Currently, the average labor rate for a high-class hotel room is 1.5-1.6 direct workers and 1 direct worker corresponds to 2.2 indirect workers in society. Therefore, in the coming time, to ensure service quality, direct labor will increase rapidly.
3.2. Directions for improving State management of tourism in Lam Dong province in the coming time
There are many issues to discuss when studying the direction of perfecting state management of tourism in Lam Dong province in the coming time. However, with limited scope, in section 3.2, the author will focus on some contents of perfecting state management on: Development orientation; creating a favorable legal environment for development; perfecting the management, inspection and control of tourism development in the area. The author's proposals will follow a common theme throughout: Quickly overcoming the passive situation, creating all conditions for Lam Dong tourism to proactively develop according to market principles, with State management and international integration.
Accordingly, the author will propose directions for improving state management of tourism in Lam Dong province in the coming time through the following contents:
- Focus on building a market strategy for tourism development in Lam Dong province until 2010 and orientation to 2020.
- Perfecting the policy system according to market principles, on the basis of full awareness of the driving role and development characteristics of the tourism industry in the conditions of a mountainous province.
- Complete management measures on a number of tasks, especially tourism promotion towards the goal: Lam Dong tourism proactively develops towards the market and international integration.
3.2.1. Focus on building a market strategy for tourism development in Lam Dong until 2010 and orientation to 2020.
As we know, Lam Dong province has a policy to adjust and supplement the master plan for Lam Dong tourism development until 2010 and orientation to 2020.
According to the author, in this process, it is necessary to focus on researching and improving the quality of the current master plan for tourism development in Lam Dong.
According to Decision 762/QD-UB dated July 11, 1996, "Master plan for tourism development in Lam Dong province for the period 1996-2010" was approved. After more than 10 years of implementation, Lam Dong tourism has had significant development (for example: accommodation products increased 2 times in the period 2001-2005); but Lam Dong tourism is still passive, waiting for visitors to come, not really proactive in organizing and exploiting sources of visitors to Lam Dong, there are no tours organized by Lam Dong enterprises to neighboring areas or reaching out to different regions in the country, or internationally.
The master plan for tourism development in Lam Dong for the period 1996-2010 was built on the basis of exploiting the rich tourism resources bestowed by nature. This is a foundation, an important foundation but not enough. The current situation is much different from before. The tourism market has developed, our country is proactively integrating into the international market, competition is fierce. The above situation requires the strategy and planning for tourism market development to supplement market bases, develop in the direction of market requirements. Therefore, along with investigating and surveying to standardize basic documents on tourism resources, it is necessary to build: "Strategy for exploiting and expanding the tourism market".
The marketing strategy will determine:
- One is the target market, the potential market of Lam Dong tourism.
- Second , the market product portfolio (not just the product but the specific product-market combination). Each target market segment has a corresponding product demand. In the Lam Dong province tourism market strategy, it is necessary to clarify the corresponding product-market combinations.
- Third , the growth model of each product-market combination. There are usually the following strategic models: i) Deeply exploiting the market (current products - current markets); ii) Developing new products (new products - current markets, creating tourist attraction, increasing competitiveness); iii) Developing new markets (existing products - new markets, this is an inevitable development step, when current products have high quality and competitiveness); iv) Diversification (new products - new markets, this is a risky development step, but innovation is inevitable).
- Fourth , positioning the development direction of strategic units (SBU, can also be understood as a type of product-market combination); positioning the product business associated with
General development strategy of the province (the development direction of the locality is shown in policies and measures to promote or restrict the development of each product, each type, each activity , etc. )
3.2.1.1. Selecting target market
To determine the target market of Lam Dong, the following tasks need to be carried out:
- Organizing market research means carrying out a process of organizing information including: collecting, processing, analyzing and synthesizing information to support and improve decision making.
Information collection can be conducted through all sources, from secondary signals, market reports of tourism organizations, suppliers, especially the province can organize large-scale surveys, collect information through customer questionnaires, etc. Through information collection, it is possible to forecast the number of visitors, market share, revenue of each type of product for each market area. Research customers on their economic and social characteristics, attitudes, desires and needs as a basis for market segmentation and target market selection. Research on products and prices of new tourism products to measure the level of customer interest in that product, as well as their requirements, desires, expectations for that product and the elasticity of demand with the price of this product.
- Based on the results of market research, it is necessary to determine the main target market. To do so, it is necessary to segment the market according to criteria, suitable for the purpose of Marketing (A target market segment according to Kotler must satisfy 4 basic criteria: distinct, measurable, potential, suitable - Or you can imagine the selected market segment has needs and characteristics that Lam Dong can satisfy with its product system). For a long time, the importance of a certain market (domestic or international) has been assessed by the percentage of tourists compared to the total number of tourists to Lam Dong. For example, according to the 2005 statistical survey data, tourists from Ho Chi Minh City accounted for 60.5% of domestic tourists to Lam Dong. This number is a virtual criterion for assessing the importance of the Ho Chi Minh City tourism market. However, that is the actual number. To make a market strategy, you must predict the tourists who will come in the future, so the above criteria is not enough.
The author recommends that Lam Dong must determine a system of criteria to be able to investigate, predict and rank markets in order: important, unimportant, unimportant or key market, potential market for a planning period.
Qualitative indicators could be:
TT
Indicator name | Weight | |
1 | Population structure and characteristics Political and social stability Socio-economic impacts on leisure travel demand Understanding Lam Dong Differences and psychological similarities between Lam Dong and other markets Lam Dong's research response capacity Market demand is consistent with Lam Dong's tourism development orientation. Psychological, historical and cultural factors affecting Lam Dong tourism Total | 6 |
2 | 6 | |
3 | 12 | |
4 | 6 | |
5 | 10 | |
6 | 12 | |
7 | 13 | |
8 | 20 | |
15 | ||
9 | ||
100 |
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Quantitative indicators can be:
TT
Indicator name | Weight | |
1 | GDP/capita Number of travelers/year Affordability % of total visitors to Lam Dong from this market Growth rate of visitors to Lam Dong from this market Lam Dong's income from visitors to this market. Relative market share compared to other competing regions. Frequency of return to Lam Dong Total | 12 |
2 | 11 | |
3 | 15 | |
4 | 15 | |
5 | 10 | |
6 | 15 | |
7 | 10 | |
8 | 12 | |
100 |
If these indicators are investigated in the markets under consideration and done correctly, the market classification assessment will be more accurate. Thereby, choosing growth strategies for each market will be more appropriate and effective.
Currently, in the domestic tourism market, the Ho Chi Minh City market is the most important (in 2005, it accounted for 60.5% of the total number of domestic visitors to Lam Dong). For this market, the appropriate strategies are to use the growth model of deep exploitation and develop new products. It can be implemented in all 3 directions:
i) Cooperate with travel agencies in Ho Chi Minh City and provinces in the Southeast and Southwest to receive guests and transfer flights; ii) Cooperate with agents, or organize agents in Ho Chi Minh City to directly exploit customer sources; iii) Have incentive policies (attract investment, price incentives...) to attract non-tour guests to Lam Dong.
In the Southern market, it is necessary to pay attention to the market of the Southeast provinces (currently, the number of tourists to Lam Dong only accounts for 9% of the total number of domestic tourists). Dong Nai and Binh Duong provinces are markets with great potential, close and convenient for weekend visitors to Lam Dong. It is necessary to implement strong marketing measures to expand this market.
The South Central provinces such as Khanh Hoa, Ninh Thuan, Binh Thuan are developing sea tourism very strongly, the number of visitors is increasing dramatically. This is a market connecting sea tourism with highland and mountain tourism with great potential. Especially when the road distance between the Central Coast provinces and Lam Dong has been shortened.
Lam Dong is also an attractive destination for international tourists when they come to Vietnam.
In recent years, the international tourist market to Vietnam has the following characteristics that need attention:
- Total number of tourists continuously increased: In 2000, it was 2,140,100 visitors; in 2005, it was 3,467,757 visitors, equal to 170% of 2000.
- Purpose of travel: Sightseeing and relaxation tourism accounts for the largest proportion (57%), business tourism increased from 398,000 people in 2000 to 521,660 people in 2004, and family tourism increased from 370,000 people in 2000 to 505,327 people in 2005. The above situation is due to the increase in economic relations and foreign investment in Vietnam.
- International tourists to Vietnam 58% by air, arrivals by road are increasing but slowly, arrivals by sea are decreasing.
- The market structure by region has fluctuated: the North Asian region accounts for over 50% of the number of arrivals and has a strong increasing trend from 2000 to 2005, in which the number of Chinese and Taiwanese tourists to Vietnam has increased rapidly; the ASEAN market accounts for about 11.3% and also has a strong increasing trend, the number of visitors from Thailand (2005/2004 equal to 156.7%), followed by Singapore 52.5%, and Malaysia 37.8%; notably, the number of tourists from Cambodia has increased dramatically by 105%. The European market accounts for 12% of international visitors to Vietnam, the largest being France with 104,025 arrivals in 2004, increasing to 126,402 arrivals in 2005, equal to 121.5% in 2004; the UK in 2005 had 80,884 arrivals; Germany in 2005 had 64,448 people.
The North American market has a good growth rate, 122% in 2005/2004. However, the increase is mainly due to Vietnamese people living in the US visiting their homeland Vietnam.
From that situation, the author sees several points that need to be noted when building a growth strategy for international markets:
- International tourists to Lam Dong are a part of international tourists to Vietnam. Therefore, it is necessary to pay close attention to the situation and trends of the international tourist market to Vietnam. In particular, pay attention to measures to attract international tourists from North Asia (China, Japan, Korea); ASEAN region, especially Thai and Cambodian tourists to Vietnam by road.
- The ratio of international visitors to Lam Dong compared to international visitors to Vietnam is still too small (only about 3%), of which French visitors to Lam Dong are the most numerous, only equal to 15% of the number of French visitors to Vietnam. The figures show that there are still too many international visitors to Vietnam but not to Lam Dong. Therefore, the author believes that Lam Dong needs to quickly solve this problem in the following two directions:
Firstly , we must link up with travel agencies in Ho Chi Minh City, Hanoi and Da Nang, which are the international tourist destinations in Vietnam, and have policies to have more tours to Lam Dong. One thing to note is that 84% of French tourists come to Vietnam via Hanoi. Therefore, it is necessary to organize closer economic and tourism links between Lam Dong and Hanoi.
Second, Lam Dong must strive to develop its own organization to exploit the international tourist market.
3.2.1.2. Determine the competitive position of tourism products and appropriate growth strategy direction
In the master plan for tourism development in Lam Dong 1996-2010 - in the section
4.5 and 4.6. “Orientation for the development of tourism types” and “Orientation for the diversification of tourism products” have listed the following types of tourism products: Resort tourism; Eco-tourism; Sightseeing tourism; Sports tourism; Entertainment tourism; Conference and seminar tourism … However, the position of the products in the coordinate system of competitive position and attractiveness has not been clearly determined. Therefore, the choice of growth strategy for each product has not been determined.
The author recommends that in this adjustment and supplement, Lam Dong needs to have scientific measures to collect necessary information; use appropriate methods to clearly determine the competitive position of products and choose appropriate strategies for each product.
The simplest way is to use the BCG matrix. The matrix is set up by two variables. The horizontal axis represents the relative market share of each tourism product (considered as a strategic unit SBU) determined from 0 to 10. The vertical axis is the growth rate (taking revenue as a quantitative indicator to calculate the growth rate) of each tourism product (considered as an SBU); usually from -10% 0% +20%.
Data on revenue of each product, market share (measured by the ratio of revenue from the tourism product under study to total tourism revenue of Lam Dong); growth rate (showing the attractiveness of the product, its development potential).
- the calculation method mentioned above) are indicators that are often regularly recorded. However, detailed statistics for each tourism product can only be obtained through a closely directed and scientific investigation.
Based on the above survey data, it is possible to determine which of the four cells of the SBU curve is located in the matrix and corresponding to it are the appropriate strategic directions for each product and therefore the entire product portfolio. If it is possible to organize better surveys and investigations, with more information to determine the competitive position and appropriate market strategy for each tourism product, the market can use the AO Little matrix analysis methods, or the Mc matrix.
Kinsey and combined with other analytical methods to determine competitive position and choose appropriate growth strategies.
Growth rate of tourism products
+ 20%
Star | Hesitating
|
The cow | Dead spot |
+10%
0%
-10%
Market share
Figure 3.1. BCG matrix diagram
Star: - High profitability - Balanced revenue - Medium risk | Hesitating: - Poor profitability - Big risk - Large investment needs |
Dairy cow : - Big profit - No capital requirement - Low risk | Dead Point : - Not profitable - No investment - Medium risk |
Maintain a dominant competitive position | - Big investment to gain dominance - Or give up |
Profitable development | - No investment in cleaning - Give up |
Figure 3.2. Diagram of possible strategic directions for the tourism product portfolio
When studying to determine the competitive position and choose the appropriate growth strategy for Lam Dong tourism products and markets, it is necessary to pay attention to the following issue: In the master plan for Lam Dong tourism development in the period of 1996-2010, a series of new products for Lam Dong tourism are mentioned. However, after more than 10 years of implementing the plan, we see that: i) Tourism products cannot be considered separately; ii) The importance of tourism products cannot be assessed in an equal manner.