INTRODUCTION
Background
Tourism is a crucial global economic sector, contributing 9% to the world's GDP and generating over 200 million jobs globally (UNWTO, 2013) In developing nations, tourism significantly boosts local economies by increasing demand for local products and industries, which in turn helps alleviate poverty (Mason).
While tourism offers various benefits, it also leads to significant economic, social, and environmental challenges The World Tourism Organization (UNWTO) (2013) highlights that the tourism sector contributes to climate change, local pollution, biodiversity loss, and energy waste Additionally, an expanding tourism sector can foster social issues such as crime, exploitation, and income inequality Consequently, there is an urgent need for sustainable tourism development strategies advocated by tourism administrators globally.
Figure 1.1 Vietnam’s tourist arrival in the 2015 – 2022 period
Source: Vietnam National Administration of Tourism (2022)
In Vietnam, the 2015 – 2019 period witnessed remarkable growth in the tourism industry with an average tourist arrival growth rate of 12.32% a year (Vietnam National
The tourism industry in Vietnam experienced significant growth prior to the COVID-19 pandemic, peaking in 2019 with 18 million international and 85 million domestic arrivals, contributing 9.2% to the nation's GDP Despite a sharp decline in 2020 and 2021 due to the pandemic, the sector is showing signs of recovery in 2022, with strong growth anticipated in the coming years.
Sa Pa town in Lao Cai province is a key destination in Vietnam's tourism landscape, recognized as one of the country's seven National Tourist Areas due to its ethnic diversity and stunning scenery While tourism has contributed to poverty alleviation, it has also led to environmental degradation, cultural invasion, and inequality among ethnic minority groups, as highlighted in the latest tourism development plan for Sa Pa With 82.09% of the town's population being indigenous ethnic minorities, the influx of tourists and investors has created a power imbalance, resulting in local residents losing business opportunities and land to external investors This situation has further exacerbated the loss of production and residential land for ethnic minorities, while the influence of external cultures threatens to erode traditional customs and practices.
The COVID-19 pandemic has severely affected Sa Pa's tourism sector, particularly impacting small household businesses run by ethnic minority groups (Trieu et al., 2020) These ongoing challenges risk fostering social unrest and jeopardizing Sa Pa's objectives for sustainable socio-economic development Consequently, there is an urgent need for the implementation of sustainable tourism development strategies in Sa Pa.
Vietnam boasts seven National Tourist Areas, recognized as the country's most renowned destinations These include Sa Pa, Tuyen Lam, Hung Temple, Tam Dao, Tra Co, Sam Mountain, and Mui Ne, each offering unique attractions and experiences for visitors.
7 address the needs of relevant stakeholders such as local government, travel enterprises, and local people, especially those from ethnic minority groups
Developing an effective tourism strategy is a complex endeavor, particularly in Sa Pa, where the interplay of diverse ethnicities, cultures, and beliefs among local service providers creates a multifaceted environment According to Baggio (2008), the tourism sector is characterized by interdependent factors and nonlinear relationships, which complicate strategic planning Additionally, the industry increasingly confronts VUCA (Volatility, Uncertainty, Complexity, Ambiguity) situations, including natural disasters, pandemics, and economic crises These elements highlight the dynamic complexity of tourism systems, presenting significant challenges for organizations and individuals involved in tourism management.
Research objective
Sa Pa, a renowned tourist destination, has garnered significant interest from scholars both in Vietnam and globally, focusing on sustainable tourism development Researchers have examined key challenges faced by Sa Pa's tourism industry (La, 2018; Tran & Ngo, 2021), while others have explored the rights and involvement of indigenous communities within the tourism value chain (Bott, 2018; Le et al., 2016; Michaud & Turner, 2017; Truong et al., 2014) In the policy arena, Nguyen (2022) and Nguyen et al (2020, 2022) analyzed the differing perspectives and participation levels of Kinh and ethnic minority stakeholders in tourism development, offering valuable policy insights However, a comprehensive assessment of sustainable tourism development in Sa Pa, which could inform policy formulation, remains lacking in existing research.
In practice, the People Committee of Sa Pa (2019) and Communist Party Committee of
In 2020, Sa Pa town recognized significant shortcomings in the management and execution of its tourism policies Notably, local government agencies have failed to foster a shared understanding of the tourism industry's importance.
2 VUCA is an acronym that stands for volatility, uncertainty, complexity, and ambiguity
The collaboration among tourism institutions in Sa Pa has not met expectations, leading to significant limitations in human resources and inconsistent quality of policy advice Additionally, unresolved issues within the tourism industry, such as street hawking, have not been addressed comprehensively, hindering effective solutions.
This research aims to develop a sustainable tourism strategy for Sa Pa town through a systems approach, addressing key questions to guide the process.
1 What are the current gaps and challenges regarding sustainable tourism development in Sa Pa town and the needs of local people and businesses concerning this issue?
2 Concerning the limitation of resources, which areas should be the priority for policy intervention in the tourism sector of Sa Pa?
3 What could be locally appropriate solutions for sustainable tourism development of Sa Pa?
This thesis provides a comprehensive evaluation of the challenges faced by the Sa Pa tourism industry, offering critical policy implications for sustainable local tourism development Additionally, the systems approach utilized in this study serves as a methodological reference for future tourism planning and policy formulation.
Scope, methodology, and structure of the thesis
This thesis seeks to identify strategies to improve self-reliance and resilience among stakeholders in Sa Pa's tourism industry in response to the growing effects of tourism development The focus is on local solutions that align with the capabilities of industry participants, while also acknowledging the impact of external factors on the implementation of tourism policies in Sa Pa.
With the research objectives described above, this thesis embraces a constructivist worldview Therefore, a systems approach is applied in tourism planning which
The article emphasizes the importance of understanding the motivations of different stakeholders and the interconnections among factors in a tourism system This understanding allows for the identification of priorities that can serve as targets for policy measures Additionally, the study utilizes the UNWTO's criteria for sustainable tourism to evaluate the current state of the tourism industry in Sa Pa town.
This thesis includes six chapters:
LITERATURE REVIEW
Sustainable tourism concept
The sustainable tourism concept started to emerge in the late 1980s and has gotten increasing attention from people in both academic and political spheres (M C Hall,
The concept of sustainable tourism has been debated among scholars since its inception, with no clear consensus on its definition (Butler, 1999) According to McCool (2016), there are at least three distinct interpretations of sustainable tourism in practice The first interpretation views it as a small, carefully managed enterprise that meets the needs of tourists seeking nature and cultural experiences The second interpretation emphasizes the importance of sustaining local tourism sectors and supporting small businesses Finally, the third interpretation focuses on the overarching goal of development, which includes income generation, tax revenue, healthcare, and educational opportunities.
Sustainable tourism is defined variably, leading to multiple frameworks for its identification and evaluation Coccossis (1996) outlines four perspectives for integrating tourism with sustainable development: sectoral, ecological, long-term viability, and the interplay of physical and human environments Padin (2012) introduces a sustainable tourism concept centered on economic, environmental, and social dimensions Furthermore, Bramwell et al (1996) identify seven sustainability pillars in tourism: environment, culture, politics, economics, society, management, and government However, Moscardo and Murphy (2014) critique the current conceptualizations of sustainable tourism, arguing they hinder progress in the industry, and suggest a quality-of-life framework that prioritizes community engagement as a more effective approach.
For tourism administrators, and institutions working in the tourism industry, each of them also has its exclusive way to define and measure sustainable tourism (Edgell, 2020)
The UNWTO defines sustainable tourism as an approach that considers its economic, social, and environmental impacts, catering to the needs of visitors, the industry, the environment, and host communities Alongside UNEP, the organization outlines 12 key objectives for sustainable tourism, including Economic Viability, Local Prosperity, Employment Quality, Social Equity, Visitor Fulfillment, Local Control, Community Wellbeing, Cultural Richness, Physical Integrity, Biological Diversity, Resource Efficiency, and Environmental Purity To implement these goals, the UNWTO has developed a framework comprising 5 pillars and 17 sub-pillars, as illustrated in their sustainable tourism framework.
Figure 2.1 UNWTO’s framework for sustainable tourism
The position of tourism in development policies and programs
Tourism policy and regulatory framework
Tourism governance and institutional setup
Measuring tourism and its contribution to the economy
Trade, investment and the business environment
Brand, marketing and product positioning
Resilience, security and risk management
Human Resources planning and working conditions
Skills assessment and the provision of training
An integrated approach to poverty reduction through tourism
Strengthening pro-poor tourism initiatives
The inclusion of disadvantaged groups in the tourism sector
The prevention of negative social impact
Relating tourism to natural and cultural heritage
Enhancing sustainability of tourism development and operations
Measuring and monitoring tourism impacts
Economic performance, investment and competitiveness
Employment, decent work and human capital
Poverty reduction and social inclusion
Sustainability of the natural and cultural environment
Tourism development in Sa Pa
Sa Pa, a picturesque tourist town in Lao Cai province, Vietnam's Northwest region, is a top destination for both domestic and international travelers From 2016 to 2019, the town experienced an impressive annual tourist growth rate of 52.5%, with visitor numbers reaching 3.29 million in 2019, just prior to the COVID-19 pandemic Its allure lies in its stunning landscapes, situated at Vietnam's highest altitudes, and the rich cultural diversity of its numerous ethnic minority groups.
As of 2022, ethnic minorities comprise 82.09% of Sa Pa's population, with the Hmong group representing 51.65% and the Dao group 23.04% Other ethnic groups include the Tay, Giay, and Phu La, while the Kinh, Vietnam's majority ethnicity, makes up only 17.91% of the population Tourism in Sa Pa is generally viewed positively by various stakeholders, as it promotes local economic development, creates job opportunities, and facilitates cultural exchange However, it also brings about negative environmental and societal impacts.
Michaud and Turner (2017) criticize the current wave of massive tourism investment in
Sa Pa's neglect of local identity has led to conflicts with indigenous communities, who receive a minimal share of tourism's economic benefits compared to the Kinh people Truong et al (2014) highlight that income generated from local tourism is unevenly distributed, primarily favoring affluent individuals and tour operators, which creates tensions among Sa Pa's communities Additionally, the rapid development of tourism has contributed to inflation and significant cultural shifts among the local population.
La (2018) highlights the detrimental effects of waste, pollution, and street hawking in Sa Pa, emphasizing that current tourism development primarily meets the government's economic goals while neglecting other important objectives Furthermore, Nguyen et al (2020, 2022) address the need for improved tourism policy formulation in Sa Pa to better balance economic growth with environmental and social considerations.
Pa follows a top-down approach in which “most tourism plans are formulated and
13 implemented by the dominant Kinh group involving little consultation with local residents”
Concerning the factors that can positively contribute to the sustainability of tourism in
Sa Pa, Tran and Ngo (2021) explore the impact of seven key factors on sustainable tourism in Sa Pa through structural equation modeling, which includes infrastructure development, technical facilities, tourism resources, human resources, organizational management, service quality, and community participation In contrast, Le et al (2016) emphasize the significance of community-based tourism (CBT) as a crucial element in promoting sustainable tourism in the region.
In addition to academic research, reports, and plans from local authorities, the Communist Party Committee of Sa Pa plays a crucial role in shaping the tourism development strategy for the town These documents serve as vital sources of information regarding the current state of tourism in Sa Pa.
The "Develop Culture, Tourism and Build the Sa Pa National Tourist Area up to International Level in the 2020-2025 Period" plan addresses key challenges in local tourism, including weak branding, product development, street hawking, deteriorating infrastructure, and environmental impacts The Sa Pa local authority has outlined strategic focus areas for the tourism sector over the next five years, emphasizing infrastructure enhancement, human resources training, product innovation, effective promotion and branding, solutions to street hawking, and the preservation of local culture.
Tourism planning approaches
Tourism planning has evolved alongside the tourism industry, driven by its economic growth and the emergence of complex social and environmental challenges (Costa, 2020) This evolution reflects a shift from a "supply-oriented" approach that prioritized infrastructure and services, to a "market-oriented" strategy that emphasizes customer needs and product innovation, ultimately leading to a "contemporary" focus on sustainable development (Tosun et al., 1998) Despite these shifts, a common thread remains in the overarching goals of tourism planning.
All 14 approaches adhere to a strategic management process consisting of four key steps: analysis of targets, context, and resources; formulation; implementation; and performance evaluation (Simão & Partidário, 2012) An illustration of this process is seen in Figure 2.2, which outlines the development framework of Thailand's National Strategy for Tourism Development (2017 – 2021), highlighting the initial two steps of the strategic management approach.
Figure 2.2 Development framework of the National Strategy for Tourism
Source: Captured from The Ministry of Tourism and Sports of Thailand (2017)
The strategic management process is essential for effective public sector management, regional planning, and the operations of international organizations (Simão & Partidário, 2012) Nevertheless, as highlighted by Moscardo (2011), this planning approach has inherent limitations that have evolved over the past 30 years, as noted in research by Getz.
In 1986, key challenges in tourism planning were identified, including a narrow focus on specific projects rather than a comprehensive view of tourism, limited attention to the impacts of tourism, and an emphasis on economic factors while occasionally acknowledging environmental issues Additionally, there was a lack of consideration for how tourism interacts with other activities at a destination and an uncritical adoption of business strategic planning as the primary framework for tourism planning.
15 market or tourist needs and expectations as the core drivers of tourism planning, giving destination residents a very limited role, if any” (Moscardo, 2011, p 429)
Baggio (2008) critiques the traditional linear approach to tourism management, highlighting its oversimplification of the complex and dynamic nature of tourism destinations, where interdependent components interact in non-linear ways This perspective is echoed by researchers such as Budeanu et al (2016), Mai and Smith (2015), and Bosch et al (2013), who advocate for innovative strategies in tourism planning to better address these complexities.
The systems approach, also known as systems thinking or systems sciences, emerged in the early 20th century and gained prominence in the 1960s to address the complexities of social systems (Metcalf & Kauffman, 2021; Mingers & White, 2010) Recently, its application in tackling public sector challenges has gained traction (OECD, 2017) This approach encompasses various fields, including General Systems Theory, Cybernetics, Systems Dynamics, and Soft Systems Methodology, each with its own associations, journals, and conferences (Metcalf & Kauffman, 2021) Despite their differences, these methodologies share common characteristics, as noted by Mingers and White (2010).
● Approaching problems comprehensively, and avoiding reductions;
● Acknowledging the importance of interactions among components rather than each isolated one This determines the behavior of the system as a whole;
● Realizing the hierarchy structure of systems as well as shared characteristics and causalities across levels of the systems;
● Accepting the fact that each component in the system (e.g individuals in social systems) has its preferences and rationales
A systems approach to tourism planning ensures a comprehensive view of the destination's tourism system, engaging all relevant stakeholders and sectors It acknowledges and values the perspectives of each stakeholder, facilitating their interaction throughout the planning process This collaborative effort helps establish common goals and actionable plans, addressing key issues effectively.
16 factors affecting the operation of the tourism system at the destination are considered in intersecting cause-effect relationships
In Vietnam, the tourism sector of the Cat Ba Biosphere Reserve in Hai Phong city was examined using systems approach methodologies by two research teams from the University of Queensland, led by Bosch and Nguyen (2011; 2013) and Mai and Smith.
(2015, 2018) Mai and Smith adopted Systems Dynamics, which was initiated by a group of academicians from the Massachusetts Institute of Technology (MIT) (Sterman,
In 2003, a method utilizing “stock and flow” diagrams was introduced to model systems and simulate dynamic transformations through computer programs Concurrently, Nguyen and Bosch created a systems analysis method known as Evolutionary Learning Laboratories (ELLAB) The Hai Phong government has since adopted this systems approach, initially applied in Cat Ba, to enhance development in other areas of the city (T Van Nguyen et al., 2020).
Figure 2.3 Evolutionary Learning Laboratory framework
Source: modified from Bosch et al (2013)
3 Develop or refine systems models
4 Identify leverage points/ Systemic interventions
The ELLAB framework is composed of seven steps designed to guide system members through various levels of thinking, as illustrated in Figure 2.3 This process begins with the identification of key elements, facilitating a structured approach to problem-solving and decision-making (Kambiz E Maani & Robert Y Cavana, 2007).
Mental models significantly shape the decisions and behaviors of individuals and organizations within a system, determining its structure and the interrelationships among its members By understanding these dynamics, system members can develop actionable plans independently, reducing reliance on external interventions.
Consultation workshops engage diverse stakeholders to pinpoint critical issues and understand the needs, motivations, and behaviors of each participant, referred to as "mental models" by the authors.
● Step 2: capacity-building sessions are conducted to guide the participants to fit their knowledge and understanding into a system’s structure
● Step 3: the system is modeled in a causal loop diagram (CLD)
In Step 4, we identify the archetypes and leverage points within the system, which are critical issues that can enhance or impede system performance These leverage points will serve as focal targets for the upcoming intervention plan, aiming to optimize the system's effectiveness.
● Step 5: based on the findings from the previous step, a systemic interventions and management plan will be prepared
● Step 7: Evaluation of the proposed plan.
Conceptual and theoretical framework of the research
This thesis utilizes the systems approach based on the ELLAB process (Bosch et al., 2013) to address the research questions However, due to time and resource limitations, as well as the impact of the COVID-19 pandemic in Vietnam, the author adapted the process by implementing a simplified version that retains the essence of the original systems approach The conceptual framework of this study is illustrated in Figure 2.4.
Figure 2.4 Conceptual framework of the research
Surveys and interviews with key stakeholders in the Sa Pa tourism sector will identify industry challenges, proposed solutions, and potential barriers to effectiveness The collected data will be analyzed to highlight prominent problems and the cause-and-effect relationships among factors involved This phase will also refine the UNWTO's sustainable tourism framework to better suit the local context, providing a solid analytical foundation for addressing sustainable tourism issues in Sa Pa.
The system analysis phase of the research process, based on CLD modeling provided by ELLAB, begins by modeling Sa Pa's tourism system using data analysis outputs from the previous step This phase focuses on identifying system archetypes and leverage points to determine key intervention areas The primary objective is to gain a comprehensive understanding of the system's challenges and identify bottlenecks.
Refined UNWTO’s sustainable tourism framework
19 that make the system’s operation inefficient, and then determine prioritized actions to improve the system’s efficiency
In the final stage, policy recommendations are developed and discussed with essential stakeholders in Sa Pa's tourism sector This consultation process is designed to refine the system model created in step 3, ensuring the effectiveness of the CLD analysis.
2.4.2 Refined UNWTO’s sustainable tourism framework
As discussed in the previous section, this study uses a refined UNWTO's sustainable tourism framework as a basis to identify challenges faced by the tourism system in Sa
The adaptation of the UNWTO framework for Sa Pa tourism development is necessary because the original criteria primarily cater to national assessments, often lacking relevance to local contexts The UNWTO acknowledges the need for flexible application of its methodology based on specific circumstances Consequently, the framework has been tailored with more suitable sub-pillars that align with the key issues and focus areas identified in Sa Pa Figure 2.5 illustrates the refined sustainable tourism framework developed for this research.
Figure 2.5 Refined UNWTO’s framework for sustainable tourism
Adequacy of policy and regulatory framework
Policy formulation and stakeholders’ engagement
Investment and the business environment
Brand, marketing and product development
Resilience, security and risk management
Job opportunities and working environment
Human resources development activities and provision of training
The inclusion of disadvantaged groups in the tourism sector
The prevention of negative social impact
Environmental, landscape protection and climate change adaptation
Awareness of sustainability in tourism development
Economic performance, investment and competitiveness
Employment, decent work and human capital
Poverty reduction and social inclusion
Sustainability of the natural and cultural environment
The revised framework for Sa Pa as a significant tourism destination emphasizes critical criteria in policy and governance, such as the adequacy of policies, the formulation process, and the capacity for tourism administration, while omitting aspects like the role of tourism in development policies and strategies In terms of growth quality, it shifts focus to evaluating visitor spending alongside tourist arrivals, disregarding broader macro issues like international trade policies in favor of pressing local concerns, including infrastructure development and the business environment Furthermore, significant changes in pillar 4 highlight poverty reduction and social inclusion, particularly addressing the challenges faced by ethnic minorities, which remain a key focus for policymakers in the Sa Pa tourism sector.
Pillars 3 and 5 of the refined framework do not have changes in their content compared to those of the original one However, some sub-categories are divided into smaller ones to emphasize important issues in the tourism sector of Sa Pa For example, in pillar 3, the quality of human resources is separated into a new sub-category In pillar 5, the issue of environmental protection and cultural conservation is divided into two separate themes instead of being merged into one as in the original framework
Figure 2.6 Causal loop diagram of child safety situation in Japan
The initial problems identified in the conceptual framework serve as crucial inputs for the systemic analysis in subsequent phases This analysis employs a Causal Loop Diagram (CLD) to illustrate the interrelationships among system elements and their dynamic changes It is an essential tool for researchers to uncover archetypes that lead to system stagnation and pinpoint leverage points for potential interventions For instance, Figure 2.6 presents a CLD that highlights the factors influencing child safety in Japan, as examined in the study by Bosch et al (2013).
A CLD consists of two main components, variables, and arrows
Wherein, a variable is a condition, action, or subject from which it can influence or be influenced by other variables A variable can be either quantitative or qualitative (T Van
In the context of causal loop diagrams (CLDs), arrows illustrate the relationships between variables, with a reinforcing relationship indicated by a “+” or “S” and a reducing relationship by a “-” or “O.” These interrelations can create feedback loops when a series of connections forms a closed circle For instance, in tourist destinations, a feedback loop can be observed where an increasing number of visitors results in higher revenue, which subsequently attracts more investment in tourism products, enhancing destination attractiveness and leading to further growth in tourist numbers.
A feedback loop is classified as a reinforcing loop (R) when the interactions among variables amplify the existing trend, whether positively or negatively For instance, an increase in capital and labor inputs can enhance the growth trajectory of a system.
Figure 2.7 A feedback loop representing relationships among economic factors of a tourism destination
22 trend of the economy In the tourism industry, Figure 3.4 is a typical reinforcing loop where the number of visitors, revenue, investment, and destination attractiveness increase together after an interaction cycle
A feedback loop is classified as a balancing loop when the variables involved work to inhibit changes, often representing barriers to development or solutions that alleviate negative effects For instance, in an economic context, increased growth can lead to higher inequality, which in turn hampers further growth, creating a negative balancing loop Conversely, investments in human capital that address educational inequality can establish a positive balancing loop An illustrative example of a balancing loop is shown in Figure 3.5, where an increase in tourist arrivals results in waste pollution, ultimately diminishing the destination's appeal.
The property of a feedback loop, whether reinforcing or balancing, can be quantitatively assessed through regression analysis of real-time data or through insights from key stakeholders and related reports This study employs the latter approach to analyze the characteristics of feedback loops.
The next phase in CLD analysis involves identifying system archetypes, which, as Meadows (1999) explains, are structures that generate recurring behavioral patterns within a system Recognizing these archetypes helps uncover the underlying reasons for a system's persistence in its current state, despite existing challenges and limitations Peter M Senge (1990) identified several archetypes within social systems, and three of these are particularly relevant to the Sa Pa tourism sector.
Figure 2.8 A feedback loop representing relationships among environmental factors of a tourism destination
The "Limit to Success" archetype features two opposing feedback loops, as illustrated in Figure 2.9 Specifically, the balancing loop of pollution hinders the reinforcing loop that drives an increase in the number of visitors to a destination.
Figure 2.9 Limit to Success archetype in a tourism destination
The study examines "Balancing Loops with Delays," a crucial archetype in feedback loops where the effects of actions are not immediately apparent, indicated by parallel lines in the arrows on the Causal Loop Diagram (CLD) These delays can hinder decision-making within the system, negatively impacting performance, particularly in balancing loops aimed at resolving specific issues For instance, Figure 2.10 illustrates a balancing loop addressing the challenge of low-quality human resources at a tourist destination, which leads to subpar service quality However, solutions such as education and training do not yield instant results, complicating the process of enhancing service quality in a timely manner and making it difficult to assess the effectiveness of training initiatives.
Figure 2.10 Balancing Loops with Delays archetype in a tourism destination
Figure 2.11 Accidental Adversaries archetype in a tourism destination
METHODOLOGY
Research design
The research was structured around a conceptual framework outlined in section 2.4.1 and consists of four distinct phases Figure 3.1 illustrates the implementation process of the study, detailing the methods utilized in each phase.
Figure 3.1 The implementation process of the study
To accurately reflect the current tourism system in Sa Pa and gather insights from industry stakeholders, key players will be identified and surveyed to address challenges in sustainable tourism development Following the construction of the system model and the identification of its archetypes and leverage points, consultation sessions with stakeholders will be conducted to refine the model and solicit proposals for overcoming system constraints Additionally, essential systems analysis tools from ELLAB, such as Causal Loop Diagrams (CLD), will play a crucial role in this study, which will employ mixed methods throughout the research process.
Sampling and data collection
In the initial phase of the research process, a combination of qualitative and quantitative methods will be utilized to identify tourism issues in Sa Pa from the stakeholders' perspectives These stakeholders encompass local government officials, local businesses, external investors in Sa Pa, local tourism workers, development project experts, training institution representatives, and tourists The selection of these stakeholders is guided by the criteria set by the UNWTO.
An analysis of the key stakeholders in the tourism system of Sa Pa highlights their significant roles in promoting sustainable tourism, as outlined by the UNWTO in 2013 Table 3.1 details the various stakeholders, the types of data to be gathered from each, and the methods for data collection.
Table 3.1 Key stakeholders in the tourism system of Sa Pa and related data
Stakeholder type Data to be collected Collection methods
Policies, plans for tourism development, and urban development of Sa Pa
For tourism administration agency: All issues in the 5 pillars of sustainable tourism
For urban planning agency: urban planning, planning management, and infrastructure development
For communes' leaders: issues related to tourism management at the commune level, and the participation of ethnic minorities in tourism
Businesses owned by ethnic minorities
Businesses owned by external investors
All issues in the 5 pillars of sustainable tourism, but focus on the participation of businesses in policy formulation, business environment, and management of environmental and social impacts
People who work in the tourism sector
People who engage in CBT
Sustainable tourism hinges on the active engagement of local communities within the tourism value chain, particularly through Community-Based Tourism (CBT) initiatives and the creation of job opportunities It is essential for these communities to be involved in policy formulation to ensure their needs and perspectives are considered, promoting a more inclusive and equitable tourism industry By prioritizing local involvement, sustainable tourism can thrive while benefiting both the environment and the economy.
All issues in the 5 pillars of sustainable tourism focus on the adequacy of local tourism development strategy, product development, job creation, community development, and environmental protection
Training institutions Focus on pillar 3 on employment, decent work, and human capital; and pillar 4 on poverty reduction and social inclusion
In-depth interview Tourists Pillars from 2 to 5 in sustainable tourism framework (exclude policy and governance pillar)
The desk study activity involved gathering and analyzing policy documents and reports related to tourism development and urban planning in Sa Pa This process spanned the entire study period, from the initial literature review to the conclusion of interviews and discussions with stakeholders It serves as a crucial source of information for evaluating the sustainability of tourism development in Sa Pa.
The interview, focus group discussions, and online surveys are structured around the refined UNWTO framework for sustainable tourism A comprehensive master questionnaire with 48 open-ended questions has been developed to ensure alignment with this framework.
The framework consists of five key pillars, as outlined in Annex 1 of the master questionnaire Relevant questions tailored to each stakeholder will be chosen from this list The data collection will involve interview activities and a focus group discussion, which can take place either in-person during a field trip to Sa Pa or online through email and video conferencing.
An online customer survey was conducted to gather feedback from individuals who have traveled to Sa Pa The questionnaire featured a mix of five Likert scale questions, multiple-choice options, and open-ended inquiries, aimed at evaluating the experiences of visitors in the town.
Data analysis
Interviews and focus group discussions are recorded with the consent of informants and subsequently transcribed using the V-IONE application for thematic analysis Each pillar of the UNWTO's sustainable tourism framework serves as a theme, allowing for the coding of relevant transcript texts to identify these themes Additionally, customer survey results are analyzed through descriptive statistics, with findings presented in tables and charts to illustrate observed trends.
Systems modeling and analysis
The thematic analysis data is utilized to create a matrix that highlights the challenges faced by Sa Pa's tourism sector, aligned with each pillar of the UNWTO framework This matrix outlines the underlying causes and potential solutions to these issues, serving as a foundational tool for addressing tourism-related problems in the region.
3 V-IONE is an AI-based application specialized in transcribing records in Vietnamese See more at: https://vione.ai/
The system is modeled using a Causal Loop Diagram (CLD) in Vensim software, where variables represent the issues identified in the matrix The CLD undergoes multiple calibrations informed by stakeholder feedback Subsequently, a system analysis is performed to uncover archetypes and leverage points within the system.
Solutions formulation
This study involves the creation of a causal loop diagram (CLD) featuring archetypes and leverage points, followed by consultation sessions with key stakeholders Participants, including local residents, businesses, government officials, and tourism specialists, provide valuable feedback to refine the model These stakeholders are well-versed in the Sa Pa tourism sector, ensuring their insights are authoritative and relevant to the industry's dynamics.
During the meetings, stakeholders evaluate intervention options at leverage points, prioritize solutions, and assess available resources for implementation Insights gathered from these discussions will inform policy recommendations that align with stakeholder needs and feasibility Additionally, desk studies will be performed to identify relevant legal frameworks and potential resources necessary for practical implementation of the proposed solutions.
Participants engage in a sustainability scoring activity aimed at quantitatively assessing factors influencing sustainable tourism development in Sa Pa This activity helps identify key weaknesses that require attention The sustainability scoring sheet comprises 18 questions aligned with the refined UNWTO sustainable tourism framework, and respondents rate each question on a scale from 1 to 5, with increments of 0.5.
The sustainability scoring sheet evaluates various criteria by averaging the scores given by all respondents Each criterion's final score is derived from this average, while the overall scores for the framework's pillars are calculated as the mean of their respective sub-criteria scores.
4 Vensim is a system modelling software See more at: http://vensim.com/
Limitations
The methodology employed in this study faces limitations due to the comprehensive nature of the systems approach, which demands significant effort, resources, and time for research This approach necessitates the consideration of various stakeholder perspectives and the intricate relationships within the system According to the OECD report (2017), policymakers should be aware of time constraints when implementing a systems approach Despite these challenges, it remains an effective method for addressing complex public policy issues (T Van Nguyen et al., 2020; OECD, 2017).
FINDINGS AND DISCUSSIONS
Demographics of informants
Seven interviews were conducted with key stakeholders in the Sa Pa tourism industry, including two businesses, a seasoned tourism expert, a training organization, and representatives from three government agencies, with Sa Pa's Department of Culture and Information serving as the primary tourism management authority Table 4.1 presents a detailed list of informants, their respective organizations, and the methods used for the interviews, each assigned a unique identification number.
Table 4.1 List of informants in the in-depth interviews
I01 Department of Culture and Information (DCI) Direct interview
I02 Department of Urban Management Email interview
I03 People Committee of a commune in Sa Pa (Commune’s PC) Direct interview
I04 An ethnic minority-owned business (EM-owned business) Online interview
An online focus group discussion was conducted with seven members from four communes in Sa Pa, comprising ethnic minorities from the Hmong, Dao, and Giay groups All participants are engaged in community-based tourism (CBT) activities.
The tourism industry encompasses 32 activities and various job opportunities Notably, among the seven participants, I13 serves as a delegate to the People's Council in her community Table 4.2 presents a list of informants who took part in the focus group discussion.
Table 4.2 List of informants in the focus group discussion
Informants’ number Gender Age Ethnicity Commune
A total of 66 people responded to the online survey, of which 42 were female (64%) and
Out of the respondents, 23 were male, representing 35% of the total, while one individual chose not to disclose their gender In terms of nationality, 51 participants, or 77%, are from Vietnam, with 15 others hailing from various countries, including Australia, France, the UK, and the USA The marital status is nearly evenly split, with 53% identifying as single and 47% as married Most respondents fall within the age range of 25 to 34 years old.
A total of 42 respondents, representing 63% of the sample, participated in the survey Despite the small sample size relative to the annual visitor count in Sa Pa, the demographics of the respondents reflect a balanced representation across gender, nationality, marital status, and age Figure 4.1 provides a visual overview of the survey participants' profiles.
Vietnam Australia USA France UK
Married with young children (age 5 and under)
Married with grown- up children (over 18 years old)
Married and have children under 18 years old
Figure 4.2 Number of respondents’ visits to Sa Pa
In addition, only 32% of survey respondents (equivalent to 21 people) have been to Sa
A significant portion of survey respondents, with 23% (16 individuals), reported visiting Sa Pa more than five times, indicating their substantial experience with the local tourism situation This high level of familiarity supports the validity of the survey results, as illustrated in Figure 4.2, which displays the frequency of visits to Sa Pa.
Table 4.3 Categorizing participants in consultation sessions
Category Number of respondents Proportion
Three consultation sessions were held, featuring five participants each, representing four essential stakeholders in the Sa Pa tourism industry: local residents, government officials, businesses, and tourism specialists As indicated in Table 4.3, local residents comprised the largest group of participants across the three sessions.
35 residents (33.3%), followed by businesses (26.7%), and finally government officials and tourism specialists (20% for each group).
Situation of the Sa Pa tourism sector
During the consultation sessions, participants addressed key issues facing the tourism industry in Sa Pa, leading to the completion of individual scoring sheets for the sustainable tourism framework The radar chart (Figure 4.3) illustrates that none of the five sustainable tourism pillars scored above 3 out of 5 points Notably, the chart reveals a concentration in Pillar 2 (Economic performance, investment, and competition) and Pillar 3 (Employment, decent work, and human capital), both receiving the highest score of 2.92 points among the pillars.
The Sa Pa tourism sector faces significant challenges in achieving sustainable development, with a predominant focus on economic and employment issues, while policy, social, and environmental aspects lag behind This imbalance is evident in the low scores for pillar 1 (2.52 points), pillar 4 (2.62 points), and pillar 5 (2.59 points) Table 4.4 illustrates the sustainability scores across five pillars and their respective sub-categories.
Table 4.4 Sustainability scores of the 5 pillars and sub-categories
Pillars and sub-categories Scores
Pillar 1: Tourism policy and governance 2.52
Adequacy of policy and regulatory framework 2.47
Policy formulation and stakeholders’ engagement 2.63
Pillar 2: Economic performance, investment, and competitiveness 2.92
Investment and the business environment 2.70
Brand, marketing, and product development 2.87
Resilience, security, and risk management 3.35
Pillar 3: Employment, decent work, and human capital 2.92
Job opportunities and working environment 3.50
Human resources development activities and provision of training 2.60
Pillar 4: Poverty reduction and social inclusion 2.68
The inclusion of disadvantaged groups in the tourism sector 2.73
The prevention of negative social impact 2.40
Pillar 5: Sustainability of the natural and cultural environment 2.59
Environmental, landscape protection, and climate change adaptation 2.47
Awareness of sustainability in tourism development 2.50
In the following sections, more details of the issues in each pillar are described based on the perspectives of informants participating in the interviews and focus group discussion
4.2.2 Pillar 1: Tourism policy and governance
Effective policy and governance are crucial components of the UNWTO's sustainable tourism framework Destinations with strong policy systems and governance capabilities are better positioned to reach their sustainable tourism development objectives.
In Sa Pa, all critical policy documents in the field of tourism have somehow indicated several factors regarding sustainable development (Communist Party Committee of Sa
In Sa Pa, there is currently no established set of criteria for sustainable tourism, leading to varying interpretations among policymakers regarding its principles This lack of a clear framework hinders the development of comprehensive tourism policies that align with sustainable development goals For instance, the planning for the Sa Pa national tourist area through 2040 includes numerous construction projects, such as new urban developments and cable car systems, which pose significant risks to the environment and local landscape.
A significant challenge to sustainable tourism policies in Sa Pa is the limited accessibility of these policies to local residents Despite claims from government officials and a local business representative that stakeholder consultations occurred throughout the policy development process, focus group participants, including representatives from ethnic minority-owned businesses, reported being unaware of these consultations They expressed a lack of information and understanding regarding the policies after their release, highlighting their role as key community members who typically access government information first.
The limited capacity of local ethnic minorities restricts their access to vital information, while ineffective communication from Sa Pa authorities exacerbates the issue The current communication strategy relies heavily on official documents, causing information to traverse multiple government levels, which hinders timely dissemination and understanding among the local population.
38 hierarchy before reaching the people Consequently, in the consultation meetings, important information may be omitted or not thoroughly communicated by local officials, who have limited tourism expertise
The Sa Pa tourism management agency faces a significant challenge due to its limited capacity, as highlighted by a representative from the Department of Culture and Tourism With a scarce number of human resources, the agency is also tasked with responsibilities in culture and sports, which detracts from its tourism focus Additionally, tourism experts note that the officials' limited capabilities and differing mindsets further hinder effective tourism management in the region.
Figure 4.4 Distribution of sustainability scores of Pillar 1
Figure 4.4 shows the distribution of sustainability scores of the 3 sub-categories in pillar
1 As we can see, the stakeholders involved in the scoring have a relatively strong consensus on the scores for the sub-categories of the policy and governance topic when there is not much difference between scores in the upper and lower quartiles With most of the given scores below 3, the average score for pillar 1 is the lowest among the 5 sustainable tourism pillars (2.52 points) This fact implies that the policy domain is the area that needs to be improved the most within the Sa Pa tourism sector
4.2.3 Pillar 2: Economic performance, investment, and competitiveness
Prior to the COVID-19 pandemic, Sa Pa experienced remarkable tourist growth, reaching an annual rate of 52.5% (People Committee of Sa Pa, 2019) However, tourism expert I06 notes that visitors to Sa Pa tend to spend less and have shorter stays, which impacts the overall tourism experience.
The revenue of the tourism industry in Sa Pa is not meeting expectations due to a lack of high-quality services that appeal to high-income tourists This challenge has been highlighted in the 2030 tourism development project by the Communist Party Committee of Sa Pa town.
The constraints in product development within the Sa Pa tourism sector are largely attributed to insufficient marketing efforts, which encompass inadequate market research, a lack of identification of key customers, and unclear product development direction.
Pa was once supported by an international development organization with market research, but it was a long time ago and was not updated From the perspective of the
The Sa Pa authority, as outlined in the local tourism development plan (Communist Party Committee of Sa Pa town, 2020), emphasizes that while marketing efforts focus on brand building and destination promotion, they fall short of incorporating essential core activities.
The Sa Pa tourism industry is at risk of losing its appeal due to various environmental and social challenges An evaluation of tourists' feedback from online interviews highlights concerns regarding these issues and their impact on the town's attractiveness.
Figure 4.5 Limitations of Sa Pa tourism as evaluated by survey respondents
Sa Pa tourism faces significant challenges, with overcrowding (mean score of 3.73), street hawking issues (mean score of 3.70), damage to the natural landscape (mean score of 3.65), and loss of cultural identity (mean score of 3.61) being the primary limitations Notably, street hawking has the highest impact, evidenced by an upper quartile score of 5, highlighting its critical significance in the region's tourism concerns.
Sa Pa has faced significant backlash from tourists, with many respondents agreeing that the area has been "almost boycotted" due to the negative effects of tourism, as highlighted by Informant I01 (Sa Pa DCI) and I06 (tourism expert).
Systemic analysis of Sa Pa’s tourism situation
A problem matrix has been developed to analyze the current state of Sa Pa tourism, identifying key issues, their causes, potential solutions, and obstacles to effective implementation These issues are categorized into variables that demonstrate a cause-and-effect relationship, serving as the foundation for creating a causal loop diagram (CLD) For further details, refer to Annex 3 of the thesis.
Figure 4.11 Causal loop diagram of Sa Pa’s tourism situation
The CLD illustrated in Figure 4.11 highlights the complex interrelations within Sa Pa's tourism system, featuring 13 key feedback loops—3 reinforcing (R) and 10 balancing (B) This diagram is organized into three main segments: Growth and Adverse Impacts, Policy and Governance, and Job Opportunities and Training, each containing archetypes that contribute to negative behaviors in the system The subsequent sections will delve into the details of these segments and their respective archetypes.
4.3.2 System archetypes in the causal loop diagram of Sa Pa’s tourism
Growth and Adverse Impacts segment
The growth of the Sa Pa tourism industry is driven by two reinforcing loops: R_e1 and R_e2 R_e1 illustrates how increasing tourist arrivals create pressure on infrastructure, prompting further development that enhances travel experiences and attracts more visitors Simultaneously, R_e2 highlights the role of investment in new tourism products, which boosts revenue and draws in additional investors These trends are currently shaped by external factors, including the effects of the COVID-19 pandemic and the subsequent surge in tourism demand as the situation stabilizes.
Figure 4.12 Drivers of growth in Sa Pa tourism sector
The "Limit to Success" archetypes in Sa Pa's tourism industry reveal significant constraints on growth Visitor growth, as illustrated in Figure 4.13, leads to overcrowding, which diminishes the destination's appeal Additionally, Figure 4.14 highlights another balancing loop, B_e2, where infrastructure development has negatively impacted the environment and local culture, further reducing the destination's attractiveness These factors collectively indicate that the Sa Pa tourism industry is approaching its growth limit.
Figure 4.13 Limit caused by overcrowding to the drivers of growth
Figure 4.14 Limit to the growth driven by infrastructure development
Figure 4.15 Limit to the growth driven by investment from external sources
In Figure 4.15, the growth illustrated by the R_e2 loop is limited by two balancing loops, B_e3 and B_e4 The rise in investment for new products and services in R_e2 not only boosts economic growth but also heightens environmental and cultural impacts, which negatively influence the appeal of Sa Pa (balancing loop B_e3) Additionally, the low spending levels of visitors (balancing loop B_e4) present a challenge for Sa Pa's tourism development; however, this factor does not adversely affect tourism growth as seen in B_e2 or B_e3.
The growth of Sa Pa's tourism is hindered by challenges stemming from its own development, particularly issues of overcrowding and negative environmental and cultural effects To ensure the sustainable advancement of the town's tourism sector, it is crucial to tackle these constraints Addressing these key issues is essential for enhancing the overall tourism system in Sa Pa.
To mitigate the negative impacts of tourism, effective policy formulation and management can be achieved through three balancing loops: B_p1, B_p2, and B_p3 In B_p1, implementing sustainable tourism development standards is crucial for enhancing the quality of policy formulation and execution within the tourism sector Additionally, fostering strong consultation processes is essential for successful outcomes.
51 dissemination of information to stakeholders, especially local people (in B_p2); and adequate marketing activities (in B_p3) are also ways to policy quality improvement
Figure 4.16 Constraints upon adequate policy formulation and management
The efficiency of the three balancing loops is hindered by limitations in tourism administration capacity, as illustrated in Figure 4.16 While capacity-building activities for local government can address this issue, the resulting improvements are not immediate due to inherent delays, as highlighted by the "Balancing Loops with Delays" archetype To enhance tourism management capacity and mitigate these delays, it is crucial to strengthen international assistance through the reinforcement of loop R_p1, as shown in Figure 4.17.
Figure 4.17 Role of international assistance in the Policy and Governance segment
Improving local tourism administration capacity is a key leverage point for enhancing sustainability in Sa Pa's tourism sector Additionally, raising awareness about sustainable tourism through the dissemination of sustainability standards, enhancing stakeholder consultation and communication, and implementing effective marketing activities are crucial areas that require focused attention to provide comprehensive solutions for the region's tourism development.
Job Opportunities and Training segment
Figure 4.18 Constraints upon job opportunities for local people
The segment illustrated in Figure 4.18 features two balancing loops, B_j1 and B_j2, addressing the issue of unequal tourism benefits Central to these loops is the variable "Job opportunities for local people," where increased employment enhances local benefits This shift encourages greater participation in formal tourism activities rather than informal ones, as seen in balancing loop B_j1 The growth of this variable is supported by Community-Based Tourism (CBT) development from loop B_j2 and increased external investment in Business Enterprise Initiatives (BEI) However, a paradox arises as BEI development can hinder CBT's effectiveness, despite both approaches generating jobs for locals Further details of this issue are presented in Figure 4.19.
Figure 4.19 Impacts of external investors on local communities
The "Accidental Adversaries" archetype illustrates how the development of Community-Based Tourism (CBT) and Benefit Enhancement Initiatives (BEI) can simultaneously foster job creation in the tourism sector However, BEI introduces competition against local products and services, as noted in section 4.2.5 Furthermore, investors often acquire land from local residents for speculative purposes, resulting in price inflation within the community.
There is a bottleneck in the system structure of this segment which is the “Limited human resources capability” as mentioned in section 4.2.4 This problem affects the
Job opportunities for local residents can enhance the effectiveness of CBT development This issue can be addressed through training initiatives within the balancing loop B_j3 Similar to capacity-building efforts for local governments, these training programs are essential for fostering local employment and improving community development.
Training activities frequently fail to yield immediate results due to inherent delays Furthermore, the restricted training capacity in the local area hinders the enhancement of human resource quality, even with supplementary assistance from international organizations.
Analyzing this segment reveals that enhancing human resources capabilities and empowering local communities are key leverage points within the system These factors are crucial for effectively addressing the social and cultural challenges associated with Pillar.
4 and Pillar 5, as well as the labor quality issue of Pillar 3 in the sustainable tourism framework.
Identifying key intervention areas
This chapter identifies four key leverage points essential for designing effective policy interventions in tourism: enhancing tourism administration capacity, mitigating negative tourism impacts, improving human resource capabilities, and strengthening local community resilience These factors are visually represented in Figure 4.15, which illustrates the leverage points within the Sa Pa tourism system.
Figure 4.21 Leverage points in the Sa Pa tourism system
Mitigating adverse impacts of tourism
Balancing the power between local communities and investors Improve system sustainability