Advanced diploma in hospitality and tourism management

School DHospitality School DHospitality

FINAL YEAR
PHU QUOC ISLAND (VIETNAM)

REPORT

BY: CHRIS, NGO KIM TU (G0228755U)

Words: 3286

TABLE OF CONTENTS
1. Commodification CONCEPT...............................................4
1.1Definition.............................................................................4 1.2Commodification in Tourism industry.....................................4

2. Phu Quoc introduction ....................................................6

2.1Overall.................................................................................6 2.2Natural & Social conditions ..................................................6 2.3Brief history of the island.....................................................6 2.4Economy..............................................................................7

3. Effects of commodification process..................................9

3.1 Environment........................................................................9 =>.........................................................................................10 3.2 Culture..............................................................................11

4. Impacts and strategies to adopt tourism ........................13

4.1 ENVIRONMENTAL IMPACTS.................................................13 4.1.1 Positive.......................................................................................13 4.1.2 Negative.....................................................................................14 4.2 SOCIO-CULTURE IMPACTS...................................................17 4.2.2 Negative.....................................................................................20 4.3. ECONOMIC IMPACTS .........................................................23 4.3.1 Positive.......................................................................................23 4.3.2 Negative.....................................................................................24

5. Conclusion....................................................................26 References........................................................................27 appendix...........................................................................31 Financial Projection...........................................................32 Implement Plan.................................................................34 Evaluation & Control..........................................................39 APPENDIX:........................................................................40

1. COMMODIFICATION CONCEPT
1.1 DEFINITION Commodification (1975, origins marxist political theory) is used to describe the process by which something does not have an economic value is assigned a value and hence how market values can replace other social values. It describes a modification of relationships, formerly untainted by commerce, into commercial relationships. Commodification is often criticized on the grounds that something ought not to be for sale and ought not to be treated as if it was a tradeable commodity. For instance, Phu Quoc beaches become a marketed commodity, something to be bought and sold (in tour packages) rather than freely use. Cultures can be considered subject to commodification in contexts such as local dance serves in hotel for guests entertainment purposes. 1.2 COMMODIFICATION IN TOURISM INDUSTRY Tourism is a commodity formed by the transformation and packaging of experiences, geographies and cultures into products tourists purchase and consume. It is by this process that tourism commodities - be they scenic landscapes, museum visits or hotel stays enter into to the system of economic valuation. They are given price tags and are subject to cultural tastes and market forces. The value of tourism commodities is vulnerable to a wide range of factors from changes in spending power and currency exchange rates, to cycles of fashion, and to political events far away. Somehow, this great complexity co-exists with low entrance barriers into the industry, leading to often very inexperience entrepreneurs attempting to engage in the industry. The gradual commodification of a destination's culture, or its conversion into a commodity in response to the perceived or actual demands of the tourist market, is a major negative sociocultural impact associated with tourism (Greenwood 1989; King & Stewart 1995). On first appearance, this may appear to be a positive development, since tourism confers a tangible monetary value on a product (i.e. the culture) that already 4

exists, but otherwise generates no economic return. The problem occurs when the inherent qualities and meanings of cultural artefacts and performances become less important than the goal of earning revenue from their reproduction. When this happens, the culture may be modified in accordance with the demands of the tourist market, and its original significance eroded or' lost altogether". Tourism industry of Phu Quoc Island (Viet Nam) has been obviously applied this whole commodification process for the pass decade. I am going to discuss the various strategies that Phu Quoc should/had adopt(ed) and their potential positive and negative impacts on it.

2. PHU QUOC INTRODUCTION

2.1 OVERALL Phu Quoc (so-called Ph Quc in Vietnamese) has the total area is 593.05 km. Phu Quoc is also an administrative unit of Kin Giang province and the largest island of Vietnam with coastal periphery length of 150km. In fact is a group of islands situated in the Gulf of Thailand but are uni-deemed as one island, never has to face the natural disasters like storm, earthquake, or tsunami, etc. The district of Phu Quoc includes the island proper and 21 smaller islets. 2.2 NATURAL & SOCIAL CONDITIONS Phu Quoc holds a most primeval ecological system in South of Vietnam in terms of jungle and seabed. It is remained some nearly extinction creatures all over the world such as dugongs, Hawkbill tortoise, Leatherback turtle, or a rare kind of melaleuca. The island's variety extends to its maritime heritage, Phu Quoc having both an active fishing industry and good quality coral reefs, most notably to the south and northwest of the island.
Figure 2: Phu Quoc Island map Figure 1: Phu Quoc Island in Viet Nam map

The population, numbering around 85.000, has traditionally beeb associated with the sea, and the

island's most the striking cultural traits remain the fishing communities of the two main towns: Duong Dong and An Thoi. The island has also however attracted considerable migration from to respond to growing opportunities in the service industries spurred on by tourism. Phu Quoc owns rich resources not only for satisfying tourists sightseeing desire but also for their needs of foodstuff experiment. 2.3 BRIEF HISTORY OF THE ISLAND 6

In the early 17th century, Phu Quoc was a desolate area, where Vietnamese and Chinese immigrants earned their living from sea cucumbers. From 1782 to 1786, Phu Quoc became a stronghold of Lord Nguyen Anh, later Emperor Gia Long, in his confrontation with Tay Son forces. In 1869, the French occupied it and set up rubber and coconut plantations in the island. From 1967 to 1972, a P.O.W detention camp of 40,000 inmates during the war covering on 400 hectares was built at An Thoi by the Saigon regime.
Figure 3: Sick prisoners of PQ war camp

Population records suggest a very small population on the island: in the late 19th and early 20th Century less than 1,000 people resided on Phu Quoc, mostly distributed among small fishing communities. Phu Quoc has been converted into an ideal tourist destination for nature and sea lovers since 2000. 2.4 ECONOMY GDP per capita is soaring with value from Vnd 12 million/year of 2005 up to Vnd 30.4 million/year of 2010. Phu Quoc is famous for its two traditional products: fish sauce and black pepper. Tourism though starts contribute to the local GDP since 2000 but quickly plays an important part of the economy structures with the beaches being the main attraction with the total revenue is Vnd 404 billion in 2009 with an annual average growth rate of 40%/year.
Figure 4 Number of Visitors to Phu Quoc (Unit: pax)

(Source: Statistic Dep of Phu Quoc) From the figure above we can see that the total visitors volume steps up by years.

It just soared since 2000 the visitor volume has increased 40% per year in which the main force comes from domestic tourist. The number of visitor increased from 55,000 pax in 2000 to 220,350 pax in 2009. This rising has resulted in revenue of 136 billions VND in 2005 to 450 billions VND in 2009 with the annual growth rate at 46%/year. Currently this situation gets better when Phu Quoc becomes a rather famous destination of tourism that was branded as top ten in polls of some famous media channels like www.concierge.com (2008 peak of World top 10 of hidden beaches), ABC News channel (2009 peak of World top 10 hidden beach), www.tripadvisor.com (2010 peak top 10 Ideal destinations for travelling of Asia), or as the Earth Reservoir Region of UNESCOs charter.

3. EFFECTS OF COMMODIFICATION PROCESS

In response to the challenges and uncertainties induced by globalization and other factors, Phu Quoc have adopted tourism development as an alternative approach in hopes to achieve some sense of sustainability. Commodification in local products and services supplying for tourism has been affected heavily on environment and culture for economy purposes. Within the limitation of the report, there are only some main factors will be discussed. 3.1 ENVIRONMENT The island's stunning beaches are a big draw, often picture postcard perfect with powder white sand and turquoise sea. It is hard to believe that there are so many beaches that are both stunningly beautiful and deserted in just one place. The triangular-shaped island has many good beaches, like Long Beach on the Western side, which is also the biggest and where most of the hotels are located. Bai Sao, on the east coast, is a favourite spot - possibly the best beach on Phu Quoc. Its fine white sand has many fans and most of the time you can expect crystal clear turquoise water - a postcard-like example of a tropical beach. Commodification occurs when there are restaurants and lodgings established by the beaches responded to tourists needs. Large numbers of tourists visit Phu Quoc beaches especially after Phu Quoc beaches appeared on presses, demand of food and lodging by the beach are increasing rapidly, it causes pricing of food and services pricing of these places increase either. Beaches-getaway no longer afford by local, it mainly serve tourists now.
Figure 6: Sao beach was publicly openned before it was fully occupied by restaurants and lodgings Figure 5: Beautiful Sao Beach Phu Quoc

=> Beside beaches, Phu

Quoc National Park is also being commodified. Phu Quoc National Park attracts numberous of tourists to Phu Quoc Island recently. It opens up a new market for Phu Quoc tourism - Ecotourism. Phu Quoc national park is one of World Biosphere reserves and among the Parks where the primitive forest is still remained in its original state. The beauty of this National Park is the combination of the forest, the ocean,
Figure 7: Visting PQ National Park

streams, waterfalls, mountains and hills. The National Park is made more accessible for the needs of tourism, there are packages available for visitors keen to explore the park; Tourists can choose to hire motorbike on your own and explore the northerly parts of the island. Walking Trails is another option of visiting the park, but trails are limited, though for a great way to experience the national park. The walk is a particularly pleasant way to escape the heat, as the vegetation provides cover from the heat of the sun. Tour guides are strictly required for these tours. Another commodification signature on Phu Quoc is Tranh Stream. This beautiful stream springs from the Ham Ninh range going along ravines and edges their way through green grass carpets, then join the main current to form a large stream with the length of 15km.The stream is
Figure 8: Beautiful Tranh stream

surrounded with green trees, grass and fragrant flowers. The limpid and gentle current flows

through nooks and crannies, then through large rocks forming falls and lakes. The fragrance of the forest by wind mingles with this of orchid faintly and sweetly.Tourists can fish while enjoying seeing the waterfall or wallowing in the clean and cool water here. This place used to be freely accessed, but not anymore. It is now admission required since government did the clean up and build up the
Figure 9: Tranh stream gate

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gate. 3.2 CULTURE Rural communities of Phu Quoc rely on their culture and cultural symbols, including artefacts, music, folklore, architecture, heritage and geographic landscapes, as a focal feature for tourism development. In fact, local culture, generally defined as the longstanding traditions, customs and values of a community, has become a dominant attractor for drawing tourists to Phu Quoc. Many of these small rural communities have a cultural richness and uniqueness that are frequently depicted in various tourism product offerings, marketing publications and media. In short, local culture is increasingly being objectified and commodified to entice tourists to Phu Quoc. Phu Quoc culture gradually commodified as following for the past decade: 1. In 90s tourists are rarely seen in the community, and when they do appear, are invited as "honoured guests' to observe or' participate in authentic local ceremonies without charge. They were be given
Figure 11: Commodification process applied on locals who fitted themselves in tourism industry instead of fishing. Figure 10: Phu Quoc fishing tradition

genuine artefacts as a sign of the high esteem in which they are held by the local community.

2. After a while, visiting tourists became more frequent and hence less of a novelty. They were allowed to observe local ceremonies for a small fee, and genuine artefacts were sold to them at a small charge. 3. When tourism started to pick up from 2000 until current, the community has been regularly visited by a large number of tourists. Ceremonies have been altered to provide more appeal to tourists, and performances have been made at regular intervals suitable to the tourist market. Thus, authenticity gave way to attractions of a more contrived 11

nature. Prices are set at the highest possible levels allowed by the market. Large amounts of cheaply produced souvenirs have been made available for sale. 4. If sustainable tourism methods do not carry out as soon as it could, the integrity of the original culture will entirely lost due to the combined and effects of commodification modernisation.

Commodification extends into the most sacred and profound aspects of the culture, despite measures taken to
Figure 12: Phu Quoc festival packed with tourists

safeguard the culture. While the residents of Phu Quoc may be realising significant financial returns from tourism bv the fourth stage, the contention is that serious social problems have already arised in association with the loss of cultural identity and the concomitant disruption of traditional norms and structures that fostered social stability. Commodification is particularly evident in traditional societies that are rapidly exposed to relatively intensive and invasive levels of tourism involvement.

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4. IMPACTS AND STRATEGIES TO ADOPT TOURISM

4.1 ENVIRONMENTAL IMPACTS 4.1.1 Positive Tourism helps zoning areas of the natural environment e.g. before tourism attacked Phu Quoc, local people freely cut off trees to sell as resources for furniture and local kampong housings or they even use trees as a source of charcoal producing. In 2001, one year after Phu Quoc opens its door for tourists. National Park was established by the Vietnamese
Figure 13: A part of PQ national park

Government. Local and authorities have made efforts to manage the National Park in a move towards protecting the environment and the ecosystems on the island. Moreover, tourism also helps to enhancement of environment: Beaches was covered with seaweeds, dead animals and even human wastes before tourists came. It is now being cleaned up on daily basic to make sure beaches could maintain its visually natural beauty. The whole activities were funded by money from tourism industry.

=>
Figure 14: Tourism helps to improve PQ beaches by funding cleaners to clean up natural wastes

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Tourism also creates environmental awareness. Tourism is one of the main incomes of locals now. That makes them more aware of environmental issues which will affect their own and their next generations life such as dirty beaches could chase tourists away, this will affect their current living and their next generations. Because of this, private and public sectors inform consumers of environmental water etc. As a new comer of tourism industry, Phu Quoc adapting to tourists needs such as sustainable tourism, ecotourism etc. They learn from failures of other similar destinations such as Phu Ket, Bali to make sure Phu Quoc tourism maintains sustainable and develop in reasonable ways. 4.1.2 Negative Negative impacts from tourism occur when the level of visitor is greater than the environment's ability to cope with this use within the acceptable limits of change. Uncontrolled conventional tourism poses potential threats to many natural areas around the world. Depletion of natural resources: Tourism development can put pressure on natural resources when it increases consumption in areas where resources are already scarce such as water resources: tourism industry generally overuses water resources for hotels, swimming pools, and personal use of water by tourists. This can result in water shortages and degradation of water supplies, as well as generating a greater volume of wasted water. Fortunately, Phu Quoc has a rich water resource due to its raining season usually prolong up to 6-7 months (May or Jun until December or January),
Figure 16: Duong Dong reservoir Figure 15: Phu Quoc clean beaches

impacts and hotels inform customers of laundry process and how to save energy and

Duong Dong reservoir (total capacity 4 million m3) was built and is in use with a 14

capacity 5.000 m3 per day is capable of supplying water for the peak season by now. But with the grow of tourism industry, in the near future, Phu Quoc may need to enlarge the current reservoir or built up other the ones. Local resources: Tourism can create great pressure on local resources like energy, food, and other raw materials that may already be in short supply. Greater extraction and transport of these resources exacerbates the physical impacts associated with their exploitation. Because of the seasonal character of the industry, tourists usually come to Phu Quoc in the first six months of the year due to its dried and sunny weather; a high demand is placed upon these resources to meet the high expectations tourists often have (proper heating, hot water, etc.). Energy, food, raw materials used excessively in tourism creates damages environment physically. Land degradation: Sao Beach is where this effect applied most. Sao beach is one of the most visited destinations of Phu Quoc tourists for its sky blue water; pure white sands and freshest seafood of the island could be found here. Due to its popular, Sao Beach is heavily eroded by the number of tourists walk, step, sit and play on it. Sao beach before Sao beach recently

Figure 17: Erosion of Sao beach

There was a distance of about 3meters from the restaurant by the beach at high tide and approximately 5meters at high tide five years ago, but it is too close now, water is all over the restaurant when high tide. Another issue of tourism is it causes loss of natural habitats such as Flora and fauna

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displaced (moved) due to tourism construction in the North side, damage to fish and water pollution due to development in the water (e.g. marina development in An Thoi town) or tourist activities in the water (e.g. diving, sailing, water sports etc.). Coral reefs also suffer from damages. Over-fishing, squid-ding, trampling by tourists, divers urination and spit in water etc. could cause pollution of seawater. Pollution: Tourism can cause the same forms of pollution as other industry such as: Solid waste and littering: In areas with high concentrations of tourist activities and appealing natural attractions, waste disposal is a serious problem and improper disposal can be a major despoiler of the natural environment - rivers, scenic areas, and roadsides. For example, Phu Quoc night market
Figure 18: Wastes from Mai Lan restaurant on Sao Beach

(was opened mainly for tourists) is estimated to produce more than 10,000 tons of waste each year. Solid waste and littering can degrade the physical appearance of the water and shoreline and cause the death of marine animals. Sewage: Construction of hotels,

recreation and other facilities often leads to increased sewage pollution. Wastewater surrounding has polluted seas tourist attractions,

damaging the flora and fauna. Sewage runoff causes serious damage to coral
Figure 19: Rubbish hill in Phu Quoc

reefs because it stimulates the growth of algae, which cover the filter-feeding

corals, hindering their ability to survive. Sewage pollution threatens the health of humans and animals. There is no proper handling of sewage wastes yet; everything is now dumped in the sea.

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Air pollution and noise: Transport by air, road, and water is continuously increasing in response to the rising number of tourists and their greater mobility. One study estimated that a single transatlantic return flight emits almost half the CO2 emissions produced by all other sources (lighting, heating, car use, etc.) consumed by an average person yearly.
Figure 20: Over crowded tourist boats rental

4.2 SOCIO-CULTURE IMPACTS Impacts arise when tourism brings changes in value systems and behaviour, threatening indigenous identity. Socio-cultural impacts are ambiguous in a way that the same objectively described impacts are seen as beneficial by some groups and as negative by others. 4.2.1 Positive Tourism can contribute to positive developments. It has the potential to promote social development through employment creation, income redistribution and poverty alleviation. Tourism as a force for peace: Travelling brings people into contact with each other and, as tourism has an educational element, it can foster understanding between peoples F and cultures and provide cultural exchange between hosts and guests. Because of this, the chances increase for people to develop mutual sympathy and understanding and to reduce their prejudices. For example, in 90s local people hate French and Japanese because Phu Quoc was occupied by above nationals, they had been treated like slave,
Figure 21: Friendly tourists and local

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they had been punished and tortured in war. Local children used to stone at tourists who dont speak local language (they didnt know the difference of nationalities). But tourists, especially Westerner gave them sweet, presents and they event tried to talk to the kids, taught them their language, they were then realized not all foreigners/French/Japanese were bad. They started to make friends and connections; local people event invited foreigners home for meals and showed them local hospitality.

=> In war In modern age

Figure 22: Tourism bring people and cultures closer

Strengthening communities: Tourism can add to the vitality of communities in many ways. One example is that there was no celebration of Christmas in the Island in 90s; tourists came in created Christmas celebration needs. Hotels, resort and restaurants saw the needs and started to celebrate Christmas for tourists who away from home. Locals now enjoyed Christmas celebration too, family members to give presents to each other, and enjoy the very unique tropical warm reunion Christmas dinner together. Facilities developed for tourism can benefit residents: As tourism supports the creation of community facilities and services that otherwise might not have been developed, it brought higher living standards to Phu Quoc. Benefits include upgraded infrastructure, particularly in roads upgrading, they are now built for coaches, taxis and motorcycles to access most of the islands attractions, they were rocky red soil some years ago. Health and transport also improve a lot; there is a central hospital with much better equipped than before, there is now at least one motorcycle per household 18
Figure 23: Christmas in Phu Quoc

comparable with bicycles (are main transports) in 90s, there are quite a numbers of cars, coaches and taxi in the island now.

Figure 24: Phu Quoc roads are improving

Education and training: When star hotels, star resorts and upscale tours came in, owners of such places required higher qualification candidates, higher expectation of knowledge and standard. Higher qualification candidates have got better salary. It created the need of local to upgrade themself. Local residences started to send their children to bigger city like Kien Giang or Ho Chi Minh, some rich families send their kids overseas for after high school education (high school is the highest education level of local). Some big organizations such as La Veranda, Saigon Phu Quoc, Blue Lagoon, Eden Resorts etc. have their own training departments to recruit potential candidates to train them up as professionals in their develop local education and training system. Enhanced quality of life: Positive economic impacts of tourism affect the quality of life locals will experience. Increase in tourist spending in Phu Quoc leads to an increase 19
Figure 25: Students in primary school

potential fields (housekeeping, maintenance, security etc.). All these contributed to

in disposable income for locals. Public sector investment in an area can improve local infrastructure (roads, facilities etc.). Every household now affords to build their houses two, three levels and event equipped TV, DVD players, high tech sound systems, computers, fridges etc. their lifestyles are seen much improvement than before. 4.2.2 Negative Commodification: Tourism may turn Phu Quoc cultures into commodities when religious rituals, traditional ethnic rites and festivals may be reduced and sanitized to conform to tourist expectations, resulting in what has been called "reconstructed ethnicity". For instance, local people used to have the tradition of Figure 26a: Tradition of making dumplings for Tet neighbours families spent one to two sleepless nights before Tet (Chinese New Year) to make dumplings. and surrounded the huge cooking pots of dumplings, seniors rotated telling stories and jokes to juniors, kids was telling their seniors how they were doing so far. It was a nice tradition until tourism came, roads are developed, and there is no more time and space for locals to continue this
Figure 26b: Tradition of neighbours surrounded dumplings cookpots.

New Year is a super high peak occasion for local to earn big bucks from tourists. These meaningful reunion nights were slowly faded in

exchange for higher income, better lifestyle. Once Phu Quoc is sold as a tourism product, and the tourism demand for souvenirs, arts, entertainment and other commodities begins to exert influence, basic changes in human values may occur. Sacred sites and objects may not be respected when they are perceived as goods to trade. Turning a product or service into something different in order to please the tourist. Performances and ceremonies are commodified (made more attractive and dramatic) in order to appeal to tourists. Not representing the true culture of the locals. Also known as staged authenticity.

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Crime: Crime rates typically increase with the growth and urbanization of Phu Quoc, and growth of mass tourism is often accompanied by increased crime. The presence of a large number of tourists with a lot of money to spend, and often carrying valuables such as cameras and jewelleries, increases the attraction for criminals and brings with it activities like robbery and drug dealing. Repression of these phenomena often exacerbates social tension. Prostitution and sex tourism: The commercial sexual exploitation of children and young women has paralleled the growth of tourism in many parts of the world and Phu Quoc is not an exception. Though tourism is not the cause of sexual exploitation, it provides easy access to it. The lure of this easy money has caused many young people, including children, to trade their bodies not just for money, they event do it in exchange for T-shirts, personal stereos, bikes and even air tickets out of the island/country. Culture erosion: Locals observe tourists and try to copy (emulate) them. This can be in terms of: behaviours, cultures, clothes, food etc. These lead to a loss of local cultures identity. Westernisation western culture favoured over local cultures.
Figure 27: Prostitution illustration

=>
Figure 28: Westernisation of local fashion trend

Adaptation to tourist demands: Tourists want Phu Quoc souvenirs, arts, crafts, craftsmen have responded to the growing demands, and have made changes in designs of their products to bring them more in line with the new customers' tastes. While the

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interest shown by tourists also contributes to the sense of self-worth of the artists, and helps conserve a cultural tradition, cultural erosion may occur due to the commodification of cultural goods. There is a good example for this, local children used to spend their free time to polish seashells which they carefully selected from the beach for their personal collections. Tourists then interested in these collections, they bought it from the kids and made it their collections, words spread; every tourist came to Phu Quoc then looking for these shells collections. It became famous and a must for every tourist came to Phu Quoc to buy this as a signature gift from Phu Quoc Island.

=>

=>

Figure 29: Modification of Phu Quocs souvenirs design to meet tourists expectations.

By demands, this product line has improved to the next stage, which there are some arts engraved on it. Then it is now becoming something more valuable for money. When something is valuable for money, its no longer priceless. Cultural clashes arise through: Economic inequality: Many tourists come from societies with different consumption patterns and lifestyles than what is current at the destination, seeking pleasure, spending large amounts of money and sometimes behaving in ways that even they would not accept at home. One effect is that local people that come in contact with these tourists may develop a sort of copying behaviour, as they want to live and behave in the same way. Job level friction: Many jobs occupied by local people in the tourist industry are at a lower level, such as housemaids, waiters, gardeners and other practical works, while higher-paying and more prestigious managerial jobs go to foreigners or "urbanized" 22

nationals. Due to a lack of professional training, as well as to the influence of hotel or restaurant chains at the destination, people with the know-how needed to perform higher-level jobs are often recruited from other countries. This may cause friction and irritation and increases the gap between the cultures. Even in cases where tourism "works", in the sense that it improves local economies and the earning power of local individuals, it cannot solve all local social or economic problems. Sometimes it substitutes new problems for old ones. 4.3. ECONOMIC IMPACTS 4.3.1 Positive Tourism has a variety of economic impacts on Phu Quoc. Tourists contribute to sales, profits, jobs, tax revenues, and income of locals. The most direct effects occur within the primary tourism sectors are lodgings, restaurants, transportations, amusements, and retail trades. Through secondary effects, tourism affects most sectors of the economy of the island. Tourism creates many various jobs for locals via direct employment means directly involved in tourism e.g. hotel, travel agency; indirect employment such as jobs in the tourism supply sector e.g. purified-water supplier companies providing purified bottled water to tour operators; and induced employment which are jobs created because of an increase wealth of the locals from tourism, they spend more money in local economy such as electronics stores, supper market, market etc. Money created in local economy through wages and salaries of locals employed in the local area, profits of local businesses benefitting from tourist spending, rent from leasing accommodation to tourists and migrating workforce, tax gained from tourist spending, public or private sector: public sector in a way that if government wants to develop a beach in North island; first, they got to invest and develop infrastructure (roads, airports, buildings etc.), making that beach more appealing to tourists. Private sector in a way that TNCs or MNCs (Multinational Companies) sets up their organizations here can lead to other companies investing in the same area. 23
Figure 30: income from tourism help to improve locals lifestyles.

A multiplier effect within Phu Quoc economy which tourists expenditure will inject additional cash flow into regional economy and increase regional income (Page and Connell, 2006).

=> 3
Figure 31: Income from tourism helps to improved locals infrastructure

4.3.2 Negative Locals are now afford to travel more frequent to enjoy themselves at bigger cities like Ho Chi Minh, Ha Noi where they could have more choices of products, services and healthcare, a huge amount money spends on goods and services outside local economy, it causes leakage of local economy. Moreover, investment from MNCs or TNCs means that some money earned by that organization will leave the local economy e.g. headquarters in different destinations. Phu Quoc could only self-produce of seafood and a small portion of vegetable, most of local goods are importing from mainland Kien Giang or Ho Chi Minh. Importing activities of goods mean another economy is benefitting from local spending. Opportunity cost also known as

displacement effect which developing tourism at the expense of other activities or areas of investment (Page and Connell, 2006) it happened with fish sauce factories in Phu Quoc. Fish sauce production used to be the one of the main incomes of local economy, with the development of tourism, fish sauce factories space are getting smaller 24
Figure 32: Fish sauce factory

because fish sauce is made from rotten-anchovies in a large amount of sea salt, this process produced pretty strong smell (stink) which could scare of tourists off from 10 meters away. With the spread of tourism all over the island, fish sauce factories development is becoming opportunity cost for local economy. Unbalance of public development funds invested in tourism that is not invested elsewhere e.g. Government is spending most of its funds to develop beautiful beaches locations such as Duong Dong, An Thoi town, which cause under-developed of infrastructure at inaccessible beach or unattractive beach locations such as Cua Can, Rach Vem area.

Duong Dong town developing

Cua Can town under developed

Figure 33: Phu Quoc unbalance development

Inflation increase in demand of goods (especially in food and beverages) and housing leads to increase in inflation. When inflation happens, value and price of land, rental, and products increases, locals may not be able to afford living in a particular area (Duong Dong or An Thoi downtown), they moved to undeveloped areas, downtown businesses may suffer. Inflation can also lead to negative socio-cultural impacts, as when their income unable to support their family or event themselves, they may force themselves to do something unethical, against local/company cultures like prostitution, pimping, stealing, cheating tourists etc. Phu Quoc relies heavily on tourism in order to maintain local economy, if tourism suffers due to natural disaster or diseases, the whole economy suffers a huge negative impact would definitely take place.

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5. CONCLUSION
These are positive and negative consequences of tourism that can arise only when tourism is practiced and developed in a sustainable and appropriate way. Involving the local population is essential. A community involved in planning and implementation of tourism has a more positive attitude, is more supportive and has a better chance to make a profit from tourism than a population passively ruled - or overrun - by tourism. One of the core elements of sustainable tourism development is community development, which is a process and a capacity to make decisions that consider the long-term economy, ecology and equity of all communities. Commodification within the sphere of culture is a social fact. However, in speaking of this in the context of tourism, we should not be satisfied with simply charting its progress and then lamenting what has been lost, since to do so inevitably traps us in a desire for a more-perfect and always-lost past. In other words, what is needed is less focus on identifying what has been commodified and hence no longer counts as authentic and more attention on the question of how authenticity is constructed and gets decided. Moving beyond the question of commodification does not mean that one thereby needs to either embrace the rhetoric of the global market or romanticize resistance against a global hegemonic order. Instead, accepting commodification as a starting point allows different questions to arise, questions that revolve around the ways in which people make meaning in their lives within the world of tourism.

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"La Politique coloniale de la France au dbut du second Empire (Indo-Chine, 18521858)", Henri Cordier, 1911, Ed. E.J. Brill (accessed 08 October 2011).

Ngo Cong Duc, deputy of the Vinh Binh province, quoted in "Le rgime de Nguyen Van Thieu travers l'preuve", Etude Vietnamienne, 1974, pp. 99131 (accessed 08 October 2011). Discover PQ http://discoverphuquoc.com/nationalparks.html (accessed 08 October 2011). http://www.vietnam-beauty.com/beautiful-beaches/215-tranquil-phu-quoc-beach.html (accessed 08 October 2011). Nguyen Quoc Thiet Wednesday, May 2010, Vietnam island economies- national defense to get $8.6 bln boost, Retrieved 3rd Sep 2010 from http://www.phuquoconline.net/home/News (accessed 08 October 2011). VOVNewspaper, Mar 2010, 1300 billion for construction Phu Quocs bound road system (accessed 08 October 2011). Nguyen Quoc Thiet, March 2010, US$ 356.8 million to build thermo-electric plant in Phu Quoc, Retrieved from http://www.phuquoconline.net/home/News (accessed 08 October 2011). Sai Gon Giai Phong Newspaper, Discovery Phuketm Retrieved 10 Sep 2010 from http://www.dulichviet.com.vn/goc-bao-chi (accessed 08 October 2011). Nha Trang Travel, Retrieved 4th September 2010 from http://www.chudu24.com/huong-dan-du-lich/chau-a/viet-nam/nha-trang (accessed 08 October 2011). Vietnamese Government (May 2010), Decision No. 663/2010/QD/TTg dated 11 May

28

2010, Vietnam Gazette, Hanoi. Vietnamese Government (2007), Decision No. 42/ 2007/QD/TTg dated 29 March 2007, Vietnam Gazette, Hanoi. Vietnamese Government (2007), Decision No. 01/ 2007/QD/TTg dated 08 January 2007, Vietnam Gazette, Hanoi. Vietnamese Financial Mistry (2007), Directive No. 10/2007/TT-BTC dated 5 February 2007, Vietnam Gazette, Hanoi. Phu Quoc statistic 2009 (2010), Department Statistic book 2009, Phu Quoc district, Kien Giang Provice. Sasu Dinu Vlad (2004), Loyality programs which influence the decision process in choosing tourism destination, University Oradea Facultatea de Stiinte Economice, Catedra de Management _i Marketing, Str. Universitatii, Nr. 1, telephone 0259.408796. Karma Centre for Knowledge and Research in Marketing (1998), Latin American tourism survey, McGill University, Montreal, Canada. Seppo K Rainisto (2003/04), Success Factors Of Place Marketing: A Study Of Place Marketing Practices In Northern Europe And The United States, Helsinki University of Technology, Institute of Strategy and International Business. Ljiljana Stankovi, Suzana uki (2009), Challenges Of Strategic Marketing Of Tourist Destination Under The Crisis Conditions, Economics and Organization Vol. 6, No 1, 2009, pp. 23 31, University of Nis, Faculty of Economics, Serbia. Geography: phu quoc island and phu quoc national park available from: Http://vietnamhotels.net/travelguide/detail/phu-quoc-island-and-phu-quoc-nationalpark/ (accessed 08 October 2011).

29

Sustainable development options available from: Http://www.consultnet.ie/sustainable%20development.htm (accessed 08 October 2011). Phu Quoc, Vietnam Weather available from: http://www.weather.com/weather/today/Phu+Quoc+Vietnam+VMXX0032 08 october 2011). Ashworth, G. J. (1994). From history to heritage-from heritage to history: In search of concepts and models. In G. J. Ashworth, & P. J. Larkham, Building a new heritage: Tourism, culture and identity in the new Europe. London, UK: Routledge. Boniface, P. (1998). Tourism culture. Annals of Tourism Research, 25(3), 746-749. Bourdieu, P. (1986). Handbook of theory and research for the sociology of education. New York: Greenwood Press. Featherstone, M. (1995). Undoing culture. London, UK: Sage. Flora, C. (2001). Interactions between agroecosystems and rural communities. Boca. Raton, FL: CRC Press. Jafari, J. (1996). Tourism and culture: an inquiry into paradoxes. In Culture, tourism development: crucial issues for the XXIst century. Paris: UNESCO. McIntosh, A. J., Hinch, T., & Ingram, T. (2002). Cultural identity and tourism.International Journal of Arts Management, 4(2), 39-49. McKercher, B., & du Cros, H. (2002). Cultural tourism: The partnership between tourism and cultural heritage management. New York, NY: The Haworth. Hospitality Press. Meethan, K. (2001). Tourism in global society: place, culture, consumption. Hampshire. (accessed

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APPENDIX
Foreign tourist preferred annually visiting Phu Quoc from May to September (Winter flee). Tourist can reach the island from mainland, or directly by travelling cruisers. Figure 3 Structure of International Visitor to Phu Quoc (2005) (Source: Statistic Dep of Phu Quoc) According to a statistic in 2005 regarding to foreign structure, visitor account

visitor from Western Europe is 68.6%, North America is 11.8%, Australia and Asia take the same percentage of 6.5%. The majority of Western Europe is now enriched by significant increasing from Eastern and Northern European countries especially Russian, Finland, etc. if we compare the ratio against that of Vietnam. We can see the large difference when Asian customer (China, Japan, Korea, Taiwan) is the main force of tourism market of Vietnam. These ratio still keep stably to some current time as statistic officer of Phu Quoc district said. 1.1.Competitive Analysis In this part, we discuss about the competitors whom relate directly to Phu Quoc in the travelling market. Those places have the same or nearly the same model Phu Quoc Pearl. Most of them are famous places for travelling over the world. In domestic, Phu Quoc Pearl has faced to many places, where have beautiful sea, wonderful Bay, long beaches and full infrastructures and other attraction activities such as Danang City, Nha Trang city, Halong Bay at Quang Ninh province. Moreover, pass over bound of countries, there is a plenty of popular places in the world that are ready to welcome hundred of visitors annually. Only at Asia area, Phu Quoc competes with many regions where are famous in travel business sector, that is Phuket in Thailand, Bali in Indonesian, Singapore,

31

FINANCIAL PROJECTION In order to implement strategy projections, Phu Quoc need find itself a huge capital supplement. At the beginning, Phu Quoc has already advantages comparing to another provinces that is received full careness from government, also timely policy from infrastructure investment to sustainable development. Kien Giang administration combine to government contribute strategic plan and the way to approach capital resources. It can be divided two main fund resources, one from the Vietnams government which supports for infrastructures Phu Quoc, and remain part from investors (including foreign and domestic). After that, some remarkable projects are presented in the Appendix No. 7. Herein, we used past data from 2005 to 2009 to estimate tourism revenues Phu Quoc for period 2010-2015. By average method, we could estimate the growth speed rate per annual and use them for forecasting. To simply, we ignore inflation and other factors, in order to have overview the picture of Phu Quoc.
Years Re venue (billion vnd) Visitors Total stay time (days) Ave Spending/visistor (vnd) Cost (billion vnd) Profit (billion vnd) 2010 543 251,366 538,971 2,159,509 217 326 2011 719 286,748 599,233 2,507,559 288 431 2012 952 327,110 666,232 2,911,704 381 571 2013 1,431 405,864 774,034 3,526,571 286 1,145 2014 2,151 503,579 899,280 4,271,279 430 1,721 2015 3,232 624,819 1,044,791 5,173,249 646 2,586

Figure 5 - Revenue Estimated 2010 to 2015 The figure? shows us specific numbers revenue through years. And this below diagram describes more accuracy view growth speed through years, also each period. Figure 6 Estimated Revenue Of Phu Quoc From the revenue estimated for Phu Quoc, easily to recognize that the average growth speed of period 2013- 2015 is 50% instead of 32%
Revenue (billion vnd)

Revenue(billionvnd)
3,500 3,000 2,500 2,000 1,500 1,000 500 0 2010 2011 2012 2013 2014 2015

for previous years. The reason is explained by after 2012, most of basic infrastructure system will be completed and it is good condition

for attraction more tourism to Phu Quoc.

32

We assume that government supports Kien Giang province by accepting tax exemption for given period. The amount will be reinvestment and use for our marketing program. The table is summarized the budget spend for each year. Most of budget in this period is used for established infrastructure and orient & regulate the building. Figure 7 Financial Projection for Phu Quoc (2011-2015)
Activity BUDGET (billion vnd) Infrastructure Orient & Regulate the Building Encourage tourism entrepreneurs Tourism spots (hotel, resorts, spa, restaurant, disco,..) Build the diversity of tourism forms Improve Phu Quoc's community Open training course for citizen Attract skilled labor working in Phu Quoc Build Phu Quoc's brand Cooperate with other communication medias Newspapers, Television, Magazines, Internet Sites Film Makers, Directors Events Festivals Sport Arenas Propose to hold International Conference % used of budget Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015 431 571 1,145 1,721 2,586 216 286 344 344 259 181 177 229 172 259 9 6 173 171 229 172 259 9 6 6 17 11 9 8 4 6 2 11 11 9 8 4 6 6 9 13 9 4 4 6 2 2 2 100% 17 11 46 23 17 6 99% 46 23 92 46 34 11 66% 86 34 138 69 52 17 46% 103 26 207 103 78 26 34%

33

IMPLEMENT PLAN

BUILD IMAGE

THE UNITED STRATEGY THAT ORIENT

TOURISM ENTERPRISES

TO

PHU QUOCS

Regulate & Orient the Building Appearance Encourage tourism enterprises to develop the qualified services that suite with Phu Quocs image. The appearance of the tourism spots (hotel, resorts, spa, restaurant,) must conform with Phu Quocs image, or at least not affect the original, wild, pure attributes. Regulate the hotel, resort, restaurant should be decorated with the soul of Vietnamese or reflect the original of the place. Regulate the business operations in Phu Quoc: Some modern places like bar, disco, modern shops, must locate in the right places that not affect the silent environment of Phu Quoc. Encourage the export image of current business exporter Via the current exporter like: Nam Duongs Fish Sausage, Phu Quocs Pearl, Phu Quocs pepper, Sim Wine. We can encourage them to include the Phu Quocs image to their item. It is the good channel to let the visitor know and feel friendly with name Phu Quoc. For Fish sauce & Sim Wine Subside 500 vnd/label/bottle Targeted films: Nam Huong, Quoc Duong, Loc Tai For Pepper Subside 500 vnd/label/peppers package Targeted firms: Bien Hai Quan. For pearl Subside to 5000 vnd/item to attach PhuQuoc Introducing handbook in pearl package box. Targeted firms: JVC Phu Quoc Pearls Gift the visitors when they leave PhuQuoc

34

When visitor leave Phu Quoc, they must bring Phu Quocs image to home via introduction brochures, slogan, image and specially a small gift demonstrate the Phu Quocs island. Target: Children, Family Budget: 20.000 * number of tourism come to visit. Start: Sept-2011 BUILD THE TOURISM PACKAGES image. Original is the starter 1. Start of the ocean Description: Mountain is considering is the place that starts of the rain, make a stream, run down flow to the mountain side, through the forest, and go out to ocean. Visitor can view the stream, climbing to the highest mountain at Island, go through the forest explorer diversity of plants and animal. Target Audience: Personal, Explorer, Friend, Team. 2. Start of the Rebel Description: Visitor can visit the revolutionary base of Nguyen Trung Truc heroes, Phu Quoc prison. Visitor can visit army camp, Nguyen Trung Trucs template, Phu Quoc prison, Cao Dai pagoda. Target Audience: Explorer, Company Trips, Family, Retirement peoples. Original is the beginner 1. Beginner of the love Description: new couples want a good place to develop their loving, having the loved time together, spending the most romantic time of their life. They will have the right place for their requirement: private place, a romantic room, beautiful sight with the blue ocean, silent environment, and walk together as shopping. Target Audience: Couple, Family, retired people. 2. Beginner of the new life Description: A place to make a wedding party, for just married couple. They will have the most romantic time together, romantic room with flower candle. Serve special meals for their time. 35

THAT SUITABLE WITH THE TARGETED VISITORS

Based on the Original slogan, we will build the tourist packages corresponding with its

Target Audience: Just married people. Original is the conserver 1. Conserver the natural beauty Description: They will see the natural beauty of coral reef the natural beauty was conserved for a long time. View the handicraft business: Pearl Handicraft, fish sauce. Target Audience: company trips, family, friend, international cruiser, personal, retirement people, and explorer. Original is the unique 1. Fist real casino places in Vietnam Description: They can visit the place that has no entry visa needed. Target Audience: Gambler, company trips, friend, personal, and retirement people. BUILD THE PROFESSIONAL
TOURISM OPERATORS

Associate with the existing tourism school, tourism center, tourism companies to open specific classes to operation in Phu Quoc. When they operate, they have to aware of their things: o They are delegator of the Phu Quocs community to introduce Phu Quoc to visitor. o Understand clearly about Phu Quocs places. o Have skilled that qualify with their specific jobs. Mountain, Stream, Beach, Diving, Night Fishing.

o Professional, Patient to visitors. Open training classes for operator agencies, touristm schools. o Location: at Phu Quocs villages o Involved Actors: Phu Quoc's island local distric Management Sector o Progress: 1 year (start 2011 Begin Time: April 2011 Budget: 100.000.000 vnd IMPROVE PHU QUOC S COMMUNITY

1. Launch the campaign to improve their awareness about their beautiful places.
The community campaigns missions: Educate & Regulate for drop litter. Open training classes for the local people to improve their behaviors. o Give them a conscious that they are one of representative of Phu Quocs 36

image. o Open, friendly with the visitors. o Learn basic foreign words to communicate with foreign visitors: way direction helping, SOS situations, o Prevent them from the bad habits like: tell overprice, invite with insistence, Beggars,.. Improve their daily activities. Orient their behaviors of the future tourism society.

2. Build the sanitation system for all places, community.

All sanitations system must be qualified and foreign visitor feel free when using them. Build an effective garbage system. o For the recycle bin: its shape, form must be comfortable with the around places. Open 8 training classes at 8 places at 5 Phu Quoc's areas(Duong Dong (3), An Thoi, Ham Ninh, Cua Can, Hon Thom). Location: at Phu Quocs villages Involved Actors: Phu Quoc's island local distric Management Sector Progress: 1 year (start 2011

Begin Time: April 2011 Budget: 100.000.000 vnd

3. Build the brochures, banners, slogans, images around and entry PR Exit to the
places Launch the competitor for architect student in Vietnam Start: Feb-2011 End: June-2011 Places: HoChiMinh, DaNang, HaNoi Budget: 200.000.000 vnd Descrption: Competitors mission is to build the Phu Quocs image based on the pearl. The result can be their kinds: Statue Photograph Icon

37

Logo Phu Quoc uniform Phu Quoc beach uniform

WITH OTHER COMMUNICATION MEDIA

COOPERATE

1. Build the website to introduce all Phu Quocs information.

Website content: o Society news o Investment news o Tourist places o Special Foods o PhuQuocs cultures o Weathers o Touristm agencies o Hotel Resort Statuss Information o PhuQuoc governemtns presentator o How to Document: How to make visa entry to stay long time in Phu Quoc, How to book a plane, trip, tours. How to view the status condition of Phu Quocs conditions.

o Geography information: Maps, Weather. o Register following domains www.phuquoctravel.com www.phuquoc.com.vn www.journeytooriginal.com

Department: 2 employees Budget: 100.000 millions Beginning date: January 2011

2. BUILD RELATIONSHIP WITH PUBLIC MEDIA

Targeted magazine and newpapers: TuoiTre, ThanhNien, NguoiLaoDong, SaigonTime, DuLich&DoiSong Give each offices 4 tickets/year (3 days trip) to visit. Invite or encourage Firm Makers to make a firm in Phu Quoc.

38

Invite famous people to visit or take a trip in Phu Quoc. EVALUATION & CONTROL 8.1 FINANCIAL EVALUATION To evaluate the successful of the project, we will base on the Return on Investment (ROI) number. For the 5-year project: (unit: bill) Years 2011 2012 2013 2014 2015 Investment 288 381 286 430 646 Estimated Revenue 431 571 1145 1721 2586

We evaluate real revenue & investment by each year. 8.2 MARKET SHARE We will consider about the market share between 4 largest market places: Phu Quoc, Nha Trang, Phu Ket, Bali. Method: We will get the total numbers of western tourism visitors come to Phu Quoc, Nha Trang, Phu Ket, Bali. By each year, we show the percentage of each places. Years 2011 2012 2013 2014 2015 Phu Quoc X11% X12% x13% X14% X15% Nha Trang Y11% Y12% Y13% Y14% Y15% Phu Ket Z11% Z12% Z13% Z14% Z15% Bali T11% T12% T13% T14% T15%

8.3 SURVEY We will do a Survey about the population of Phu Quocs name. Survey will be hold in internet, tourism entry points, target market points (Western Europe and North America cities). The survey will be start on 2011, 2013, 2015. By the survey, we can evaluate the successful of our marketing. 8.4 COMPETITOR SCORE For the competitors score, we will consider about 3 places: Phu Quoc, Nha Trang, Phuket.

39

After following years: 2011,2013, 2015, we will recalculate the competitor score. So that we have the overall picture of Phu Quocs position. Years 2011 2012 2013 2014 2015 Phu Quoc X11% X12% x13% X14% X15% Nha Trang Y11% Y12% Y13% Y14% Y15% Phu Ket Z11% Z12% Z13% Z14% Z15% Bali T11% T12% T13% T14% T15%

APPENDIX:

1. Table 1: Number of travelers annually (domestic, international) Unit: by pax Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Foreign visitor 250.000 300.000 400.000 670.000 1.020.000 1.351.300 1.607.200 1.715.600 1.520.100 1.781.800 2.140.100 2.330.050 2.627.988 2.428.735 2.927.873 3.477.500 3.583.486 4.229.349 4.253.740 Domestic visitor 1.000.000 1.500.000 2.000.000 5.100.000 6.200.000 6.900.000 7.300.000 8.500.000 9.600.000 10.000.000 11.200.000 11.700.000 13.000.000 13.500.000 14.500.000 16.100.000 17.500.000 19.200.000 20.500.000

40

1. Appendix No.2
There has been an increase in the perception of terrorist threats in many countries most graphically embodied in the Bali bombings in 2002 and 2005. There have also been subsequent terrorism scares and attacks in London, Glasgow, Madrid, Bangkok and other destinations. The notable growth of China into one of the largest source markets in the Asia Pacific region has become a primary focus of the worlds tourism industry. Chinese nationals have been increasingly visiting international destinations; a trend the industry widely agrees will continue to increase in the foreseeable future. Equally phenomenal growth is also evident from the Indian outbound market. New destination branding campaigns from relative newcomers such as India, South Korea, New Zealand, Egypt, South Africa, Vietnam, Eastern Europe and the Philippines have been recently launched, adding increased competition to mainstay destinations such as Australia, Singapore, Thailand and Malaysia. Technology such as the internet has made booking travel-related products easy and convenient, empowering the consumer to be less reliant upon the traditional tourism supply chain. This disintermediation opens many possibilities for consumer-direct marketing and distribution. In what many refer to as the emergence of a Leisure Society, tourism is seen as a basic right as opposed to an activity for a privileged few - and has become widely accessible for a more diverse global demographic. The rise of low-cost airlines and cut-rate travel deals is fuelling a new wave of demand for tourism in the new millennium. A similar boom last occurred in the early 1970s with the launch of the Boeing 747 and other technological advancements in transport creating a wave of mass international tourism demand by increasing affordability and access.

41

 The emergence of sub-regional cooperative agreements in which neighboring countries jointly market multi-nation itineraries in an attempt to increase the value and synergy for the tourist and the participating economies is on the rise. Demand is rapidly increasing for niche tourism products that are customised to satisfy the tastes of an increasingly discerning traveler, particularly among business and affluent leisure travelers. Many of these new niches are narrowly defined, but should not be overlooked. An increased awareness and consciousness among travelers of the social and environmental impacts of tourism which is fuelling a rapidly increasing interest in responsible, sustainable, and green tourism.

2. Customer in depth analysis

The major market is from Europe, and North America. These are market segment of high-standard living that tourist are available for high expense to due services. The survey of Karma Centre for Knowledge and Research in Marketing, McGill University, Montreal, Canada (August -November 1998) indicated that For selecting the destination, North American tourists is majorly focus on some Key product features (Activities, Services and Characteristics) influencing destination selection: Cleanliness of Food and Water Affordability of Flights and Accommodations Availability of Flights and Accommodations Dining/Restaurants Sightseeing Local Prices During vacation, tourists satisfaction/dissatisfaction mainly caused by Sightseeing Nightlife and culinary activities Personal security Accommodations, flights and prices

42

 Nature-related activities Friendliness of locals Infrastructure and services In which the likelihood to return were mostly dependent on Personal security Nightlife and culinary activities Friendliness of locals Family and health services Infrastructure and services While the study Loyality programs which influence the decision process in choosing tourism destination (Sasu Dinu Vlad, Universitatea din Oradea, Rumania, 2005) has mentioned that In most Western European countries, tourists start the process of planning the summer holiday most of the times from the beginning of the year or even from the previous year. The analysis of the buying decision is based on the existence of a need determined by the difference made according to the Maslow's hierarchy of needs. From this point of view, the tourism need may by included in the category of basic needs, more exactly it is integrated in the category of biophysiological needs of rest and health improvement. Another point of view in approaching the tourism destination choosing is another much known motivational theory, Herzberg's Two Factor Theory. Like Maslow's Hierarchy of Needs, Herzberg's Two Factor Theory is a need-based motivation theory. Two Factor Theory (also known as Herzberg's MotivationHygiene Theory) was developed by Frederick Herzberg who separated the motivational factors in two categories: factors that lead to satisfaction and others factors that do not affect satisfaction or the level of it, but if not present, could lead to dissatisfaction As he said to assure tourists' satisfaction, a tourism operator must do two things: 43

o Firstly to be sure that all possible dissatisfaction factors were eliminated, and o Secondly, to create the satisfaction factors because these satisfaction factors represent the main reason for which the customers choose one or another product or service in tourism. Phu Quoc should organize a survey to get the real image reflected from tourists visualization. The factors used in this project however can be applied from a GMS (Great Mekong Sub-region) visitor survey doing in 2006.

3. Competitior scored evaluation

44

4. Scored for Mc Kinsey Matrix (Market Attractiveness & Competitive Strength)

N o Market . Attractiveness 1 - Market size - Market growth 2 rate Market 60 65 40 Sc Wei Res Competitive strength - Competencies/quality of 55 50 60 55 35 15% 15% 0% 5% 10% 8.25 7.5 0 2.75 3.5 Sco re Weig ht Resu lt ore ght ult 10 50 75

% 5 services 15 11.2 % 10 5 - Relative brand strength

3 profitability 4 - Pricing trends Competitive 5 intensity/rivalry - Overall risk of diferentiate product 6 services 7 variability 8 - Segmentation Brandname 9 popularity Demand and

% 6 - Market share 5% 3.25 - Market share growth 15 % 6 - Customer loyality - Relative tourist's expenditure position (compared to

60

5%

3 competitors) - Relative tourist's margin (compared

75 benefit to 60

10%

7.5

65 80 45

5% 3.25 competitors) 15 - Marketing % 10 %

15% 15% 5%

9 7.5 2.5

strength

and 50 50

12 satisfying capacity 4.5 - Innovate ideas 45

1 -

Infrastructure 65

10

- New investment for more 80 10% 100% 8 56.5

0 development

% 6.5 facilities (in fact) 100 60.7 % 5

5. Some major infrastructure project in Phu Quoc. In early May 2010, Government has already been plan to invest around US$8.6
billion in island infrastructure to boost national defense and economic development, according to a government decision released. Nearly 60 percent of the programs total cost VND162.5 trillion ($8.6 billion) will be paid by the government with the rest sourced from the private sector and foreign official development assistance.

Major ports will be constructed for ships of around 1,000 tons on many islands
while the ports on Con Dao and Phu Quoc islands will be expanded. Con Dao Islands Con Son Airport will be upgraded and the construction of Duong To International Airport on Phu Quoc Island will be expedited to welcome an estimated three million travelers a year.

More roads will be constructed on major islands, all of which are expected to
have complete road systems by 2020. In 27 March, 2010 at Phu Quoc Island, Transportation Services Kien Giang organized to begin construction the bound roads Phu Quoc, from Cua Lap to An Thoi. Total invested capital of this project is 1,300 billion VND which is completed 1 year.

According to the Peoples Committee of the southern province of Kien Giang,

the government has agreed to thermo-electricity plant with covering an area of 60.3 hectares on Ganh Dau commune, the plant will be built at a cost of US$ 356.8 million invested by the Vietnam National Coal and Mineral Industries Group.

In early April 2010, Toan Hai Van Joint Stock Company, a major shareholder
of Toan Thinh Phat Architecture Investment Construction Joint Stock Company, began construction on the Vinh Dam project in Phu Quoc. The project, which includes a cargo port, industrial zone, traditional trade village, entertainment area, resort, restaurants, and public services, will cover an area of 350 hectares. It is funded with VND1.2 trillion and is divided into three stages, set

46

to be finished within five years. C. Past data

Years Visitors Ave speed/annual Total stay time (days) Ave speed/annual Ave Spending/visistor (vnd) Ave speed/annual

2005
130,400 322,990 1,046,779

2006
146,277

2007
160,200

2008
184,100

2009 Ave speed

220,350

12%
307,182

10%
336,420

15%
398,790

20%
484,770

14% 11% 16%

-5%
1,073,443 3%

10%
1,300,000 21%

19%
1,385,117 7%

22%
1,859,769 34%

47