Mechanism, Policy and Investment Environment for Sustainable Tourism Development in the Central Highlands

In the Central Highlands, there are about 30 businesses licensed to operate tourism (Gia Lai: 4 units; Dak Nong: 2 units; Lam Dong: 29 units; Kon Tum: 2 units; Dak Lak: 9 units), including 9 international travel businesses. International travel activities have made progress, organizing tours to Southeast Asian countries, Europe, America... Domestic travel activities have developed strongly, signing internal tour agreements with a number of provinces in other regions [17]. Up to now, the following tourist routes have been formed:

(1). The Ho Chi Minh Road tourist route connects the major tourist centers of the region (Kon Tum Pleiku Buon Ma Thuot Gia Nghia) along the Ho Chi Minh Road and is one of the important national tourist routes. This can be considered the "Green Road of the Central Highlands" tourist route, a tourist route that fully embodies the identity of the Central Highlands.

(2). The Da Lat - Ho Chi Minh City tourist route along Highway 20 is a scenic and weekend tour.

(3). Buon Ma Thuot Pleiku tourist route of the South Central coastal provinces

Set along Highway 19, combining cultural tourism products, Western mountains and forests

Original with South Central Coast beach tourism.

(4). Pleiku Le Thanh Northern Cambodia Laos Thailand tourist route. This is a tourist route connecting the Central Highlands with ASEAN countries and the South Central Coast along Highway 19, combining mountain cultural and ecological tourism products and sea tourism.

In general, tourism routes are formed with tourism products that are still vague, not outstanding enough to create attraction and carry national and international brands, and have low competitiveness. On the other hand, travel agencies in the Central Highlands are small in scale, operate ineffectively, many businesses have registered to operate tourism but do not operate and only specialize in other services. The causes of the above limitations are: low quality human resources, especially foreign language proficiency and tour guides; weak and unsynchronized tourism products, so they are not enough to attract travel agencies in big cities to connect to the Central Highlands.

2.3.1.4. Investment in tourism development in the Central Highlands

Foreign investment projects in tourism in the Central Highlands are still very limited, up to now there have been only 6 foreign investment projects in the Central Highlands region with more than 100 million USD, of which Lam Dong has 4 projects with more than 60 million USD. In the period 2000 - 2010, the Central Highlands mobilized over 914 billion VND from the state budget to invest in upgrading and building tourism infrastructure, mainly in key national tourist areas, creating an effective "push" to attract investment capital for tourism development from other economic sectors [17].

Investment in developing tourist areas: Investment in developing tourist areas has also received attention. Up to now, the region has attracted domestic and foreign investors such as Hansol Group of Korea, Saigon Tourism Joint Stock Company, Saigon Tourism Corporation... to invest in exploiting and developing tourist destinations in the region. In 2009 alone, there were 25 investment projects in the Central Highlands with a total capital of 3,215 billion VND [17]. Some typical investment projects in the region are: Chu Mom Ray National Park Ecotourism Area, Plei Krong Lake Ecotourism Area, Mang Den Ecotourism Area (Kon Tum); Kon Ka Kinh National Park Ecotourism Area, Ha Tam Pine Hill Ecotourism Area, Ethnic Cultural Park, Bien Ho Forestry Park Tourist Area (Gia Lai); Buon Don eco-tourism area, Ea Kao lake tourist site, Lak lake tourist area (Dak Lak); Nam Nung cultural eco-tourism area, Dray Sap Gia Long Trinh Nu waterfall cluster tourist area (Dak Nong). Lam Dong province alone has 151 investment projects in the area from 2003 to 2009, with a total investment capital of 43,856 billion VND [17]. Some typical projects include Cam Ly Mang Lin eco-tourism area, Dai Ninh 36-hole golf course, entertainment area, resort

high-class resort, Dalat cultural park, Da Lat lake forest eco-tourism area

Nhim, Dai Ninh hydroelectric lake tourist area, Bidoup Nui Ba national park project; Suoi Vang Da Huoai resort, Ngoc Lan hotel, Anna Mandara Villas Dalat resort, Madagui forest tourist area, Thien Thai D'ran waterfall eco-tourism area. With the investment in developing key tourist areas, many new types of tourism have been deployed such as eco-tourism, cultural tourism, adventure sports tourism and especially the localities in the region have had close coordination to effectively exploit the "Green Road of the Central Highlands" tourist route.

However, investment in tourism development in the Central Highlands is not commensurate with its potential.

√. The investment capital from the State budget mainly comes from the target program of tourism infrastructure, the average annual investment is very small (10 to 15 billion VND/province, Lam Dong alone is 40 to 50 billion VND) [18]. The Central Highlands provinces almost do not use local budgets to invest in tourism infrastructure, if any, it is very little on the basis of integrating other investment capital sources. Therefore, the State investment capital in the past has not been enough to stimulate other capital sources.

√. Foreign direct investment (FDI) capital is mainly concentrated in Lam Dong province, but the scale is small, only 0.47% of the national FDI in 2012; the remaining provinces have not attracted this capital. Investment capital from the cities

Other economic sectors are not much, only small-scale investment. Up to now, 4 provinces of Dak Lak,

Dak Nong, Gia Lai, Kon Tum have not had any large-scale investment projects to act as a locomotive to pull development projects. The entertainment areas being put into operation in the Central Highlands (except Da Lat) are only at a moderate level, mainly taking short-term to support long-term. The main reasons are: The infrastructure of the Central Highlands is still low compared to other regions, especially traffic infrastructure; the investment environment has not been improved in general, administrative procedures in many places are still cumbersome, causing trouble for investors; low-quality human resources... besides, political and border factors... are also unfavorable issues to attract investment in the Central Highlands, including tourism development.


2.3.2. On politics

2.3.2.1. Mechanisms, policies and investment environment for sustainable tourism development in the Central Highlands

a. Mechanisms and policies

In recent years, the Party and State have had many policies and strategies for socio-economic development in the Central Highlands, including sustainable tourism development, including:

(1) Political report

at the 10th National Party Congress

X (2006) confirmed

determined: "...The Central Highlands needs to focus all efforts on rapid and sustainable economic development,

closely linked to ensuring security and national defense... Focus on developing eco-tourism and ethnic cultural tourism. Harmonious development between sub-regions, between social classes and between ethnic groups" (Documents of the 10th Party Congress).

(2) Resolution No. 10NQ/TW dated January 18, 2002 of the Politburo on socio-economic development, ensuring national defense and security in the Central Highlands region in the period 2001 - 2010, Conclusion No. 12KLTW dated January 24, 2011 of the Politburo on continuing to implement Resolution 10NQTW.

Policy implementation:

Party and Government strategy

issued the

(3) Decision 168/2001/QDTTg dated October 30, 2001 of the Prime Minister on long-term orientation, 5-year plan 2001 - 2005 and solutions

basic socio-economic development of the Central Highlands region (adjusted in Decision

131/2003/QDTTg); Decision No.

276QDTTg, dated February 18, 2014 of the Prime Minister

General

Government on the plan to implement Conclusion No. 12KLTW of the Politburo on socio-economic development, ensuring national defense and security in the Central Highlands region for the period 2011 - 2020;

(4) Decision No. 2473/QDTTg dated December 30, 2011 of the Prime Minister approving the "Vietnam Tourism Development Strategy to 2020, vision to 2030";

(5) Decision No. 201/QDTTg dated January 22, 2013 of the Prime Minister approving the "Master plan for Vietnam tourism development to 2020, vision to 2030";

(6) Decision No. 2162/QDTTg, dated November 11, 2013 of the Prime Minister.

Government on approving the Master Plan for tourism development in the Central Highlands region to 2020, with a vision to 2030;

(7) Decision No. 231/2005/QDTTg dated September 22, 2005 of the Prime Minister

Prime Minister on supporting state-owned agricultural and forestry enterprises, special-use forest management boards, and protective forest management boards employing ethnic minority workers legally residing in the Central Highlands provinces: Implementing support policies on training, social insurance, labor standards, and land rent;

(8) Decision No.

166/2007/QDTTg of the Prime Minister

Prime Minister

day 30

October 2007 on Promulgating investment support policies and benefits for households

family, community

villages and groups

Participating position

Project "Forestry Development"

“Industrial development to improve the lives of the Central Highlands”: This document stipulates investment support policies and benefits for households, village communities, forest management boards, forestry enterprises, forestry companies, small and medium enterprises that are allocated forests and forestry land for afforestation, forest protection, forest regeneration promotion, agroforestry, and mixed garden renovation according to the Forestry Development Project to improve the lives of the Central Highlands;

(9) Decision 25/2004/QDTTg of the Prime Minister dated February 27

2004 on approving the Prime Minister's proposal until 2010";

Project "Developing cultural and information activities in the Western region"

(10) Decision No.

194/2005/QDTTg dated August 4, 2005 on

project approval

Directions and solutions for tourism development in the Central Highlands region;

General assessment: The above review results show that in recent times, there have been many policies, mechanisms and strategies focusing on socio-economic development in the Central Highlands region associated with sustainable tourism development. This has been and is promoting socio-economic development in the Central Highlands region in general and tourism in particular, such as: Resolution 10 of the Politburo has had a great impact on infrastructure development, improving people's lives in the area; the assignment of forest protection and management to people and communities; protection of water resources; settlement of residential land and production land for local ethnic people; policies on preserving and developing the culture of ethnic groups in the Central Highlands ...

However, the policy for sustainable tourism development in the Central Highlands is still lacking and

weak:

√. Many policies are still inconsistent, inappropriate and lacking feasibility.

effectiveness and efficiency are not high, even some policies have not really gone into effect.

life. The main causes are awareness, operational capacity, organization and implementation.

Current policies are still limited; the integration of policies for sustainable tourism development has not been implemented; coordination between ministries, sectors and localities is not synchronous; regional development linkages have not been specified and implemented.

√. The policy for sustainable tourism development in the Central Highlands is not complete and strong enough for development such as: investment attraction policy is not attractive enough to attract domestic and foreign enterprises to the Central Highlands, because the comparative advantage of the Central Highlands is far inferior to other regions; Many important policies are slow to be issued or issued inconsistently. Specifically, the planning for tourism development of the Central Highlands provinces is done first, the tourism planning of the Central Highlands region is done later. This has led to a lack of connection with the exploitation of advantages, tourism potential and division of labor of localities in the region.

√. Policy on preserving and promoting cultural values ​​and historical relics is not specific.

and enough

force to

implementation, thus the situation of "Western gong bleeding"

"An intangible cultural heritage of humanity has been and is taking place in the ethnic community; the cultural values ​​of the ethnic groups in the Central Highlands have not been preserved, and tend to increasingly fade between generations, the main reason is that the policy mechanism is not strong enough to create a favorable environment to promote cultural values ​​for

tourism development; historical relics

insufficient

resources to

restore and preserve,

Many relics have been encroached upon and damaged... The two-sided nature of the issue of "preserving" and "promoting" cultural values ​​and historical relics has not been comprehensively addressed in policies for implementation.

√. For the Central Highlands, there are currently many credit support policies such as: Decision 32/2007/QDTTg on loans to support production activities of the Central Highlands.

ethnic minorities; Decision 579/2009/QDTTg on production loans in

Program 30A; Decision 157/2007/QDTTg on lending to poor households and poor students..., in general, these policies are implemented through two channels: preferential interest rates and/or no collateral required. The most noticeable thing in the current preferential loan programs is the small loan scale. According to the 2010 Population Living Standards Survey (General Statistics Office), the average loan value per household in the Central Highlands is only 11.6 million VND. This amount of capital is difficult to meet the investment for production and business development. On the other hand, there is no policy for village and hamlet communities to borrow capital to develop community tourism (a type of tourism that is considered sustainable); moreover, households also cannot access loans to develop the tourism industry, because there are no preferential policies.

b. Investment environment: The following table shows the rankings of the five provinces in 2006 and 2012.

Table 2.12. Provincial competitiveness index




Kon Tum


Gia Lai


Dak Lak


Dak Nong


Lam Dong


2006


2012


2006


2012


2006


2012


2006


2012


2006


2012

Provincial Competitiveness Index (PCI) Ranking

61

59

62

32

43

36

51

48

54

54


Cost of market entry


8.73


9.09


6.9


8.36


8.0


9.14


8.9


7.73


7.8


6.72

Land access and land tenure security


4.95


6.6


5.3


5.83


6.2


6.47


7.1


6.63


6.5


6.14


Transparency and access to information


4.28


5.77


2.9


5.72


5.8


5.95


5.9


6.09


5.6


5.34

Time cost to implement State regulations


3.22


4.67


5.9


5.61


5.7


5.29


3.7


5.09


6.0


6.30


Informal expenses


5.17


5.49


5.2


6.63


4.9


6.29


6.0


6.24


5.3


5.72

The dynamism and pioneering spirit of provincial leaders


3.43


1.94


2.7


6.22


5.5


3.59


2.6


5.56


3.6


3.06


Business support services


3.33


4.02


5.5


4.21


4.9


4.19


6.2


3.74


5.2


4.40


Labor training


3.60


4.71


4.8


4.40


4.3


5.07


4.9


3.60


3.9


5.01


Legal institutions


3.74


3.18


4.7


3.20


6.7


3.26


5.8


4.39


5.1


3.85


Provincial Competitiveness Index (PCI)


41.38


51.39


47.0


56.5


56.0


55.94


54.3


53.91


52.9


52.84

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Mechanism, Policy and Investment Environment for Sustainable Tourism Development in the Central Highlands



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Source: Home page of the Global Competitiveness Index


In recent times, although the Central Highlands provinces have tried to improve

investment environment, however, the results (PCI) compared to other regions are still low. Almost from 2006 to 2012, the PCI index of the provinces fluctuated up and down every year, which shows that the Central Highlands provinces have not yet created

a sustainable and stable investment environment. This is one of the reasons why not many investors have been attracted to the Central Highlands in recent times.

2.3.2.2. State management of sustainable tourism development in the Central Highlands

The Central Highlands provinces have recently done quite well in State management of tourism in the following areas:

a. Proposing tourism development programs, projects and policies

Develop programs and projects on tourism development in each locality for the period 2011-2015; develop and organize the implementation of tourism development plans and policies, including master plans for industry development, plans for key tourist areas and destinations; manage tourism development projects in the locality; summarize the implementation of articles in the Tourism Law (2006-2011), identify weaknesses and limitations that need to be overcome in the coming period; disseminate and educate the public about tourism laws and information.

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