3.3 Research results development scale Table 3.35: Preliminary EFA analysis -Rotated Component Matrixa Source MT3 ,883 The Government of Ontario (2009) stop at qualitative research UNCTAD (2006); Masron & Shahbudin (2010); Lu et al (2011); MT5 ,868 Villaverde & Maza (2015) MT7 ,866 The Government of Ontario (2009); Villaverde & Maza (2015) UNCTAD (2006); Masron & Shahbudin (2010); Lu et al (2011); MT4 ,850 Villaverde & Maza (2015) MT2 ,818 The Government of Ontario (2009) stop at qualitative research MT6 ,806 The Government of Ontario (2009) stop at qualitative research TN2 ,810 Aykut et al (2004); Polyzos (2002); Snyman & Saayman (2009) TN3 ,743 Survey form Papeditodorou (2001); TN1 ,686 Polyzos & Arabatzis (2006); Polyzos & Minetos (2011) TN5 ,668 Yang & Fik, (2011); Zhang et al (2012); Puciato (2016) TN7 ,645 In-depth interview TN4 ,629 Komilis (1986); Polyzos & Minetos (2011) TN6 ,591 Survey form CP4 Dunning (2002) KT6 Dunning (2002) KT3 ,778 Dunning (2002) KT5 ,766 Dunning (2002) KT2 ,753 Dunning (2002) KT4 ,711 Dunning (2002) Dunning (2002); Snyman & Saayman (2009); MT8 ,662 Villaverde & Maza (2015); Assaf et al (2015) KT1 ,630 Dunning (2002) HT3 Kayam (2009); Artuğer et al (2013) ,836 MT1 UNCTAD(2006);Masron &Shahbudin(2010) ,818 HT2 Aykut et al (2004); Dunning (2002) ,815 HT1 Aykut et al (2004); Dunning (2002) ,798 HT4 Kayam (2009) ,745 CP1 Dunning (2002); Vichea (2005); Anil et al (2014); Puciato et al (2017) ,740 Dunning (2002); Snyman & Saayman (2009); Assaf et al (2015); CP2 ,701 Puciato et al (2017) Dunning (2002); Snyman & Saayman (2009); Assaf et al (2015); CP3 ,638 Puciato et al (2017) MT9 Dunning (2002); Questionnaire PCI Vietnam 2018 ,507 MT10 The Government of Ontario (2009) stop at qualitative research Source: EFA analysis results from SPSS 22.0 software With the above EFA analysis results, we realize that variable MT1; MT8; MT9 was retained but transferred to measurement for another factor, variables MT10, CP4 and KT6 were removed Continued verification of the scale by Cronbach’s Alpha analysis showed that the scales were satisfactory The destination attractiveness scale is inherited from the original scale of Ajzen (1991); Carpenter and Reimers (2005); Paramita et al (2018) No EFA and Cronbach’s Alpha analysis were included The scale of investment intent is inherited from the original Ajzen scale (1991); Paramita et al (2018); Ali (2011) No EFA and Cronbach’s Alpha analysis were included So, with the result of testing the scale by Cronbach's Alpha coefficient and analyzing the discovery factor, basically the scale of "Measuring the attractive factors of destination in attracting tourism investment" is very good This set of scales can basically meet the quantitative standards used for official quantitative research Chapter QUANTITATIVE RESEARCH RESULTS 4.1 Testing the scale by Cronbach’s Alpha analysis Table 4.0.0: Summary of scale verification data by Cronbach’s Alpha analysis NO Factor Number of Cronbach Corrected Item-Total Cronbach's Alpha if observed ’s Alpha Correlation (smallest) Item Deleted (biggest) variables Resources (TN) 0,934 0,784 0,925 Market (KT) 0,944 0,739 0,944 Infrastructure (HT) 0,931 0,776 0,923 Environment (MT) 0,912 0,653 0,910 Cost (CP) 0,809 0,611 0,769 Interesting (HD) 0,903 0,671 0,900 Investment intent 0,825 0,655 0,782 Source: Results from SPSS 22.0 software The result shows that only the resource advantage scale is measured by observed variables, eliminating TN6 and the remaining measuring variables for Crobach’s alpha coefficient is 0.934 All other scales are satisfactory, without any additional variables 4.2 Testing the scale by exploring factor analysis 4.2.1 KMO and Bartlett test results The test result of KMO coefficient = 0.918 proves that this research data is very good and meets the requirements for EFA analysis (Kaiser, 1974; Kaiser & Rice, 1974) Bartlett test results have Sig coefficient = 0.000 HT ,117 ,028 4,232 *** KT < > HD ,246 ,029 8,601 *** KT < > CP ,151 ,030 5,076 *** KT < > AT ,200 ,025 8,141 *** TN < > MT ,324 ,041 7,880 *** TN < > HT ,137 ,032 4,312 *** TN < > HD ,210 ,031 6,766 *** TN < > CP ,174 ,034 5,066 *** TN < > AT ,213 ,028 7,588 *** MT < > HT ,249 ,039 6,394 *** MT < > HD ,171 ,034 4,967 *** MT < > CP ,230 ,041 5,646 *** MT < > AT ,186 ,031 6,064 *** HT < > HD ,125 ,029 4,265 *** HT < > CP ,213 ,036 5,955 *** HT < > AT ,094 ,025 3,758 *** HD < > CP ,097 ,030 3,221 ,001 HD < > AT ,257 ,028 9,199 *** CP < > AT ,126 ,027 4,661 *** Source: Analysis results by Amos With the above results, we realize that the correlation coefficients are all smaller than The highest correlation coefficient is 0.332 is less than 0.695 (the smallest correlation coefficient measured for a concept in the figure) 4.1) As such, this indicator basically meets the requirements for the value that distinguishes between concepts (Bagozzi and Foxall, 1996) The above result satisfies two requirements that the correlation between the factors must be less than 1, and the correlation between the factors must be smaller than the correlation of the observed variables measured for factor and must be smaller more than (Gerbing and Anderson, 1988) At the same time, the Pvalue coefficient is less than 0.001 (requires only less than 0.05) is too good; only Pvalue index is 0.001 but this is too good compared to the request All in all, the data proves that the scale reached discriminatory values 19 4.4 Testing the model and research hypothesis by SEM model 4.4.1 Testing the research model The results show that the coefficient CMIND / df = 2.038 greater than less than is very good; TLI = 0.935 and CFI = 0.941 both indexes are greater than 0.9 as well GFI if greater than 0.9 is great and RMSEA if less than 0.5 is great However, GFI = 0.845 is greater than 0.8 and RMSEA = 0.054 is less than 0.08 is considered satisfactory (Hair et al., 2010) Thus, basically the proposed research model is consistent with actual data 4.4.2 Test the research hypotheses Table 4.38: The results of estimating the relationship between the factors in the model Estimate S.E C.R P Label HD < - KT ,471 ,058 8,326 *** HD < - TN ,205 ,056 3,352 *** HD < - MT ,106 ,043 2,109 ,036 HD < - HT ,187 ,048 2,671 ,008 HD < - CP ,122 ,051 2,287 ,023 AT < - HD ,719 ,046 12,970 *** Source: Analysis results by Amos 21.0 With the above result, we see that P-value is less than 0.05 (95% confidence level), all factors have an impact on the attractiveness of the destination, this result is consistent with many previous studies Here (Sun, 2002; Dunning, 2002; Buckley et al., 2016; Snyman and Saayman, 2009; Adam and Amuquandoh, 2013; Assaf et al., 2015) The results show the level of "potential tourism market" impact on the attractiveness of destinations is the most with 0.471, which is completely consistent with many previous studies (Scaperlanda and Mauer, 1969; Schollhammer , 1972; Caves and Reuber, 1971; Assaf et al., 2015; Tomohara, 2016; Li et al., 2017) However, numerous studies point to the next important factor as "cost advantage" (Anil et al., 2014; Dunning, 2002; Johnson and Vanetti, 2005; Snyman and Saayman, 2009) However, the author's research shows that "advantage of tourism resources" is the next important factor for investors This, the author interviewed investors after the study, they said that tourism resources are an important factor to help investors reduce the initial investment costs In addition, tourism resources are factors that create attraction, investors just try to make and make it more attractive, more attractive to tourists And that is the main goal of the investment is to attract more visitors, reduce investment costs Many studies also recognize the three most important groups of factors, the most impact on the attractiveness of the destination are: potential tourism market; infrastructure, tourism resources (UNCTAD, 2007; Ussi and Wei, 2011; Polyzos and Minetos, 2011; Santos et al., 2016) This result is also consistent with the author's research results However, the element of tourism resources was discovered by the author and added a more complete measurement variable, which is the "attraction of attractive entertainment services" Most quantitative and qualitative studies stop at studying the factors that influence the attractiveness of destinations in attracting investors (UNCTAD, 2007; Ussi and Wei, 20 2011; Polyzos and Minetos, 2011; Santos et al., 2016; Snyman and Saayman, 2009; Adam and Amuquandoh, 2013; Assaf et al., 2015; Puciato et al, 2017) The author's research has gone one step further, which is to determine the relationship between destination attractiveness to investor intent The results show that the attraction factor of investment destination has a great impact on the investment intention of 0.719 The above results contribute to affirming that investors focusing on potential tourism market advantages are the most important factors determining the attractiveness of destinations to attract investment capital Next is the factor of tourism resources and infrastructure contributing significantly to the attractiveness of investment destinations The remaining two factors are similar in impact level Thus, we can confirm that the initial research hypothesis is consistent with market data and in agreement with investors' viewpoints 4.5 Analyzing multi-group structure by SEM model 4.5.1 Testing differences by portfolio The research portfolio of the author only focuses on two areas: (1) investing in hotels (KS); (2) invest in amusement spots or amusement parks (KDL) Table 4.39: Comparing the index of partial invariants and variability Comparative criteria Chi-square df CMIN/df GFI TLI CFI RMSEA Variable model 1,717 0,785 0,912 0,920 0,045 1867,654 1088 Invariant model 1897,225 1096 1,825 0,781 0,911 0,918 0,045 Difference 29,571 0,108 -0,004 -0,001 -0,002 Source: summary of estimation results from two invariant and variable models We have, P-value = 0.000252 0.05 (95% confidence level), proving that we not have enough databases to reject the H0 hypothesis, accept the H1 hypothesis This proves that there are not enough databases to confirm the difference between the two models Therefore, we will choose the invariant model for higher degrees of freedom (Tho and Trang, 2009) Chapter CONCLUSION AND POLICY IMPLICATIONS 5.1 General conclusions on research results Firstly, research results show that there is a positive relationship between tourism resource advantages, potential tourism markets, cost advantages, tourism infrastructure, investment environment and attractiveness guide of destination in attracting investors And the investor's attitude about the attractiveness of the destination impacts in the same direction as the intention to invest Secondly, the results also show that the search factor is the most important factor for tourism, which is consistent with most previous studies, and in terms of practical significance, this is complete full fit Thirdly, factors of resource advantage, infrastructure advantage, cost advantage are the next important factors chosen by investors In-depth interviews with investors after the research results showed that the cost advantage to help them reinforce the belief about the expected profit in the new land (Hymer, 1976; Greenhut, 1952) Fourthly, the factor of resource advantage is highly appreciated in the research Previous experimental studies focused on the location with beautiful scenery, cool climate, spacious land, available ground, and coast (Adam and Amuquandoh, 2013; Newell and Seabrook, 2006) Thusly, this element of resource advantage is partly an additional factor for the potential tourism market Fifth, the results show that tourism infrastructure factor has a great impact on the attractiveness of the destination Results of interviews with investors, they said that in order to create favorable conditions for businesses and visitors, infrastructure development is inevitable 22 Sixthly, the factors of investment environment (effective implementation and administration of local governments) have shown a positive impact on the attractiveness of destinations to attract investment capital, but the smallest impact Seventhly, the results also show that the attractiveness of the investment destination has a great impact, accounting for about 72% of the investment intent This contributes to affirming that localities that want to attract investment need to invest, improve tourism resources, infrastructure, investment environment contributing to creating cost advantages for houses invest 5.2 Policy implications 5.2.1 Implication 1: Develop a measure to measure the attractiveness of tourism investment in each locality The author proposes that the State agency give the overall local attractions for tourism in attracting investors with the following 5-step scoring method: Conducting surveys of investors of each province in the country This survey to see the extent of their assessment of the factors that satisfy local tourism investors with a scale of to 10 The survey is the result of the research of the author mentioned above The scale of the rating from to 10 (where 1: very poor; is average; 10 is very good) Calculate the average score for the observed variable and factor With the above survey results, the state management agency should calculate the average score of each measurement variable for the factor, then calculate the average score for the factor Calculate the average score for the observed variable ℎ ℎ ℎ = ℎ ( ) Calculate the factor average ℎ = × ℎ ( ) Or ℎ ℎ ℎ = Calculate the overall attraction according to the feeling of tourism investors The research model shows groups that have an impact on the overall attractiveness of the destination with a high to low impact level as follows: (1) potential tourism market; (2) advantage of tourism resources; (3) infrastructure advantages; (4) cost advantage; (5) investment environment Thus, the average proportion of factor groups will be 0.2 or 20%; respectively, the high proportion will be 25% - 30%; Low density will be 5-10% Based on the above SEM results, we identify the province (1) potential tourism market in turn; (2) advantages of tourism resources, will have a high proportion of 30%; (3) advantage of infrastructure, the average proportion will be 20%; The remaining groups have a low proportion of 10% The overall attraction score is 23 = !" ( × 24 ) Calculate the attraction based on the actual tourism investment The adjustment coefficient here is the amount of investment capital for each province's tourism announced by the state agency # ℎ ℎ ℎ − ℎ =( ) × 1000 %− Calculate the adjusted overall attractiveness Overall gravity score has adjusted =( × 0,5 + ℎ × 0,5 5.2.2 Implication 2: Creating potential tourism markets First of all, each province has to plan a roadmap about tourism resources need to be invested and developed Need to plan the beautiful islands to attract investment In addition, binding conditions on investment scale must be enforced to prevent investors from taking advantage of real estate business and taking advantage of investment in loudspeakers to exploit temporarily to destroy landscapes and general planning of the province Secondly, each province must organize a unique and differentiated program, becoming the brand of the locality when visitors mention it Such as the development of the largest paragliding festival in the country, which can host the country's largest sand festival, sailing festival, the largest water game in the country Thirdly, investing in synchronous infrastructure according to the overall tourism planning to create favorable conditions for investors and create favorable conditions for tourists Certainly, the development of an international airport to attract sources of visitors to the local international market 5.2.3 Implication 3: Creating cost advantages Firstly, reduce tax according to the schedule to help businesses overcome the initial difficult period Taxes can be greatly reduced in the first years and tend to decrease slightly along the remaining schedule Secondly, based on the master plan for site clearance, construction of complete infrastructure for investors This contributes to reducing costs for investors, and is also a local strength in attracting investment Thirdly, it is possible to reduce the land use fee for businesses also according to the roadmap to reduce it in the first few years and reduce it a little in subsequent years depending on the size, nature of the project and the duration of the project Works accordingly Fourthly, low-interest loans or guarantees based on the equity of the investor must be evaluated by an independent party to consider the feasibility of the project At the same time, there must be specific, clear commitments on scale, progress, time, and binding conditions Fifthly, coordinate with local universities in associating with businesses in internships and professional practice to improve the quality of labor 5.2.4 Implication 4: Perfecting the investment environment 5.2.4.1 On the government side Firstly, the Government should make a master plan on key tourist regions, areas and destinations for tourism development Based on the terms of reference, the government declared a tender for the development of each respective local location Secondly, the Government needs to establish a transparent institutional framework, which strictly regulates the manner, conditions, and scope of activities of private investors and has specific guidelines Thirdly, the Government should use the competitive bidding process to select partners in the private sector The province will need to establish basic rules that respect the participation of the private sector (for example, usage changes, hours of operation, prices) as well as any planning and overall design issues Fourthly, the Government and local authorities should set up a website containing a complete, transparent and clear range of information for investment projects, procedures, and investment conditions 5.2.4.2 On the side of local government Firstly, the locality should build a website that provides sufficient information on tourism projects to encourage investment and bidding Secondly, building a 1-door system to carry out investment procedures, submitting online application procedures, clearly defining the process, conditions on documents that investors need to provide, time to receive and Return the records Thirdly, build a department to support procedures, information and guide investors This department will support directly or via online channel Fourthly, there is a hotline phone number reflecting the service quality of the onestop shop for investors Fifthly, complete infrastructure construction to facilitate investors Building specific local tourism highlights to attract tourists is also attracting local investors Sixthly, continue to try to improve the PCI, this index contributes to creating a brand and a local image in the eyes of investors It is also a branding tool for investors 5.3 Limitations of research and future research directions With the contributions of the research in terms of theoretical and practical basis, however, the research does not avoid certain limitations as follows: Firstly, the number of observations of the sample is relatively small SEM studies require a large sample, a common sample of 300 observations, 500 observations are good and 1000 observations are very good (Tabachnick and Fidell, 2007) Second, the object of observation is that domestic enterprises account for 85.1%, foreign enterprises account for 14.9% Therefore, further research should propose separate research for domestic capital and separate research for foreign capital for this field Thirdly, the next study should address investment barriers, considering how the impact of this factor reduces investment attraction From there, help the locality improve the investment environment better, reduce barriers to increase its attractiveness to investors in the future ... mention the attractiveness of destinations in attracting tourism investment Secondly, the author has discovered a new factor that influences the attractiveness of the destination in attracting investment. .. on the field of attracting investment for the industry in general and for the tourism industry in particular, all stopped at identifying the factors affecting the attractiveness of the point... of tourism in attracting tourism investment H3: Economic advantage (potential tourism market) has a positive effect on the attractiveness of tourism in attracting tourism investment H4: The investment