Tourism Economics Part 2

- Efficiency of using technical facilities is determined through the following criteria:

H CSVC =

Business results Facility costs

In which, technical facilities costs are measured by fixed asset depreciation costs, business area, number of rooms, and number of seats.

This indicator shows how much revenue or business profit one dong of technical facilities costs generates. The higher this indicator is, the better the efficiency of the enterprise's use of technical facilities.

In addition, in the hotel and restaurant business, the following criteria are also used:

Chamber capacity =

Room number or date room occupied

Total number of rooms or room days available

x 100

This indicator only applies to the accommodation business sector. The higher this indicator is, the better the accommodation business performance of the enterprise is.

Dining room capacity (chair capacity)

Number of seats occupied

= x 100

Total number of seats

able to supply

This indicator only applies to the food and beverage business sector. The higher this indicator is, the better the efficiency of the food and beverage business of the enterprise.

Box 8.6

Effective use of technical facilities of Thai Duong Hotel

Source: Thai Duong Hotel

Regarding the efficiency of fixed asset depreciation: Production capacity and profitability in 2019 compared to 2018 both increased, the reason being that the growth rate of revenue and profit was stronger than the growth rate of fixed asset depreciation costs. Regarding the efficiency of using accommodation business area: Revenue and profit achieved per unit of accommodation business area in 2019 both increased compared to 2018, the reason being that the growth rate of revenue and profit was faster than the growth rate of accommodation business area. Regarding the efficiency of room usage: Revenue and profit achieved per room in 2019 increased compared to 2018. Thus, it can be assessed that the efficiency of using the hotel's technical facilities over the past two years is good.

STT

Target	Unit	2018	2019	Compare 2019 with 2018
Target	Unit	2018	2019	+/-	%
1	Accommodation revenue	Trđ	20,412	23,594	+3.182	115.59
2	Accommodation profit	Trđ	6.150	7,588	+1.438	123.38
3	Fixed asset depreciation costs	Trđ	870	940	+70	108.05
4	Business area	m 2	2,300	2,400	+100	104.35
5	Total number of rooms	Room	60	64	+4	106.67
6	Effective use of fixed asset depreciation costs
	- H KHTSCĐ = D/F KHTSCĐ		23.46	25.1	+1.64
	- H KHTSCĐ = L/F KHTSCĐ		7.07	8.07	+1
7	Effective use of business space
	- HS = D/S	Unit/ m2	8.87	9.83	+0.96
	- HS = L/S	Unit/ m2	2.67	3.16	+0.49
8	Effective use of accommodation business rooms
	- Room H = D/Room	Unit/room	340.2	368.66	+28.46
	- Room H = L/Room	Unit/room	102.5	118.56	+13.06
9	Room capacity	%	80	85	+5

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Box 8.7

Effective use of technical facilities for domestic travel business of Vietnam Tourism Service Investment Joint Stock Company, Hanoi

STT

The indicators	Unit	2018	2019	Compare 2019 with 2018
The indicators	Unit	2018	2019	+/-	%
1	Domestic travel revenue	Trđ	14,589.26	16,907.26	+2.318	115.89
2	Domestic travel business profit	Trđ	1,271.68	1,356.58	+84.9	106.67
3	Total cost CSVCKT (F CSVC )	Trđ	5,286.18	6,199.74	+913.56	117.28
4	Effective use of CSVCKT - H CSVCKT = D/F CSVC - H CSVCKT = L/F CSVC		2.76 0.24	2.73 0.22	-0.03 -0.02

Source: Vietnam Tourism Service Investment Joint Stock Company, Hanoi

The above data shows that: The total cost of technical facilities (CSVCKT) of the company in 2019 increased compared to 2018. This proves that the company is gradually focusing on investing in upgrading technical facilities and equipment. However, the revenue and profit from each VND of technical facilities cost that the company spent in 2019 decreased compared to 2018. Thus, it can be assessed that the efficiency of using technical facilities of the company is not good. Although the cost of investing in technical facilities is increasing, the efficiency of domestic travel business is decreasing. In the coming time, the company should have measures to use technical facilities costs more effectively, cut unnecessary expenses, increase profits, and contribute to improving the business efficiency of the company.

(2) Business efficiency of each operation: Determined by 2 formulas

In there:

H i : Business efficiency of business i. D business i : Revenue of business i.

L business i : Profit of business i. F business i : Cost of business i.

The above indicators show the revenue or profit level of each business activity achieved from one dollar of cost of that business activity spent in a certain period. The higher this indicator, the better the efficiency of those business areas.

* Some other performance indicators

In the tourism business, some other indicators can be used to evaluate the business performance of the enterprise such as customer exploitation efficiency, customer satisfaction rate in basic indicators, customer abandonment rate, etc.

The efficiency of exploiting customers in tourism business is determined through the following criteria:

This indicator is applied to the fields of accommodation business, food and beverage business, tourist transportation business and travel business.

This indicator is applied to the accommodation and travel business sectors.

8.3. FACTORS AFFECTING THE SOCIO-ECONOMIC EFFICIENCY OF TOURISM

In the business process, there are many factors that affect the socio-economic efficiency of tourism. There are subjective factors and objective factors, factors that directly affect and factors that indirectly affect the socio-economic efficiency of tourism. To help the management process, people often divide the factors that affect the socio-economic efficiency of tourism into 2 groups, which are macro factors and micro factors.

8.3.1. Macro factors

Socio-economic conditions: Infrastructure of the locality where the enterprise operates (road system, development of communication network, etc.), policies of the central and local governments, intellectual status, etc. Socio-economic conditions indirectly affect the socio-economic efficiency of tourism through the source of visitors and pricing policies for goods and services.

Government policies such as foreign policies, tax policies, and capital in the tourism business sector have a significant impact on attracting tourists, thereby affecting the socio-economic efficiency of tourism. The more relaxed the government policies are towards creating favorable conditions for tourism development, the more the socio-economic efficiency tends to increase.

Economic management mechanism is an important factor, it governs and affects the economic efficiency of the whole economy in general and tourism business in particular.

Competitive environment among businesses in the industry. Due to the rapid development of tourism in recent years, the number of tourism businesses, especially the number of hotels, has increased rapidly, leading to fierce competition between businesses. This has affected the business performance of tourism businesses.

Price is a factor that directly affects the business efficiency of tourism enterprises, it affects the business efficiency of tourism enterprises in terms of both output price and input cost. If the output price increases, the business efficiency increases and vice versa. If the input cost increases, the business efficiency decreases and vice versa.

Seasonality affects the needs and demands of tourists, which in turn also affects the results and business efficiency of tourism businesses. Normally, during the main season, the business efficiency of businesses is very high. Meanwhile, during the off-season, the business efficiency of businesses is often very low. Especially for businesses whose business processes are closely linked to natural conditions such as beach resorts, mountain resorts, etc.

The development of the manufacturing industry mainly affects the input costs of the enterprise, which in turn affects the business efficiency of the enterprise. Normally, the higher the level of development of the manufacturing industry, the higher the business efficiency of the enterprise.

8.3.2. Micro factors

The workforce is a factor that directly affects the business results of tourism enterprises through recruitment, labor arrangement, labor incentive policies, etc., thus indirectly affecting the business performance of the enterprise. Therefore, tourism enterprises must focus on training and improving the qualifications of the workforce, including management staff and service staff.

Technical facilities affect the business efficiency of tourism enterprises in different levels and directions, often the initial investment will reduce the achieved economic efficiency. However, investment is a requirement for the goal of constantly improving customer service civilization, attracting tourists and is also a strategic goal of improving long-term economic efficiency.

Whether capital mobilization and use is effective or not will also greatly affect the business performance of the enterprise.

The level of organization and management of an enterprise affects the output business results and input business costs of the enterprise, thus also affecting the business efficiency of the enterprise.

In addition, the business performance of tourism enterprises is also affected by other factors such as the quality of tourism services; the business structure of the enterprise...

REVIEW AND DISCUSSION QUESTIONS

1. Analyze the concept and nature of efficiency? The need to improve efficiency?

2. Present the indicators to measure the economic efficiency of the tourism industry? Propose measures to improve the economic efficiency of tourism in the national economy and in enterprises?

3. Present the indicators to measure the social efficiency of the tourism industry? Propose measures to improve the social efficiency of tourism in the national economy and in enterprises?

4. Analyze the economic impacts of tourism? Cognitive implications?

5. Analyze the social impacts of tourism? What does it mean to perceive

awake?

6. Present the perspectives on measuring business performance in

tourism business? Cognitive significance?

7. Analyze the factors affecting the socio-economic efficiency of tourism? What are the measures to improve the socio-economic efficiency of tourism businesses in our country today?

REFERENCES CHAPTER 8

VIETNAMESE

1. Nguyen Van Dinh & Tran Thi Minh Hoa (2004), Tourism Economics Textbook, Labor - Social Publishing House.

2. Nguyen Hong Giap (2002), Tourism Economics, Tre Publishing House.

3. https://hutong.com.vn/

4. https://phoenixresortbacninh.com/

5. http://thaiduonghotel.com.vn/

6. http://thequeenhotel.com.vn/

7. http://www.hta.org.vn/

8. https://www.opentour.vn/

9. https://www.rosalizahotel.com.vn/

10. https://www.wttc.org/