Summary Doctoral dissertation business Administration: A study of tourist destination competitiveness in Thua Thien Hue, Viet Nam

HUE UNIVERSITY
UNIVERSITY OF ECONOMICS

LE THI NGOC ANH

A STUDY OF TOURIST DESTINATION
COMPETITIVENESS IN THUA THIEN HUE, VIET NAM

SUMMARY DOCTORAL DISSERTATION
BUSINESS ADMINISTRATION
Code: 9340101

Supervisor 1: ASSOC. PROF. DR BUI THI TAM
Supervisor 2: ASSOC. PROF. DR NGUYEN DANG HAO

HUE - 2019




This study was completed at:
Hue College of Economics, Hue University

Suppervisor 1: Associate Professor Dr. Bui Thi Tam
Suppervisor 2: Associate Professor Dr. Nguyen Dang Hao
Reviewer 1: .......................................................

Reviewer 2: .......................................................

Reviewer 3: ........................................................

This dissertation will be defended in the Thesis Examination Council of
Hue University in: ..........................................
............................................................................
At………….am/pm on ………/…………/……..2019
This dissertation can be found in: The National Library and The library of
College of Economics, Hue University, 99 Ho Dac Di, Hue City, Thua
Thien Hue province.




I. PART 1: INTRODUCTION
1. Reaons for selecting this topic
In the last few decades, there has been rapid development of tourism as the biggest
industry of the world’s economy. This contributes to foreign exchange, employment and
income, boosting other industries to enhance…According to the travel and tourism
competitiveness report 2015 of World Economic Forum, “…although the world is facing
geopolitical tensions from Middle East, Ukraine to South East Asia, terrorism is spreading
worldwide, the impact of these incidents on travel has not been clear”. While some nation
destinations suffer from decreasing international visitors, some others don’t. In recent years,
the international tourism and travel are still developing. Total international tourists reach the
record of 1.19 billion in 2015, increase by 52 million compared to 2014 (UNWTO, 2016).
As for World Travel and Tourism Council, current travel and tourism add to 10.2% GDP in
the world with revenue of 7,613.3 billionUSD, accounting for 6.6% turnover, adding to
9.6% global employment. This number can reach 12.1% in 2027 (WTTC, 2017).
When international tourism market improves, destination competitiveness is considered
the crucial issue to impact on tourism business. Pearce (1997:25) states that “When the
world’s tourism becomes competitive…, all the awareness of development, strength, and
weakness in the destination’s competitiveness would be extremely important” Also under this
view, Crouch và Ritchie (2000:6) emphasizes “competitiveness of the destination can impact

on industry’s internal categorization, then, it (competitiveness) is the matter of interest for
enterprises and policy makers”.
As for tourist destinations, competitive capability is regarded as motivation and
development objective of the destination, because competitiveness will increase
opportunities to attract tourist market, to boost tourism, as well as other supplementary
industries, to increase socio-economic development of the destination, for the sake of
poverty alleviation. The building and maintenance of competitive capability is a strategic
task on the daily basis of the destination. Prior to the deployment of strategy and solution to
develop destination and enhance competitive capability, some core issues need to be
resolved such as: which factor constitutes competitive capability of the destination? Method
to measure these factors? Can the inventory of variable be applied to analyse competitive
capability of a specific destination? These questions attract attention from researchers and
practictioners, but there has not been any answer. Even when the tourist destination
succeeds in market share, it is still difficult to apply the variable inventory to evaluate
competitive capability of a specific destination.
As for tourism, competitive capability is the scale to measure activities of the industry
in the interanational tourism. The sector’s contribution into the local and national
development depends a great deal on its competitiveness. As for enterprises, competitive
capability is the vital factor to define the existence and growth of enterprises. Each tourism
enterprise needs to locate factors contributing to competitive advantage and competitive
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capability of the destination, to assess and exploit competitive advantage in the most
beneficial way to enhance its competitiveness on the market. Therefore, destination’s
competitive capability is the interest of various stakeholders such as development and

management policy makers, researchers and enterprises.
In terms of study, althouth late, researches of destination’s competitive capability
attract lots of attention from experts and other practitioners such as Crouch & Ritchie, 1993,
1999; Dwyer, Forsyth, & Rao, 2000; Vengesayi, 2003; EkinandAkbulut, 2015. Especially,
the study of Crouch & Richie (1999) is one of the efforts in generalizing variables to study
competitiveness in tourism and industry competitiveness to research competitive capability
of the destination (Enright & Newton, 2005). Previously, some studies focused on
competitive advantage of some resources or price such as Poon, 1993; Chon &Mayer, 1995.
Studies on destination’s competitive capability in recent time have focused on solving the
definition, approach and operationalize variables to measure tourist destination’s
competitive capability of the nation, territory or a specific local area.
Accordingly, evaluation model of competitive capability includes: 1) business factors;
2) factors of management, destination planning and development; 3) factors of tourism
resources and destination attraction.
However, international studies emphasized that there has not been any complete model
of tourist destination competitive capability because there was not any synthesic evaluation
framework towards various aspects related to destination’s competitiveness. This sets a
demand towards tourist destination competitive capability to improve theoretical model as
well as recommendations and policies to develop competitive capability in various scales.
As for Vietnam tourism, although there has been active transformation and growth,
Vietnam tourism in general and ThuaThien Hue tourism (Hue tourism) has not developed in
line with its potential. Tourism products are not attractive and not characterized. The
attraction and image of Hue tourist destination are still unclear to tourirts (BùiThịTám,
2010, TrầnThịNgọcLiên, 2013). Statistics of Department of Tourism showed that, staying
days on average at Thua Thien Hue during 2013-2017 declined from 2.01 day/pax(2013)
to1.8 day/ pax (2017), while nearby destinations like Da Nang and Hoi An had the growth.
This brings forward a big question of competitive capability ofThừaThiênHuếtourist
destination. As a prominent location of tourism resources and early developed in Vietnam
and Central Vietnam (BùiThị Támvà Mai Lệ Quyên, 2012; Lê Thị Ngọc Anh, 2018),
ThừaThiênHuế tourism has not seen any outstanding steps to define its pioneering

destination in the area.
So far, some studies focused on the capability of attracting, destination image and
competitive capability implemented in Central area such as stuties made byBùiThịTám,
2010; Thái Thanh Hà, 2010, NguyễnThịBíchThủy, 2013. However, these studies are
conducted along with specific approaches with exploratory study over detailed aspects of
competitive capability. Therefore, recommendations for further research focus on

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systematical research in terms of content, methodology and real-life application towards
evaluation model of destination’s competitive capability.
Theoretically, is it plausible to build a structural model to scientifically assess
contributing factors of competitive capability of a tourist destination and their interaction?
In terms of reality application, what is the level of Hue tourist destination’s competitive
capability? Contributing factors of competitive capability of Hue tourist destination and
their interactivity? Specific opportunities and solutions to improve competitive capability of
Hue tourist destination?
Decision no. 1622/QĐ-UBND dated 26/8/2013 by Thue Thien Hue Provincial
People’s Committee stated: “Develop Thua Thien Hue tourism in a fast, sustainable, quality
assurance way with competitiveness, conservation and mobilization of cultural heritage”.
This shows the interest and urgency of the assessment of competitive capability of Hue
tourism to achieve the target of “Focus on developing tourism into leading enonomy
industry, by 2020, to improve Thua Thien Hue to become the leading destination in the
region; by 2030, to build Thua Thien Hue into an equal destination with other international
city of cultural heritage”.

From those facts, the study of competitive capability of Hue tourist destination to
clarify the actual status of development and competitive capability, as well as factors
impacting on competitive capability, to recommend policies and solutions to improve
competitive capability of Hue tourist destination is essential. Therefore, the dissertation of
“A study of tourist destination competitiveness in Thua Thien Hue, Viet Nam”is
scientifically meaningful to contribute to the development of competitiveness of Thua Thien
Hue tourism, and the socio-economic development of the province, the tourism of the
Central in the coming time.
2. Research objective
2.1. General objective
On the basic of theoretical and methodolody study of tourist destination
competitiveness to build, accredit and propose theoretical model to evaluate competitiveness
of tourist destination, and to use in the analysis and evaluation of competitiveness of Thua
Thien Hue tourism.
2.2 Specific objective
- Systemize, clarify theoretical and methodology issues of tourist destination
competitiveness.
- Build theoretical framework and measured variable system to assess competitiveness of
tourist destination.
- Analyze, evaluate contributing factors of Thua Thien Hue tourist destination
competitiveness.
- Recommend directions, core solutions and policies to enhance competitiveness of Thua
Thien Hue tourist destination.

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3. Research target and scope
3.1 Research target
- Dissertation’s research target is theoretical, methodology issues and actual

application in terms of competitiveness study of Hue tourist destination.
- To conduct study, survey target is stakeholders of business, research, management
and tourism development. Targets in the survey are experts of state-owned management
bodies of tourism, related organization, enterprises and institutions.
3.2. Research scope
To solve these issues and reach the study’s target, the study scope includes:
• Research content: The dissertation approaches the study of competitiveness of
local tourist destination – which is a specific provinve/city, without any study of evaluating
competitiveness of the destination in general at macro level (national, regional…) or at
micro level (town, hamlet, tourism center…), or to compare among competitiveness of
industry, nation or business level. Then, main research content covers:
- Clarify definitions of destination and levels of destinations, tourist destination
competitiveness, theoretical and methodology issues of evaluating tourist destination
competitiveness.
- Select, design model and operationalize systems of synthesic variables, detailed
variables to evaluate competitiveness of tourist destination in accordance with conditions
and context of local tourist destination.
- Introduce actual status of management, development of Thua Thien Hue tourist
destination and build competitiveness of Thua Thien Hue tourist destination.
- Analyze and evaluate contributing factors of competitiveness of Thua Thien Hue
tourist destination.
- Study directions, solutions and policies to improve competitiveness of Thua Thien
Hue tourist destination.
- In terms of space: With above-mentioned target and scope, the dissertation focuses
on Thua Thien Hue tourism (mentioned as Hue in this dissertation, also compatible with
usual names used in advertising strategy of Thua Thien Hue tourist destination). The
selection of Hue destination is based on following criteria:
- Role, location and phase of development of Hue tourist destination in Central
Vietnam tourism.
- Importance and compatibility with tourism development planning and strategy of

the local in particular and of Thua Thien Hue tourism in general.
- Inheritability and comparison with previous studies of evaluating competitiveness
of tourist destination. This is an important factor in validation study of theoretical
framework.
- In terms of definition, competitiveness of a destination is evaluated on
contributing factors of competitive factors of that destination. Therefore, in this study, the
choice of two nearby destinations which are Da Nang and QuangNam (Hoi An) – are
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destinations to share market with Hue destination, also the cooperative destination in the
effort to develop regional destination – is just to provide reference information, comparable
and to propose policies of destination management. The analysis of these two destinations
are out of the target and scope of this research.
• In terms of time:
- Secondary data of tourist destination development is accumulated for the period of
2012-2017.
- Directions and solutions to improve competitive capability ofHuếtourist
destination are analyzed and proposed for the period up to 2020.
4. Dissertation’s findings
In the last two decades, tourist destination competitiveness is the matter of interest of
policy makers of tourist destination management and development, travel and tourism
business, and other related researchers. There have been various related studies to build
theoretical framework and to apply in competitive capability of tourist destination at different
destination levels. However, due to multidimension and complexit of the definition of
competitiveness, most of studies limits at some evaluating aspects of competitiveness, except

for some studies of national destination competitiveness. This asserts scientific and factual
significance of studies of local destination’s competitiveness evaluation. Therefore, when
conducting defined targets, this study has following findings:
• In terms of theory:
Firstly, the dissertation proposes theoretical framework to evaluate competitiveness
of local destination with the system of specific measured variables in line with conditions of
resources, management and development characters of destination at each level. To
emphasize the necessity and suitability of further research to complete theoretical
framework to evaluate competitiveness of tourist destination in various levels.
Secondly, unlike other previous studies which focused on subjective selection and
analysis of the researchers to define evaluating framework of tourist destination’s
competitiveness, this is one of the first few studies to apply Delphi to search for consensus
in building the framework and elaborate measured variables of destination competitiveness.
Therefore, proposed model in this study serves the objectiveness in science. This is
significant contribution in terms of theory, the result of proposed model is the useful
reference for related researchers.
Thirdly, previous studies used Exloratory Factor Analysis (EFA) so the results are of
exploratory level, there has not been any study to define and validate the suitability of the
model in actual application. Especially, with big number of variables and their complexity, it
is necessary to have a study to validate contributing factors of tourist destination
competitiveness. In this study, with big sample, the combination of Exploratory Factor
Analysis and Confirmatory Factor Analysis, that limitation is solved. On that basis, the
evaluation fo competitiveness does not limit at analyzing each individual factor, but also to

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analyze and show the interactivity impact among factors and to advise related management
solutions.
• In terms of practice:
Firstly, related to institution and management, provincial level is the highest level to
authorize the planning and organizing stategy, plans of local tourism development.
Therefore, the study of competitiveness of local destination (in detail, the provincial level,
centrally-governed cities) will provide suitable and useful scientific database to build and
realize strategies and plans of tourist destination development.
Secondly, this is the first speacialized study into evaluating competitiveness of Thua
Thien Hue destination accessed from the provider (expert, managers and enterprises), the
usage of evaluation model of competitiveness is built on objective scientific ground, this
study provides viable information of contributing factors of competitiveness of Thua Thien
Hue destination, strengths, weakness compared to competitors. Then, it helps policy makers
of management and development strategy of Thua Thien Hue tourism destination with
suitable policies to enhance competitiveness of Thua Thien Hue destination.
Thirdly, solutions and management policies based on objective research results
would help managers and enterprises with directions and specific solutions in developing
products and advertising in line with competitive advantage and comparative advantage of
Hue destination, responding better to market demand, increasing toursist satisfaction,
developing Thua Thien Hue tourism in a sustainable manne.

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PART II. RESEARCH CONTENT
CHAPTER 1
RESEARCH OVERVIEW
Tourist destination competitiveness is matter of interest in recent decades when
global tourism leaps rapidly and tourism market competition is accelerating. Therefore,

studies of evaluating competitiveness of tourist destination is one of important research
areas to complete theoretical framework, operationalize research variables and to validate
proposed models.
With defined objectives, the dissertation focuses to clarify basic definitions in the
study of evaluating destination competitiveness as well as destination’s attraction ability,
image, competitive advantage, competitive capability and their connection.
Competitiveness of a tourist destination is a complex and multidimensional definition
due to tourism’s diversification. A competitive tourist destination is defined to have the
ability to create and provide products and services with outstanding quality over other
destinations in order to increase tourism market share and to preserve and maintain tourism
resources.
The review of studies evaluating competitive capability of tourist destination,
combined with Report of competitive capability of tourist destination by WEF shows that
popular contributing factors of competitive capability of tourist destination include:
• Core tourism resources and attractive tourism spots
• Policies and plans to manage and develop destinations
• Factors of quality and exaggeration
Besides, attraction ability of the destination and destination image are definitions
related to the evaluation of competitive capability of tourist destination. One of the
important factors which create competitive capability of the destination is the attraction
ability of the destination. However, in fact, many people are confused between attraction
ability and competitive capability of the destination.
Attraction ability of tourist destination is “reflection of perception, faith, and idea
each individual possesses in the ability to satisfy customers of the destination connected
with their specific travel demand”, and the attraction ability is assessed by the demand side,
while competitive capability is assessed by the provider side.
As for destination image, it is an important factor in heighten attraction ability and
competitive capability of the destination. Destination image is understook to be the
combination of notions, faith, impression and awareness of each individual of the tourism
spot, which is one of basic factors to impact on decision making of tourist over destination

selection.
On the basic of synthesize definitions of competitive capability of the destination,
this chapter generalize systematically evaluation models of competitive capability of
destinations at national level, to propose to local destinations, together with approach
method and evaluation of competitive capability of tourist destination.
Review of outstanding international researches of tourist destination
competitiveness shows that:
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In terms of definition, studies discuss definition issues of tourism competitive
capability and tourist destination’s competitive capability.
In terms of conceptual framework, there is uniform in systemization and seletion of
constructs reflecting competitive capability (1- resource; 2 – supporting resource; 3destination management; 4- micro environment; 5- macro environment; và 6 – other
broadening factors)
In terms of approach, studies have differencies in approach such as:
- Approach based on competitive advantage, industry structure, environment
commitment such as Hassan 2000
- Approach based on destination’s success: tourism impact on destination,
environment commitment...such as Yoon, 2000; Poon, 1993
- Price competition such as Dwyer et al., 2000, 2002
In terms of evaluation and analysis method, survey target in studies is survey
conducted from provider side, with Likert’s scale; EFA method; statistics-descriptive
method, comparative method.
As for national related studies, the review shows that studies use index in the
system of evaluation index over competitive capability by WEF to analyze and evaluate

competitive capability of tourist destination, or to use evaluation criteria of competitive
capability at national level and provincial level, to combine with index system of evaluating
travel and tourism competitive capability by WEF, or to apply the model of Crouch and
Richie to assess competitive capability of the destination. Approach from the demand side
in some studies into tourists by Thai Thanh Ha, 2010; Nguyen Thi Le Huong, 2014. As for
evaluation and analysis method: to use Likert’s scale; analysis method: statistics-descriptive
method (Nguyen Anh Tuan, 2010); Exploratory Factor Analysis.
National and international studies may be different in approaches but they all
emphasize 2 factors: resource and resource management and uniform in systemization,
selection constructs reflecting competitive capability (1- resource; 2 –supporting resource;
3- destination management; 4- micro environment; 5- macro environment; và 6- other
broadening factors)
In empirical study, there are 3 groups:
First group: case studies to analyze strengths and weaknesses of destinations based
on Porter model
Second group: studies to use a survey tool to measure competitive capability of the
destination and apply in national destination, territory while there are only a few studies of
evaluation at local/regional destination.
Third group: studies to focus on specific aspects of competitive capability such as
price competition
Theoretical framework of competitive capability of national and local
destinations
Although there are lots of approaches, there are only a few studies to propose
theoretical framework to measure competitive capability of a destination. 3 outstanding
models to evaluate competitive capability of tourism destination are as follows:
8

The first one is the model by Crouch and Richie (1993, 1999, 2003), this is regarded
as the complete model to evaluate competitive capability of the destination and is referred to
the most because it shows core factors of tourism. Ritchie and Crouch’s model is different
from and more advanced than other models. When other models focus mostly on specific
product or destination image (Schroeder, 1996; Formica, 2001), Ritchie and Crouch’s
model, though developed on the basic of competitive theoretical framework by Porter, it
considers all specific factors and related factors. According to the two authors,
competitiveness of the destination is defined by 5 main factors: (i) core resources and
attracting factors; (ii) supporting factors and resource; (iii) destination management; (iv)
destination development, planning and policy; (v) broadening factors.
The second one is the model by Dwyer and Kim (2003), it basically shows core
factors like the model by Crouch and Richie but factors are modelized more neatly. The
decisive factor of competitive capability includes inheritance resource, recreate resource,
supporting factor, destination management, actual conditions and needs. According to
authors, socioi-economic prosperity is the final result of tourism competitive capability.
The third one is the model by Vengesayi (2003), core factors of the model are similar
with the model by Crouch and Richie but it is modelized in a simpler way. In the model of
TDCA - Tourist Destination Competitiveness and Attractiveness, competitive capability is
assessed based on 4 main factors: (i) resources and activities, (ii) experimental environment,
(iii) supporting services, and (iv) communication/ advertisement.
Those are study models as the ground to propose evaluation model of
competitiveness of Hue destination.

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CHAPTER 2
CHARACTERISTICS OF RESEARCH LOCATION AND METHOD

2.1 Characteristics of research location
Hue is renowned for one of localities of diversified tourism resource with 5 world
heritages. In the last two decades, Hue tourism keeps steady pace in total number of tourist
and revenue, where is one of the must-travel-to destinations for national and international
tourists. However, compared to nearly localities like Đa Nang and Hoi An, Hue tourism still
has slower pace, the average staying day is much lower and is still not improved.
2.2 Research methodology
This part displays research procedure and method used in this study, including
quantitative and qualitative method. Qualitative research result proposed preliminary model
to evaluate competitive capability of Hue destination with 3 core factor groups with 15
criteria with specific index of each criterium. 3 groups cover: Resource and core resource;
destination management; basic tourism service. This result is used to implement Delphi
method to ensure objectivity in science in building evaluation model of competitive
capability of Huế destination. Methods of accumulation and data analysis used in the study
of competitive capability of Huế destination are clarified.
2.2.1 Design research procedure
Competitive capability of tourist destination is a complex definition, especially when it is
applied in each condition of management and development of each locality and each nation.
The design of scientific research procedure is one of the first conditions to ensure the
objectivity of research activity. In terms of the nature, the evaluation of competitive
capability of toursit destination demands the multidisciplinary approach and on the
systematical approach. Therefore, the combination of research methodologies is one of the
important factors to ensure pre-defined research activities.
2.2.2 Data accumulation and analysis method
2.2.2.1 Data source
To realize defined objectives, primary and secondary data are collected by combining
qualitative and quantitative methods.
2.2.2.2Qualitative research method
To collect information and ideas from experts in terms of constructs and the way to
operationalize them into variables, as well as the connection between them, some qualitative

research is combined to apply in this study, including: in-depth interview, focus group and
Delphi method.
This is an important step to build and complete conceptual framework to ensure
scientifically plausibility.

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Literature
review

List general and specific
indicators of destination
competitiveness

Qualitative research

Focus group

Preliminary scale with the general
and specific indicators

Quantitative research
scale selection (Delphi
method)

- Identify factors of Hue
destination competitiveness
- Evaluate the relationship
among

factors
of
Hue
destination competitiveness

Frequency, Mean,
CVs, ANOVA

- Compare with other local
competitors
- Propose solutions to improve

Selected scale

Quantitative research
scale purification (1st
data)

Frequency, Mean,
ANOVA
Cronbach’s alpha
EFA

- Evaluate the competitiveness
of Hue destination

Purified scale

Quantitative research
scale evaluation (2nd

data)

Compare
destinations

Cronbach’s alpha

with

Destination competitiveness scale is
confirmed

CFA

Figure 2.1 Main steps of research procedure
• Step 1. Discuss to define target, content and scope of the research
• Step 2. Focus group and Delphi method: In this study, focus group is used as
supervisor group in the process of Delphi. Through focus group of 6-8 persons who
are research members of HAT Marketing Group – School of Hospitality and
Tourism, Hue University, and some experts. At the same time, discuss with some
tourism experts to form a proposed research framework with index to evaluate
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other

competitive capability of tourist local destination. On the basic of focus group result,
the author synthesize and propose 3 groups of factor with 15 contributing factors of
competitive capability to gain feedback from experts.
• Step 3. Design questionnaire, pilot survey and complete the questionnaire
2.2.2.3 Quantitative research method
• Survey target
In this study, the target works in tourism business, managers, experts of tourism with
at least 3-5 years of experience in tourism or related area, categorized in 4 groups:
1. Managers in businesses of tourism-hotel-restaurant-travel
2. Manager expert in state-owned tourism departments
3. Tourism lecturers of universities, colleges at 3 provinces
4. Consultation expert of tourism development
•
Sample size and samle selecting method
In this study, the direct interview with structured questionnaire is conducted with 720
related targets in the business of tourism, management and destination management,
lecturers of traning units of related area at 3 localities: Thua Thien Hue (Hue), Da Nang and
Quang Nam (Hoi An). Sample allocation is directed in the way that at least ½ sample must
be conducted in Hue because research location is Hue. The other sample is allocated at two
comparative localities where is Da Nang và Hoi An based on development scale and scope
of these two areas.
The selection of sample at each locality is implemented with random sampling.
Accordingly, levels are divided into 4 groups, factors in each group are selected randomly. In
detail, with 720 questionnaire delivered in areas from 4/2016 to 4/2017 including: 450 at Hue;
150 at Da Nang and 120 at Hoi An. The collected sample which can be used is 444 samples at
Hue (accounting for 63,79% of total collected questionnaires), 139 at Da Nang (19,97%)
and113 at Hoi An (16,24%). Characteristics of the sample is synthesized at Table 2.3.
• Data analysis method
Due to the compexity and multidimension of the research issue, the combination of
analysis method is necessary to solve pre-defined objectives. In detail:

o Sequential data analysis method: is used to analyze variation tendency of
index over time.
o Exploratory Factor Analysis (EFA): Part 1 of the sample (348 samples) is used
for exploratory factor analysis to define contributing factors of competitiveness
of Hue destination.
o Confirmatory Factor Analysis (CFA): on the basic of defined factors at the step
of EFA, part 2 of sample (348 leftover sample) is used to analyze the CFA to
validate the evaluation model of Hue destination competitiveness.

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Table 2.3. Sample characteristics
Index

Quantity

%

1, Working years

Index

Quantity

%

2,Working years in tourism

Under 5 years

272

39.1

Under 5 years

322

46.3

5 - 9 years

199

28.6

5 - 9 years

187

26.9

10 - 15 years

150

21.6

10 - 15 years

130

18.7

16 - 20 years

43

6.2

16 - 20 years

39

5.6

Over 20 years

32

4.6

Over 20 years

18

2.6

Total

696

100

Total

696

100

3, Working area

4, Age

Bodies, departments

52

7.5

Under 31

316

45.4

Lecturers
of
University, college of

tourism

69

9.9

31 - 40

261

37.5

Enterprises of travel
and hotel

567

81.5

41 - 50

85

12.2

51 - 60

32

4.6

2

0.3

696

100

Development
consultation expert
Total

8

1.1

Over 60

696

100

Total

Source: Data analysis by author 4/2016- 4/2017

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CHAPTER 3
ANALYZE CONTRIBUTING FACTORS OF COMPETITIVE CAPABILITY OF
HUẾ DESTINATION
3.1 To propose theoretical framework to evaluate competitive capability of Huế
destination
In this study, on the basic of the result of focus group, structured questionnaire is
desgined to proceed with Delphi method. Getting feedback from experts is done through
two methods which is to send questionnaires directly to experts and collect online
information (Google Docs). Collected answered questionnaires are 105 (feedback rate is
91.4%), after filtering, there are 85 useable questionnaires, including 18 experts from
Vietnam National Administration of Tourism; 31 experts from enterprises; 33 lecturer
experts and researchers in tourism from universities, tourism institutions, and 3
development consultation experts (Appendix 3).
Study result shows that experts highly value all 3 factor groups with 15 constructs,
and most of variables to evaluate destination competitive capability that supervisor group
proposes, according to which the conceptual framework to evaluate competitive capability
is established (Figure 3.1).
3.2 Analyze exploratory factors of contributing factors of Huế destination
With total sample from 696 experts including managers of travel and tourism
business, managers, lecturers, researchers and consultation experts in tourism at Thừa Thiên
Huế, Đà Nẵng and Quảng Nam, the dissertation proceed with exploratory factor analysis,
confirmatory factor analysis and necessary validation to define contributing factors of
competitive capability of Huế destination. The result of confirmatory factor analysis defined
7 factors, then, evaluation model of competitive capability of Hue destination covers 7
factors: 1) Management acitivities; 2) Tourism humanitarian resource; 3) Toursim natural
resource; 4) Basic tourism service; 5) Shopping service; 6) Safety and security; 7) Tourism

service price (Figure 3.2)
In terms of methodology, the validation shows that proposed evaluation model of
competitive capability of Huế destination is compatible with factual number. The model is
generally compatible with and valued structurally with reliable and divergent scale.
Similarities and differencies with previous models are also discussed and elaborately
assessed (Figure 3.3).

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Naturaltourismresource
Culturaltourismresource
RESOURCEANDCORE
RESOURCES

Events/Festivals
Recreationalactivities
Shopping
Infrastructure
Humanresourcedevelopment
Safetyandenvironmentalhygiene
Marketingandcommunication

DESTINATION
MANAGEMENT

Industryconnectionandcompetition

Development and management policy
Stayservice
Food&beverageservice
Travelservice
Transportationservice

BASICTOURISM
SERVICE

Figure 3.1 Proposed model of destination competitiveness

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DESTINATION
COMPETITIVENESS







Management activities



Tourism humanitarian resource

Tourism natural resource

DESTINATION
COMPETITIVEN
ESS

Basic tourism service
Safety and security
Shopping service

Figure 3.2 Revised evaluation

Tourism service price

model of competitiveness of Hue tourist
destination

Figure 3.3 Analysis result of CFA, evaluation model of competitiveness of Thua Thien
Hue tourist destination
16






Above-mentioned research result shows further typical case study to confirm the
compatibility, convergent and divergent value of evaluation model of competitiveness of
local tourist destination. In other words, in evaluation model of competitiveness of each
local destination, apart from (universal attributes, it is necessary to come up with attributes
suitably studied and validated with development conditions and fact of each local
destination.

Through the model, the analysis shows clearly contributing factors of Hue
destination competitiveness, and also to show strenghs and weaknesses compared to nearby
destinations of Da Nang and Hoi An which is shown in detail in Table 3.1 and Table 3.2.
Thesse are scientific grounds to propose solutions and policies to enhance competitiveness
of Hue destination in the coming time.
Table 3.1 Comparison of evaluation made by experts of contributing factors of
competitiveness of Hue destination
Independent variables (P value)2

1

Factor
1. Management activities
2. Basic tourism service
3. Tourism humanitarian
resource
4. Tourism natural resource
5. Shopping service
6. Safety and security
7. Tourism service price
8. General evaluation of
destination competitiveness

0.071
0.115
0.493

Working
years
0.011

0.081
0.006

Working
years
0.038
0.580
0.155

0.207
0.508
0.147
0.525

0.145
0.462
0.863
0.060

0.002
0.065
0.952
0.267

0.044
0.003
0.985
0.679

3.45 0.231

0.413

0.184

0.115

Mean

Age

3.54 0.543
3.67 0.307
4.22 0.445
3.94
3.53
3.86
3.83

Occupation

Source: Survey result by the author, 4/2016-4/2017
Note: Mean according to Likert scale: 1-Very low; 2-Low; 3-Average; 4-High; 5-Very high
2
Statistically meaningful P: P ≤ 0.1: at low level; P ≤ 0.05: meaningful; P ≤0.01 at high
level; P>0.1 meaningless
1

Date at Table 3.1shows that Hue is highly valued with most of contributors of
competitiveness, in which highest valued factors are tourism natural and cultural resource,

safety and security and tourism service price.
Result at Table 3.2 shows that, in comparison with 2 nearby destinations, Hue
outnumbers in terms of factors of natural and cultural tourism resource, similarities of
destination safety and security and tourism service price with the other 2 destinations, but
Hue is weaker in factors of destination management, shopping service and even basic
tourism service.
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Table 3.2 Comparison of competitiveness factors of destinations
Hue, Da Nang and Hoi An
Factor
1. Management acitivities
2. Basic tourism service
3. Tourism humanitarian resource
4. Natural tourism resource
5. Shopping service
6. Safety and security
7. Tourism service price
8. General evaluation of destination
competitive capability

Hue
3.54
3.67
4.22

3.94
3.53
3.86
3.83

Mean
Da nang
4.02
4.12
3.53
3.43
3.76
4.25
3.91

Hoi An
3.72
3.75
3.83
3.26
3.61
4.04
3.66

3.45

4.14

3.53

P value
.000
.000
.000
.000
.000
.000
.000
.000

Source: Survey result by the author, 4/2016-4/2017
Note: * Mean according to Likert scale: 1-Very low; 2-Low; 3-Average; 4-High; 5-Very
high
Therefore, general evaluation of competitiveness of Hue tourist destination is lower than
that of Hoi An, and much lower than that of Da nang. This is also in line with research
result of attraction ability of these 3 destinations which are conducted by Bui Thi Tam and
Mai Le Quyen (2012). With collecting feedback from 3 targets (enterprise, experts and
tourists) of 17 attributes of the destination, the authors show that Hue is more outstanding
than Danang destination in attributes of resource, but with more drawbacks in tourism
infrastructure and supporting infrastructure, products and supplementary services. Then,
general evaluation in terms of attraction ability of Hue destination is much lower than Da
Nang destination. Factual figures also show that, Da Nang and Hoi An have higher growth
rate than that of Hue in total tourist number, revenue and average stay day.
In empirical study, specific research result confirms professional ideas by experts and
managers. Although Hue has advantages of tourism resource, drawbacks of destination
management, product development and especially supplementary service adversely impact
on competitiveness of Hue tourist destination.

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CHAPTER 4

SOME SOLUTIONS AND POLICIES TO ENHANCE COMPETITIVENESS OF THUA THIEN
HUE TOURIST DESTINATION
4.1. Strategic solutions to enhance competitive capability ofHuế destination
Firstly, to complete and deploy the planning of tourism development of Thua Thien Hue province
Secondly, to strenghthen the attraction of investment funds to develop tourism in socialized manner
Thirdly, to invest building the infrastructure of electricity-road-transportation-communications to
create favorable conditions for tourism activities
Fourthly, to improve the quality of tourism human resource
Fifthly, to maintain and develop cooperative relationship on regional, national and international level
4.2 Specific solutions to enhance competitiveness of Huế destination
Solution cluster to develop destination management activities
- Establish cooperative mechanism among related partners
- Establish Destination Management Organization (DMO) to create sychronization and
breakthrough in tourist destination management
- Strenghen to invest in destination product quality
- Complete destination management tools professionally in line with regional and international
criteria
- Enhance the role of association, especially Hue Tourism Association in managing tourism
business in Hue and tourism service enterprises altogether
- Build and locate the brand for Huế tourist destination, with defined slogan which is - ‘Huế, a
hometown of happiness’,
- Improve governmental management and monitoring towards tourism
Solution cluster to develop and complete basic tourism service
- As for stay service: To establish the mechanism of monitoring and evaluating to boost and

support enterprises to renovate infrastructure to develop serving ability. To offer prioritized policies to
encourage enterprises to invest in Hue characterized staying products at nearby locations (such as Ecological
Village of Lap An, Floating Hotel of Vinh Thanh…), to diversify products and staying forms, to enhance
Hue destination competitiveness.
- As for food and beverage service: to have clear mechanism to support the establishment of
culinary centers with unique characteristics, with quality, as well as combination in building and developing
strong brandname to widespreadly advertise to markets, such as Huế Bun bo, Hue veggie rice, Huế salty
cakes…..
- As for tourism program and experiential tourism: to define that the competition through price and
products is no longer an advantage, it is more directly, the experiential tourism that tourism business offer to
tourists. The design and supply tourist tour need to be implemented in line with schedule, not only at tourism
spots with disconnected services. To pay attention on factors of experiential tourism and selling experiences,
not only to provide services, typical products like now. To strengthen linking and cooperating with business
partners in the supply chain to diversify products, services, to create value chain to sell experiential choices
to tourists, alleviate trouble, cost and get rid of inactive experiences of the tour.
- As for recreational activities at night: localites can learn from night market model at SiemReap to

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mobilize 88 traditional villages at the location. This night market can take place at Walking Street of Nguyễn
Đình Chiểu, to combine with detailed planning project at Huong River Bank sponsored by KOICA. To
encourage enterprises to build route, tours along Huong river (enjoy culinary products, Hue folk music in
dragon boat, or to learn from rubbish cleaning for more beautiful view at Hội An).
- As for transportation service: overland system ensures the connection between Hue city and
hamlets, towns in the province and nearby provinces.

Solution cluster to improve shopping service
- To create local signature products and to organize the selling and display of these signature
products
- To strengthen management and quality assurance of products
- To diversify local signature products in line with various needs on the market
Solution cluster to manage and mobilize tourism resource value
Manage, deploy resources in a sustainable manner
- Digitize Global Positioning System and Global Information System as the ground fo the
management and suitable deployment of tourism resource on the track of forming ”smart tourist destination”.
- Localities need to have appropriate exploitation plan of natural and cultural tourism resource
- To boost cooperation activities of culture, education, training, to enhance diplomatic activities
through asscociations and social organizations, towards multifaceted cooperation in economy, culture, social
activity, research program of cultural resource, relationship and impact of cultural heritage
Conservate and mobilize resource value
- To offer policy, clear strategy, plan with specific schedule as for conservation activities
- To invest in infrastructure and supporting means to exploit tourism-served resource without
advese impact on resources, especially natural tourism resource
- To emphasize on developing information system and interpretation activities to ensure converting
the true value of provincial resource, to enhance experiential value and satisfaction for tourists.
- To strengthen mechanism and management solutions, to effectively monitor tourist activities at
resource spots to minimize adverse impact on natural and social environment at resource spot.
- To enhance communication and propaghanda widespread in terms of resource value, institutional
issues, legalizations and stipulations of conservation of resource value to attract the participation of
stakeholders in exploitation, usage and conservation of resources.
Solution cluster to improve tourism environment, destination safety and security
- To develop management and environment protection, to pay attention on environment
hygience, collect rubbish...at tourist spot and nearby areas, to strengthen the combination among related
governmental departments with enterprises and local people at the destination.
- To plan and invest in public hygiene spots of tourism standards. To equip with clear signals and
instructions at tourist spots, as well as other service convennience for tourists.

- To intertwine environmental issues in general economic development of localities in the whole
province and to create mechanism to ensure the implementation of strategies and plans in a sustainable
way.
- To ensure safety and security for tourists, to get rid of beggars, stalking, especially at historical
momuments and festivals...

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- To control and monitor the service price to be made public and to ensure committed quality.
- To propaghande widespread and to have mechanism of encouragement and punishment towards

the alignment with Code of Conduct of tourism in the province. To ensure food safety, to prevent fire....To
improve the supervision towards enterprises of abiding by these stipulations.
- To create favorable legal environment for tourism business in fair competititon.
- To develop quality of business environment and improve linkage among stakeholders of the
sector including managing departments, hotels, tourist spots, tour agencies, tourist guides, and local
community.
Solution cluster to implement destination marketing and communication
-To emphasize on research, building market database as the basis to define target market, to build
marketing and communication strategy for Hue destination.
-To mobilize the community participation (maybe through contests) to search for ideas to
transfom resources into true tourism products, for selling experiences. To build tourism story, make them
into legend, epics of nature and human of Hue, to complete scripts and interpretation of outstanding tourism
resource to convey in the best way the nature value of resources, to develop unforgetable experiences when
tourists visit Huế.
- To build communication strategy for brand name and Hue destination image by exploiting

suitable marketing tools. To develop the system of brand identity for Huế tourism into topics and logos to
strengthen advertisement on the mass media and online tools.
- To develop encouragement activities with internal market by mass media, fairs, tourism
exhibitions, roadshows linked with localities in the region and nationwide...As for international market, it is
possible to attend fairs at important market in ASEAN (ITB – Singapore), Germany (IBT fair), Japan
(JATA)…To organize programs of famtrip, presstrip from markets of France, Japan, Korea...
- To quickly upgrade and effectively operate electronic information gate of Hue tourism,
connecting websites of the province, of the central and of travel companies, with applications on mobile
phones to convey and advertise more abundantly with information and image of Huế tourism.
- On the basic of completing destination database, system of brand identity and feedback, to
strengthen advertisement through online marketing pages (Tripadvisor, booking.com, agoda, traveloka),
social network (Youtube, Fanpage, Twitter, Instagram…)
- To improve web for periodical festivals of Huế and to ensure constant and speedy information to
markets.
- To strenghthen communication for intertwined program of culture, connection activities, contests at
national and international level organized at Hue.

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PART III. CONCLUSION
(1) The dissertation generalizes in a systematic manner theoretical and empirical issues of tourist

destination, tourist destination levels, tourist destination’s competitiveness, contributing factors of
destination competitiveness, as well as national and international studies to exploit and inherit related
research results to use as the ground for theoretical and empirical foundation of the dissertation. Especially, it
shows spaces that the dissertation needs to study to have theoretical and empirical findings.

(2) By analyzing definitions, theoretical frameworks and application frameworks in previous studies,

together with methods of measuring and analyzing destination competitiveness nationally and internationally, the
author proposes a model to study competitiveness compatible with local tourist destination. This model receives
feedback and consensus from tourism experts at Vietnam National Administration of Tourism and various
localities nationwide. Accordingly, this model chooses to evaluate competitiveness of Hue tourist destination with
3 main factor groups which are ”Resource and core resource”, ”Management activities” and ”Basic tourism
services” together with specific index system for each factor.
(3) With the survey to 696 tourism experts, the Exploratory Factor Analysis (EFA), and
Confirmatory Factor Analysis (CFA), the dissertation defines contributing factors of competitiveness of Hue
tourist destination, including 7 factors: 1) Management activities; 2) Tourism humanitarian resource; 3)
Tourism natural resource; 4) Basic tourism services; 5) Shopping service; 6) Safety and security; 7) Tourism
service price.
(4) The 7 factor model is used to measure and analyze competitiveness of Huế destination in the
comparison with 2 nearby destinations of Da Nang and Hoi An. The result shows that although Hue has
outstanding advantage of tourism resource, the drawbacks of destination management, product development
and especially supplementary services adversely impact on the competitiveness of Hue tourist destination.
(5) The result provides with more typical case studies of building evaluation model of competitiveness
of local destination and of selecting suitable evaluation method. The dissertation shows that apart from universal
attributes, there must be attributes to be studied and appropriately validated with conditions and development
fact of each local destination.
(6) On the basic of theoretical issues and by analyzing contributing factors of competitiveness of
Hue tourist destination, the dissertation proposes strategic solutions and specific solutions to develop Hue
tourism in the coming time.

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AUTHOR’S PUBLICATIONS

1. Lê Thị Ngọc Anh (2017), Application of Delphi method in developing conceptual framework for
assessment of tourism destination competitiveness, Journal of Science-Hue University, Vol 126, No.
5A
2. Lê Thị Ngọc Anh, Đinh Thị Khánh Hà, Hoàng Thị Huế (2017), Competitive and cooperative
strategy in tourism at small and medium- sized hotels in tourism business in Hue city, Journal of
Science-Hue Univeristy,Vol 126, No. 5A
3. Bùi Thị Tám, Lê Thị Ngọc Anh, Hoàng Thị Huế (2017), Using structural equation model for
measuring competitiveness of Thua Thien Hue tourist destination, Journal of Science-Hue
University, Vol 126, No. 5D
4. Lê Thị Ngọc Anh (2017), Tourism resource factor in competitive capability of tourist destination
Thua Thien Hue, Journal of Science-Hue University, Vol126, No. 5D
5. Đinh Thị Khánh Hà, Hoàng Thị Huế, Lê Thị Ngọc Anh (2016), Building a model evaluating
competitiveness of local tourist destinations, Journal of Science-Hue University, Vol 118, No. 4

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