TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL ECONOMIC INTEGRATION

Assessment of the situation of tourism economy of the North Central provinces in international economic integration from 2000 Chapter 4: DIRECTIONS AND SOLUTIONS TO IMPROVE DEVELOPMENT O

-NGUYEN THI HONG LAM

TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL

ECONOMIC INTEGRATION

PHD THESIS IN ECONOMICS

HA NOI - 2013

-NGUYEN THI HONG LAM

TOURISM ECONOMY IN THE NORTH CENTRAL REGION IN INTERNATIONAL

I hereby declare that this is entirely my own work All the thesis data are truthful And the thesis conclusions have never been published in any other research.

Thesis author

Nguyen Thi Hong Lam

Chapter 1: OVERVIEW OF RESEARCH ON TOURISM

1.3 Overview of research results of published studies and issues raised

Chapter 2: THEORETICAL AND PRACTICAL GROUNDS OF

2.1 Tourism economy and components of tourism economy 322.2 Relationship between tourism economy and socio-economic

development and factors affecting tourism economy in

2.3 Experience from foreign tourism economy development that can

be applied in Vietnam in general and the North Central region in

Chapter 3: REAL SITUATION OF THE TOURISM ECONOMY

3.1 Impacts of natural and socio-economic conditions in the North

Central provinces on the development of their tourism economy 773.2 Real situation of the tourism economy in the North Central

3.3 Assessment of the situation of tourism economy of the North

Central provinces in international economic integration from 2000

Chapter 4: DIRECTIONS AND SOLUTIONS TO IMPROVE

DEVELOPMENT OF TOURISM ECONOMY IN

4.1 Context and directions to develop tourism economy in the North

Central provinces to 2020 with a vision to 2030 1214.2 Fundamental solutions to accelerate the development of tourism

economy in the North Central provinces in international economic

CNH, HĐH Industrialisation, Modernisation

CSVC - HT Material facilities - infrastructure

EWEC EAST - WEST Economic Corridor

HNKTQT International economic integration

NC & PT Research and development

QP - AN National Defence - Security

UNESCO The United Nations Educational, Scientific and Cultural

OrganizationWTO World Trade Organization

Table 3.1:The number of accommodation establishments in the

Table 3.2: The quality of accommodation establishments in the North

Table 3.3: The development of tourism products in the North Central

Table 3.4: Income the North Central provinces earned from tourists

Table 3.5: Labour percentage in the tourism economy of the North

Central provinces as compared to the whole nation (2000

Table 3.6: The quality of tourism human resource in the North

Central province is classified in terms of qualification

Table 4.1: Vietnam’s WTO commitments in tourism services and

Table 4.2: Forecasted tourism economy development targets in the

Figure 3.1: International arrivals to the North Central provinces

Figure 3.2: Statistics of major home countries of international

arrivals to the North Central provinces (2005 - 2011) 88

Figure 3.3: The number of international arrivals to the North Central

provinces in comparison with other regions (2000 - 2011) 89

Figure 3.4: The number of domestic tourists to the North Central

Figure 3.5: The number of domestic tourists to the North Central

provinces in comparison with other regions (2000 - 2011) 91

Figure 3.6: Total earnings from tourism in the North Central

provinces in comparison with those in other regions

Figure 3.7: Structure of total earnings from tourism in the North

Figure 3.8: Structure of total earnings from tourism in the North

Central provinces is classified in accordance with

1 The necessity of the research

Tourism is a synthetic industry which is highly intersectoral,interregional and socialised Performance of this industry not only meets therising demand for travel of human beings but also plays an essential role inthe ”on-the-spot export” of goods and services abroad Many countries haveconsidered tourism economy as a ”non-smoke industry”, bringing about hugebenefits Tourism economy not only makes contribution to the country’seconomic growth but also facilitates the development of other industries,generates job opportunities and income for local people, and becomes a usefulmeans to promote the country’s images, etc

In Vietnam, the tourism industry came into being in 1960, however,until 1990s it was regarded as an economy soon after the country opened doorpolicy Since then, the tourism economy has grown rapidly and attainedcertain encouraging achievements According to the Vietnam NationalAdministration of Tourism, in 2012 Vietnam received more than 6.8 millioninternational arrivals, an increase of nearly 14 percent as compared to 2011;and 32.5 million domestic tourists, an increase of more than 8.3 percent over

2011 Accordingly, the total earnings from tourists reached VND160,000billion in 2012, an increase of 23 percent over the previous year In addition,tourism has also paid an important role in promoting images of Vietnam andits people to the outside world, cultural exchanges, and understandings amonglocal ethnic groups and many nations world-wide

The North Central region is an economic zone consisting of ThanhHoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hueprovinces, with a natural area of 84,163.3sq.km and a population of over 16.5million The North Central region is a territory abounding in many valuablepotentials in regard to tourism, namely beaches, caves, tombs, and typicalnatural wonders typically Sam Son, Cua Lo and Thien Cam beaches and

Phong Nha - Ke Bang National Park; cultural identities with numerouscultural historical relics, particularly world heritage sites such as the HoDynasty Citadel, the Complex of Hue Monuments with court music and manyprecious vestiges, President Ho Chi Minh vestige in Kim Lien Village, VinhMoc tunnels, and Quang Tri Citadel, etc On the other hand, favourable trafficconditions regarding road, rail and waterway transport facilitates the region’stourism economy to bring into full play its advantages and attract tourists.Over the past years, tourism economy in the North Central provinceshas made a remarkable growth which greatly contributes to theindustrialisation and modernisation cause of not only the region but also thecountry as a whole, which is demonstrated through its contribution to theregion’s gross economic product Tourism activities have helped generatemany employments and increase income for the community, contributing toregion’s social welfare, security and national defence Nevertheless, thecurrent development of the tourism economy remains limited in regard todemands for international economic integration and the region’s potential.Tourism has not either become a key industry as defined in local Partycommittees’s resolutions, made a breakthrough development, or exploited theregion’s full tourism potential and advantages Quality of tourism products isstill low, and the products themselves are not diverse and characterised withtypical cultural features Also there is a shortage of tourism products of highadded value Charge of certain tourism services remains high, lesscompetitive internationally Many tourism areas and destinations arespontaneously-established and short of a proper investment Tourismprogrammemes remain poorly-designed and identical, failing to meet demand

of each particular group of tourists as well as market Tourism services are notdiverse and the service quality is still poor and unattractive Not many strongand presitigious tourism brands are established in the market Thepreservation, repair and upgrading of cultural and revolutionary historical

relics; and maintenance of the surroundings have not received properinvestment and comprehensive co-operation among relevant authorities andsectors Tourism promotion operations internally and externally remainlimited and unprofessional, and fail to provide sufficient and timelyinformation for tourist and investors.

The matter here is how to tap into full potential and advantages of thetourism economy in the whole region to satisfy the demands for internationaleconomic integration to bring about high socio-economic effects? Under such

circumstances, that the PhD candidate chooses the topic: “Tourism economics in the North Central provinces in international economic integration” to develop into a PhD thesis in the political economics major at

the Ho Chi Minh National Academy of Politics and Public Administration is

of not only theoretical but also practical significance to the development oftourism economy in the North Central provinces in the coming time

2 Purpose and task of the research

- Purpose: To accelerate the development of tourism economy in the

North Central provinces in the context of Vietnam’s deeper and greaterintegration in international economic relations from the point of politicaleconomics

- Task:

To fulfill the purpose mentioned above, the thesis will:

+ Systemise theoretical and practical bases of tourism economy ininternational economic integration of a certain territory in Vietnam from thepoint of political economics

+ Evaluate the reality of tourism economy in international economicintegration in the North Central provinces, and find out results achieved and

shortcomings as well as reasons of these shortcomings in the development oftourism economy in these provinces.

+ Propose directions and solutions to promote the development oftourism economy in the North Central provinces in international economicintegration to 2020

3 Subject and scope of the research

-Subject of the research:

All business activities related to tourism economy consists of travel,accommodation, tourist transportation, tourism site and destinationdevelopment, and other tourism services in the North Central provinces ininternational economic integration

- Scope of the research:

+ Space: The thesis studies tourism economy in the North Central

provinces from economic approaches defined in Vietnam’s strategy ontourism development for the 2011-2020 period, vision to 2030 This tourismdeveloment region consists of six provinces: Thanh Hoa, Nghe An, Ha Tinh,Quang Binh, Quang Tri and Thua Thien - Hue The thesis does not study eachprovince individually but considers each province’s tourism economy as acomponent of tourism economy of the whole North Central region

+ Time scope: The section involving analyses and assessment of the

situation of tourism economy is counted from the year 2000 to the present;whilst that of directions and solutions is counted by 2020 with a vision to 2030

4 Theoretical foundations and research methods of the thesis

- Theoretical foundations:

The Marxism - Leninism, Ho Chi Minh ideology, and standpoints,paths, renewal policies of the Party and State of Vietnam in regards to tourismeconomy development

- Research methods:

+ Research methods applied are those of political economics whichinclude abstractisation, analysis and synthesis, and logic plus historicalbackground, etc

+ In addition, the thesis also applies research methods of moderneconomics, namely statistical method, quantitative analysis, and comparativemethod; and selectively acquires some results of published scientific studies

5 Scientific contributions and values of the thesis

- Systemising theories of tourism economy in international economicintegration in a certain tourism area in Vietnam from the perspective ofpolitical economics Typically, the thesis has generalised components oftourism economy, analysed and clarified the relationship between tourismeconomy with socio-economic development and factors affecting tourismeconomy in international economic integration

- Selecting lessons drawn from foreign countries’ experience indeveloping tourism economy to refer to the case of Vietnam in general andthe case of the North Central region in particular

- Assessing the situation of tourism economy, the thesis analysesachievements and shortcomings of tourism economy in the North Centralprovinces in international economic integration Hence, the thesis analysesobjective and subjective causes to such achievements and shortcomings

- Proposing directions and solutions to accelerate the development oftourism economy in the North Central provinces in international economicintegration in the coming time

6 Conclusion

Besides the introduction, conclusion, list of reference, and appendix thethesis comprises four chapters and eleven sections

Chapter 1 OVERVIEW OF RESEARCH ON TOURISM ECONOMY

In many countries, tourism has become a key economic industry whichremarkably contributes to domestic income and job generation Tourismeconomy is increasingly playing an important role and position in the nationaleconomy

Well aware of the importance of the tourism economy, quite a fewresearchers and organisations have carried out in-depth studies on thiseconomic industry and made certain contributions to the industry’sdevelopment

Following is an overview of major studies on tourism and tourismeconomy locally and internationally which have been published so far,particularly in the past 15 years Foreign studies on tourism economy

1.1 FOREIGN STUDIES ON TOURISM ECONOMY

Studies on tourism economy have mostly focused on explainingbusiness operations, tourism services, components of tourism and tourismservice forms, supply – demand relationship, and the operational mechanism

of tourism business practice, typically:

- The book “Tourism in Developing Countries” by authors Martin

Oppermann and Kye - Sung Chon, was published by International ThomsonBusiness Press in 1997 The book focuses on analysing issues such as tourismdevelopment in developed and developing countries, in which the authorsstated that the study on tourism in developing countries was carried out indifferent periods of time: 1930-1960, 1970-1985 and 1985-1993 At the sametime, the work also reflects the link between government and tourism,analytical models for tourism development, methods for the measurement of

international tourism development, and the development of tourismdestinations such as resorts by the hill side, by the beach or in the suburbs.

- The research“Global Tourism - The next decade” by William

Theobald was published by Butterworth - Heinemann Ltd in 1994 The workspeaks of notions of tourism and tourism classification; positive and negativeimpacts of tourism; orientation and plan for tourism development; and therole of tourism to the world peace Through his work, the author clarifies thattourism is one of the forces actuating peace, friendship and mutualunderstanding When people travel all over the world, come to understand oneanother as well as their customs, and appreciate individuals from everycountry, countries will build up their own international understandings, whichwill remarkably improve the world peace

- The research “Leisure and Tourism” by John Ward, Phil Higson and

William Campbell, was printed by Stanley Thornes Ltd in 1994 The workstudies the tourism and entertainment industry through the analyses of modelsand trends, and products and services in this industry as well as its impacts onthe economy, society or environment In addition, the research also mentionsmarketing, the provision of management information services, planning andevaluating events as well as infrastructure resources for tourism andentertainment projects

- The research “The Business of Rural Tourism International

Perspectives” by Stephen J Page and Don Getz was published by

International Thomson Business Press in 1997 The research focuses on majorissues such as policy, plan, and research impacts tourism trading performance

in rural area, in which authors analyse the financial issue as well as tourismpromotion in rural area and indicate some models in the United States,Canada, China, Germany, Australia, and New Zealand, etc and some impacts

on the development of this tourism type in this area

- The work “Commercial Recreation & Tourism - An Introduction to

Business Oriented Recreation” by Susan A.Weston was published by Brown

& Benchmark in 1996 The study reveals concepts and analyses the origin ofthe entertainment and tourism industry, in which the author presents variednames describing the industry; explains the difference between products andservices; introduces locations that can host recreation and tourism activities;and promotes job opportunities for the to-be-graduates in the industry

On the other hand, the author also focuses on the management, andevent organisation, and accommodation; food and food, and occupationmanagement The author also analyses industries of similarity

- The research “Managing Tourism” was written by professor S.

Medlik in 1991, and reprinted in 1995 by Butterworth - Heinemann Ltd Theresearch focuses on the following areas: “Future – Analyses – Plan”, in whichthe author analyses and responds to questions about the contributioncapability of future researches on tourism policy, and about a possibility tocontrol the life cycle of tourism? The author claims that in tourism policiesmust base on a close association of economics, politics, society and spatialobjects These objects must be placed on a decisive framework whose majorfunction is to achieve set targets with specific significances within a particularperiod of time Tourism policy making is not a sophisticated task to thegovernment, but the development through co-operation with tourismorganizations and the tourism industry itself Besides, the research also speaksabout concepts of products, competition in the aviation sector, the promotion

of products and destinations, tourism management, limitation as well aschallenges to the tourism industry

- The work “The Economics of Leisure and Tourism” by John Tribe,

was published by Butterworth - Heinemann Ltd in 1995 The research centres

on the organisation and promotion of recreation and tourism practices;Entertainment and Tourism in the interrelation with international

environment; impacts of recreation and tourism on the national economy;recreation and tourism with environmental issues; and investment inrecreation and tourism In the section: Investment in Leisure, the authorindicates factors affecting the investment such as profits, turnover, andoperation expenditure, etc.

The above-mentioned researches on tourism, outdoor recreationaltourism, tourism marketing, tourism legislation, tourism in developingcountries, and factors affecting tourism development have somewhat takeninto consideration tourism economy and tourism economy management

In addition, there are a number of researches on tourism and tourismeconomy in English and some other foreign languages being translated intoVietnamese, namely:

- The work “Tourism economy” by Robert Lanquar was published by

The Gioi Publishing House in 1993 In his work, the author asserts thattourism economy is an industry because its activities aim to exploit tourismassets, and to turn human resources, capital and materials into services andproducts The author also discusses tourism and its impacts on the wholeeconomy, tourism demands, tourism consumption, production and investmentfor tourism, analytical tools and means of tourism economics and tourismbusiness

- The research “Tourism marketing” by Robert Lanquar and Robert

Hollier, was printed by the The Gioi Publishing House in 1992 The researchdiscusses historical landmarks of tourism marketing; definitions and concepts

of tourism marketing; and analyses of tourism demand and supply, and otherdemands for tourism market Regarding history of the tourism marketing, theauthor states that market came into being from the development of theindustrial civilisation

The author also recommends nations to develop a marketing strategy

with goals as followed: i, developing an efficient tourism transport network;

ii, improving public facilities and equipment at tourism sites; iii, enhancing

assistance to some on-the-spot services in case of bad weather; iv, applying a seasonal flexible pricing policy; and v, supply must target each typical group

of tourists v.v…

- The research “Tourism economy and tourismology” by two Chinese

authors Dong Yu Ming, Wang Lei Ting by Shanghai Transport University’sPublishing House in 2000, was translated and published in Vietnamese by TrePublishing House in 2001 The research refers to theoretical issues of tourismand tourism economy such as concepts of tourism, tourism economy, tourismproducts and markets, the role of tourism economy, and planning for theconstruction of tourism areas, etc

Besides, the tourism development in China is also talked about, whichreveals many similarities with the development of tourism in Vietnam.Initially, Vietnam’s tourism was mainly designed to receive the State andParty’s international guests, then due to the society’s developmentrequirements tourism developed into an industry which enjoys manyfavourable conditions to prosper and to be a non-smoke industry producingnot a small amount of benefits to the society

Tourism economy and tourismology is a systematic scientific research

on tourism operation based on the reality of China, which Vietnam can learnfrom to develop its own tourism in the socialist orientation

Apart from published researches mentioned above, the thesis also refers

to writings on tourism business and services published by UNWTO andprinted in foreign magazines and websites

In general, these researches concentrates on theoretical and practicalknowledge in regards to economics and techniques in tourism operation,tourism business, tourism market, and lessons drawn from tourismdevelopment experience in some countries These are a resource of secondarydata essential for this thesis The theoretical information related to tourism

economy is based on the reality of the economies which have typical featuresand socio-political trends different from Vietnam, thus, the above-mentionedworks are just materials of reference for activities such as doing business,approaching clients, and developing tourism services and market in Vietnam.The subject chosen to study does not bear the same name as well as contentwith any other research published abroad so far.

1.2 DOMESTIC RESEARCHES ON TOURISM ECONOMY

1.2.1 Scientific researches and PhD theses

There have been a great number of researches on tourism and tourismeconomy in Vietnam so far Regarding these areas, it should be noted thescientific researches and PhD theses as followed:

- Ministerial-leveled work (2006): “Research proposes investment

solutions to develop tourism areas”, is done by a group of authors, led by MA

Le Van Minh, from the Institute for Tourism Development Research Theresearch focuses on a system of concepts of tourism areas, the role ofinvestment in developing tourism areas, and practical experience learnt fromother countries’ investment into developing tourism areas The research alsoanalyses the system of the Party and State mechanism and policies in tourisminvestment in particular and tourism development in general; assesses thestate of policies regarding investment into developing tourism areas inVietnam; and recommends 10 solutions to better investment policies: (i)solution to the organization and management in tourism areas; (ii) solution toconstruction, management and planning in tourism areas; (iii) solution torights to land use in tourism areas; (iv) solution for investment intodeveloping tourism areas; (v) solution for mobilizing capital resources todevelop tourism areas; (vi) solution to financial and tax mechanism andpolicies in regards to investment into developing tourism areas; (vii) solution

to intersectional and interregional co-ordination and co-operation inexploiting resources in tourism areas; (viii) solution for reformed

administrative procedures; (ix) solution for supporting and encouraging thecommunity participation into developing tourism areas; and (x) solution forinvestment, preservation, and reservation of tourism resources andenvironmental protection.

- Ministerial-level research (2007): “Research develops Vietnam’s

tourism products of high competitiveness in the region and in the world”, is

carried out by a group of authors, led by Dr Do Cam Tho, from the Institutefor Tourism Development Research From the perspectives of Statemanagement and macroeconomics, the authors turn their attention tosystemizing theoretical issues on tourism product competition The authorsanalyse and assess the system of tourism products in Vietnam from twocriteria: general products offered at a particular tourism destination andproducts based on different types of tourism

The research also concentrates on the competitiveness and position ofVietnam tourism products in the regional and international tourism markets.The research analyses and assesses the system of tourism products fromregional competitors including Thailand, Malaysia, Singapore, China andIndonesia The investigation approaches from consumption perspective andfinds out the present position of Vietnam’s tourism products

The research analyses typical features and strengths of Vietnam’stourism products through a systematic assessment of the products Theresearch compares and evaluates Vietnam’s tourism products throughproducts of high competitiveness, sea and islands tourism products, culturaltourism products, and ecotourism products

The research proposes concepts of tourism products and 10 criteria toassess the competitiveness of tourism products: (i) attractiveness anduniqueness of tourism resources; (ii) diversity of tourism services; (iii) quality

of tourism products; (iv) build-up of tourism products; (v) investment topromote tourism products; (vi) price of tourism products; (vii) approachability

of tourism products; (viii) brand name of tourism products; (ix) life cycle oftourism products; and (x) special elements of tourism products The work alsorecommends a system of solutions to increase the competitiveness ofVietnam’s tourism products in the market in the short term, and to build upproducts of high competitiveness in the long term (by 2015).

- Ministerial-level research (2008):“Scientific ground to develop

coastal tourism in the North Central region” is ”, is carried out by a group of

authors led by Assoc Prof Dr Pham Trung Luong of the National Institutefor Tourism Development Research The work concentrates on assessing theposition and role of coastal tourism in the strategy to develop economy,society, security, and national defense in the coastal area in the North Centralregion; and in EWEC tourism development

The work analyses features of tourism resources and human resourcesrelated to coastal tourism development in the North Central region The workevaluates the tourism development in islands by the coast of the North Centralregion; and defines advantages and difficulties, opportunities and challenges

to tourism development in islands by the coast of the North Central region.The research proposes solutions to ensure sustainable development of coastaltourism, which consist of: (i) solutions to raise awareness and understanding

of islands tourism; (ii) solutions for policy; (iii) solutions for planning; (iv)solutions for investment; (v) solutions to develop coastal tourism products andmarket; (vi) solutions to promote popularisation of coastal tourism; (vii)solutions to develop human resources; (viii) solutions to protect sea and islandtourism resources and environment; and (ix) solutions to develop sea tourismwhilst maintain national defense and security

- Ministerial-level research (2011) “The status quo of and solutions to

develop national sea tourism regions in the North Central region”, is carried

out by a group of authors led by Dr Nguyen Thu Hanh, of the Institute forTourism Development Research The authors concentrates on clarifying

theoretical grounds of maritime tourism and national maritime tourism areadevelopment The study points out new concepts of tourism products of thenational maritime tourism area, affirming that that is a combination of singlefeelings which leave tourists with special impression on a sea tourism area.

Based on experience of other nations in developing sea tourism areas,the study finds the ten lessons as followed: (i) tourism area development andmanagement should accord with the national sustainable tourism developmentstrategy; (ii) market, clients, and demands of tourism areas must be clearlydefined; (iii) proper location should be taken into account to attract tourists;(iv) tourism areas should be accessible by land, sea, rail and air routes andconnect with big tourism markets; (v) tourism areas which offeraccommodation services must apply high technology and scientificachievements in the organisation and management of hotels in the tourismareas; (vi) tourism areas all possess a life cycle of attractions, so to prolongsuch life cycle they should synchronously implement different solutions,should develop a proper exploitation plan, non-stop apply science andtechnology, non-stop perfect it, renew tourism products, and understand themarket demands and tastes, etc; (vii) nonseasonal tourism areas should beestablished and developed to make full use of tourism resources all around theyear: (viii) research on separate market for tourism areas should be carriedout; (ix) there should be a close connection between tourism areas withtourism destinations, sightseeing spots, and public recreation zones; and (x)the establishment and development of tourism areas is always two-faced, thus,

it is necessary to deal with negative factors affecting social environment

From these experience lessons, the authors focus on analysing andevaluating the reality, indicating causes to the shortcomings and limitations inthe development of national coastal tourism areas in the North Central region

by 2020

- The Vietnam National Administration of Tourism’s research: “Policy

and solutions to promote tourism development in the central and Central Highlands region” (2001);

The research points out general features of the central and CentralHighlands region; the role and position of tourism in the central and CentralHighlands region; foundations to propose policies and solutions such as thepotential and advantages to develop tourism in the central and CentralHighlands; the status quo of tourism development in the central and CentralHighlands region; and opportunities and challenges of tourism in the centraland Central Highlands region

From that point, the research suggests solutions to speed up tourism

development in the central and Central Highlands region: i, facilitating tourists

to access tourism spots in the central and Central Highlands region; ii, in

regards to investment in tourism, all resources should be mobilised to develop

tourism in the central and Central Highlands region; iii, in regard to finance,

capital resources for tourism development can be generated from bondissuance, foreign investment, land use and rent-related funds, “land forinfrastructure swap model”, and increased regulated proportion of local sources

of income; iv, in regards to tourism promotion and product diversification,

enhanced promotion of tourism internally and externally and diversifiedtourism products are the two major tasks in the tourism development strategy in

the central and Central Highlands region; vi, enterprise restructuring and renewal; vii, strengthening operation of tourism associations and establishing a

tourism association of enterprises and management authorities in the centraland Central Highlands to increasingly build up and promote tourism brandnames such as “Heritage Path”, “Green City”, etc

- The report: “Master plan on tourism development in the North

Central region to 2020, with a vision to 2030” (2012) by the Ministry of

Culture, Sports and Tourism

The report focuses on some major issues as follows:

Firstly, evaluates resources and the status quo of tourism development

in the North Central region; indicates opportunities and challenges to tourismdevelopment in the region

Secondly, maps out a scheme for tourism development in the North

Central region to 2020, with a vision to 2030 From the points of view,targets, and forecasts of tourism development norms, the report suggestsorientations for development in: tourism products, tourist markets, imagedevelopment, brand name development and promotion, space for tourismdevelopment, investment in tourism, and protection of environment in thetourism area

Thirdly, solutions and the implementation of the scheme Solutions

consists of: solutions to investment and capital mobilisation, and to humanresource development; promotion; organisation; management; scientific andtechnological application; interregional connection and international co-operation; protection of resources and environment in tourism area; andresponse to climate change

- Thesis by Doctor of economics Truong Si Quy of the Vietnam

Economics University, Ha Noi (2002), “Direction and solutions to diversify

tourism categories and tourism products in Quang Nam – Da Nang” The thesis

concentrates on systemising and developing some basic theoretical issues inregards to the diversification of types of tourism and tourism products

From analyses of demands and foundations to define direction andsolutions as well as specific targets set for the tourism development in QuangNam - Da Nang in the coming time, the thesis has showcased solutions andrecommendations essential to the diversification of types of tourism, as well

as details of the diversification of tourism services and programmers in QuangNam - Da Nang

- Thesis of economics by Nguyen Dinh Son of Vietnam Academy of

Military Politics, Ha Noi (2002), “Developing tourism economy in the North

Central region and its impacts on national defence-security” The author

generalises common theories of tourism economy in conjunction withstrengthened national defence and security The author asserts that tourism is

an activity of human beings in which the production and consumption oftourism products occur simultaneously He claims that tourists are consumers

of tourism products, tourism businesspeople are supplier of tourism products,and that only with such concurrent existence is a fully worked-out tourguaranteed

The research analyses fundamental features of tourism economy, statusquo of tourism economy in the North Central region in association with defenceand security enhancement Indicating shortcomings remained and the source ofthese shortcomings of tourism economy in the North Central region over the pasttime, the author recommends basic directions, objectives and solutions todevelop tourism economy in the North Central region in conjunction withnational defence and security reinforcement in the coming time

- Thesis of economics by Vu Duc Minh at Vietnam University of

Commerce, Ha Noi (2004), “Some solutions to enhance the efficient usage of

human resource at State-owned enterprises in Ha Noi in the regional and international integration process” The author studies basic theoretical issues

of human resource, the efficiency of human resource usage, and demands ofthe tourism human resource in the country’s regional and internationalintegration The author insists on the existing concepts of the efficient use ofhuman resource, calculation norms, measurement approaches, and factorsinfluencing the usage of human resource in tourism businesses Showingexperience from improved efficiency of human resource usage from nationsand blocs including ASEAN, China, and European Union, as well asexperience Vietnam has adopted, the author has built up a theoretical frame of

the efficient use of human resource, creating scientific foundations for adeeper analysis in the next section.

The research analyses the efficiency of human resource usage by owned enterprises in Ha Noi through norms, measurement approaches andinfluential factors The research also analyses the source to inefficient usage

State-of human resource in State-owned enterprises in Ha Noi at present andproposes seven solutions to improve the efficiency of human resource usage

in State-owned enterprises in the capital city

- Thesis of economics by Nguyen Thi Tu of the Vietnam University of

Commerce, Ha Noi (2006), “Solutions to develop ecotourism in Vietnam in

the integration trend” The research focuses on analysing concepts of

tourism, ecotourism, demands and content of ecotourism in the internationaleconomic integration The research points out opportunities and challenges toecotourism development in integration

On the basis of analyses of experience in ecotourism development incountries like Australia, New Zealand, Nepan, Kenya, Ecuador, Coasta Rica,France, Indonesia, Malaysia, and Thailand with reference to Vietnam’scontext, the author has summed up seven valuable lessons which areapplicable to Vietnam

The research assesses the status quo of ecotourism development inVietnam in the past time, regarding successes, limitations, and main causes.From that point, the author recommends major solutions to developecotourism in Vietnam in the future: (i) Better planning of community-basedsustainable ecotourism; (ii) Improving organisation and management, andpolicies to enhance ecotourism development; (iii) Enhancing investment ininfrastructure and material-technical facilities; (iv) Diversifying andspecialising ecotourism products; (v) Improving the quality of ecotourismproducts; (vi) Paying due attention to biological diversification andenvironmental protection; (vii) Enhancing the quality of ecotourism human

resource; (viii) Strengthening market research and ecotourism promotion; (ix)Enhancing international integration and co-operation in ecotourismdevelopment; (x) Enhancing educational activities to raise the publicawareness of ecotourism.

- Thesis of economics by Hoang Thi Ngoc Lan of the Ho Chi Minh

National Academy of Politics and Public Administration, Ha Noi (2007), “Ha

Tay’s tourism market” The research analyses commodities, supply and

demand, components, and operational mechanism of the tourism market Theauthor indicates that tourism demand is a component of social demands and is

of liquidity in regards to goods and services, guarantee the travel and stay oftourists This is the total tourism products that tourists can afford and will bewilling to purchase with different levels of price during a particular period oftime The supply of tourism counts all tourism products and services thattourism businesspeople offer on the market to meet the tourists’ demandswhich are of liquidity in a particular period of time

Analysing potentials and status quo of tourism market development inthe old Ha Tay Province [now part of expanded Ha Noi], and indicatingweaknesses and the source to these weaknesses, the author recommendsmajor direction and solutions to develop the tourism market in Ha Tay in thenear future

- Thesis of economics by Nguyen Anh Tuan of the Ha Noi National

University (2010), “Competitiveness in regards to destinations of Vietnam’s

tourism” The author concentrates on analysing and generalising some

theoretical issues of destination competitiveness in tourism development,which include: competition, competition ability, and destination anddestination competitiveness The author applies some novel research modelsand approaches to analyse, and assess the status quo of destinationcompetitiveness of Vietnam’s tourism; points out strengths and weaknesses,opportunities and pressures to Vietnam’s tourism as well as the source of

weaknesses regarding destination competitiveness of Vietnam’s tourism Theauthor puts forward four proposals to increase the destination competitiveness

of Vietnam’s tourism which are proper and feasible to Vietnam’s reality: (i)tourism must become one of the leading industries, marking considerablecontribution to the nation’s prosperity; (ii) policy environment must facilitatetourism development; (iii) tourism industry must develop in the way that it isdynamic, rapidly adaptable, and greatly able to deal with changes; (iv)tourism industry must develop in terms of quality, efficiency, andsustainability On the basis of these angles and theoretical and practicalresearch results, the author proposes seven recommendations of policy andsolution to enhance destination competitiveness of Vietnam’s tourism withtight, comprehensive and feasible foundations

- Thesis of economics by Tran Xuan Anh (2011) of the Ho Chi Minh

National Academy of Politics and Public Administration, Ha Noi,“Quang

Ninh tourism market in international economic integration” The author

focuses on specifying theoretical and practical foundations of tourism market

in international economic integration; analysing the status quo of Quang Ninhtourism market in international economic integration, in which the authorclearly indicates achievements and points out problems needed to beaddressed to expand Quang Ninh tourism market to 2015 with a vision to

2020 The research indicates development trends of the national andinternational tourism market, from which proposes key directions for QuangNinh tourism market development in international economic integration: (i)build up a market programme which includes proper market policies to speed

up strategic planning and short-term plans for each period of time, and foreach particular tourist market; (ii) improve tourism co-operation internallyand externally; (iii) expand space and territory of tourism market; (iv) orientinvestment for tourism infrastructure development; (v) forecast developmentnorms of the Quang Ninh tourism market in the 2006 – 2010 period, with a

direction to 2020 and vision to 2030 Eventually, the research proposes fourgroups of solutions to develop the tourism market in the near future, namely:(i) Solutions to establish the supply of tourism commodities; (ii) Solutions toaccelerate demands; (iii) solutions to adjust prices; (iv) solutions to set uptourism market in international economic integration.

- Thesis of economics by Hoang Thi Lan Huong of National

Economics University, Ha Noi (2011), “Developing accommodation business

in tourism area in the North Central region of Vietnam” The thesis

concentrates on specifying theoretical foundations of tourism accommodationbusiness, sustainable development of tourism accommodation business,construction of norms assessing the sustainable development of tourismaccommodation business The thesis also analyses, summarise and drawsinternational lessons of experience from studying on the sustainabledevelopment models of tourism accommodation business in some ASEANmember countries, which are extremely useful for the tourism accommodationbusiness in Vietnam in general and in the North Central region in particular

The research analyses potentials, strengths and status quo of sustainabledevelopment of tourism accommodation business in the North Central region

of Vietnam It proves a general evaluation of the growth of tourism businessesinvolving in accommodation business in the North Central region of Vietnamand of the status quo of State management over travel, tourismaccommodation business in the past years

The author proposes solutions of breakthrough and high feasibilitywhich are a good source of reference for tourism accommodation businessestablishments and State management authorities in the tourism area in theNorth Central region The author also proposes to State management bodiessuch as the Ministry of Culture, Sports and Tourism and relevant ministries aswell as those involved in the tourism accommodation business in tourism area

in the North Central provinces to create a favourable environment for a

sustainable development of tourism accommodation business in the NorthCentral region in the coming time.

- Thesis of economics by Nguyen Quang Vinh of the National

Economics University, Ha Noi (2012),“Competitiveness of Vietnam’s

international travel enterprises after Vietnam enters the World Trade Organisation (WTO)” The thesis systemises theories and practice of

competitiveness which consists of competition capacity of international travelenterprises, factors influencing competition, measurement indicators of theinternational travel enterprises’ competitiveness The thesis indicates andanalyses competition experience of Vietnam’s international travel enterprises,lessons of success and unsuccessfulness in enhancing the currentcompetitiveness, and prospects to increase the travel enterprises’competitiveness following Vietnam’s entry into the WTO The thesis proposesdirections, solutions and recommendations to improve the competition ability ofVietnam’s international travel enterprises in the time to come

- Thesis of economics by Nguyen Trung Khanh of Vietnam Academy

of Social Sciences, Ha Noi (2012), “Developing tourism travel services in the

context of international economic integration: experience from some Southeast Asian nations and suggested policies for Vietnam” The thesis’s

major content is to systemise some fundamental theoretical issues associatedwith the development of tourism travel services in the international economicintegration, such as: tourism, tourists, tourism travel services, inboundinternational tourism travel services, etc The author indicates the scope oftourism travel service in a broad sense, affirming the commercialcharacteristic of tourism travel operation; and pointing out conditions oftourism travel services including those of supply and demand The authorrefers to experience in the development of tourism travel services ininternational economic integration from some Southeast Asian nations thatVietnam can learn from: (i) systemising and with data updated by 2010

analysing the experience from tourism travel service development of China,Malaysia and Thailand on the fields of resources, policy changes throughperiods of time and their impacts on the development of tourism travelservices; to make comments on positive results as well as limitations to thedevelopment of tourism travel services in the international economicintegration; (ii) through researches on impacts of State policies on thedevelopment of tourism industry, which includes tourism travel services, theauthor indicates seven lessons of success of development strategy, marketing,service supply, infrastructure construction, security, development of humanresource and environmental protection.

The author analyses the status quo of the development of Vietnam’stourism industry, pointing out achievements, limitations and the source ofthese shortcomings in the field of tourism travel services, hence, proposingsome fundamental solutions and recommendations of Vietnam’s tourismtravel service development policy in the context of the present internationaleconomic integration

1.2.2 Researches in the form of books and other publications

Among these publications, those focusing on tourism and tourismeconomy so far include:

- The book “Tourism market” by Nguyen Van Luu, Ha Noi National

Publishing House, 2009 The book indicates general issues of tourism market:concepts and characteristics of tourism market, and tourism market; andanalyses some fundamental factors in the tourism market According to theauthor, tourism market is a part of the market, a category of commodityproduction and circulation, tourism services, which reflects the wholeexchange relationship between buyers and sellers, between supply anddemand and all other relations, economic and technical information associatedwith those relations in the field of tourism economy

At the same time, the author deeply analyses the two important factors

of tourism market, supply and demand From that point, the author analysesthe world tourism market, tourism markets in ASEAN nations to havefoundations to compare, and evaluate Vietnam’s tourism market Eventually,the author concludes that Vietnam’s tourism is dealing with an increasingdemand from both international and domestic tourists – the availablecustomers; and enjoying many advantages to grow The share of tourists toVietnam in the whole ASEAN and Southeast Asian and the Pacific marketwill increase The Vietnam’s domestic tourism market will also rapidlydevelop in the coming time with a predicted high growth speed

- The “Tourism economy syllabus” book is written by Prof Dr.

NguyenVan Dinh and Assoc Prof Dr Nguyen Van Dinh and published bythe National Economics University, Ha Noi, in 2008 From the perspective oftourism economy, authors provide fundamental knowledge of concepts oftourism, tourists, tourism products and tourism specific characteristics,tourism history, development trends and tourism socio-economic impacts.The book also generalises the formation and development of world tourism,systemises basic development trends of tourism supply and demands in theworld and analyses tourism socio-economic impacts on a tourism area(mainly from the point of a nation)

The book also presents fundamental knowledge of tourism demand,tourism categories, and fields of tourism business; conditions for tourismdevelopment; seasonal tourism operations; employment in tourism; tourismmaterial-technical facilities; quality of tourism services; efficiency of tourismeconomy; tourism development planning; tourism organisation andmanagement

The book sets a certain part to analyse Vietnam’s tourism industry sinceits inception, particularly since the country’s renewal period The authors assertthe role of tourism to the nation’s socio-economic development as well as

difficulties, limitations both subjective and objective that Vietnam’s tourismeconomy is coping with The authors also indicate the source to the unstableand unsustainable development of Vietnam’s tourism economy, and indicatesthat the development has not met with the nation’s huge tourism potentials.

- The “Travel Business Management Syllabus” textbook by co-authors

Assoc Prof Dr Nguyen Van Manh and Assoc Prof Dr Pham HongChuong, National Economics University’s Publishing House, Ha Noi, 2009.The book mentions issues: general history of travel business development,main substances of travel business, organisation framework and personnelmanagement of travel enterprises, the relation between suppliers and travelenterprises, etc

The book also shows the reality of travel business operations inVietnam in the 1990-2004 period From analyses of achievements, limitationsand causes of these shortcomings, the authors indicate the trends of tourismconsumption and solutions to develop travel business operations in Vietnam

in the 1997-2010 period

- The “Tourism Planning” book by Bui Thi Hai Yen, Education

Publishing House, Ha Noi, 2009 The book specifies theories of tourismplanning: development history of tourism planning science; tourism planningprinciples; tourism planning potentials and conditions; reality of tourismbusiness and scientific foundations of map construction in tourism planning;forecast of tourism development demand and strategic orientations of tourismdevelopment; organisation, implementation and evaluation of impacts of tourismplanning and development projects on resources and environment; and worldexperience in planning in coastal, mountainous, rural and suburban areas

The author also proposes recommendations of tourism planning in ruralareas and suburbs in Vietnam; asserts that tourism development associateswith the protection and reservation of resources and environment, ensuringsustainable development; calls for the need to have proper management plan

and mechanism to efficiently exploit advantages of position and potential, and

to speed up tourism development, contributing to socio-economicdevelopment whilst reserving values of nature, culture, and society

In addition, on the national scientific research forum there arenumerous articles related to tourism economy in the context of international

economic integration, notably: “Tourism Development in the North Central

Region: Issues raised”(2010) by Assoc Prof Dr Pham Trung Luong at the

workshop on “Orientations of Tourism Development in the North Central

Region” organised in Vinh City, Nghe An Province “Tourism Development

in the Greater Mekong Subregion” (2010) by Dr Nguyen Van Dung and MA

Nguyen Tien Luc, Vietnam Tourism Magazine, 10th edition “Vietnam

Tourism: Difficulties, Challenges and Opportunities of Development” (2010)

by Nguyen Van Tuan, Vietnam Tourism Magazine, 1stedition “Building and

Promoting Brand name of Destinations” (2011) by Dr Nguyen Van Tuan,

Vietnam Tourism Magazine, 2nd edition “Vietnam Tourism with international

integration” (2012) by Assoc Prof Pham Trung Luong, a lecture designed

for tourism authorities, etc

1.3 GENERAL RESULTS OF PUBLISHED STUDIES AND ISSUES RAISED FOR FURTHER STUDY ON TOURISM ECONOMY

1.3.1 General results of published studies associated with tourism economy

In the sections 1.1 and 1.2, the thesis have generalised major researches

on tourism and tourism economy From the researches mentioned above, thepostgraduate concludes that the authors focus on key issues as followed:

Firstly, the authors define fundamental characteristics of tourism

economy with comprehension related to tourism economy: concept oftourism, tourism economy, ecotourism, tourists, competition ability oftourism destination, tourism human resources, State management of tourismeconomy, etc

Secondly, characteristics, situation, and development trends of tourism

economy in countries all over the world at present; and experience to enhancecompetitiveness, create tourism products of uniqueness to attract tourists to someregions in Vietnam and other countries for the development of tourism economy

Thirdly, the authors analyse, specify tourism products, tourism product

mechanism, the role of components of tourism products, the role of tourismeconomy to the socio-economic development of the nation and regions inregards to component factors of tourism supply and demand, theestablishment, operation and development of tourism market

Fourthly, the authors indicate the reality of tourism market in some

cities and provinces in Vietnam such as Ha Noi, Ha Tay, Quang Nam DaNang, and Quang Ninh, etc The authors also point out theoretical factualfoundations of the initiative of interregional co-operation in EWEC andtourism economy co-operation under the framework of EWEC developmentprogramme with matters of concern

Fifthly, the authors propose some solutions to diversify and increase the

quality of tourism products in some provinces in Vietnam, consisting of:mechanism and policies to attract and increase the efficiency of investmentcapital to develop tourism economy; operation modes of tourism resources,improved efficiency of the usage of tourism resources in the internationaleconomic integration

In some researches, authors recommends orientations, goals, andgroups of solutions to develop tourism, tourism market, and tourism business,and to increase the quality of tourism products to appeal to both domestic andinternational tourists

The authors reflect in an adequate, detailed and obvious manner ofconcepts, position, role and effects of tourism; and regard it as a “non-smokeindustry”, “golden goose” which is of overriding importance to the nationalsocio-economic development

Nevertheless, in regards to theory, published scientific researches havenot specified concepts of tourism economy from the perspective of politicaleconomics, and typical features of tourism economy; have not analysedsystematically components of tourism economy, the relation between tourismeconomy and socio-economic development, and factors influencing tourismeconomy in the international economic integration The researches have notanalysed to the full opportunities and challenges of the international economicintegration to Vietnam’s tourism economy in general and to the North Centralregion’s tourism economy in particular Contents of the published studies havenot specified the role of component parts of the production force and relations intourism economy, relations between production force and productionrelationship, particularly in tourism economy in the North Central provinces.

Regards practical approach, the researches have not mentioned to thefull and comprehensively the reality of tourism economy in the North Centralregion, specifically: achievements and shortcomings, advantages anddifficulties, and subjective and objective causes to the shortcomings Theauthors have not analysed comprehensively the new economic context oftourism economy in the North Central provinces in the international economicintegration Also, the authors have not presented systematically targets,orientations, and solutions to develop tourism economy in the North Centralprovinces, to enhance competition, and to draw tourists in the context ofinternational economic integration

In addition, changes internally and externally have exerted not a smallimpact on the development of tourism economy recently, particularly after theglobal financial crisis in 2008 and 2009 of which aftermaths still prolong,affecting employment and income of the whole economy in general, and thetourism economy in particular In the meanwhile, new context witnessessophisticated developments and an intertwinement of both advantages andchallenges The new context also gives rise to novel characteristics of

particular concern as we are seeking solutions to speed up the nationaltourism economy development at the time being.

In order to help with addressing the problem, the subject: “Tourism

Economy in the North Central Provinces in International Economic Integration” that the postgraduate has chosen to study is new, and of

theoretical and practical significance

1.3.2 Issues raised for further study

Firstly, specifying theoretics of tourism economy and tourism economy

development in the new context of national and international situations, andinternational economic integration from the perspective of politicaleconomics

In this regard, the thesis must analyse and specify concepts of tourismeconomy, specific characteristics of tourism economy, and identifycomprehension of tourism economy assessment norms: tourists, income fromtourists, socio-economic efficiency of tourism economy, managementorganisation and product distribution, mechanism and efficiency ofinvestment capital, quality of human resources in tourism in the North Centralprovinces in the international economic integration The thesis must detailcomponent factors of tourism economy; the relationship between tourismeconomy and socio-economic development; and factors affecting tourismeconomy; change of economic structure in tourism economy including: theindustry structure, the region structure, economic sectors’ structure;international economic integration, and opportunities and challenges ofinternational economic integration to tourism economy On the basis ofanalyses of the relations between tourism economy and socio-economicdevelopment, the thesis argues the indispensability in tourism economyassociation and determines the necessity of tourism economy development inthe North Central provinces in international economic integration

Secondly, the thesis studies lessons of success and unsuccessfulness from

nations world-wide on the current tourism economy development in theinternational economic integration to draw valuable lessons of experience forVietnam in general and for the North Central region in particular to learn from

In this regard, the thesis author has to research experience of tourismeconomy development on each particular subject, and to demonstrate theseexperiences through experience drawn from China, Thailand and Singapore inorder to indicate experience lessons for tourism economy development inVietnam in general and in the North Central provinces in particular Inassociation with the North Central provinces, the thesis should continue todefine natural and socio-economic characteristics, and particularlyachievements and limitations, advantages and disadvantages, opportunitiesand challenges to tourism economy in the North Central provinces in theinternational economic integration The thesis will analyse results satisfiedand unsatisfied regarding income from tourists, socio-economic effects,ownership relations, management organisation and product distribution,mechanism of investment capital, quality of human resource, connection, andco-operation, etc in tourism in the North Central provinces in the internationaleconomic integration From there, the author builds up long-term plans andstrategies to develop tourism economy and to renovate policy mechanism fortourism economy development in this region

To that end, the thesis must highlight the overall picture of tourismeconomy situation in the region over the past years (from 2000 to thepresent); through which, the thesis evaluates achievements obtained andindicates limitations, and subjective and objective causes to theseshortcomings of tourism economy in the North Central provinces over thepast period of time

Thirdly, the thesis must specify the reality of tourism economy in the

North Central provinces and indicate strengths and limitations in the

development process of this economic sector to propose objectives,orientations, and solutions to accelerate development in the time to come.

In this regard, the postgraduate will determine context, orientations andsolutions to develop tourism economy in the North Central provinces ininternational economic integration, contributing to the general socio-economic development of the region and contributing to successfullyimplementing the Resolution of Party Committees in the North Centralprovinces in the near future

Chapter 2 THEORETICAL AND PRACTICAL GROUNDS OF

TOURISM ECONOMY IN INTERNATIONAL ECONOMIC

INTEGRATION

2.1 TOURISM ECONOMY AND COMPONENTS OF TOURISM ECONOMY

2.1.1 Tourism economy and characteristics of tourism economy 2.1.1 Tourism and tourism economy

2.1.1.1 Tourism

 Conception

As we know, in our life, each human being has certain demands Thesedemands can be satisfied on the spot (the location one is living), however,there are numerous demands that only can be met outside one’s residentialarea through different manners of organisation and implementation One ofthese manners is to travel that one or a group of people can organise forthemselves

Vietnam’s Law of Tourism dated 2005 states that: “Tourism is an

activity associated with travels of human beings away from their permanent residence to satisfy demands for sightseeing, learning about the world outside, entertainment, and relaxation in a particular period of time” [36, p.8].

With this conception, tourism is an activity related to demands,however, not all demands are tourism Only activities that satisfy humanbeings’ needs for sightseeing, recreation and relaxation in a certain period oftime are considered as tourism

Within the framework of this thesis, the postgraduate concerns abouttourism category from the perspective of political economics, and views it asthe general of phenomena and economic relations which arise from the

mutual influences between tourists, tourism businesspeople, local authorities,

and local community in the process of attracting and retain tourists Tourism

is an activity of many specific characteristics with many participatingcomponents, thus, making itself a very complicated general Tourismoperation bears both characteristics of an economic sector, and of aneconomic - social sector.

 Tourism product and its typical features

Tourism products are understood as “a set of services necessary to satisfy tourists’ needs during their travel " [36, p.2].

In another definition, tourism products are “services and commodities

provided to tourists are produced through the combination of exploiting natural and social factors with material and technical facilities as well as labour forces in an establishment, a region or a country” [13, p.31].

Tourism products can exist under the form of objects (visible products),

or the form of intangible objects (invisible products) The invisible tourismproducts are supplied through tourism service operations

Characteristics of tourism products:

Apart from common features of ordinary commodities, tourismproducts are characterised by special features as followed:

Firstly, once an ordinary commodity is sold to a buyer its values will

vanish slowly or even be lost after the first use, whilst the values of tourismproducts are not The tourism products’ values will exist in the feelings andevaluations of tourists and the values can even be acknowledged through thetourists’ words of mouth If a tourism product is of good quality, its price caneven be increased through the usages of following tourists This is simplybecause the supplier does not sell tourists tourism resources but values of theabilities to satisfy the tourists’ specific demands, the values are contained inthe tourism products

Secondly, the consumption of tourism products does not occur regularly

but during certain time in a day (in regards to products offered at arestaurant), in a week (in regards to products offered at the year-end tourism