Destination Management Strategy
Đà Nẵng, Thừa Thiên Huế and Quảng Nam
3 July 2014
Programme No. DCI-ASIE/2010/21662
Content
Executive Summary ...... 2
1. Background ...... 5 1.1 Destination management ...... 5 1.2 Government mandate for regional destination management ...... 5 1.3 City and provincial tourism development strategy of Đà Nẵng ...... 7 1.4 Provincial tourism development strategy of Thừa Thiên–Huế ...... 7 1.5 Provincial tourism development strategy of Quảng Nam ...... 7 1.6 Environmentally and Socially Responsible Tourism Capacity Development Programme ...... 8
2. Recent tourism performance in the region ...... 9 2.1 Analysis of tourism performance ...... 9 2.2 Distribution of tourism in the region ...... 17 2.3 Main tourism products ...... 17 2.3.1 International visitors ...... 17 2.3.2 Domestic visitors ...... 17 2.4 Product gaps ...... 18 2.5 Product quality systems at present ...... 22 2.6 Destination management at present ...... 22 2.7 Destination marketing at present ...... 23 2.8 Human resource issues at present ...... 24 2.8.1 Introduction ...... 24 2.8.2 Vocational skills ...... 25 2.8.3 Management skills ...... 26 2.8.4 In‐house training in hotels ...... 26 2.8.5 Other HR issues: ...... 27 2.8.6 Standards of training provision...... 27 2.8.7 Conclusion ...... 27
3. Strengths, weaknesses, opportunities and threats ...... 30 3.1 Strengths ...... 30 3.2 Weaknesses to be addressed ...... 31 3.3 Opportunities to be captured ...... 33 3.4 Threats ...... 36
4. Development Strategy to 2020 ...... 37
Page ii
4.1 Overall strategic vision ...... 37 4.2 Development objectives ...... 38 4.3 Applying good governance ...... 39 4.3.1 Provincial Destination Coordination Boards ...... 40 4.3.2 Destination Steering Committees ...... 42 4.4 Foster competitive tourism businesses and sustainable markets ...... 45 4.5 Use tourism for socio‐economic development ...... 45 4.6 Build awareness and understanding of sustainable tourism ...... 45 4.7 Develop a skilled tourism workforce with decent working conditions ...... 45 4.8 Protect and sensitively promote natural and cultural heritage ...... 46
5. Product development action plans ...... 47 5.1 Background ...... 47 5.2 Culture and heritage action plan ...... 47 5.2.1 World Heritage Sites ...... 47 5.2.2 Linking festivals to accommodation booking systems ...... 47 5.2.3 Heritage Road ...... 48 5.3 Coastal tourism action plan ...... 49 5.3.1 Improving beach management ...... 49 5.3.2 Sustainable seafood ...... 49 5.3.3 Derelict sites ...... 49 5.3.4 Tackling erosion ...... 49 5.4 Nature tourism action plan ...... 50 5.4.1 Strengthening management of National Parks, lagoons, nature reserves, Marine Parks and other protected areas...... 50 5.4.2 Encouraging high value nature tourism experiences ...... 50 5.4.3 Mountain tourism ...... 50 5.5 City breaks ...... 51 5.6 Events strategy ...... 51 5.6.1 City tours ...... 51 5.6.2 Night time destination planning ...... 51 5.6.3 Greening the cities ...... 51
6. Service quality strategy to 2020 ...... 53 6.1 Service quality objectives ...... 53 6.2 Enhancing service quality jointly in the region ...... 53 6.2.1 ESRT support ...... 53 6.2.2 Short term training programmes ...... 54 6.2.3 Training in destination excellence ...... 54 6.2.4 Training in greening the industry ...... 54 6.2.5 International exchange programme ...... 54 6.2.6 In region exchange programme ...... 54
Page iii
6.2.7 Providing guidance to training institutes in the region so that the can become the best value in Vietnam ...... 55
7. Marketing strategy to 2020 ...... 57 7.1 Marketing objectives ...... 57 7.2 Strategy ...... 57 7.2.1 Anticipating future trends and markets ...... 57 7.2.2 Positioning ...... 58 7.2.3 Brand ...... 58 7.3 Product: Matching product to markets ...... 59 7.4 Price ...... 61 7.5 Place – where will marketing be undertaken? ...... 61 7.5.1 On line ...... 61 7.5.2 In market activity ...... 61 7.5.3 Targeting airlines for new and expanded air links ...... 62 7.6 Marketing budget ...... 63 7.7 Timetable ...... 64 7.8 Monitoring progress ...... 64
8. Bibliography ...... 66 8.1 Printed sources ...... 66 8.2 Electronic sources ...... 67
Disclaimer The views in the strategy are those of the experts and do not reflect those of the European Commission.
Page iv
Destination Management Strategy (July 2014)
Acronyms
ACV Airports Corporation of Vietnam ADB Asian Development Bank ASEAN Association of South East Asian Nations CCV Central Coast Vietnam CSR Corporate social responsibility DAD Da Nang International Airport DMO Destination management organisation EC European Commission ESRT Environmentally and Socially Responsible Tourism Capacity Development Programme EU European Union HAN Noi Bai International Airport, Hanoi HCMC Ho Chi Minh City ILO International Labour Organisation ITDR Institute for Tourism Development Research ITB Internationale Tourismus Börse IUCN International Union for the Conservation of Nature LCC Low cost carrier MICE Meetings, incentives, conferences and exhibitions MCST Ministry for Culture, Sport and Tourism NGO Non‐governmental organisation SGN Tan Son Nhat International Airport, HCMC SWOT Strengths, weaknesses, opportunities and threats UNESCO United Nations Educational, Cultural and Scientific Organisation UNWTO United Nations World Tourism Organisation VND Vietnam dong VFR Visiting friends and relations VNAT Vietnam National Administration for Tourism WWF Worldwide Fund for Nature
Page 1
Destination Management Strategy (July 2014)
Executive Summary
To compete effectively, destinations have to deliver superb experiences and excellent value to visitors. The business of tourism is complex and fragmented and, from the time that visitors arrive in the destination until they leave, the quality of their experience is affected by many services and experiences; including a range of public and private services, the environment and community welcome. Delivering excellent value depends on many organisations working together in unity. Destination management calls for a coalition of these different interests to work towards a common goal to ensure the viability and integrity of their destination now, and for the future. This is a key challenge in a region where there is limited cooperation and communication between the public and private sectors, and between competing private sector companies, at present. A Memorandum of Understanding on Cooperation for combined tourism development was signed on 27 February 2014 by the provincial People’s Committees of Đà Nẵng, Thừa Thiên‐Huế and Quảng Nam and the Vietnam National Administration for Tourism. This strategy will help to further this cooperation process and make it sustainable. Traditionally the main driver for international visits to region has been heritage as part of a “classic” Vietnam tour, and this remains the case. The area has three World Heritage Sites and offers memorable Vietnamese urban and rural experiences, possibly with greater authenticity and hospitality than in the country’s two main cities. Accommodation facilities have been rapidly developing in the region with flagship resort developments making a significant mark on both the overall quality offer and the profile of the area. The overall performance of the tourism industry gives cause for concern however: There has been a sharp decline in occupancy as accommodation supply increased. The collapse of the Chinese market in 2014 has brought the need for better destination management regarding accommodation supply, and the need for more a strategic broadly‐based marketing approach, sharply into focus in the region. There is presently no marketing strategy in place. In addition, while the region has a significant supply of training facilities and of students in education, there is a major miss‐match with actual industry needs. Vocational colleges are poorly equipped. Key aspects of destination management are not being addressed. The overall vision is to make the three province region become An internationally recognised holiday destination which can hold more visitors for at least five nights. The destination offering best value in Vietnam, building on the existing product strengths of Đà Nẵng, Thừa Thiên‐Huế and Quảng Nam, improving them and adding new product. The region with a strong green tourism agenda, building on eco‐city and responsible tourism initiatives. The strategy seeks continuous improvement, and is based on a five point action plan as follows:
Page 2
Destination Management Strategy (July 2014)
1. Putting in place a region‐wide coordination structure to focus and maximise the actions of the three provinces and facilitate cooperation. 2. Raising funding for training and marketing. 3. Adopting green and responsible tourism agendas and implementing them. 4. Improving the product, province by province, to meet (future) market needs Enhancing quality and competitiveness through training, particularly versus regional competitors. Encouraging more market‐orientated product development and providing more things to do for visitors staying in the region’s expanding accommodation base. Addressing product weaknesses and introducing green technology innovations. 5. Delivering professional marketing, focussed on specific target markets and addressing issues such as greater awareness, electronic media and seasonality to improve business viability.
While the region has some excellent luxury product, in order to fill the majority of tourism businesses in the destination, and match expectations with service delivery, the destination will be positioned as offering best value in Vietnam. Best value means: The destination with the most to see and do. The destination with the best welcome and service. The destination where prices offer excellent value. The destination where people should stay longer. The coordination structure for public‐private destination management recommended consists of an over‐arching Destination Steering Committee and three Provincial Coordination Boards. These boards will establish working groups to deliver training, product development and marketing. Product development will focus on the themes of culture and heritage, nature, coast and short breaks (including stimulating low season events to attract bed nights). Training working groups in each province will work to ensure that Tourism service standards in the region will be raised so that the region is recognised as the best value in Vietnam. Tourism management in all parts the tourism supply chain will work to continuously improve quality of service and to deliver responsible tourism. Tourism training institutes will realign their programmes to meet industry and visitor management needs The joint marketing strategy proposed will Position the destination as the best value and most interesting destination in Vietnam. Present the three provinces as an integrated tourism destination which can hold visitors for five or more days Encourage more direct flights to the destination from key target markets.
Page 3
Destination Management Strategy (July 2014)
Most marketing activity will be carried out on line by a professional marketing agency to ensure transparency of results and to fill major gaps in the promotional mix of provinces at present. The primary focus of marketing activity will be on domestic and near Asian markets, and Russia. A timetable to move from talking to action is proposed.
Page 4
Destination Management Strategy (July 2014)
1. Background
1.1 Destination management The United Nations World Tourism Organisation (UNWTO) highlights the importance of destination management as follows: To compete effectively, destinations have to deliver wonderful experiences and excellent value to visitors. The business of tourism is complex and fragmented and from the time that visitors arrive in the destination until they leave, the quality of their experience is affected by many services and experiences; including a range of public and private services, community interactions, environment and hospitality. Delivering excellent value will depend on many organisations working together in unity. Destination management calls for a coalition of these different interests to work towards a common goal to ensure the viability and integrity of their destination now, and for the future.1 The Environmentally and Socially Responsible Tourism Capacity Development Programme (ESRT) has initiated this assignment with the Vietnam National Tourism Administration (VNAT) and the three provinces of of Đà Nẵng, Thừa Thiên‐Huế and Quảng Nam, noting that It is very important that effective governance structures for tourism are in place locally. It is at the local destination level that many services vital to tourism are delivered and where the positive and negative socio‐economic and environmental impacts of tourism are most apparent, requiring sound local planning and management. In many countries there is an increasing tendency for local tourism governance to be based on public‐private or multi‐ stakeholder collaboration and partnerships, sometimes in the form of Destination Management Organisations (DMOs). The importance of involving tourism businesses and local communities in the planning and development of tourism in their areas is also widely recognised. The assignment shall contribute to an enhanced tourism offering delivering improved performance and demand‐driven implementation at destination level by developing a strategic vision for tourism development, to include implementation building capacities and monitoring results.2
1.2 Government mandate for regional destination management A Memorandum of Understanding on Cooperation for combined tourism development by the provincial People’s Committees of Đà Nẵng, Thừa Thiên‐Huế and Quảng Nam was signed on 27 February 2014. The Memorandum commits the authorities to greater cooperation on the following: tourism management and development mechanisms and policies; tourism product development; publicity and promotion of tourism; and human resource development.
1 UNWTO (2007) A Practical Guide to Tourism Destination Management. Madrid.
2 ESRT (2014) Terms of reference for “Development of a comprehensive blue print on how to most effectively approach the challenges of incorporating responsible tourism principles in the development, marketing and management of ESRT pilot destinations”
Page 5
Destination Management Strategy (July 2014)
The initiative recognises a Regional Steering Committee and a Regional Management Unit which will meet twice a year to develop annual working plans/programmes, to implement the contents of approved working plans/programmes, and to advise the Regional Standing Management Unit on cooperation areas. A previous Memorandum was signed by the three provinces in 2005: The ERST strategy will help to further this cooperation process and make it sustainable. The Strategy for Tourism Development in Vietnam to 2020, Vision 2030 includes the following policies: . Quality product will be developed based on the natural strengths of regions. Particular attention will be paid to marine/beach tourism, cultural tourism products, and nature‐based tourism (including ecotourism). . New tourism products will also be encouraged: Cruising; meetings, incentives, conferences and exhibitions (MICE); educational tourism; wellness and Vietnamese cuisine. The Government’s national strategy outlines triple bottom line objectives as follows3: Economic objectives To attract 10 to 10.5 million international visitors by 2020 (7.6 percent annual increase) and serve 48 million domestic tourism (5.3 percent annual increase). To increase tourism revenues to US$ 18‐19 billion by 2020 (13.8 percent increase to 2015, 12 annual percent increase thereafter). To contribute 6.5 to 7 percent of gross domestic production (GDP) by 20204. To attract $42.5 billion in investment.5 increasing room supply (580,000 rooms by 2020). Social objectives To increase numbers employed in the tourism industry to over 3 million, of whom 870,000 are direct jobs. To ensure that tourism development contributes to the preservation and promotion of Vietnam’s cultural values, improving the lives of its people. Environmental objectives To develop green tourism activities associated with preserving and promoting the value of natural resources and environmental protection, ensuring that tourism development complies with environmental law. The Government’s strategy mandates the following approach: Focus on (i) the domestic market, in particular resort tourism, entertainment, short breaks and shopping; and (ii) on the following target markets: Asia‐Pacific Nearby markets in North East Asia (China6, Japan, South Korea), South East Asia (Singapore Malaysia, Indonesia, Thailand), and Australia. Western markets
3 Based on an unofficial translation 4 This target is dependent on how other sectors of the economy perform, so cannot really be simulated. 5 Responsibility for this objective lies at Provincial level. 6 In May‐June 2014 a territorial dispute with China regarding the Spratly Islands (part of Da Nang province) resulted in a dramatic slowdown in growth from this market.
Page 6
Destination Management Strategy (July 2014)
Western Europe (France, Germany, Great Britain, the Netherlands, Spain and Scandinavia); North America (United States and Canada) and Eastern Europe (Russian Federation, Ukraine). New markets The Middle East and India For central planning purposes in the Government strategy, the North Central Region includes Thừa Thiên‐Huế: The South Central Coast includes Đà Nẵng, Hội An and Tam Kỳ. This ESRT strategy considers tourism development needs of the three provinces of Đà Nẵng, Thừa Thiên‐Huế and Quảng Nam based on the reality of tourists’ experiences and travel patterns, and at the provinces’ request.
1.3 City tourism development strategy of Đà Nẵng In 2013 the Prime Minister approved Đà Nẵng’s urban master plan towards 2030 with a vision to 2050. The city’s specific focus will include accelerating the growth of the tourism sector, and developing more resorts, trade and service areas, transportation, and maritime economic centres on the north‐west side of the city, along with residential areas of medium population density. On the eastern side of the city, top priority will be given to post and telecommunications, healthcare, and the education and training sectors. Special attention will be paid to developing more hotels, guest houses, villas, parks, restaurants and entertainment areas along the seafront from the Son Tra Peninsula to the Marble Mountains.
1.4 Provincial tourism development strategy of Thừa Thiên–Huế Thừa Thiên–Huế’s tourism master plan was drawn up in 2013 by Foundation of the Future, Singapore. It proposes eleven projects for which investors are sought. These include an agri‐tourism development, eco‐villages, the development of airport to take international flights, floating (i.e. on stilts) hotels on the lagoons, ‘luxury in the rice field’, the development of a hill resort at Bach Ma, a cultural village and an arts village. In addition an Italian support project has proposed a Sand Dunes Museum at Tam Giang Lagoon. In relation to the city itself and its heritage, the Hue Monuments Conservation Centre has its own master plan, developed as per UNESCO guidelines. This will focus on the development of six more ticketed sites (at present 7 of the 29 sites in its care are ticketed) and improvements in security, restoration and interpretation. Thừa Thiên–Huế is also part of the Asian Development Bank (ADB) green city initiative, with proposals to upgrade the tourism experience in the walled town. Under this project the province will develop green economic sectors (including tourism), promote the economical and efficient use of energy and natural resources as well as environmentally‐friendly lifestyles.
1.5 Provincial tourism development strategy of Quảng Nam Quang Nam’s tourism objectives to 2020 relate to the development of rapid and sustainable tourism as a key economic sector of the province, bringing increased income and improving living standards. The provincial strategy envisages an increase from 2.5 million visitors in 2010 (1.1 million international visitors, 1.4 million domestic visitors) to 6.2 million visitors in 2020 (2.4 million international visitors and 3.8 million domestic tourists: a significant shift in positioning). The plan seeks to attract capital investment (US$ 1, 779 million in the period 2016‐2020 [€1,309 million]). The Strategy envisages the primary area of future development to be cultural heritage (Hoi An, My Son) and cultural tourism combined with eco‐tourism, with an intensive tourism development zone along the coastal strip towards Da Nang. River tourism and the Chu Lai Open Economic Zone are also highlighted. Heritage touring roads are proposed.
Page 7
Destination Management Strategy (July 2014)
The strategy notes that some tourism sites are currently over‐loaded and recommends the development of traditional village festivals and cultural events as a means of dispersal. The strategy recommends a wide range of interventions to address negative environmental impacts of tourism. The polluter must pay to restore, reconstruct the environment. Strengthen management measures, strict reward and punishment in construction, business development and tourism; focus on waste water treatment, waste in hotels, tourist attractions, and tourist resorts. There are mechanisms to encourage tourism businesses to apply technology‐friendly environment; apply sanctions regime clearly for units and individuals causing environmental pollution. Strengthen coordination with the industry, and raise the level of participation and contribution of the community in a common effort to ensure the natural environment as well as the development of social tourism. Develop educational programs for tourists, local people and students in the schools about the importance of environmental protection for sustainable development. Quang Nam Tourism to 2015 and vision to 2020 (unofficial translation) The Strategy is both comprehensive and responsible; however resources to implement it appear lacking.
1.6 Environmentally and Socially Responsible Tourism Capacity Development Programme
The general aim of the ESRT is to strengthen institutional and human capacity in order to fully realize the substantial socio‐economic development benefits available from the tourism sector while protecting and enhancing the resources (natural and cultural) on which the sector depends.
The project seeks to mainstream responsible tourism principles into Vietnam’s tourism sector to enhance competitiveness and contributing to achieving the Socio Economic Development Plan. The project purpose is To promote the delivery of environmentally and socially responsible tourism services as part of Vietnam’s Tourism Sector Strategy.
Responsible tourism is central to ESRT’s purpose. Responsible tourism recognises that tourism must be managed effectively to minimise its negative impacts, be they economic, social, or environmental. It calls for all players to accept responsibility for managing tourism (Government and the private sector, host communities and tourists themselves), and to establish effective mechanisms to do so. ESRT has published a responsible tourism toolkit to assist responsible tourism capacity development in Vietnam. One of the biggest hurdles that must be overcome by the responsible tourism movement is that this type of tourism is usually more expensive than traditional tourism, which consists of just sitting in a comfortable bus and taking photographs of key landmarks at several stops, regardless of costs to the destination. It is assumed that people with a greater social consciousness would be willing to spend more to enjoy a socially meaningful and greener holiday experience. Whether this is the case or not in Vietnam is unproven, but it is certain that tourism is having negative impacts on the country’s landscapes, environment and coastline. It is essential that stronger destination management structures are put in place to ensure the future sustainability of the central region’s tourism product.
Page 8
Destination Management Strategy (July 2014)
2. Recent tourism performance in the region
2.1 Analysis of tourism performance The three provinces of Đà Nẵng, Huế and Quảng Nam have enjoyed good growth in international tourism in recent years (chart 1). The combined destination offers a strong product to visitors including three world heritage sites plus marine and national parks, fine beaches, important war relics and spiritual sites, as well as pleasant cities and beautiful rural countryside and mountains. Chart 1:
(*) Estimated data Source: Vietnam Tourism Statistics 2000‐2012 Domestic tourism growth has been even stronger (chart 2) and provides the majority of trips.
Page 9
Destination Management Strategy (July 2014)
Chart 2:
Quang Nam has the largest share of international tourism arrivals according to VNAT statistics (chart 3), whereas the other two provinces are stronger for domestic tourism (chart 4) Chart 3:
Source: Vietnam Tourism Statistics 2000‐2012
Page 10
Destination Management Strategy (July 2014)
Chart 4:
Source: Vietnam Tourism Statistics 2000‐2012 (p.64) In terms of tourism receipts however, Da Nang dominates, reflecting the importance of its domestic market (chart 5), with Quang Nam (where international tourism spending is highest) coming a close second. Tourism receipts in Hue by contrast were relatively low. Chart 5:
Source: Vietnam Tourism Statistics 2000‐2012 Note: VND billions
Tourism receipts for the three provinces have been growing steadily in the years to 2012, as shown in chart 6.
Page 11
Destination Management Strategy (July 2014)
Chart 6:
Source: Vietnam Tourism Statistics 2000‐2012
In terms of market share, the combined three provinces compete well with established tourism hubs of Ho Chi Minh City (HCMC) and Hanoi, especially in terms of visitor arrivals, but not in terms of visitor receipts (charts 7 and 8). Chart 7:
Source: Vietnam Tourism Statistics 2000‐2012 (p. 58)
Compiled from data of provincial DCSTs
Page 12
Destination Management Strategy (July 2014)
Chart 8:
Compiled from data of provincial DCSTs Source: Vietnam Tourism Statistics 2000‐2012 Accommodation facilities have been rapidly developing in the region with flagship resort developments making a significant mark on both the overall quality offer and the profile of the country. High end properties now include the Banyan Tree (Hue), Hyatt, Crowne Plaza, InterContinental and others (Da Nang), together with a wide range of domestic tourism investors, some of whom have developed first class properties. The fact that Da Nang is the closest sea side resort to China has helped to attract investors, together with strong underlying domestic demand. 7 Chart 9 illustrates accommodation supply in 2012 as officially reported by VNAT.
7 MGT Management Consulting (2011) Why Vietnam’s Coastal Tourism Growth is Inevitable,
Page 13
Destination Management Strategy (July 2014)
Chart 9:
Source: Vietnam Tourism Statistics 2000‐20128 The current overall performance of the accommodation sector gives cause for concern however. Chart 10 shows a sharp decline in occupancy in Da Nang in 2012 as accommodation supply increased: Hue is also seeing a steady decline in occupancy. In situations where provinces seek to target yet more investment in hotels and resorts, it needs to be noted that most international investors will wish to see annual occupancies in the region of 70% before considering the investment risk worth taking in hotel expansion. The collapse of the Chinese market in 2014 (projected by UNWTO as the main driving force behind future tourism growth in Vietnam to 20309), while probably temporary, has brought the need for better destination management regarding accommodation supply, and the need for more a strategic broadly‐based marketing approach, sharply into focus in the central region.
8 Two provinces reported different room supply figures to ESRT from those reported by VNAT for 2012 as follows: Hue advised it actually had 9,709 rooms in 2012 (including guesthouses and uncategorised properties); and Quang Nam reported 3,581 rooms. 9 UNWTO (2011) Tourism towards 2030
Page 14
Destination Management Strategy (July 2014)
Chart 10:
Source: Vietnam Tourism Statistics 2000‐2012 Chart 10 illustrates the relationship between room supply and occupancy in the region. It shows the overall effect rapid expansions of accommodation supply are already having on industry occupancy (and hence profitability) in Da Nang and Hue, whereas (until 2012) Quang Nam has fared better with rising occupancy and more modest increases in supply. As room supply increased further through 2013 and 2014, the situation is becoming more acute. Under‐investment marketing is a characteristic not just of the central region but also for the country as a whole. In these circumstances international hotel chains gain more market share as they have international marketing networks, whereas the domestic tourism industry generally struggles. The time is right for a re‐think on how the three provinces manage their destination and its growth, and how they target investment. The situation is becoming much more serious when we look at projected future room supply (chart 11).
Page 15
Destination Management Strategy (July 2014)
Chart 11:
Source: DCSTs DCST’s have provided estimates of growth to 2020 (and in one case to 2050): These illustrate a tourism economy based on optimistic and largely unrestrained expansion. While it is acknowledged that growth is desirable to create new jobs and provide development income to Provinces10, current accommodation development projections appear unrealistic, and without very strong market growth would result in much displacement of employees and tourists from existing business, creating a tourism economy which is not viable and where overall standards fall due to intensifying competition and falling prices. In order to fill its accommodation base in 2016 with desirable 70% room occupancy (and hence attract continuing further accommodation investment) the region would need to attract 13.8 million overnight visitors11. Reported visitor arrival/trip figures12 for 2012 were as follows: Hue: 867,904 international arrivals plus 1,676,860 domestic trips (2.54 million) Da Nang: 630,908 international plus 2,028,654 domestic (2.66 million) Quang Nam: 1,470,000 international, plus 1,330,000 domestic (2.8 million) It must be noted that many domestic visitors do not stay in serviced accommodation, so these figures imply that to create a viable and expanding accommodation industry the region must attract many more visitors to remain viable. Added to this are the growing threats of coastal erosion, intensifying winter storms and rising sea levels. Indeed intensive continued investment in tourism on the foreshore may not be a wise long term investment: Investors need to move back to higher ground. In the short term they must identify real gaps in the market, for example in visitor attractions, night time facilities and high quality boutique and retail experiences, or other products not currently being offered. Municipal investment should also consider flagship visitor attractions and all‐weather tourism facilities rather than primarily stimulating hotel zones.
10 The attraction of investment to expand high quality hotel supply is a Government policy. Job creation is also a central need. 11 Assumes 1.5 people per room and 70% room occupancy. 12 VNAT, Vietnam Tourism Statistics 2000‐2012
Page 16
Destination Management Strategy (July 2014)
It is clear that the region now faces a very significant marketing challenge which at present due to lack of funds it has no effective collective means of addressing. There is an urgent need to increase effective marketing (and slow hotel development), otherwise room supply will continue to exceed demand, occupancy and prices will be low, and the viability of the industry, and its investment in training, marketing and standards, will continue to be poor. There is an urgent need to create forums through which the industry can begin to work together to address these serious challenges: At present the public sector rarely meets formally with the private sector, and private sector representative associations have relatively few members and are not seen as effective. New consultative structures to build momentum for action are essential.
2.2 Distribution of tourism in the region
2.3 Main tourism products
2.3.1 International visitors Traditionally the main driver for international visits to region has been heritage as part of a “classic” Vietnam tour, and this remains the case. The area has three World Heritage Sites and offers pleasant, Vietnamese urban and rural experiences, possibly with greater authenticity and hospitality than in the country’s two main cities. International tourists have long been attracted by the former imperial city of Hue with its many monuments, and Hoi An has been described as the ‘jewel in the crown’ for Vietnam’s heritage offer. Hoi An has grown to become the man hub for international tourism in the region (chart 3): Good visitor management based on UNESCO guidelines is one of the reasons for its success. My Son Sanctuary is also well known as a World Heritage Site. The Cham islands and the Hoi An coastline is a United Nations Educational, Cultural and Scientific Organisation (UNESCO) marine reserve and biosphere. Food and shopping (particularly in Hoi An) are also important parts of the international tourism offer at present. In recent years high quality beach resorts have been developed mostly on the Da Nang and Hue coasts, and the region is now offering an attractive “add on” to the traditional HCMC‐Hue‐Hanoi “classic tour” of Vietnam: International visitors are offered an additional week or so at the end of their tour to relax on a beach. Da Nang has boomed as a domestic tourism beach resort. Beach hotels enjoy very substantial domestic tourism demand in the summer months, and this demand continues to grow. The sea is very important to tourism in the region, not just for beaches but also for seafood which is a key part of Da Nang’s tourism offer and important for all coastal communities. Water sports are increasing and during the diving season (April to August) water visibility around the Son Tra Peninsula and the Cham Islands is reasonably good in calm weather. The region currently offers one of the best dive experiences to be found anywhere in Vietnam.
2.3.2 Domestic visitors The main driver for domestic tourism is the attractive sea‐side city of Da Nang which is becoming Hanoi’s favourite seaside resort. In addition there is an element of visiting friends and relations (VFR) and wedding traffic, and growing meetings business to Da Nang. Seafood is hugely popular and a key part of the tourism both for domestic visitors and Asian visitors: Its sustainability is however questionable as demand grows and over‐fishing and pollution from urban growth take their toll. The tourism product is changing with the development of new hotels, both internationally branded and local developments. This development has been centred on Da Nang where provincial government has more autonomy, but the region’s other two provinces have also seen strong growth. Hue has also attracted major high quality development to some of its coastline, and Hoi An has expanded to its short coastal strip, with some significant reported impacts on coastal erosion. In
Page 17
Destination Management Strategy (July 2014) addition the hill station of Ba Na is seeing major redevelopment by the Sun Group, turning it into one of main family theme parks in South East Asia, with expanded hotel accommodation.
2.4 Product gaps In 2004 MCG Management Consulting Ltd with the United Kingdom Overseas Development Institute undertook a comprehensive value chain analysis of tourism in Da Nang. Recommendations for filling product gaps in the city included improvements at the Cham Museum, the development of a night market at the Han River, tourist informational signage, longer opening hours for pubs and discos as well as suggested ways to improve marketing and communication. While progress has been made, many of these issues still require attention. Hue continues to strengthen its cultural heritage product, but beach management is poor. There is acknowledged potential to develop rural tourism in its attractive hinterland, and to improve the old city. The province also has hot water springs and many special spiritual sites. A similar rural tourism challenge faces Quang Nam which like Hue also has extensive upland areas with minority villages. The My Son Sanctuary has not yet been developed into a tourism hub and rural tourism is struggling here. The Phu Ninh reservoir is beginning to be developed as an attractive domestic tourism resort. Lakes and lagoons all along the coast are important fisheries but also have some further tourism potential, if sustainably managed. There is a tendency in all provinces to see “tourism development” in terms of “resort and hotel development”, however this should not be the case: Visitors are mostly motivated to visit a destination by things other than the places where they will sleep. A main destination challenge is very short length of stay (chart 11). If this is to be addressed the region needs more high quality things to see and do.
Page 18
Destination Management Strategy (July 2014)
Chart 12: Average length of stay for international and domestic visitors
4,0 4,2
3,7 2,3 2,7 2,4 2,2 1,7
Hue DN HA Total* International Visitors * Total average of three destinations
Source: ESRT 2014
This chart clearly illustrates the destination management challenge of enticing visitors to stay longer. Average length of stay in the region (particularly in Hue) is very short. The visitor survey undertaken in 2014 by the ESRT programme also highlights that what national tourists like most in all three destinations is the area’s nature and landscapes: Ironically nature and landscape the least developed and least protected aspects of the tourism product in the region.
Page 19
Destination Management Strategy (July 2014)
Charts 13: What visitors like most in Da Nang
0% 10% 20% 30% 40%
Beach 17% 31% Nature/Landscape 26% 36% Local people 23% 30% Local sites 11% 22% Food/Drinks 14%15% Weather 8% 15% Accomodation 2% 10% Local activities 10%10% Atmosphere 8% 21% Others 7% 14% Tour services 5%8% Culture 1%3% Price 1% 7%
Internation Visitors (n=99) National Visitors (n=168)
Charts 14: What visitors like most in Hue
0% 10% 20% 30% 40% 50% 60% 51% Local sites 17% 26% Local activities 12% 22% Local people 27% 12% Food/Drinks 22% 11% Atmosphere 17% 10% Culture 9% 7% Nature/Landscape 44% 5% Accomodation 2% 5% Tour services 5% 5% Weather 4% 1% Others 4% 1% Price 9%
Internation Visitors (n=147) National Visitors (n=139)
Page 20
Destination Management Strategy (July 2014)
Chart 15: What visitors like to most in Quang Nam
0% 10% 20% 30% 40%
33% Local people 22% 31% Local sites 16% 25% Food/Drinks 17% 21% Atmosphere 22% 19% Local activities 15% 13% Nature/Landscape 36% 12% Culture 8% 6% Weather 5% 6% Beach 1% 4% Accomodation 2% 1% Others 5% 1% Price 1% 1% Tour services 5%
Internation Visitors (n=140) National Visitors (n=132)
Source: ESRT (2014) Note: Chart 15 based on interviews in Hoi An only
Charts 13, 14 and 15 also indicate some weaknesses (areas less liked): Local activities, cultural tourism offer in Da Nang Tourist services and accommodation in Hue (also beaches are not mentioned at all as likes) Beaches, accommodation and tour services in Quang Nam. These are all areas related to improving the quality of the tourism offer: a key aspect of destination management.
Cruise traffic in the Asia cruise theatre is also seeing rapid growth of over 20% per annum. By 2017 Asia will see 3.7 million cruise passengers, up from 1.5 million in 2012. By 2020 the figure is expected to by 7 million with most growth coming from China. Da Nang and Hue are not capturing this growth, with around 100 cruises and over 100,000 passengers for the past few years, and similar numbers expected in 2014.13 Partly the weather is to blame, but also neither port has a dedicated cruise ship berth or cruise terminal Da Nang does plan an expansion of its berthing facilities to allow larger ships to dock: A major bottle neck in Asia is the limited number of ports that can take megaships (those with capacity of over 5,000 passengers). Megaships also present massive visitor management challenges.
13 Until recently, Chinese cruise passengers travelling from Sanya in Hainan Province to Da Nang could enter Vietnam without a visa using identify cards rather than passports China Daily 27 June 2014
Page 21
Destination Management Strategy (July 2014)
In terms of growth it should be noted that Asian cruise traffic is growing rapidly, but it is also becoming increasingly family‐orientated and cruises are becoming more budget and mainstream14. Competition from other countries is also increasing with Indonesia, Brunei and Malaysia offering new cruise destinations. There is growth potential, but returns from cruise passengers are low both in terms of arrival visa fees ($5‐$10) and expenditure. Partly this is due to limited shopping opportunities, and things to buy being no different to Hanoi and HCMC.
2.5 Product quality systems at present Investment in improving the quality of the existing product in the destination is largely left up to the owners of tourism businesses, and for some assets, to provincial and state authorities when resources allow. There has been, for example, steady investment in improving world heritage sites in Hue and Hoi An. 4 and 5 star accommodation is graded by VNAT, however he classification process has not kept pace with development and most new properties in the region are still ungraded. Smaller hotels are graded at provincial level. In reality the market is determining quality through peer‐review websites like
2.6 Destination management at present Destination management at present is largely the responsibility of DCSTs reporting to People’s Committees and, occasionally, to VNAT and MOCT (MOCT has a representative based in Da Nang). The Institute for Tourism Development Research (ITDR) as part of VNAT assists provinces with tourism planning from time to time, and is developing 8‐province regional plans at present. The state is responsible for World Heritage Site management, but effectively this is delegated local People’s Committees. Hue and Hoi An are well managed but My Son and the Cham reserve would seem to need strengthening. There are presently no structures for shared responsibility between Government agencies which impact tourism, or between DCSTs and the private sector. DCSTs do not formally meet with the private sector (historically represented by Government‐approved associations, such as the Tourism Association or Hotel Association). Even industry representation organisations are very weak. Table 1 illustrates membership of associations by province in June 2014: It shows that, while strongest in Da Nang, Tourism Associations only represent a very small proportion (approximately 10%) of the total number of private sector tourism businesses in each destination. Table 1: Industry representative associations
Da Nang Hue Quang Nam Tourism Association: Tourism Association Tourism Association 70 members and 21 25 members 47 members
14 Travel Trade Gazette Asia, May 2014 < http://www.ttgasia.com/article.php?article_id=21562> 15 ESRT plans to pilot the Green Lotus hotel scheme in the area, for example, and will carry out responsible tourism training.
Page 22
Destination Management Strategy (July 2014) management boards Travel Association: Hotel Association 40 members 40 members Responsible Travel Club (tour operators) 7 members Source: ESRT interviews In summary, destination management in the region is weak to non‐existent: A huge challenge if tourism in the region is to be sustainable.
2.7 Destination marketing at present Financial resources for marketing are very constrained and not transparent. It has for example, not been possible to estimate the current cost of marketing activities either separately or together by provinces. Quang Nam has indicated that it would spend 66% of its budget on own marketing and 33% on joint activity, if credible joint marketing proposals were presented. It is clear that Da Nang has the largest destination marketing budget. The city has recently launched its DaNang: Fantasticity brand and in 2013‐4 has undertaken promotions relating to air routes in Narita, Japan, Kuala Lumpur, Malaysia; and Busan and Seoul, South Korea. Da Nang also supported Australian and Korean travel agency promotions and has undertaken promotional activity in Moscow. Some of this activity was in partnership with other provinces, and Vietnam Airlines. The loss of the Chinese market has had a significant impact on the city and has stimulated a desire for increased marketing. The three provinces have cooperated on joint promotion for more than twelve years. At present they rotate responsibility, leadership and funding for joint initiatives. This has resulted in a number of small campaigns and joint brochures, such as an events brochure for 2014 (Culture, Sports, Tourism Events 2014: Thua Thien Hue‐Da Nang‐Quang Nam); and a joint regional brochure entitled Hue‐Da Nang‐Quang Nam: Center of Wonders. This brochure highlights the following: Introductions on the three destinations (Hue City, Da Nang City and Quang Nam Province) Landscape Culture Festivals Cuisine Shopping Recreation Resorts and hotels (selected including display advertising) Transportation Travel agencies (selected); and Public services There is no joint website for these promotions; rather the provinces list their individual tourism websites:
Page 23
Destination Management Strategy (July 2014)
2.8 Human resource issues at present
2.8.1 Introduction In recent years, the rapid development of investment in tourism infrastructure and facilities for the three central provinces has played a key role improving high quality tourism supply. DAD airport has been in operation since 2012, Hue upgraded its airport runway in 2013; Ba Na Hills has seen major investment as a tourism and entertainment area. Tien Sa port in Da Nang and Chan May port in Lang Co (Hue) plan to expand their capacity to reach 300,000 visitors each year. The Han River waterfront will be transferred from a cargo to a tourism area. The accommodation facilities of three provinces have seen considerable investment and development at times exceeds demand. The product is now very diverse with variety of types, scales and levels: The product ranges from 5 star hotels with international brands to small‐scale hotels and other types of accommodation facilities, including mini‐hotels, motels and homestay. Presently, Da Nang has nearly 14,000 hotel rooms, which is predicted to reach 15,760 by 2015. Thua Thien Hue, with the concentration of 541 business establishments17, contains 10,276 hotel rooms, Quang Nam has 4,700 rooms mainly occupying in the ancient town Hoi An. The Hoi An government has a policy to only license for the new projects of 3 star or higher hotels and resorts in Hoi An, in order to improve its service quality as well as to serve community tourism.
16 There is also a strongly marketed Central Coast destination in California. 17 Only 13.5% of these businesses are members of the hotel/tourism association.
Page 24
Destination Management Strategy (July 2014)
It is certain that for the three provinces to retain their competitiveness and to keep pace with other external and internal destinations they must maintain and improve their service quality. Service quality itself depends primarily on the human resource quality. The investment in training and quality of tourism human resources in the central region has not corresponded to the level of investment in the sector. There is an imbalance within the tourism labour pool which is sometimes considered to be both redundant and deficient. While young graduates from universities, colleges and vocational colleges of tourism, postgraduate students from tourism faculties (majoring in Tourism and Hospitality management) are unemployed, there is a shortage of trained labour equipped with vocational skills, communication and language skills, management skills. Outside of the hospitality sector there are also huge tourism training needs. The deficiency of human resource quality in the region can be briefly summarized as follows:
2.8.2 Vocational skills The quality of human resources is uneven, vocational skills and language skills are not commensurate with each other. There is no continuous system of industry training centred on improving the destination’s tourism offer. Enterprises in the region complain about the training quality of tourism education, from higher levels to vocational college, intermediate and primary levels. According to several hotel directors and tour operators interviewed, graduates from tourism schools cannot start working immediately due to the lack of vocational skills (with the exception of cooking and housekeeping), work experience and foreign languages. As a result, after recruiting employees, enterprises have to train them in‐place or tutor them in a period of 3‐6 months. There are diverse opinions regarding students graduating from the region’s tourism schools. While the majority of the hotels complained about the quality of education and graduates from hospitality schools, some hotels with leading brands have actively cooperated with schools in providing resources and training courses for their workforce or further training in skills for students as the new‐recruiting. Some hotels (Crowne Plaza Hotel, InterContinental, Hoang Anh Gia Lai, etc.) have a training budget and systematic in‐house training programs, as well as a specialized training management boards. Among professions which are taught in vocational colleges and intermediate levels, cooking and housekeeping are most likely to be employed. Students from other faculties such as reception or junior management (supervisor, assistant manager) with communication and language limitations or the work experience of less than 2 years, will have difficulties in the labour market. On the other hand, housekeeping recruitment often attracts unskilled workers who look for a job with short term‐training courses: Young people are reluctant to spend three years training in the housekeeping faculty of tourism vocational schools, so most of tourism schools now provide only short term training courses (2‐3 months) for housekeeping. Tourism enterprises in fact prefer graduates from language specialist universities rather than from tourism ones, driven by their lack of language training capacity. Besides, it takes years for a staff to be proficient in a foreign language whereas young intellectuals from language‐ specialized universities expect to be trained of vocational skills in 3‐6 months. In order to obtain a practicing certificate in tourist guiding for external and internal visitors for example, graduates merely have to pass over a short‐term course at a tourism training base approved by VNAT. English is the most popular language with a largest quantity of students. Other languages, such as Chinese, Korean, Thai, Russian, etc., however, are not being taken into account in training, despite the fact that until recently there were 47 weekly flights from China to Da Nang, and this largely non‐English speaking market supplied up about 60% of foreign tourists
Page 25
Destination Management Strategy (July 2014)
coming to the city. There is also increasing numbers of tourist visitors from Korea, Japan and Russia but a dire shortage of speakers of these languages in the regional tourism industry. Most of the tourism and hospitality schools are presently holding trainings for only traditional core hospitality professions. Other relevant industry sectors which need training in customer service and communication skills include spa and wellness18; beaches, attractions, monuments, museums and amusement parks; on‐boat services; taxi drivers etc. These areas are not currently being addressed without any training places from the Government and schools.
2.8.3 Management skills There is a deficiency of professional management in the form of well‐trained and experienced personnel in the industry. There is no continuous system of industry training in place. Most of the management in hotels gain experience through practice or in‐house training courses. With the exception of leading branded hotels, seldom do management boards have proficiency in the necessary skills, (planning, monitoring, sales & marketing, revenue management, HR, accounting, website management.) The performance of the students graduating from short‐term management training courses, particularly Hospitality and Restaurant business management, Tourism management, etc., are not valued by enterprises. Most of surveyed hotels claimed that they did not want to engage these students in management positions, even for junior positions such as department management supervisor and assistant, due to a lack of real work experience. On the other hand, training schools themselves agreed that graduates have weak communication and language skills. Management approaches within tourism enterprises are not related to schools’ syllabi, causing gaps in the schools’ curricula, especially in higher education. None of the surveyed schools has addressed the wider tourism value chain including beach management and entertainment area management, spa and wellness or other training programs in customer service skills, communication skills for management positions in war relic sites or historical and cultural heritage sites. This is a huge gap. Tourism management officials in the state tourism departments and chairmen of Commune People’s Committees in tourism areas often lack regional tourism management skills and need to participate in courses about management, responsible tourism, community‐based tourism, marketing, events management and English. These courses are not systematically available.
2.8.4 In‐house training in hotels In general, in‐house training in 4 to 5 star hotels is planned for and carried out periodically. The supervision of in‐house training and the subsequent assessment of in‐house training efficiency are not well‐implemented however. In several hotels, vocational skills and training capacity of trainers are restricted; therefore, the in‐house training has not brought about the improvement in human resource quality. Hotels should actively establish an expert group (external) to support in‐house training through three major steps: o Assess available human resource quality. o Contribute to training methods and contents of trainers.
18 Hue College of Tourism is about to introduce this.
Page 26
Destination Management Strategy (July 2014)
o Assess efficiency of post in‐house training staff. After returning to their enterprises, some trainers have not taken action to pass on and spread their training knowledge. Some trainers are not provided with good conditions to do so, while others consider the training knowledge gained as their private asset, so they do not want to share with colleagues.
2.8.5 Other HR issues: Income from tourism is generally low, partly due to seasonal impacts on tourism and an insufficiency of regular jobs. There is an excess of labour resulting from excessive training (over supply) but training quality is seen as low, especially about job skills, communication and foreign language skills. In the three provinces, there are up to ten training agencies in Tourism and Hospitality. Annually, there are thousands of students graduating from vocational universities, colleges, intermediate and primary levels. The training, however, does not relate to reality and meet the demand of enterprises. Therefore, tragically, a large number of post‐graduate students are out of work, whereas enterprises are deficient of trained and skilled personals. The rapid development of supply sources (newly constructed hotel, resorts) leads to the high proportion of HR change. Newly opened hotels tend to attract the most skilled and managers from other more established hotels by awarding higher positions and better promotion programs. Much displacement is taking place. Similarly travel agencies in remote areas have to strive hard to find and retain a skilled and stable labour force. Women, due to shorter working lives while they raise families, often have tendency to look for non‐ tourism jobs when they get older. Except for some hotels with leading brands, the majority of hotels and travel agencies do not launch a job promotion program for their staff. Because of the above reasons, workers often do not want to work in long‐term with these enterprises. Career orientation and advice is not good for students before enrolment. As a result, it is only when they go to work that some post–graduate students realize their study major is not suitable and they often decide to quit their jobs, illustrating much wasted training resources.
2.8.6 Standards of training provision. Vocational training programs for Tourism and Hospitality (at Intermediate and College levels in Vietnam) are presently available with VTOS so that training units can conform to one standard. The tourism training programs at higher levels do not have common regulation. This is because tourism is merely a sub‐faculty at universities of foreign language, commerce or economics. Catering facilities for teaching and practicing, such as template bedroom, kitchen, dining room, foreign language learning room, etc. in vocational schools (except for Hue Tourism Vocational College), face many difficulties and lack basic facilities. Little attention is paid to communication and language skills and this is also a concern: Teaching staff do not have professional and language skills.
2.8.7 Conclusion In summary, while the region has a significant supply of training facilities and of students in education, there is a major miss‐match with actual industry needs. Vocational colleges are poorly equipped. Key aspects of destination management are not being addressed through training. There is no continuous system of training in place for the industry.
Page 27
Destination Management Strategy (July 2014)
Main courses taught at University level in the region Tourism Faculty‐ Hue University
Tourism studies: Tourism economics, Tour Management and Tour Guide Business Administration: Tourism Business Administration; Event Organization and management; Tourism and Services Communications and marketing; Tour E‐Commerce Phu Xuan University
Tourism Business Administration Vietnamese Studies (Tourism Geography and Culture and Tourism) Quang Nam University (Culture and Tourism)
Economics University ‐ Danang University
Tourism and Services Business Administration Danang University of Education:
Vietnamese Studies (Culture and Tourism)
Page 28
Destination Management Strategy (July 2014)
Main courses taught at Vocational levels in the region Hue Danang Tourism Vocational College
3 year programs (Hospitality Management, Restaurant, Cooking, Tour Management, Tour Guide) 2 year programs (Hospitality Management, Restaurant, Cooking, Tour Management, Tour Guide) Short termed courses: enterprise based Danang Tourism Vocational College
Hoang Dieu Vocational College :
Hotel Administration Restaurant Management Restaurant Operations Danang Vocational College
Hospitality Management Tour Guide Vocational diploma (Reception, Housekeeping, Restaurant Viet Uc Vocational College
3 year programs (Hospitality Management, Tour Management, Receptionist Management, Cooking ; Tour Guide ) 2 year programs (Reception Operations; Accommodation Operation; Restaurant; Cooking; Hospitality Management; Travel Management; Marketing tourism; Business Accounting) Short termed courses less than 1 year (Receptionist Operations, Hospitality Operations; Restaurant operations; Cooking techniques; Beverage dispensing; Bartender performance; Hospitality Management; Hotel Security Operations)
Note: Danang Tourism Vocational College is implementing the construction of the new university buildings. Muong Thanh Tourism Vocational College in Hanoi is planning to organize new training courses for tourism staff and tourism managers at Muong Thanh hotel in Da Nang
Page 29
Destination Management Strategy (July 2014)
3. Strengths, weaknesses, opportunities and threats
Despite challenges and weak marketing at present, it must be noted that the combined destination has many strengths and offers a great many opportunities. The challenge is to work out a way of addressing weaknesses and capturing opportunities. In most cases these issues can only be addressed collectively.
3.1 Strengths Product . Destination which can offer a wide variety of product to meet a variety of market needs . Compact area with great richness and variety . Contains well known (must see) destinations within Vietnam: Hue, Hoi An and increasingly Da Nang. . Rich cultural traditions, heritage, temples, festivals, ethnic groups . Growing number of luxury resorts, spas, potential of hot springs . Hue ancient capital, walled city, Perfume River and imperial tombs (UNESCO World Heritage Site) . Hoi An World UNESCO Heritage Site, very popular with international visitors, shopping, tailoring . Young energetic population, real Vietnamese experiences and hospitality, homestay (particularly in Hoi An) . Some very fine unspoiled beaches (Lang Co, Hai Van peninsula) . Motorbike tours (“easy rider”) trips to the mountains and beautiful countryside . Beautiful landscapes, coastlines and protected areas (Son Tra, Bach Ma, Ba Na, etc.) . Major domestic visitor attraction (Ba Na Hills) . Unique history of DMZ, war sites. Veteran interest from Vietnam, USA, South Korea, Australia, etc. . Good scuba diving . Expanding high profile golf product . Traditional foods, Hue imperial food, seafood. . Living Vietnamese culture . Safe, stable destination . Generally not expensive (good value for money) . Many tour operators offering a wide range of services . Some innovative responsible tour operators
Page 30
Destination Management Strategy (July 2014)
Market . Very strong domestic market underpinning destination viability and economic sustainability . Proximity to mass markets of NE and SE Asia . Vietnam Airlines network . CCV luxury hotel & golf marketing group
Training . Hue Tourism College and vibrant educational sector in Da Nang . ESRT responsible tourism training . Large labour pool (but not with the right skills)
Coordination . Tourism Master Plans in place . Support from UNESCO, ESRT, ILO and other NGOs . Reviving traditional festivals . Strong interest from DCSTs and People’s Committees in attracting and facilitating investment projects
3.2 Weaknesses to be addressed Product . Short length of stay . Current over‐supply of accommodation . Reported miss‐selling product and services by operators leading to misled, dissatisfied customers . Variable and sometimes poor standards . Weak night time offer in some cities . Weak tourist shopping (apart from Hoi An) . Limited luxury product especially for boats, high end nature/ecotourism . Over development on coast, erosion and exposure to storm damage . Inexperienced investors in tourism due to perceived future success, some dependent on loans ‐ very susceptible to crises ‐ buildings sometimes left unfinished . Poor standards of beach management . Poor standards of hot springs and many traditional domestic tourism sites . Over‐crowding at certain sites . Unattractive “Heritage Road” (highway 1). . Sewage on beaches, water quality near cities . Litter
Page 31
Destination Management Strategy (July 2014)
. Overcrowded tourist harbours . Environmental and responsibility concerns are starting to re‐emerge in developed markets as the global economic crisis is resolved
Market . Limited market research to guide development . Delay in reporting tourism statistics (2013 provincial figures not available from VNAT in July 2014) . Limited research on visitor satisfaction . There is very limited investment in tourism marketing by both the public and private sector, with the exception of internationally branded hotels who pay high marketing fees. . Poor websites generally, no travel apps . Limited VNAT marketing . Lack of awareness of region as a holiday destination in its own right in all markets except domestic. . Danger of over‐reliance on few source markets . Difficulties of coordinating regional and provincial marketing . Limited understanding of ‘marketing’ as opposed to ‘promotion’ . Limited understanding of ‘branding’ as being about delivering consistent product quality. . Cost of air access compared to competitor destinations, limited direct scheduled, charter and low cost carrier (LCC) traffic to the region. . Limited market knowledge of the variety of product which could hold visitors longer . Confusion of ‘brands”. Weak/non‐existent true branding
Training . Limited investment in training by provinces and many sections of the industry . Significant miss‐match between training institutions output and industry needs . Loss of skilled labour to other (better paid) cities . Loss of skilled labour to new hotels (displacement) . Variable to poor training standards and facilities . Limited language skills, particularly for key Asian markets . Significant quality issues, lack of trained staff, inconsistent service levels, volatile pricing, unreliable accommodation grading, cleanliness, traffic, poor quality attractions, boat standards, etc.
Coordination . Dispersed management of tourism activities across different agencies need for coordination of management . Limited coordination with private sector . No systematic way of raising funds for marketing and visitor management
Page 32
Destination Management Strategy (July 2014)
. No coordinated complaints monitoring and analysis procedures . Unprepared for friction between different tourist nationalities, and friction between tourists and locals . Very poor communication: Reluctance to disseminate information means the private sector is unaware of plans or where they fit in . Provinces competing for tourists and investment, limited coordination (for example, three international airports) . Destination management, especially regarding mass tourism . Derelict development sites . Limited real commitment to responsible tourism, although some pioneers . Public transport. Local transportation overall can be problematic, poor railway standards of service . Over supply of ethnic village tourism and CBT. Limited product development ideas in the public sector: Need to stimulate the private sector SME entrepreneurs. . Pollution of sea and rivers, over‐fishing. . Loss of tree cover on sand dunes . Management of cruise tourism.
3.3 Opportunities to be captured Product . Sell on quality, not price. Highlight value for money, not cheap prices. . Offer a quality guarantee (brand) . Continued expansion of heritage offer (Hue Monuments master plan) . Night time attractions and activities . Events strategy linked to accommodation booking engines . Improve presentation and management of Cham heritage attractions: My Son and Cham Museum, Cham Island. Upgrade management. . Making better use of protected areas for high value ecotourism . Familiar and unthreatening destination for Asian tourists, food compatibility . Warmer climate than much of Russia, South Korea, Japan, North and North East China (Beijing, Tianjin, Hebei, Manchuria, etc.) . Closer to Australia than Thailand, Myanmar . Good value back‐packer destination (tomorrow’s high end tourists) . Heritage Ring (ILO) as a more attractive touring route . Historic railway journey (especially Hai Van route) . All weather product for winter utilisation . Festivals and events in low season . Lakes, rivers, inland areas . Tourist shops
Page 33
Destination Management Strategy (July 2014)
. Cruise terminal/duty free . Green city initiatives . Green Lotus roll out
Market . Proximity to major air gateway hubs of Singapore, Bangkok and Hong Kong . Proximity to the world’s largest outbound tourism market to 2030 (China) ‐ nearest out‐of‐ country resort to for first time Chinese visitors . Growing worldwide demand for heritage and culture, especially with educational and interactive elements . Growing worldwide demand for beach holidays (but also increasing supply) . Rapidly growing Indian and Russian outbound markets, buoyant Australian market . Attracting more scheduled carriers, LCCs and charter traffic . Harnessing Vietnamese IT skills and private sector IT companies. . Reduce reliance on major source market – spread risk . Discourage cutting prices as a means of addressing crises . Charge premium prices (with reason) during popular festivals, Golden Weeks, etc. . Number of niche markets with potential including gambling, spirituality, wellness tourism . Attracting more cruise liners . Commission joint water‐based tourism strategy covering beach clean‐ups, water quality, seafood supply, activities in the bay and on Han River. Han River navigation link to Hoi An. . Provide clearer guidance and training for officials on planning law regarding shore access, erosion, sewage discharges and beach protection zones . Cooperate with Worldwide Fund for Nature (WWF) ‘Save our Seafood’ (SOS) campaign to encourage sustainable fishing . Domestic tourism marketing to fill dips in occupancy . Targeting Vietnamese ground handlers to allocate more nights in the region . Targeting international tour currently operators featuring Thailand, Malaysia, but not Vietnam. . Predicted future dominance of unpackaged, online bookings . Marketing partnerships . Targeting and use of overseas Vietnamese diaspora . Capturing displaced business from Thailand due to continuing instability. . Introducing higher standards for boat operations, etc.
Training . Training of non‐hospitality sectors (police, boat operators, taxi operators, etc.) . Training of guides and tourist information staff on the wider region . Sharing of resources
Page 34
Destination Management Strategy (July 2014)
. Exchanges of teachers, programmes, text books, etc. between tourism training colleges . Cooperation agreements between travel agencies and hotels and training colleges . Joint training with clubs of tour guides, tour operators etc. . Language training . Strengthening capacities of some DCST staff for destination management and marketing . Training the public and private sector together.
Coordination . Need for Destination Management Coordination Mechanism to bring public and private sectors together to share responsibility . Raising funding for joint activity. Options include the following: o Provincial contributions o VNAT contribution o NGO contributions o Exit/arrival fees levied on tourists/tourist accommodation. o Fees for services (paid research etc.) o Proportion of sales tax o Corporate Social responsibility (CSR) contributions and tax breaks o Other central Government support o Joint promotion fees with other parties in Vietnam and abroad o Hotel fees based on number of rooms o Restaurants fees based on the number of seats. o Retail fees based on size/type of store o Attractions/Museums fees based on annual attendance o Theatre/ performing arts fees based on ticketing capacity o Tours/services – oriented companies fees based on the number of employees. o Sightseeing (bus/boat) and car services, fees based on the number of vehicles. o Event venues fees based on square footage. o Tour operator contributions o Arrivals charge on cruise line passengers o Exit fee at airports o Annual levy on developments too close to the shore (e.g. resorts built on a beach) o Annual levy on derelict coastal building sites o Annual membership fees o Industry contributions to the marketing budget which can be graded and scaled. o Joint promotion with other parties in Vietnam and abroad o Charges for training and use of future brand
. Provide investors with accurate data on future accommodation supply and occupancy . Encourage non‐accommodation investments based on meeting (i) domestic market needs (attractions) and (ii) known international needs (e.g. shopping) . DCSTs to focus on improving occupancy, quality and profitability of tourism SMEs (adding value, not cutting prices)
Page 35
Destination Management Strategy (July 2014)
. Provide clearer guidance and training for officials on planning law regarding shore access, erosion, sewage discharges and beach protection zones . Making airports competitive and marketing them: LCC boom and opportunity to attract charter and more scheduled access . Expand responsible tour operators’ group . Strengthen Tourism Associations to make them more representative of the industry . Bring private sector (and various Government agencies) together to address issues (responsible tourism).
3.4 Threats Political difficulties with largest potential international market, China, leading to reduced demand and unpredictable restrictions on Chinese outbound tourism Typhoons and super typhoons Long term pattern of coastal erosion Instability in the wider region Rising sea levels Tourism crises (SARS, Avian ‘flu, etc.) Massive investment in marketing by competitors Massive investment in greening by competitors Loss of domestic market to nearby destinations as Vietnamese travel abroad more Cost of aviation fuel (long haul)
Page 36
Destination Management Strategy (July 2014)
4. Development Strategy to 2020
4.1 Overall strategic vision The overall vision is to make the three province region An internationally recognised holiday destination which can hold more visitors for at least five nights. The region will become known as the best value in Vietnam, building on the existing product strengths of Da Nang, Hue and Quang Nam, improving them and adding new product. The region will adopt a green tourism agenda, building on eco‐city and responsible tourism initiatives. Chart 16 illustrates the strategic approach: Chart 16:
Upgrading Offering product best value and (brand) service
Marketing the brand
NEVER STOP IMPROVING
This strategy for continuous improvement is based on a five point action plan as follows:
Page 37
Destination Management Strategy (July 2014)
1. Putting in place a region‐wide coordination structure to focus and maximise the actions of the three provinces and facilitate cooperation. 2. Raising funding for training and marketing. 3. Adopting green and responsible tourism agendas and implementing them. 4. Improving the product, province by province, to meet (future) market needs Enhancing quality and competitiveness through training, particularly versus regional competitors. Encouraging more market‐orientated product development and providing more things to do for visitors staying in the region’s expanding accommodation base. Addressing product weaknesses and introducing green technology innovations. 5. Delivering professional marketing, focussed on specific target markets and addressing issues such as greater awareness, electronic media and seasonality to improve business viability.
To deliver this vision it is necessary that all stakeholders work together; and that the leadership of each province is strong and concerned with tourism. Leadership will need to support the establishment of coordination and funding system for destination management. Joint efforts should focus on quality marketing, quality product development and training. Da Nang International Airport will be the key gateway for delivering new international tourism to the region. Hue and Chu Lai International Airports (Tam Ky), rail links and sea ports also have important roles to play. An airport marketing strategy is needed. Similarly ports themselves need to market if more cruise traffic is desired. In order for the destination to become the best value in Vietnam, continual training in quality management will be required. A new system is needed to deliver this, based on the delivery of a quality holiday experience for all visitors.
4.2 Development objectives Provincial tourism master plans to 2020 (and in one case to 2050) are already in place. These are approved by People’s Committees and represent government policy. They focus on attracting investment, spreading tourism, creating jobs and increasing accommodation supply. This strategy focusses on destination management issues, seeking to address the challenges which arise as development takes place and visitor numbers to the region grow. The strategy seeks to foster public‐private partnership and destination competitiveness. Its development objectives are focussed on delivering the pillars of responsible tourism for Vietnam which ESRT has developed with VNAT.
Page 38
Destination Management Strategy (July 2014)
Pillar 1. Apply good governance in tourism Create a dynamic and efficient tourism sector in Vietnam by developing and implementing clear, comprehensive policies that give direction, feature strong stakeholder coordination and aim to achieve enhanced competitiveness, sustainability and overall sector health. Pillar 2. Foster competitive tourism businesses and sustainable markets Improve the competitiveness of Vietnam’s tourism investment, business operations and products/services, and ensure sustainable and inclusive growth and attractiveness for investors, operators and visitors. Pillar 3. Use tourism for socio‐economic development Maximise the contribution of Vietnam’s tourism sector to broad‐based social development and poverty reduction through inclusive planning, development and operations. Pillar 4. Build awareness and understanding of sustainable tourism Raise awareness throughout Vietnamese society of tourism’s potential for contributing to sustainable socio‐economic development that can result in a positive experience for both visitors and hosts. Pillar 5. Develop a skilled tourism workforce with decent working conditions Create a well‐trained and well‐treated workforce, capable in governance, knowledge and business skills, and an engaged society that contributes to both the satisfaction of tourists and benefits for local people. Pillar 6. Protect and sensitively promote natural and cultural heritage Ensure that tourism, and all its stakeholders, play a positive role in the sustainable management of Vietnam’s natural and cultural resources including their sustainable use by other sectors.
Source: Responsible Tourism Policy Guidelines for Vietnam, ESRT 2014
4.3 Applying good governance Based on an understanding of Government structures for tourism and of decision‐making power, the ESRT project has developed a proposed Destination Management Coordination structure through widespread consultation. At a forum organised by ESRT in Da Nang on 18 June, public‐private consensus was achieved regarding priority issues and (most importantly) a possible destination management model. These proposals are now being discussed with provincial DCSTs and People’s Committees. A two‐tier destination management coordination structure is proposed, with responsibility for practical actions mostly at provincial level, and with high level support and oversight at regional (3 province) level. The proposal builds on a Memorandum of Understanding on Cooperation for combined tourism development signed by the provincial People’s Committees of Đà Nẵng, Huế and Quảng Nam and the Vietnam National Tourism Administration (VNAT) on 27 February 2014. This Memorandum commits the authorities to greater cooperation on the following: tourism management and development mechanisms and policies; tourism product development; publicity and promotion of tourism; and human resource development.
Page 39
Destination Management Strategy (July 2014)
Building on this central direction, ESRT support proposes firstly to initiate collaboration between public and private sectors at provincial level by creating Provincial Coordination Boards (PCBs) in each province. PCBs will play a critical role in creating the platform for visitor management, quality and further growth, and will have responsibility for a range of functions, to be defined by each province in accordance with its needs.
4.3.1 Provincial Destination Coordination Boards PCBs will operate to rules and agendas to be agreed at provincial levels. Each PCB will appoint its own chairman on a fixed term basis: The chairman could be from the private or public sector, as each province decides. Provincial agendas might include the following: o Quarterly meetings of all interested industry operators, tourism associations, business groups etc. o PCBs focus on industry engagement and industry education as well as provincial action plan items. o PCBs to actively engage with and include “non‐tourism’’ sectors essential to delivering a quality tourism experience: urban management departments, police, immigration, transport, health, etc. o PCBs become the key vehicle for all stakeholders (public, private) to jointly influence the strategic direction of the destination. Because the new structure proposed needs to be made up of all the stakeholders involved in tourism management, members should be representative of at least the following organizations
Page 40
Destination Management Strategy (July 2014)
PROVINCIAL TOURISM COORDINATION STAKEHOLDERS
o DCST departments o Tourism Association, Hotel Association, Restaurant Association, other associations
o Airport, road and port authorities o Festival organizers
o Protected areas management o World Heritage Site management o Museums and other visitor attractions
o Public beach management o Activity Providers
o Police o Transport providers
o Big business /private sector but not necessarily in tourism (can have a big impact on business tourism and inward investment)
o Tourism related shop owners o Handicraft providers
o Boat operators o Taxi operators o Private operators‐accommodation, tour operators, restaurants etc. o Cruise line ground handlers o Conservation societies/natural resource, managers /natural environment authorities/heritage authorities o NGOs active in tourism o Medical and emergency services o Tourism Training Colleges o Tourism marketing companies (e.g. tourism website owners, CCV. etc.)
Page 41
Destination Management Strategy (July 2014)
PCBs will establish Technical Working Groups as required. There are likely to be at least three working groups as follows: Management, training and quality Product development and marketing Industry communication and funding Each group will work with local stakeholders to develop and deploy responsible tourism in each province including developing guidelines for all sectors of the industry (for example, rolling out Green Lotus as a quality benchmark). It will be essential that the PCBs extend membership as widely as possible and offers real benefits to members to encourage participation. These can include newsletters, and programme of activities, market intelligence, special publications and reports on topics of business interest.
4.3.2 Destination Steering Committees At 3‐province level It is proposed to build on the existing agreement on destination management whereby the DCST’s from the three provinces meet once a year with the representatives of the Peoples Committees to review progress on the following: tourism management and development mechanisms and policies; tourism product development; publicity and promotion of tourism; and human resource development. It is recommendation to formalise this arrangement with a regional Destination Steering Committee (DSC) which will be the lead tourism organization in the wider destination. The regional DSC will be focused on strategy, policy and monitoring of progress, It will meet one time per year (or more often if its members decide). The DSC will be responsible for the holistic development of tourism in the region. Its recommended functions include: Funding of PCB and joint activities Joint product development and quality Joint marketing Monitoring, ensuring value for money and results. It is proposed that members will be representative of the following organizations and drawn from both the public and private sectors as follows: Provincial/ DCST’s Directors or Deputy Directors in charge of tourism (3) Managers of provincial DCST’s(3) Vice Chairs of PCB’s (3) Leaders of Technical Working Groups (circa 9) VNAT observer. It is proposed that the DSC will be chaired by each province on a two year rotation basis. The DSC will operate under a formal charter. Endorsed by the stakeholders will be sought. It will establish formal MOU’s with Provinces in relation to roles, function, and funding where appropriate.
Page 42
Destination Management Strategy (July 2014)
The formal MOU’s will also outline reporting requirements, and annual review processes. Under the proposed model all existing DCST structures operate in their current form but with ESRT capacity development. Local Tourism Associations would also continue to operate as determined by the needs of the industry, and the need to strengthen their membership and roles is recognised. The destination must be able to secure and raise its own finances. The finances might comprise: Annual membership fees Industry contributions to the marketing budget which can be graded and scaled. Exit/arrival fees levied on tourists/tourist accommodation. Fees for services (paid research etc.) Proportion of sales tax Other central Government support Joint promotion fees with other parties in Vietnam and abroad Hotel fees based on number of rooms Restaurants fees based on the number of seats. Retail fees based on size/type of store Attractions/Museums fees based on annual attendance Theatre/ performing arts fees based on ticketing capacity Tours/services – oriented companies fees based on the number of employees. Sightseeing (bus/boat) and car services, fees based on the number of vehicles. Event venues fees based on square footage. Annual surcharge/repossession of undeveloped projects and reforestation of derelict sites on coast Annual surcharge on coastal properties built in violation of coastal protection regulations (e.g. built too close to the shore.
Chart 16 illustrates the proposed two‐tier destination management structure.
Page 43
Chart 16: Draft Destination Management Coordination Mechanism FUNCTIONS • Quality Assurance ‐ • Monitoring • Funding
Joint Marketing
Joint HR
Destination Policy- making body Page 44 Destination implementation agencies
Destination Management Strategy (July 2014)
4.4 Foster competitive tourism businesses and sustainable markets As indicated in chapter 2, the region is presently experiencing an over‐supply of accommodation outside the peak domestic season. Unless funding for investment in significant marketing can be raised, the destination is likely to entre a downward spiral of price‐cutting and falling standards, as tourism businesses will not be sufficiently profitable to see investment in maintenance and standards. Priorities to address this must involve Investment in professional marketing to attract new markets and address seasonality. Continual industry training to raise standards and improve revenue management, delivering a promise that the destination is the best in Vietnam. Tourism Associations are presently weak, have few members and do not provide industry training. There are no provincial SME support structures specialised in tourism. These issues are discussed further in the training and marketing strategies outlined at chapters 6 and 7.
4.5 Use tourism for socio‐economic development As provincial tourism master plans identify, there are many opportunities to use tourism for socio‐ economic development. At a three province level, four product development initiatives have been identified relating to key themes identified in Vietnam’s tourism brand: Culture and heritage Coast Nature; and Short breaks / city breaks: The development of events tourism, in particular to address seasonality, has been identified by the industry as a key need. These are outlined in chapter 5.
4.6 Build awareness and understanding of sustainable tourism Conflicts are beginning to emerge in the destination between those who benefit from tourism and those who do not: An example is rural tourism where some farmers benefit from tourism whereas others do not. Traditional communal sharing of resources is being replaced by individual entrepreneurism. If the three province region is to emerge as a leading responsible tourism destination, intensive training is required focusing on bringing the following together towards a shared vision: DCSTs and local commune managers Hospitality operations and visitor attractions Tour operators and tour guides Local community groups. These are expanded upon in chapter 6.
4.7 Develop a skilled tourism workforce with decent working conditions Many issues relating to training have been identified in the situation analysis (chapter 2). These are examined further at chapter 6.
Page 45
Destination Management Strategy (July 2014)
4.8 Protect and sensitively promote natural and cultural heritage Another key issue emerging as visitor surveys show (charts 13‐15), is the significant interest in the provinces’ nature tourism product. This demand is however mostly met with a low cost, low value product designed to meet the needs of low spending tourists. In terms of sustainability this approach has significant environmental costs. There are opportunities to introduce a higher quality product and thereby satisfy the needs of higher spending market segments. This is discussed further at chapter 5.
Page 46
Destination Management Strategy (July 2014)
5. Product development action plans
5.1 Background The draft Vietnam Tourism Marketing Strategy identifies four product areas as critical to delivering the national brand promise. Culture and heritage Coast Nature; and Short breaks (city breaks) These product areas also emerge as key themes in the three provinces which can be built upon. Each initiative will require coordination and direction through the PCBs.
5.2 Culture and heritage action plan Culture and heritage was identified by stakeholders at the industry forum on 18 June 2014 as the region’s unique selling point. The concentration of UNESCO World Heritage Sites is a key asset, both for long haul and near Asian markets. It is the primary motivating factor for first‐time visits: the cultural heritage experience needs to be made high quality to encourage more repeat visits. Heritage and culture have a key role in attracting people to the region, but also in holding them longer if more attractions, and more interesting presentation of existing attractions, can be delivered. Standard of conservation, maintenance, services and presentation all need to be upgraded to meet the standards of target markets like Japan and South Korea.
5.2.1 World Heritage Sites The standard of World Heritage Site and buffer zone management in Vietnam varies and there is much that can be gained by more sharing of experience. The following development joint (inter‐ province) initiatives are recommended: Upgrading the My Son experience and linking to other Cham sites Visits to My Son tend to be short, despite the richness and beauty of the site. Systems need to be put in place to lengthen (not shorten) visitors length of stay and pressure from tour operators to shorten visits should be resisted. At present this World Heritage Site is managed at local level and enhancement of management is needed. A forest reserve also needs to be set aside surrounding the site and fire breaks cut in the forest. Destination links with (an upgraded) Cham Museum in Da Nang and (an improved experience at) Cham island and other sites could be facilitated and promoted: A combined ticket option should be considered. Advance pre‐booked on line ticketing should be encouraged to spread arrival times. UNESCO should be engaged more. The My Son region has the potential to become a tourism service hub in the medium to long term.
5.2.2 Linking festivals to accommodation booking systems Traditional festivals have revived and thrived since đổi mới reforms. They are of considerable interest to domestic tourists and a rich product in the central region, often combined with spiritual and cultural values. Information about them is however hard for the international tourist to find, but there is potential to make more of them. An electronic system is needed whih links upcoming festivals with ticketing and accommodation booking.
Page 47
Destination Management Strategy (July 2014)
5.2.3 Heritage Road The VNAT Heritage Road initiative was discussed in section 2. An ILO initiative is considering the development of a Heritage Ring Route linking the three provinces and this was considered by the industry forum in Da Nang as a worthwhile priority. The feasibility of the route for “easy rider” motorbike tours (go‐as‐you‐please) and coach tours will need careful consideration. It will be important to examine attractions and facilities along the route holistically with a view to keeping people as long as possible visiting many places, not just World Heritage Sites. A working group with ILO needs to consider routing, attractions ad hubs along the route, signage and so on. Lessons can be learned from the failure of the previous initiative and it is important to have a clear understanding of who the market for the route will be, and how they might spend money along the route to deliver local benefit.’ Action Responsible Competitive Monitoring indicator benchmark 5.2.1 PCBs with State, World Raise standards to meet Number of visitors to Heritage Management & those of Japan & S Korea sites World Heritage Sites UNESCO improvement (Wat Phu, Lao PDR for Number of visitors to Cham sites) locality Ticketing income 5.2.1 PCBs with festival Bangkok, Singapore Number of tickets sold organisations support from Linking festivals to Hotel occupancy in low professional web design accommodation season company booking systems 5.2.3 PCBs with ILO, tour Mekong Discovery Trail Signage of the route operators, rural communes (Cambodia) Heritage Road Route webpage Number of accommodation bookings in rural areas along the route
Other province‐specific heritage and culture recommendations are as follows: Improvements to Hue Monuments as per its master plan This involves the continued restoration of the citadel and imperial tombs and the opening of new ticketed sites on a phased basis. The planned raising of standards of maintenance of tomb‐gardens will be important if new markets are to be attracted, for example Japan. It will be important to promote new initiatives more widely as they happen. Improvements to Hue Monuments buffer zones This area will require destination management cooperation. At present some of the car parks and shopping areas around tombs are poorly managed and need improvement, Adding a Hue Citadel night time experience The development of night time experiences in World Heritage Sites is challenging for security reasons, but there are good precedents (Luxor, Delhi’s Red Fort, Petra by Night) and an opportunity for the Monuments Centre to establish a good additional revenue stream. At present a monthly musical show is on offer for the domestic market. Night time showings of high quality video presentation on the Nguyen emperors, their different characters and their tombs in a courtyard setting could make a popular and easily managed attraction for which a premium price could be
Page 48
Destination Management Strategy (July 2014) charged. Refreshments could be served beforehand to add value. Different language versions should be shown at scheduled times each night. Implementing crowd management at Hoi An and spreading tourism to the buffer zone. Based on UNESCO best practice Hoi An authorities should strengthen ticketing which in turn will have the effect of spreading tourism to non‐ticketed areas. In addition consideration needs to be given to the feasibility of developing other attractions near the city to absorb likely further growth in day trip traffic. Market research is needed to guide possible investors. Improving Da Nang’s cultural tourism offer Da Nang has an excellent city museum, but its famous Cham museum is somewhat run down. The city has architecturally stunning bridges but lacks architecturally stunning cultural attractions. The city has many all‐weather arenas which could be used to present performances of contemporary cultural interest. These could form an important part of an events strategy for the city.
5.3 Coastal tourism action plan Beach tourism has seen rapid development in the region and is an important contributor to loner stays, attracting new markets and raising quality through international brands. Four immediate issues emerge for joint consideration:
5.3.1 Improving beach management There is considerable scope to improve the management of public beaches by benchmarking them against one another and possibly with beaches in Thailand. Beaches are a very important part of the tourism product for both domestic and international visitors and it is essential that standards be raised.
5.3.2 Sustainable seafood Seafood is a key part of the region’s tourism product but at current growing levels of consumption it may not be sustainable. Food safety is also threatened by pollution from chemicals and sewage. Engagement with initiatives like the WWF Save our Seafood (SOS) campaign focussing on sustainable fishing in both the sea and lagoons would be helpful
5.3.3 Derelict sites The coastline is blighted by unfinished developments, cleared coastal sites and fenced off areas. Consideration should be given to setting up a compulsory purchase system for abandoned sites, and to the removal of fences and replanting of the protective coastal tree barrier. Provincial authorities could lead this process.
5.3.4 Tackling erosion This is a long term problem, but a very real threat to the three provinces. Impacts are predicted to be severe, and may be being exacerbated by hotel development too close to the sea shore. The costs of coastal protection are likely to be very extensive. Two responses are needed: Mitigation of current effects and prevention of future effects by imposing stricter planning laws. Action Responsible Competitive Monitoring indicator benchmark 5.3.1 PCB working groups Thailand Visitor satisfaction Beach management Income from beach management
Page 49
Destination Management Strategy (July 2014)
5.3.2 PCBs with WWF, UNDP Malaysia (SOS campaign) Engagement with NGOs Sustainable seafood 5.3.3 PCBs with DSC Ireland (National Asset Reduction in number of Management Bureau) derelict sites Derelict sites Reforrestation 5.3.4 PCBs with State Maldives Expenditure and success Tackling erosion
In addition Quang Nam province should strengthen the management of the Cham Island Biosphere Reserve with a view to encouraging higher value, lower volume nature‐based tourism.
5.4 Nature tourism action plan Unspoiled nature is of great interest to domestic, Asian and long haul markets: It is a precious resource and constantly under threat from development, especially tourism development. It is important that reserves are set aside and protected from development and that when development does take place in designated zones that it designed to offer a high quality, eco‐orientated experience. Destination management issues requiring joint attention are as follows:
5.4.1 Strengthening management of National Parks, lagoons, nature reserves, Marine Parks and other protected areas. Protected area managers should be engaged in the destination management process. Areas like Son Tra and the Cham islands are particularly vulnerable to destruction by poorly managed tourism.
5.4.2 Encouraging high value nature tourism experiences PTBs need to work with tour operators to encourage the development of more diverse nature‐based tourism experiences which earn more money for the economy and employ more people. Trekking, wildlife watching, whale watching and selected adventure sports can give a higher return and have less impact than mass tourism. WWF and the International Union for the Conservation of Nature (IUCN) have been working on many initiatives in South East Asia and elsewhere to address these issues.
5.4.3 Mountain tourism Mountain tourism has tended to be focussed on visiting ethnic minorities. This aspect of tourist raises many responsible tourism issues and it is important to broaden the product to give a diversity of experiences and ensure local benefit. Action Responsible Competitive Monitoring indicator benchmark 5.4.1 PCB with NPs Malaysia Management plans Strengthening NP management 5.4.2 PCBs working with tour WWF& IUCN projects Number of new, high operators value tourism packages High value nature on offer tourism 5.4.3 PCBs working with tour Nepal Benefit to mountain
Page 50
Destination Management Strategy (July 2014)
Mountain tourism operators communes
5.5 City breaks Da Nang is a popular destination for short breaks with the domestic market. Hue and Hoi An (Quang Nam) offer much to explore but are not as well established as destinations to visit for a single destination, domestic tourism holiday. The combined area offers a rich combined product. To improve the chances of the region attracting visitors specifically (not as part of a Vietnam touring holiday, but as a specific holiday destination) the following priorities are recommended:
5.6 Events strategy Develop a strategy to maximise the use of all‐weather facilities to attract tourists to events during periods of lower occupancy. Assets which should be used more for tourism include the following: o Sports stadiums o Theatres o Exhibition venues o Conference facilities. Engagement with the organisers of conferences, concerts and sporting events in Hanoi and HCMC should be undertaken and agreement reached on events to target. The destination has potential to attract meetings, conferences, incentives and exhibitions (MICE) from within Vietnam and as direct air links improve, from the region. Existing Festivals, such as those in hue and Hoi An, also need to be integrated with accommodation booking. New festivals in the low season need to be initiated and marketed, for example film festivals, jazz festivals, food festivals, children’s’ festivals, painting and calligraphy festivals, etc.
5.6.1 City tours Develop hop‐on, hop off bus tours and improve guiding skills Each province should also intensify its own city branding and marketing, to help create an image of a region with great diversity and many places to visit.
5.6.2 Night time destination planning Identify opportunities for new product providing a quality night time experience (including river dinner cruises, night time shows, more reliable cultural performances, better night markets, etc.
5.6.3 Greening the cities Hue and Hoi An have already strategies in place to become green cities: Da Nang has the largest carbon footprint. There is considerable scope for the tourism industry to reduce energy consumption, thereby becoming more competitive and also more saleable through going green. A joint approach to greening tourism is likely to have more impact both physically and in terms of market impact. Action Responsible Competitive Monitoring indicator benchmark 5.5.1 PCBs with ESRT support Singapore, Edinburgh Increase in off season occupancy Events strategy
Page 51
Destination Management Strategy (July 2014)
5.5.2 PCBs with tour operators Pattaya, Singapore Number of passengers City tours 5.5.3 PCBs Chang Mai, Singapore As per strategy to be drafted Night time destination planning 5.5.4 PCB with ESRT, ADB and Pattaya, Singapore As per city strategy to be other NGOsupport drafted Greening tourism
Page 52
Destination Management Strategy (July 2014)
6. Service quality strategy to 2020
6.1 Service quality objectives Continuous training and commitment to quality is an essential element of a competitive tourism destination: The industry must never stop improving. In order for the region to become the best in Vietnam, and to remain so, fundamental changes are needed in how the industry and the Government deliver effective training in tourism. All elements of tourism’s supply chain must be trained to deliver higher standards, not just the accommodation sector. Training is also essential to deliver a tourism brand. All those who come into contact with tourists must know and believe in the promise which the destination offers, and be able to deliver it. The objectives for service quality in the region are therefore as follows: Tourism service standards in the region will be raised so that the region is recognised as the best value in Vietnam. Tourism service standards will be benchmarked against regional competitors. Tourism management in all parts the tourism supply chain will work to continuously improve quality of service and to deliver responsible tourism. Tourism training institutes will realign their programmes to meet industry and visitor management needs
6.2 Enhancing service quality jointly in the region PCBs will establish training working groups and report to the DSC. These working groups will develop the following initiatives:
6.2.1 ESRT support The ESRT Program will supply technical support to promote the role of tourism associations, hotel associations, and tourism professional club. It will provide technical support for them in training and encourage sharing of information and experiences among members of those associations, and their expansion. The ESRT Program will deliver intensive training to PCB members and other industry leaders19 in the following areas: Focus on the training of trainers under VTOS and VTOS Master programs including lecturers of tourism universities, colleges, vocational schools, the hotels with sufficient language skills and professional skills as key manpower. Responsible tourism training for tour operators, communities, and the accommodation sector. Good practice in product development and marketing Tourism communication and public relations Interpreting market research (ESRT Visitor Survey 2014) Hotel management and Green Lotus training
19 It is strongly recommended that to build public‐private partnership in the region, all ESRT trainings should combine public and private sector participants. This is a key project objective and central to the Destination Management process.
Page 53
Destination Management Strategy (July 2014)
On‐site tour guiding Tourist Information Centre operations
6.2.2 Short term training programmes Short termed courses on governmental management in terms of destination planning, responsible tourism and community based tourism development will be organized for staff of DCSTs and local authorities in wards and communes. Training courses will be organized to enhance the skills and knowledge for tour guides and staff of Tourism Information Centers in 3 central coast provinces of Danang, Quang Nam, Thua Thien Hue Training courses on various jobs within the tourism value chain, particularly: beaches manager, tourist attraction manager, entertainment places, etc. These courses will be on communication skills, languages (common conversational language) for tourism staff such as taxi drivers, ticket sellers, servants at tourist destinations, museums, ports, airports, etc. Provinces will work closely with UNESCO, ILO and tourism NGOs to maximise uptake of relevant training programmes. The State Administrations of Tourism, and managing agencies related to tourism supply chain such as airports, harbours, beaches, museums, historical and cultural sites, police, medical services, etc. will be encouraged to deploy officials for internal and external trainings, workshops to raise the level of expertise, management skills, communication skills and customer care
6.2.3 Training in destination excellence It is necessary for each tourism enterprise to build a team of trainers with good professional skills, communication skills and good lecturing skills as a core for internal training. The DSC and PCB working groups will devise a one day training programme to be rolled out across the industry and repeated as necessary covering the delivery of the region’s brand promise.
6.2.4 Training in greening the industry As part of the green cities programme and as part of other greening initiatives, extensive training will be needed. In particularly there is an opportunity to work with the largest carbon‐producing sectors (accommodation and transport) to reduce energy consumption, introduce green technology and become more efficient. The Green Lotus programme will be piloted in the region.
6.2.5 International exchange programme Tourism/Hotel Associations and PBs will seek opportunities for hotels to recruit students with specialized overseas training in foreign countries such as Switzerland, France, Singapore, Thailand, and the Netherlands etc. These students often have clear career orientation; and welcome the opportunity of practical experience in a foreign country like Vietnam: They generally have good professional knowledge to share and foreign language skills.
6.2.6 In region exchange programme Students of hotel management and tourism majors at colleges and universities often have few opportunities to working as trainees in a professional environment like hotels. The PCBs and Tourism/Hotel Association will work to encourage more apprentice opportunities or part time work during university periods, to gain experience and to give them higher chances of finding work in the future.
Page 54
Destination Management Strategy (July 2014)
Tourism enterprises will be encouraged to associate with training institutes for training, and recruiting students with paid jobs before and after graduation. This linkage will also help to make courses provided by training institutes more industry‐relevant through feedback.
6.2.7 Providing guidance to training institutes in the region so that the can become the best value in Vietnam The PCB training working groups can have a key role in putting more emphasis on the quality of management training courses than the quantity. Training programs need to be updated in the method‐centered approach, rather than information‐centered as before. Teachers need to have the language skills parallel with vocational skills. Industry trends are constantly training and new product and service standards are emerging. These need to be communicated to trainers and training institutes.
Page 55
Destination Management Strategy (July 2014)
Action Responsible Competitive Monitoring benchmark indicator 6.2.1 ESRT ESRT monitoring and Number of trainings and evaluation processes numbers of private & ESRT support public sector participants 6.2.2 PCB working groups Philippines. Lao PDR Number of trainings and numbers of private & Short term training public sector participants programmes 6.2.3 PCB working groups UK ‘Welcome Host” Number of businesses taking up scheme Destination excellence Number of trainings and participants 6.2.4 PCB working groups Thailand 7 greens, ADB Number of businesses green cities going green Greening the industry Number of Green Lotus properties 6.2.4 PCBs & Tourism Lao PDR Number of participants Associations International exchange programme 6.2.5 PCBs & Tourism Number of participants Associations In‐region exchange programme 6.2.6 PCB working groups Lao PDR Number of changes to syllabi Guidance to training institutes
Page 56
Destination Management Strategy (July 2014)
7. Marketing strategy to 2020
7.1 Marketing objectives In bringing the three provinces together marketing has been identified as a key need. At present provinces both individually and collectively undertake some promotional activities, usually with VNAT and/or Vietnam Airlines, but there is no clear marketing strategy for the destination. It is often said that marketing starts with the product, knowing what aspects of the product will appeal to which markets and focussing on key strengths. This is discussed further in the product‐ market matrix at 7.3 below. The marketing message must be clear and realistic in making a promise about what the destination can offer, and what it is able to deliver: Both product development and training are therefore essential to marketing. This strategy recognises that an integrated approach is necessary and that marketing undertaken in isolation from ongoing training and product development is unlikely to be successful in the long term. The objectives for marketing the region are therefore as follows: To position the destination as the best value and most interesting destination in Vietnam. To present the three provinces as an integrated tourism destination which can hold visitors for five or more days To encourage more direct flights to the destination from key target markets. Delivering effective marketing is dependent on funding. For the purposes of this strategy it is assumed that Provinces will continue to fund their own promotional activity (mostly attending trade shows and hosting familiarisation visits). They, the Government, and the industry, will contribute to joint marketing costs. The scale of joint marketing will be largely determined by how much money can be raised. Collective marketing will be additional, i.e. it will focus on parts of the promotional mix which are not currently being sufficiently addressed, in particular e‐marketing, targeting of charter operations and in‐market public relations. Professional marketing companies will be engaged to deliver this additional activity, with clear benchmarks and targets for performance. Other specialist marketing initiatives by specialist organisations will be encouraged to continue, for example the marketing of luxury product through CCV, MICE marketing by leading hotels, and the marketing of cruise ports to cruise line companies. Production of brochures and attending exhibitions will not be a priority for joint marketing activity. The joint campaign will be primarily electronic with a particular emphasis on transparency of results.
7.2 Strategy
7.2.1 Anticipating future trends and markets UNWTO’s report on mega‐trends in tourism in Asia20 points out the following:
20 UNWTO (2006) Mega‐trends in tourism in Asia.
Page 57
Destination Management Strategy (July 2014)
. Travel in Asia is becoming more activity‐interest based rather than destination‐ based. . The development of LCCs has made intra‐ and inter‐regional travel more affordable and has changed people’s travel habits and patterns. Airlines are likely to become a low‐cost industry. . Polarization of tastes and travel spending is taking place (‘high end’ versus budget). . There is a continued growth of online transactions, underlining the importance of the internet. . There is consolidation of social‐environmental awareness and consciousness. . Competition and cooperation among destinations for inbound tourists is intensifying. . The Internet is becoming the dominant source for both sourcing holiday information and making bookings . There is more emphasis on travel experiences and customized tours. . The increasing growth of seniors and women travelling is boosting the demand for cultural and wellness tourism. . Emphasis on fast communication of accurate information to mitigate negative impacts on destinations from unexpected events. UNWTO’s much respected publication Tourist Towards 2030 predicts that tourism in South East Asia will become increasingly dominated by regional traffic. China will be the dominant source of tourists, and traffic from Australasia and Russia will grow at a faster pace than traffic from Western Europe and North America. It is therefore recommended that the three province marketing strategy should focus primarily on the domestic and regional markets, and Russia where the highest returns on investment for the majority of the region’s tourism suppliers are likely to come from. This means leaving most long haul marketing to VNAT and representatives luxury product providers like CCV.
7.2.2 Positioning While the region has some excellent luxury product, in order to fill the majority of tourism businesses in the destination, and match expectations with service delivery, the destination will be positioned as offering best value in Vietnam. Best value means: The destination with the most to see and do (in particular its strong heritage and culture product) The destination with the best welcome and service The destination where prices offer excellent value. The destination where people should stay longer. This approach will have particular appeal to the domestic, Asian and budget‐conscious long haul traveller. Focus for the PCBs will therefore be on filling the majority of tourism suppliers who tend to be mid‐range to budget. Luxury product providers will continue to market themselves through their own channels, and will continue to give the destination added fashion ability.
7.2.3 Brand A great deal of money is wasted in Vietnam designing logos which do not deliver guarantees of quality (and are therefore not brands). Branding in this region will be firmly linked to on‐going training and promise to deliver best value for money to the consumer. Once a continuous training programme has been put in place for the destination (chapter 6), the province’s brand promise will be further defined.
Page 58
Destination Management Strategy (July 2014)
In the meantime it is recommended that the destination be marketed as VIETNAM’S HERITAGE COAST: Hue, Da Nang, Quang Nam. Marketing messages will refer to the variety and richness of the product offer, the wealth of things to do, and the value for money which the region offers. A corporate identity for the region defining visual styles and the kinds of photography to be used will be commissioned from a professional design agency.
7.3 Product: Matching product to markets The matrix outlined at table 2 highlights main areas of interest only, for example for MICE it is assumed that most interest will be from nearby markets due to the cost and complexity of getting to the region from further away. The matrix illustrates that the main interest across all markets is likely to be for heritage, nature and coastal product. It also shows that the markets for which there is most interest in the region’s wider product will be nearby markets (domestic, North Asia and Association of South East Asian Nations [ASEAN] countries).
Page 59
Destination Management Strategy (July 2014)
TABLE 2: Product‐market matrix Main market Domestic North Asia ASEAN Australia Russia North America Europe Product 1. Culture - Heritage, World Heritage Sites X X XX XX X XX XX - Ethnic culture: community based X X X X tourism - Spiritual XX XX XX X X 2. Nature - Protected areas X X X X X X - Adventure X X X X X XX XX 3. Coast - Beach resorts XX XX X XX XX X X - Holiday with public beach access XX XX X X XX X X
- Cruise liners XX X X X X 4. City breaks X X XX - Short breaks, weekends XX XX XX 6. Special interest - MICE (air access dependent) XX X X - Golf X X X X X
Page 60
Destination Management Strategy (July 2014)
In a situation where budgets are limited, focus needs to be on the domestic, North Asian and ASEAN markets. If joint budget limitations remain, consideration should be given to each province targeting the domestic market separately, and cooperating only for joint overseas activity.
7.4 Price The regional destination should be presented as the best value for money in Vietnam. This does not mean cutting prices, rather it means stressing increased value compared to less interesting, less well trained and less service‐orientated locations. It will be important that e‐campaigns are bookable: i.e. that consumer can click through to make a booking. Websites which do not allow this in tourism are largely ineffective.
7.5 Place – where will marketing be undertaken?
7.5.1 On line Reflecting the growing reality that the main source of holiday information is the Internet, the development of a well‐designed, simple and visually attractive tourism website and tablet/mobile phone app will be the main joint marketing tool to be developed. It will be commissioned from a professional design agency to deliver e‐marketing campaigns. The effectiveness of these campaigns will be transparent and closely monitored. The website/app will Highlight simple clear messages about the destination. Feature stunning visual imagery for key products (heritage and culture, nature, coastline and cities). Feature events with a particular emphasis on low season events. Link to provincial websites which contain more detail and databases (detailed information such as lists of accommodation will not be featured on the joint website). Feature links which enable consumers to close transactions through booking engines and events ticketing. The website will from the outset be multi‐lingual with Vietnamese, Chinese, Japanese, Korean, Russian, Thai, English, French and German options.
7.5.2 In market activity Traditional media campaigns and attending exhibitions are expensive and often unquantifiable: Attending an exhibition, an advertisement in a magazine or a television spot is a one‐off attempt to reach a broad audience. There is usually no follow‐up and no way to reliably track its effectiveness. Instead this strategy is based on campaigns which will be market‐specific and designed and executed by professional marketing agencies. They will consist of e‐marketing, targeting of charter operators and airlines, and public relations. Thematic content for each campaign will be collected to meet each market’s needs and involve inspiring images as much as possible.
Page 61
Destination Management Strategy (July 2014)
Facebook and YouTube (and Chinese equivalents behind the Great Firewall) will be used as as a main platform for each campaign targeting a specific city. Customized Facebook applications will be syndicated to tour operators and other interested stakeholders in each target destination. Flickr, YouTube and Pinterest photographic coverage to be increased through social media growth. A community of interest will be built up for holidays in the destination.
Tracking of a series of indicators to monitor the progress will enable constant re‐evaluation of strategies in the ever‐changing online environment to ensure that messages are resonating with the people who were looking for them.
The roll out of campaigns (which cities they will target) will be directly related to the capacity of air links and the interest of potential charter operators. Professional PR agents will be engaged, city by city. Attendance at exhibitions and trade shows will not be a priority for joint funding but will be undertaken in the conventional way by provinces individually, and by private companies with VNAT.
7.5.3 Targeting airlines for new and expanded air links A principal marketing objective of the regional destination marketing is to increase the frequency of air service to destination airports in support of establishing the region as a destination in its own right and of making it a viable international gateway to Vietnam. This is an essential follow on from the in‐market campaigns.
Air travel in Asia is growing rapidly, despite occasional shocks. The number of people travelling by air in China has tripled in the past decade, for example. Vietnam Airlines is expanding and LCCs have delivered enormous growth in South East Asia: They now account for a reported two thirds market share within ASEAN, but not in Vietnam. The ability of LCCs to reduce the cost of air travel has had enormous impact on tourism destinations that they fly to: More LCC routes are needed to the region.
Charter traffic to Vietnam is also growing and presents big opportunities if backed up by destination awareness campaigns as proposed above. More aircraft are forecast to be delivered to Asian carriers than to Europe and the Middle East combined over the next ten years.21 By maximising the use of international airports, the region has a significant opportunity to be at the centre of regional tourism growth, if awareness of the region as a tourism destination can be improved, landing costs reduced and a competitive quality product delivered.
Growth needs to come from both existing and new airlines. Existing airlines (primarily Vietnam Airlines) need to be encouraged to increase frequency, operate from additional airports (in different markets) and/or increase the size of aircraft (with more seats), and strengthen year‐round schedules. New airlines new airlines need to be encouraged to operate from new source markets or/and to increase frequency from existing markets (in addition to service provided by existing airlines). Convincing the airline requires specialist skills to be engaged. The region will therefore engage specialist marketing support to undertake the following:
21 Airbus quoted by Deloittes
Page 62
Destination Management Strategy (July 2014)
a. Proactive efforts to influence Airline/Tour Operator route planning/air service decision‐ making, to secure new or improved air service to the destination. b. Presenting a positive business case to persuade decision‐makers to deploy aircraft resources to this market rather than to alternative markets. c. Communicate the strengths of airports in the destination, the destination’s strengths and to dispel any negative misconceptions. d. Promote growth by improving existing services. More frequencies Larger aircraft types – with more seats Better timed flights
e. Secure new services. New markets with existing airlines. New airlines.
7.6 Marketing budget Joint marketing should not be progressed until sufficient budgets to execute and sustain it have been secured. The following figures are indicative: Design of corporate identify and website/app €20,000 E‐marketing campaign and PR, per city €50.000 Four cities to be targeted in year 1 (2014), choice dependant on likely direct air links. This requires a budget of €200,000 to be raised. This should be expanded: in Year 2, 5 cities; year 3, 6 cities, etc.
Page 63
Destination Management Strategy (July 2014)
7.7 Timetable When Action Responsible 2014 Establish PCBs and marketing working DCSTs with ESRT support groups Agree funding mechanisms Obtain PSC endorsement of funding and strategy Undertake airport marketing study with ACV 2015 Commission design guidelines and PCB marketing working groups with website ESRT support Agree target cities for 2015‐6 Tender foe e‐marketing and roll out 2016 Roll out campaigns, review and PCB marketing working groups expand
7.8 Monitoring progress Transparent monitoring of progress is a clear industry need. The electronic marketing approach will enable this to happen. Indicators are outlined in the action plan below.
Page 64
Destination Management Strategy (July 2014)
Action Responsible Competitive Monitoring indicator benchmark 7.6.1 PCB working group VNAT brand guidelines Design manual Commission corporate identify for joint marketing 7.6.2 PCB working groups with n/a destination specific Issue of tender ESRT support Draft terms of reference for website/mobile app 7.6.3 Agency Malaysia e‐marketing Launch of campaigns Design e‐marketing and PR campaigns by market 7.6.4 Campaign roll Agency Malaysia e marketing Number of hits and links out by city Size of Facebook and other communities Number of posts to social media Number of click throughs to bookings Number of leads generated and distributed to members Number of actions actions (likes, comments or shares) 7.6.5 PCBs and Airports Thai regional airports Number of additional Corporation of Vietnam passengers Specialist airport (ACV) with ESRT support marketing
Page 65
Destination Management Strategy (July 2014)
8. Bibliography
8.1 Printed sources Da Nang Tourism Promotion Centre (n/d) Da Nang Highlights Da Nang Tourism Promotion Centre (n/d) Da Nang New Discovery to Asia: Top 10 Can’t miss things to do ESRT (2013) Vietnam Tourism Marketing Strategy to 2020 & Action Plan: 2013‐2015 (Proposed): Executive Summary. Hanoi ESRT (2013) Vietnam Responsible Tourism Toolkit. Hanoi Grant Thornton (2012) Vietnam Lodging Industry Hotel Survey, 2011. Hanoi Hue Monuments Conservation Centre (n/d) Welcome to Hue Heritage! Hue Monuments Conservation Centre (2013) Disan Hue. Issue 1 Hue Monuments Conservation Centre (2014) Disan Hue. Issue 1 Hue Tourism Promotion and Information Centre (n/d) Uniquely Hue brochure set Lo J (2014) Cruise: Asia gets on board. In: CHINA DAILY: ASIA WEEKLY. June 27‐July 3 2014. Hong Kong. Lo, J.(2014) Cruise liners set sail for yuan potential. In: CHINA DAILY: ASIA WEEKLY. June 27‐July 3 2014. Hong Kong. MCG Management Consulting Ltd. (2007) Report on Tourism Value Chain Analysis in Danang. EU Vietnam Private Sector Support Programme. MGT Management Consulting (2011) Why Vietnam’s Coastal Tourism Growth is Inevitable, Parts I & II. Ngoc Son (2014) Road Worthy: The Heritage Journey. In TIMEOUT, May 2014 Organising Board Hue Traditional Craft Festival (n/d) Hue’s Traditional Crafts Join Provincial Board of Editors (n/d) Hue‐Da Nang‐Quang Nam: Centre of Wonders Phan Thuan An (2014) Hue Monuments and Landscapes Quang Nam Tourism Promotion Centre (2013) Quang Nam: Two World Heritages at One Destination VNAT Institute for Tourism Development Research (2012) Strategy for Tourism Development in Vietnam to 2020, Vision 2030. Hanoi. VNAT Institute for Tourism Development Research (2012) Vietnam Tourism Master Plan to 2020, Vision to 2030.(draft) Hanoi. VNAT (n/d) Vietnam Tourist Map UNESCO (2008) IMPACT: Cultural Tourism and Heritage Management in the World Heritage Site and Ancient Town of Hoi An
Page 66
Destination Management Strategy (July 2014)
UNWTO (2006) Mega‐trends in tourism in Asia. Madrid UNWTO (2007) A Practical Guide to Tourism Destination Management. Madrid. UNWTO (2011) Tourism towards 2030. Madrid UNWTO (2012) Tourism Highlights: 2012 Edition. Madrid. UNWTO (2014) Tourism Barometer, April 2014. Madrid.
8.2 Electronic sources
Page 67