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Eco-Tourism Destination ReportAn Evaluation of the Stakeholders and Sustainable Developmentof HueRMIT International University VietnamPrepared by Team 6 Le Dao Thuy Duong - s Phan Dieu Linh - s Le Phuc Khang - s Tran Trung Kien - s La Nhu Quynh - s Nguyen Thuy Ngan - sSTATEMENT OF AUTHORSHIPCourse C...

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Eco-Tourism Destination Report An Evaluation of the Stakeholders and Sustainable Development of Hue RMIT International University Vietnam

Prepared by Team 6 Le Dao Thuy Duong - s3777301 Phan Dieu Linh - s3757861 Le Phuc Khang - s3753194 Tran Trung Kien - s3790309 La Nhu Quynh - s3817836 Nguyen Thuy Ngan - s3817830

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STATEMENT OF AUTHORSHIP Course Code

BUSM4567

Course Name

Eco-tourism and Sustainable Hospitality Management

Assignment Title

Stakeholders and Sustainable Tourism Destination Report

Assignment No

1A

Date Due

29th November 2020

Word Count

3495 (excluding titles, statement of authorship, table of contents, references, appendices and summary of teamwork)

STUDENT(S) Family Name

Given Name

Student Name

LE

PHUC

KHANG

LE

DAO THUY

DUONG

PHAN

DIEU

LINH

TRAN

TRUNG

KIEN

LA

NHU

QUYNH

NGUYEN

THUY

NGAN

Declaration and Statement of Authorship: 1. I/We hold a photocopy of this assignment which can be produced if the original is lost/damaged. 2. This assignment is my/our original work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgment is made. 3. No part of this assignment has been written for me/us by any other person except where such collaboration has been authorized by the academic/teacher concerned and as detailed in the assignment. 4. I/we have not previously submitted this work for any other course/unit. 5. I give permission for my assignment to be scanned for electronic checking of plagiarism. 6. I give permission for a copy of my/our marked work to be retained by the Department for review by external examiners. 2

I/We understand that Plagiarism is the presentation of the work, idea or creation of another person as though it is one’s own. It is a form of cheating and is a very serious academic offense that may lead to expulsion from the University. Plagiarized material can be drawn from, and presented in, written, graphic and visual form, including electronic data, and oral presentations. Plagiarism occurs when the origin of the material used is not appropriately cited. Enabling Plagiarism is the act of assisting or allowing another person to plagiarize or to copy one’s work; this is not acceptable and is also subject to penalty. Student Signature(s) LE PHUC KHANG

LE DAO THUY DUONG

PHAN DIEU LINH

TRAN TRUNG KIEN

LA NHU QUYNH

NGUYEN THUY NGAN

Further information relating to the penalties for plagiarism, which range from a notation on your student file to expulsion from the University, is contained in RMIT Statute 6.1 Student Discipline. (See Appendix in Student Guide or consult Turing).

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Table of Content Introduction

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Key Elements of Stakeholder Theory Stakeholder Concept and Definition Host community residents Government and Administrations Tourism Service Providers Tourists

6 6 6 6 7 7

Key Elements of Triple Bottom Line Performance Evaluations The Triple Bottom Line concept and definition Social Sustainability Environmental Sustainability

7 7 8 9

Governance Interests and TBL Economic Aspect Social Aspect Environmental Aspect

9 9 10 10

Service Provider Interests and TBL Economic Aspect Social Aspect Environmental Aspect

11 11 11 12

Visitors Interests and TBL Economic Aspect Social Aspect Environmental Aspect

12 12 13 13

Host Community Interests and TBL Economic Aspect Social Aspect Environmental Aspect

14 14 14 15

Conclusion and Recommendations

15

References

17

Appendices

23

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I.

Introduction

The tourism industry is changing and evolving as most people who are directly related to this industry are gradually motivated to find new eco-friendly ideas and ways to promote the protection of the environment (Asley, Roe and Goodwin, 2001; Byrd, 2007; Niedziolka, 2012; Stoddard, Pollard and Evans, 2012). Hence, the impact of tourism development has been a major debatable topic for many years whether its impact is positive or negative to the society and environment (Suntikul et. al. 2016; Pramanik and Ingkadijaya, 2018). In 2017, the United Nations launched a program ‘the Year of Sustainable Tourism’ with the aim to encourage green development globally. According to World Tourism Organisation (UNWTO) 2019, the number of international tourists would increase through the years, hence, it is crucial to educate the need of sustainable tourism to travellers and developers. There are several concepts which help preserving and developing a strong tourism, these are not limited to the two most important aspects: ‘triple bottom line’ and ‘stakeholder theory’. These two key concepts will be used to apply and analyse toward Thua Thien Hue. Hue is a city which is located at the central of Vietnam, the place lies on a plain supported by foothills of the Annamese Cordillera (Chain Annamitique). The Huong river traverses Hue which creates the unique view for this region (The Editors of Encyclopaedia Britannica). The purpose of this report is to apply the theories of ecotourism and sustainable development to the case of Hue city in Vietnam.

II.

Key Elements of Stakeholder Theory ● Stakeholder Concept and Definition

Freeman (1984; as cited in Byrd, 2007) defined a stakeholder as “any group or individual who can affect or is affected by the achievement of the organization

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objectives”. After that, Donaldson and Preston (1995; as cited in Byrd, 2007) improved that definition by adding “the group or individual must have a legitimate interest in the organization”. There are 4 main groups of stakeholders: host community residents, tourism service providers, government and administrations, and tourists.

● Host community residents According to Thetsane (2019), local communities play an essential role in the sustainability of the tourism industry since it is one of the crucial elements of tourism development. Hue attracts tourists because of the specialties that ethnic minorities provide. There are 4 ethnic minorities: Bru-Van Kieu, Co Tu, Ta Oi, and Pa Co (Thua Thien Hue Portal n.d.). They bring benefits to Hue by maintaining and dedicating their houses, sharing their cultures such as making wine, playing folk games. Therefore, tourism services providers have the resources to make plans and strategies for tourists.

● Government and Administrations In every country, the government plays an essential role in the development of tourism. Their missions not only recognize the problem but also plan and try to solve it (Elliott, 1987). The government controls and improves the economy by making policies and rules for tourism activities. Thanks to the policies and rules, there would be fewer tourism activities that are conducted against the law.

● Tourism service providers The tourism service providers bring more profits to the economy by offering a variety of services and destinations for customers. They satisfy tourists with their high quality of services and unique activities in each destination, which gives tourists have more memorable experiences in their destinations.

● Tourists

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It is said that tourists are the factor that brings the biggest profit to the tourism industry.

By

using

tourism

services, which

contain

accommodations and

entertainment, such as hotels, resorts, restaurants, etc., tourists contribute directly to the local’s revenue. Due to the good experiences of tourists, the government has the reason to improve the quality of tourism services in order to attract more tourists to that destination. For example, in 2018, there are 4.25 million visitors who went to Hue, includes 2.2 million international visitors, contributes about 4,400 billion VND to the economy. This number is 12% higher than that in 2017 (VNAT, 2019). In the first 10 months of 2019, Hue welcomed 4.1 million visitors and brought over 4.1 trillion VND (TTXVN, 2019).

III.

Key Elements of Triple Bottom Line Performance Evaluations ● The Triple Bottom Line concept and definition

The “Triple Bottom Line” model (Figure 1) was first coined in the research of John Elkington in 1994. It initially represents an accounting framework and works as a component of Corporate Social Responsibility concept by evaluating the firm accountability toward the 3 dimensions of sustainable development: Profit (Economic), People (Social) and Planet (Environmental) (Elkington 1997). ● Economic Sustainability Economic Sustainability refers to the business performance that creates economic value to the society, the scale of the dimension can be measured based on the traditional financial performance determinants (e.g. profit, investment, capital structure, etc.) (Elkington 1997; Stoddard, Pollard and Evans 2012). An organization's sustainability can also be evaluated through its ability in assessing supported resources to generate profit, without negatively affecting the local community and the environment (Stoddard, Pollard and Evans 2012). To achieve economic sustainability, social benefits are a fundamental requirement, so improving the locals quality of life (QOL) (e.g. jobs creation, infrastructure facilities renovation, 7

healthcare activities, etc.) is one of the standard activities in which any business organization must perceive (Rogers and Ryan 2001; Suntikul et. al. 2016). In the case of eco-tourism in Vietnam, Hue is a strategic destination for sustainable development due to its ancient cultural heritage with the support of many NGOs around the world (Asian Development Bank, 2014). By aiming to become a “green” city in the future, the government is implementing the investment calls domestically and internationally for 39 projects including industrial zones, commerce-serviceshotels complex areas and eco-tourism destinations (Thua Thien Hue Portal 2020). Its impacts on Hue city and the citizens are considered to be positive as Niedziółka (2012) highlighted the three important benefits of tourism development were: (1) reduction of unemployment, (2) facilities uplift and (3) financial and non-financial income to the region. Another benefit from tourism that could be recognized in Hue is poverty alleviation which is believed to have beneficial economic affection on the residents (Asian Development Bank, 2014). However, it would raise another concern is the unequal accumulation of resources between locals and guests resulting in the conflict in the development process (Niedziółka 2012). ● Social Sustainability Social sustainability is the process of value creation to the society in which sustainable development concentrates on promoting the human wellbings, showing the comprehension to the needs of the local residents by supporting them with capable resources (Stoddard, Pollard & Evans 2012). In the research of Rogers and Ryan (2001), the authors mentioned Max-Neef (1991) framework about the need of human wellbeing as he indicated that there were 9 basic elements to achieve for creating a healthy community: (1) sustenance; (2) protection; (3) affection; (4) idleness; (5) creativity; (6) freedom; (7) understanding; (8) participation; (9) identity. Suntikul et. al. (2016) also emphasized the importance of locals quality of life during the tourism development and their perspective toward the impacts it created. Linking to the case of Hue tourism, government actions in attracting FDI is expected to create many opportunities for the growth of infrastructure facilities (Trang Nguyen & Duc Nguyen 2013); the result of it could initially alleviate the poverty rate in Thua Thien Hue province as well as establishing more social amenities such as schools,

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hospitals, etc. for the community. Additionally, the Hue government could expand their relationship with various NGOs around the world in advertising the cultural tourism, and collaboration in organizing social activities or charitable fundraising such as heritage protection programs, free healthcare service for locals, educational programs about cultural-environment protection, etc. (Asian Development Bank, 2014; Hai Nguyen & Cheung, 2014). ● Environmental Sustainability Environmental sustainability is the term related to the long-term preservation of the environment, it is also considered as the responsibility of any individual or business organization to prevent the exhaustion of the natural resource (Gimenez, Sierra & Rodon, 2012). There are various studies coining the significance of preserving the environment and maintaining sustainability with a focus on achieving sustainable development. With the aim to become a “green” city in the near future, the low carbon initiative plan is currently being implemented as it is expected to minimize the amount of carbon creating a cleaner environment for the local people as well as tourists (Kumar et. al., 2016). The effectiveness of this sustainability trend could boost the tourism sector dramatically in the coming years (Thua Thien Hue Portal 2019).

IV.

Governance Interests and TBL ● Economic Aspect

In the economic aspect, the governance presents a long-term plan including the need for Hue to improve its unique culture. According to Thua Thien Hue Portal 2019, the department of sport, culture and tourism associated with the Organization of international cooperation (JICA) chose many craft villages, such as Thanh Toan tile bridge to become a new and durable tourism attraction. This action shows the ambition of the government to achieve sustainable growth. Furthermore, promoting investment in aquaculture and seafood export will create beneficial growth in the

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regional economy. Additionally, Hue has been speeding up the clearance process for the construction of industrial zones that increase competitiveness for industry investment.

● Social Aspect In 2018, the Hue government embellished and improved the quality of Pham Ngu Lao, Chu Van An, and Vo Thi Sau night streets to create a highlight to attract tourists at night in Hue city (Thuathienhue.gov 2019). Besides, at the end of 2019, Hue city will also upgrade and expand Phu Bai International Airport to reach a capacity of 5 million tourists per year because of overcrowding from the increasing number of tourists arriving at the airport (Anh Minh 2019). On the contrary, in Dai Noi, Dong Ba market, Thien Mu pagoda, there is a situation of hassling or overcharging, causing much trouble for tourists (Quang Tien - Duong 2012). Therefore, the People's Committee of Hue City has instructed the functional forces to accelerate the inspection and deal with bothering tourists in the area (Thuy An 2017). As a result, Hue has significantly improved when making visitors more comfortable and impressed; they feel no longer "annoyed" as before (Duc Quang 2019).

● Environmental Aspect Due to the development of tourism in Hue, eco-friendly solutions have been made. As seeing the potential of Hue’s tourism industry as well as the aiming to develop sustainably, The United Nations Development Programme (UNDP) signed a Memorandum of Understanding (MOU) with Thua Thien Hue Provincial People’s Committee to strengthen the sustainable development of this province (Climate Business Index 2020). It offers a social benefit program in Hue which consists of 200 e-bikes and e-bicycles. Furthermore, UNDP also developed D-Map which is a digital map especially made for disability (Climate Business Index 2020).

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V.

Service Provider Interests and TBL ● Economic Aspect

Hue is a potential destination attracting 110 Foreign Direct Investment (FDI) projects with a total registered capital of over 3.82 billion USD, and in the top 10 provinces in attracting FDI capital in recent years (NDO 2019). Particularly, Banyan Tree Holdings Limited Singapore, which has implemented the critical project Laguna Lang Co with an investment of $ 2 billion, which is expected to create many employment opportunities for local people (Thai Binh 2018). Furthermore, several leading corporations such as Ecopark, Vingroup, BRG, PSH, Minh Vien, etc. increase the Incremental Capital Output Ratio (ICOR) index in Hue from 6.5 in 2011-2015 to 5.7 in 2016-2018. (Nguyen 2020). On the other hand, Hue also has the potential to develop craft village tourism. Specifically, in 2012, craft villages in Hue helped create jobs for more than 2,500 workers and improved people's lives in rural areas (Cong Hau 2013). Therefore, service providers and travel agents can generate more tours to craft villages, attract more visitors to visit and experience, and provide more job opportunities for the locals.

● Social Aspect In terms of society, Hue has many monuments, temples, palaces, of which UNESCO recognizes seven, and many intangible relics and landscapes are preserved (VOVWORLD 2020). According to the Hue Monuments Conservation Center, service providers coordinate with them to introduce culture, attracting visitors to visit the heritage. Therefore, there are many types of tourism created by travel agencies by that goal. A typical example is a dragon boat tour on the Huong River, where visitors can enjoy dinner and stop at iconic places in Hue Citadel along with listening to folk music (Wong n.d). Additionally, Hue also has the Hue Festival, which is periodically held every two years in even years, and Hue Traditional Craft Festival is held every two years in odd years (Phan Tien 2019). Based on these advantages, travel agencies can organize tours to explore the heritage of Hue.

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● Environmental Aspect In terms of environment, this is also an essential factor to be noticed by service providers. Typically, Banyan Tree is at the forefront of sustainable business development in Vietnam, emphasizing environmental protection, including organizing waste collection activities, reducing greenhouse gas emissions, etc. (Laguna CSR 2019). Also, there is a travel agency Huetourist, which collects tours towards green tourism, including the one day tour on "Thuy Bieu - Tam Giang" helping visitors experience the natural ecosystem in Hue (thuathienhue n.d)

VI.

Visitors Interests and TBL ● Economic Aspect

According to Vnexpress, the total number of visitors to Hue imperial citadel in 2019 reached 4.81 million, international visitors were estimated at 2,186,747 arrivals. For accommodation tourists was about 2,247,885 arrivals, revenue from tourism is estimated at 4,945 billion VND, up to 10.54 percent (Hanam.gov 2020). Thanks to unique custom and historical destinations, Hue has advantages in exploiting tourism and aquaculture potentials. However, until 2019, the number standard room of 3-5 stars is only about 27 foundations with 3,227 rooms. It proved that the growth in the number of accommodation rooms was not consistent with the growth of visitors to Hue (Duc Quang 2020). However, the "burning" creates a premise for Hue to increase accommodation service prices. If this problem does not have any solutions, it could have a bad impact on sustainable tourism.

● Social Aspect In the social aspect, there are opportunities for tourists to discover local customs and habits, such as, the life of ancient Nguyen Kings and the traditional cuisine of Hue like bun Bo Hue, mussel rice, bread flour, etc. which simply cannot have the original taste elsewhere. A...