000042401 PRO-POOR TOURISM: AN APPROACH TO SUSTAINABLE TOURISM DEVELOPMENT IN VIETNAM THE INVOLVEMENT OF THE INFORMAL SECTOR IN TOURISM IN SA PA DU LỊCH VÌ NGƯỜI NGHÈO: MỘT PHƯƠNG PHÁP PHÁT TRIỂN DU LỊCH BỀN VỮNG TẠI VIỆT NAM SỰ THAM GIA CỦA KHU VỰC PHI CHÍNH THỨC VÀO DU LỊCH TẠI SA PA
Background on tourism and poverty reduction in V ietn am
Humanity has entered the 21st century with dramatic advances in technology and economics, yet poverty and environmental challenges persist The World Bank estimated that 2.8 billion people lived on less than $2 a day in 2001, and by 2005 about 1.4 billion people in the developing world were living on less than $1.25 a day In Vietnam, poverty has declined thanks to sustained government-led reforms to develop the national economy since 1986, with nearly 8 percent annual growth helping reduce poverty from 61 percent in 1993 to 37 percent in 1998 and to 13.4 percent in 2003 Tourism has emerged as a spearhead economic sector, contributing to poverty reduction and overall economic development, as highlighted at the 10th National Congress.
Vietnam, with its breathtaking landscapes, diverse natural resources, multi-ethnic culture, and stable politics, is emerging as one of the world’s top travel destinations International tourist arrivals have expanded 11-fold since the early 1990s, averaging about 20% annual growth, rising from roughly 250,000 visitors in 1990 to 4.25 million in 2008 (VNAT statistics) A 2006 survey by the World Travel & Tourism Council (WTTC) and Oxford Economic Forecasting (OEF) ranks Vietnam sixth globally for the fastest growth in tourism and travel (Source: SGGP).
Domestic tourism in Vietnam has shown notable growth over the period, highlighting its rising importance in the travel sector According to Koeman and Lam (1999), nearly 10 million tourists visited Vietnam in 1998, and this figure climbed to around 20 million by 2008, signaling a strong expansion of domestic travel demand.
According to the Vietnam News Agency (2009), Vietnam's tourism industry generated 3.5 billion USD in 2008 and was projected to reach 5 billion USD by 2010 In social terms, the sector already provides more than 275,000 direct jobs out of about 800,000 total tourism-related positions, with overall demand expected to rise to around 1.2 million by 2010 These findings suggest that Vietnam should adopt a more pro-poor tourism approach, especially in rural and mountainous areas, to boost living standards and incomes for local poor residents.
Since the early 1990s, Sa Pa has rapidly developed into a major destination for both international and domestic tourists, drawn by its spectacular mountainous scenery, favorable climate, and diverse ethnic cultures The region’s tourism infrastructure has transformed from a “2-hotel town” in 1992 to a mountainous resort with more than 80 hotels and guesthouses by 2002 In 2002, about 70,000 tourists visited the district, with roughly 35–40% foreign visitors; by 2006, the district hosted 259,079 tourists: 191,724 domestic and 67,355 international travelers from over 84 nationalities Tourism revenues rose accordingly, totaling about 100 billion VND in 2006, in addition to 1,245,345,000 VND from sightseeing fees.
Sa Pa's tourism development has engaged a wide range of local people—including ordinary residents, street vendors, xe om drivers, and even children who act as informal guides with strong knowledge of indigenous tourism and solid English skills It is common for many locals to rely entirely on tourism income While opinions about tourism's impact in Sa Pa vary, it is clear that tourism has increased the income of ethnic communities in the area Consequently, making tourism more beneficial to the local community and improving access for the informal sector to the tourism market are key to ensuring the sustainability of the "non-smoke" industry in this northern district.
H ow to m ake tourism m ore p ro-poor in the m ountainous regions o f V ietnam (especially in
This study on Sa Pa aims to increase the access of the poor to tourism activities as its main objective The research is organized into eight parts: Part I provides a brief overview of tourism development and poverty reduction in Vietnam and Sa Pa; Part II explains the research significance and the rationale for topic selection; the subsequent sections review the existing literature on the topic, covering fundamental concepts, the development of pro-poor tourism worldwide, and lessons learned from pro-poor tourism practices in other countries, including pro-poor tourism projects in diverse contexts.
This article on Vietnam and Sa Pa outlines the study structure, with Part 4 detailing the research questions and methodology, and Part 5 presenting the findings alongside interpretation and discussion of the collected data The discussion continues with Part 6 highlighting the implications of the findings, Part 7 presenting the conclusions and recommendations, and the final section addressing study limitations and opportunities for future research.
This study investigates strategies to boost revenue and employment for the informal sector in Vietnam’s mountainous regions, with a particular focus on the northern district of Sa Pa By identifying viable pathways to involve more low-income residents in tourism activities, the research aims to support poverty alleviation in Sa Pa and surrounding communities It also offers targeted solutions to current challenges such as rising unemployment, the widening wealth gap, incidents of tourist harassment, and other social evils that affect both residents and visitors.
A dditionally, it is expected that through deep research on the capability o f the inform al sector in Sa Pa the thesis can help the informal sector understand the necessity o f
By cultivating a customer‑oriented attitude and improving service delivery, this study aims to advance tourism practices that are pro‑poor and transferable to other mountainous destinations in Vietnam, supporting inclusive growth, sustainable livelihoods, and scalable best practices for Vietnam’s mountain communities.
The World Summit on Sustainable Development in 2002 stated that tourism can play a vital role in reducing poverty and promoting sustainable development, and it urged developing countries to make tourism a priority in development and poverty-reduction strategies In Vietnam, the tourism industry was first given priority at the 10th National Congress, signaling a national commitment to leveraging tourism for growth and sustainable development.
V ietnam has brought the country billions o f US dollars; how ever, like others country,
Vietnam's tourism development has produced few opportunities for poor people and the informal sector, with leakage ensuring only a small share of tourism revenue stays in local communities—especially in rural and mountainous villages—while outsiders reap the most benefits In Sa Pa, although most tourist activities occur in rural villages, villagers initially saw few benefits because profits flowed to urban tour operators This situation raises questions about how poor people can become suppliers to hotels and tour operators, how they can better access tourists to raise income, and how they can secure a fair share of tourism benefits These questions underpin the research on pro-poor tourism in the mountainous regions of Vietnam, with the aim of increasing access of the informal sector to tourism activities.
A second reason for selecting this research topic is to show how the pro-poor tourism case in Sa Pa can inform broader practice across Vietnam It seeks to ensure that tourism stakeholders at other destinations gain a solid understanding of the concepts and practical strategies for making tourism more pro-poor and more beneficial to local communities, and that policy makers better grasp the relationship between tourism and poverty reduction so that clear, effective guidelines for the development and implementation of pro-poor tourism can be delivered to localities promptly.
In order to reach the above objectives, there is some research questions needed to be addressed as following:
First, w hat are the inform al sector and its ability to participate in tourism ?
Second, w hat are the barriers to the access o f the inform al sector to tourists market?
Third, w hat are the barriers to the access o f the inform al sector to the m ainstream tourism business sector?
What mechanisms can improve the poor's access to the tourism market, including access to tour operators, ground handlers, and hoteliers who purchase tourism services and products, and to tourists? Key approaches include reducing entry barriers for smallholders through streamlined licensing and supportive procurement rules, capacity-building programs to raise service quality and business planning, and targeted financing such as microcredit and grants to help start or expand local tourism enterprises Leveraging digital platforms and inclusive marketing can connect underserved communities with buyers and travelers, while public–private partnerships and procurement incentives encourage hotels and operators to source from low-income communities Community-based tourism cooperatives, training in customer service and product development, and transparent pricing and accreditation schemes can strengthen competitiveness and ensure that a larger share of tourism revenue benefits the poor.
Fifth, w hat are the roles o f local authority and tourism policy m akers in getting the poor involved in tourism activities?
The research questions will be addressed through in-depth primary and secondary research focused on the case study of Sa Pa, Vietnam This approach provides a detailed understanding of Sa Pa’s tourism dynamics, local livelihoods, and environmental impacts The insights gained will then be generalized to other mountainous tourist centers in Vietnam, identifying common patterns and site-specific differences to inform broader Vietnam tourism policy and development strategies.