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Business Results of Quang Binh Tourism Industry in the Period 2014 - 2019


2017 increased by 35% compared to 2014. Also according to statistics of Quang Binh Department of Tourism, total revenue from tourists in 2019 is estimated at 5,570 billion VND, an increase of more than 28% compared to 2018. The average growth rate of the whole period from 2014 - 2019 reached 15%.

Table 3.2. Business results of Quang Binh tourism industry in the period 2014 - 2019

Target

2014

2015

2016

2017

2018

2019

Total industry revenue


tourism

2,748

3,300

2,442

3,706

4,485

5.570

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Business Results of Quang Binh Tourism Industry in the Period 2014 - 2019

Source: Compiled from the report of the Department of Tourism of Quang Binh Province. Thus, it can be seen that, although there was a period of being affected by environmental incidents, with the attraction of Quang Binh tourism industry, Quang Binh is still evaluated by the world's leading travel magazines as an attractive destination and the number of tourists visiting is still on the rise, positively affecting revenue from tourism activities. According to statistics, not only domestic tourists but also the number of international tourists coming to Quang Binh is increasing. This result creates an urgent requirement for the quantity and quality of the province's tourism labor force.

Quang Binh

3.2 Current status of human resources management at tourism enterprises in Quang Binh Province

3.2.1. Current status of the number of management staff at tourism enterprises in Quang Binh Province

To assess the current status of management personnel in tourism enterprises, the questionnaires were distributed directly to the interviewees. According to the summary list presented in Chapter 2, the number of enterprises in the research scope is 241 enterprises. Depending on the scale and number of management personnel of the enterprises, each enterprise will collect from 1 to 3 questionnaires. The number of questionnaires distributed is 320, the number collected is 271. Information on the number of survey subjects is shown in Table 3.3.


Table 3.3. Structure of survey subjects by job position


TT

Business type

Work location

Quantity

1

Travel

Board of Directors

44

2

Accommodation

Board of Directors/Managers, Guesthouse Owners

185

3

Tourist transport

Board of Directors

18

4

Restaurant

Restaurant owner/manager

24

Total

271

Source: Survey results (2019) With the diversity of business types and operating locations, the number of businesses providing accommodation services accounts for the majority, therefore, the number of

The survey sample of this type of enterprise is also the largest.

Through the survey, the author found that the number of management staff at tourism enterprises in Quang Binh Province often depends on the size of the enterprise. For small enterprises, the manager is also the investor, these enterprises often have only 1 management staff. For larger enterprises, usually hotels, travel companies and large restaurants, there are usually senior managers, middle managers and department managers.

3.2.2. Management human resource structure at tourism enterprises in Quang Binh Province

The gender and age structure of the survey subjects is shown in Table 3.4.

Table 3.4. Gender and age structure of survey subjects


Target

Quantity

Rate (%)

Sex

Male

190

71.22

Female

78

28.78


Age

18 – 25

8

2.95

25-35

93

34.32

35-45

132

48.71

Over 45

38

14.02

Total

271

100

Source: Survey results (2019)


In terms of gender, the majority of managers surveyed were male, with a rate of 71.22%. Thus, in terms of gender structure, there is still a large difference between the proportion of men and women. The reason shared by female managers is that the nature of work in the tourism industry often depends on customers and must work during the time when customers are resting, so in addition to the time spent on work, women also have to spend time taking care of their families, so it is difficult to have opportunities for advancement in their work. In places with office hours such as in Phong Nha - Ke Bang National Park, geographical obstacles also prevent women from making progress in their careers.

Regarding the age of the management subjects, the majority of the management subjects are between 25 and 28 years old.

– 45 years old. Of which, the majority are between 35 and 45 years old with 48.71%, the age group under 25 has the lowest percentage with only 2.95%. Thus, with this age structure, managers at tourism businesses are still at the age where they can be trained and developed in professional and technical skills.

Table 3.5. Professional qualifications of survey subjects


TT

Specialized

Level

Quantity

Rate (%)

1


Major in tourism, restaurant, hotel

Above University

1

0.37

2

University

12

4.43

3

College

16

5.90

4

Intermediate

8

2.95

5

Primary

12

4.43

6


Other majors

Above University

11

4.06

7

University

151

55.72

8

College

55

20.30

9

Intermediate

4

1.47

10

Primary

1

0.37

Total

271

100

Source: Survey results (2019)


According to the survey results in Table 3.5, the professional qualifications of the survey subjects are quite diverse. The majority of the survey subjects have high professional qualifications, the proportion of people with university degrees or higher accounts for 64.58%. However, the majority of the surveyed people have professional qualifications in other fields. Only 18.08% of the surveyed people have professional qualifications in tourism, of which, there is only 1 person with a university degree in tourism, accounting for 0.8%, and 12 people with a university degree in tourism, accounting for 4.43%. Among the surveyed employees, there is a large proportion of graduates majoring in foreign languages, literature, Vietnamese studies, etc. The reason for this situation is that the work of forecasting demand and training human resources for tourism is still limited. Tourism industries and occupations are not attractive enough for workers. In addition, workers who are properly trained and highly skilled in the tourism sector often choose to work in major tourist centers across the country, where income is high and stable.

Although their professional training level is different from the tourism major, currently due to the requirements of the job position and the attention of state management agencies on tourism, especially the Quang Binh Department of Tourism, the management subjects are regularly participating in training courses on tourism to improve their professional capacity. Therefore, although they were not trained in tourism at the time they joined the tourism industry, they now have professional qualifications and understanding of the industry.

3.2.3. Current status of human resources management at tourism enterprises in Quang Binh Province

The current status of human resources management in tourism enterprises is assessed based on the capacity of Knowledge, Skills and Attitude. The results of the survey assessing the current status of human resources management in tourism enterprises in Quang Binh show that:

3.2.3.1. Current status of human resources management at accommodation service businesses

Knowledge

Along with the development of tourism industry in Quang Binh province, human resources at accommodation service establishments have also had certain developments. The number of high-quality accommodation establishments has also increased significantly, such as Vinpearl Quang Binh, Muong


Thanh Luxury Quang Binh, and other hotel projects under construction, training and attracting human resources in these units are also focused on, so the capacity of the management team in this field has also improved significantly. However, the capacity of the management team in the accommodation sector has a large difference between the management staff working at highly ranked accommodation establishments compared to the management staff/owners of motels, or 1-2 star hotels. While the managers of large hotels are often trained/retrained in the right profession, motels are often managed by the investors themselves and this team has only developed in recent years, they are often local people with low professional qualifications and not specialized in tourism and hotels. The current status of management knowledge at tourist accommodation establishments is clearly reflected in Table 3.6 specifically as follows:

Table 3.6. Assessment of Knowledge of Managers at Accommodation Service Businesses


TT


Knowledge

Average

Manage

hotel

Manage

guest house

1

Understanding laws, policies and regulations

4.37

3.89

2

Knowledge of markets, products and services

4.20

3.27

3

Knowledge of business environment and competitors

4.00

3.31

4

Business and Marketing

3.67

3.11

5

Forecast and identify market and customer needs

3.78

3.09

6

Human resource management

4.37

4.08

7

Financial Management

4.06

4.44

8

Incident and emergency management

3.35

3.21

9

Risk Management

3.82

3.32

Source: Survey results (2019)



Hotel ideas

The hotel is ideal.

Risk management

Understanding the law, politics

policies and regulations

5

Knowledge of the market,

Realistically the incident and the circumstances

emergency

4

3

2

1

0

products and services

Environmental knowledge

business and competitors…


Financial management

Business and Marketing

Human resource management

Forecasting and identifying demand

market demand and…

Figure 3.1. Assessment of Managers' Knowledge at Accommodation Service Businesses

Source: Survey results (2019)

The survey on professional knowledge of hotel managers shows that most of this team is trained in the hotel, tourism or business administration majors. Therefore, the professional knowledge of this group also has the highest self-assessment level. The data results in Table 3.6 show that the capacity of "Understanding laws, policies and regulations" with the highest average score for the two above-mentioned management subjects are 4.37 and 3.89 respectively. In which, most opinions rate highly and very highly. As managers, they are self-conscious in updating their knowledge of relevant laws and regulations. In addition, the Department of Tourism of Quang Binh Province regularly organizes training courses to update relevant laws and regulations for managers at all levels at tourism businesses.

Knowledge of “Human resource management” and “Financial management” are both self-assessed by accommodation facility managers at a good level or higher. With corresponding scores of 4.37 and 4.08; 4.06 and 4.44. The reason is that hotel managers are often well trained in knowledge related to human resource management and financial management. In addition, large hotels often apply management software in the process of operation.


management is better implemented. As for the owners of motels, due to the small scale of operation, the investor is also the manager, so the management of human resources and finance is strictly controlled by the business owners. Meanwhile, the capacity of "Risk Management" is assessed by the managers of the accommodation establishments at an above average level, with the corresponding scores of 3.82 and 3.32 for hotel managers and motel managers. These management subjects are aware of the potential risks to the tourism service business environment and in the daily operations of the accommodation establishments, however, they lack the tools to identify, analyze, evaluate and handle risks in the management process. Therefore, the owners of the accommodation service business establishments can only identify and establish procedures to handle risks related to their operations such as ensuring security and safety for guests. As for risks related to the business environment and financial risks, the management of these enterprises can carry them out.

Financial risks (investment and investment management risks) are the most common risks in the accommodation business in Quang Binh province. Most of the large hotels (in Dong Hoi city) and homestays (in Phong Nha town) are investment projects of individuals/organizations/enterprises, but the evaluation and selection of investment projects based on the analysis of profitability and risk level of investment projects have not been analyzed scientifically and thoroughly (sometimes following the trend). In addition, the business performance of enterprises depends largely on the mobilization and organization of capital use. Some investors/business managers are impatient to borrow capital to invest in the initial stage: infrastructure, facilities for hotels. However, after the peak season, the number of guests decreases rapidly but the cost of maintaining hotel operations remains the same. In other cases, hotel owners/managers prioritize capital use in marketing without paying attention to service quality. As a result, tourists are disappointed after using the service because the service provided by the hotel is not as expected. In addition, accommodation businesses in the province also face other financial risks such as credit risk (businesses are slow to pay debts due, so credit institutions do not lend new loans or lend with more stringent conditions) and liquidity risk.


(due to poor cash flow management, there is a shortage of cash to pay debts as they come due or to finance important and urgent activities...)

Regarding human resource risks affecting business operations in general and human resources of enterprises in the province, including: business owners, managers, and employees. Human resource risks have been causing consequences in management and operations, especially risks in senior management positions. Hotels often recruit employees from many different sources through employee referrals, recruitment sites, or at university, student, and college groups, etc. But in reality, such massive recruitment is "rare" for quality employees, so hotels have to spend training costs from the beginning. Employees in general and managers in particular, after signing labor contracts and working in departments for a while, tend to jump to other businesses with higher compensation. According to a survey of hotels in Dong Hoi city, the rate of new recruitment to the number of resignations is 35%. This ratio shows that every three years, the hotel must change all its staff. If the ratio is 50%, then every two years, and if the ratio is 75%, then in just 15 months, the entire staff will be completely renewed. There are even senior and middle managers (department heads/deputy directors) who mobilize all employees in their department to change jobs to other businesses. In addition, according to the survey results, human resource risks arise from disagreements in the relationship between different types of human resources (treatment, promotion opportunities) and within each human resource (career passion, income, working environment).

In addition, the survey results show that the managers of small and medium-sized motels, the investors also hold the positions of executive director and sales manager. The investors/managers have to control dozens of tasks at the same time. Therefore, they encounter many obstacles/mistakes in "risk management" activities in general and business operations in general.

Knowledge of “Market, products and services”, “Knowledge of business environment and competitors” are also highly appreciated by hotel managers.

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