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Exploitation or enterprise: which direction now for Vietnam's tourism industry?

Strategies individuals employ to gain participation in tourism development are limited by their circumstances. For those with some resources, business strategies can develop sustainable small enterprise. But the poor may have no option but to adopt survival strategies, which can lead to exploitation and further poverty in the longer term. Building on previous research in the Philippines, independent research consultant Trish Nicholson reports on case studies in Vietnam and suggests ways to increase equity and sustainability in tourism development.

Tourism in Vietnam has grown rapidly since 1990. The industry is dominated by large-scale investment in joint ventures between foreign corporations and state enterprises. Although foreign arrivals account for 40 percent of visitors, the rate of increase is declining and foreign exchange earnings are less than expected. However, Vietnam's Tourism Master Plan does little to support small-scale entrepreneurs who tend to serve mainly domestic tourists. Neither does the Plan protect ethnic minorities from exploitation.

Ethnic minorities in the mountain district of Sa Pa are promoted as major tourist attractions by urban tour operators. However, few direct financial benefits reach the villages. Unable to meet basic needs from poor subsistence economies, ethnic minority women are in weak negotiating positions in relation to urban traders. To supplement low cash incomes, women and girls sell their own embroidered clothes through trading practices that are unsustainable and often exploitative. Products made for personal use are diverted to urban markets where their skill and labour is inadequately compensated.

Vietnam's free market policies, (doi-moi, or renovation), have encouraged small family enterprise in the town of Bai Chay (in the Ha Long Bay World Heritage Site). Tourism services in the informal sector are expanding rapidly and provide new sources of income, particularly from domestic tourists. Development in mini-hotels resulted from access to small plots of state land and secure additional income from formal sector jobs. But inadequate administrative and legal structures, notably vis-à-vis land ownership, could cause serious social and economic problems in the future. From conclusions drawn in the report it appears that:

  • tourism stimulates grass-roots entrepreneurial development where there is access to some resources
  • without social investment and community preparation, ethnic groups become tourism commodities
  • survival strategies adopted by the poor can result in exploitation and economic and cultural erosion
  • exploitative aspects of tourism particularly affect women and girls.

Policy-led innovations which (it is suggested) could enhance equity and sustainability in tourism development include:

  • Administrative and legal structures which ensure fair trading and protection of assets in host areas.
  • Investment to reduce structural poverty and increase negotiating power of the poor in host communities.
  • Empowerment of ethnic communities to control accesses to their culture for tourism purposes.
  • Steps to improve production and marketing skills so ethnic producers can reap added value from their crafts.
  • Projects for sustainable income sources as alternatives to dependence on tourism.
  • Steps to integrate tourism into longer-term development planning for whole areas, rather than as isolated projects.
  • Participative planning and responsive consultation with host communities.
  • Imposing an appropriate scale on development, such as small scale local investment for domestic tourism.

Source(s):
Culture, Tourism and Local Strategies towards Development: case studies in the Philippines and Vietnam. ESCOR Research Report #R6578 by T. Nicholson (1997) >

Funded by: Department for International Development (DFID), UK (1995-1997)

id21 Research Highlight: 1998-May-07

Further Information:
Trish Nicholson
5 Kingsbury Street
Brighton
East Sussex
BN1 4JW
UK

Tel: +44 (0) 1273 231855
Contact the contributor: TrishNicholson@compuserve.com

Views expressed on these pages are not necessarily those of DFID, IDS, id21 or other contributing institutions. Unless stated otherwise articles may be copied or quoted without restriction, provided id21 and originating author(s) and institution(s) are acknowledged.

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