TRNG I HC M TP.HCM UNIVERSITÉ LIBRE DE BRUXELLES
HOCHIMINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

MBAVB4


NGUYN HOÀNG THY










MASTER PROJECT
MASTER IN BUSINESS ADMINISTRATION
(PART-TIME)





HOCHIMINH CITY
(2011)

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DECLARATION

I hereby certify that this final project represents my own work, and that all material
and sources used in its preparation are properly acknowledged. I do not copy in
whole or in part the work of other students and/or persons for this project


Signature: NGUYN HOÀNG THY ___________________________
Date: November 27
th
, 2011














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ACKNOWLEDGEMENTS

A gratitude to my tutor, Dr. Nguyn c Trí for his invaluable advices and
recommendations on this work.
My loving thanks to my parents, my sister and Nguyn Hng Viên – my „petit’
gentleman – for the joyous moments shared.
My heartfelt acknowledgements particularly to my Mom, from whom I learnt the
courage of overcoming difficulties, anytime, anywhere.

















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ABSTRACT

Sustainable tourism development concept is known by many, done by just few
destinations. Even at well-managed destinations, sustainability is sometimes
neglected. Absence of implementation know-how, the concept is just simply
obsolete although formal measures might be taken at high responsible obligations.
Cu Lao Cham (Cham archipelago) is the newest destination in Vietnam, awaken to
tourism thanks to its beauty and wild natural environment. Over 43,000 visitors
arriving to this destination in 2010, emerging merely from 20,000 two years earlier,
turn this place into one of the “must see” destinations for its beauty and wild natural
environment. Landcrabs, protected creature forbidden from capture, however can be
found easily at local food stalls along the beach. Coral reefs – the rain forest of the
sea protected by orders, may not be saved from scuba diving, snorkelling, anchoring
and fuel wasted from tourist boats. Quiet rural life of local inhabitants may be
influenced by tourists‟ hustling demands.
By studying about sustainable tourism development and analysing current situations
of tourism development in Cu Lao Cham, this study will answer the two questions:
1. Why is sustainable tourism development important?
2. How should sustainable tourism be developed appropriately?







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TABLE OF CONTENT
DECLARATION I
ACKNOWLEDGEMENTS II
ABSTRACT III
TABLE OF CONTENT IV
GLOSSARY OF ABBREVIATIONS AND ACRONYMS VI
LIST OF FIGURES VII
LIST OF TABLES VIII
LIST OF MAPS VIII
CHAPTER 1 1
INTRODUCTION 1
1.1 RATIONALE OF THE STUDY 1
1.2 SIGNIFICANCE OF THE STUDY 2
1.3 RESEARCH QUESTIONS 2
1.4 RESEARCH OBJECTIVES 2
1.5 STRUCTURE OF THE STUDY 3
CHAPTER 2 4
LITERATURE REVIEW 4
2.1 BACKGROUND OF SUSTAINABILITY AND SUSTAINABLE DEVELOPMENT 4
2.2 SUSTAINABILITY TERMINOLOGY 5
2.2.1 Sustainable Development 5

2.2.2 Sustainable Tourism 9
2.2.3 Sustainable Tourism Development 11
2.3 PRINCIPLES OF SUSTAINABILITY AND SUSTAINABLE DEVELOPMENT 12
2.4 SUSTAINABILITY FRAMEWORK 17
2.5 DESTINATION LIFE CYCLE 20
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CHAPTER 3 23
RESEARCH METHOD 23
3.1 THE CASE STUDY METHOD 23
3.2 DATA COLLECTION 24
CHAPTER 4 26
PRESENTATION OF THE CASE STUDY 26
4.1 INTRODUCTION OF CU LAO CHAM 26
4.1.1 Nature conditions 26
4.1.2 Socio-economic conditions 27
4.1.3 Tourism attractiveness 28
4.2 PRESENTATION OF FINDINGS 32
4.2.1 Economic Situation 32
4.2.2 Social Situation 36
4.2.3 Environmental and Resource Situation 38
4.3 TOURISM IMPACTS AND PROPOSED MITIGATION 39
CHAPTER 5 55
CONCLUSION AND RECOMMENDATIONS 55
5.1 RESEARCH QUESTIONS REVISITED 55
5.2 LIMITATION AND RECOMMENDATIONS FOR FUTURE RESEARCHES 56
REFERENCES 57
APPENDIX 1
APPENDIX 2

APPENDIX 3



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GLOSSARY OF ABBREVIATIONS AND ACRONYMS

CLC Cu Lao Cham (Cù Lao Chàm – Cham archipelago)
CREST Centre for Responsible Travel
ECPAT End Child Prostitution, Child Pornography and Trafficking of
Children for Sexual Purposes
ICOMOS International Council on Monuments and Sites
IISD International Institute for Sustainable Development
IUCN International Union for Conservation of Nature
MPA Marine Protected Area
UN United Nations
UN CSD United Nations Commission on Sustainable Development
UNEP United Nations Environment Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
UNWTO United Nations World Tourism Organization
VNAT Vietnam National Administration of Tourism
VND Vietnam Dong
WCED World Commission on Environment and Development
WTTC World Travel and Tourism Council





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LIST OF FIGURES

Figure 2.1 Triple Bottom Line concept of sustainable development
Figure 2.2 Illustrations of the Triple Bottom Line
Figure 2.3 Russian Doll Model or Three Pillar Model
Figure 2.4 Theory, reality and change needed to balance the 3pillars of SD
Figure 2.5 Terms describing types of “responsible” service or product offered
Figure 2.6 The “magic pentagon” of sustainable tourism
Figure 2.7 Prism of sustainability

Figure 2.8 Model of sustainable tourism values and principles
Figure 2.9 Destination life cycle model
Figure 4.1 Cu Lao Cham tourist development during 1990-2010
Figure 4.2 Fees applied to diving activities in CLC and its allocation mechanism
Figure 4.3 Visiting fee to CLC and its allocation mechanism
Figure 4.4 Earnings from homestay services in total household income structure
Figure 4.5 CLC income development during 1999-2010
Figure 4.6 Demonstration of leakage of revenues from tourism activities
Figure 4.7 Tourism revenues of local community vs. outsiders during 1999-2010





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LIST OF TABLES

Table 2.1 Definitions of sustainable tourism
Table 2.2 Vietnam‟s Agenda 21 – Principles for sustainable development
Table 2.3 Guiding principles for sustainable development
Table 3.1 Relevant situations for different research strategies
Table 4.1 Cu Lao Cham potential tourist attractions
Table 4.2 Fishing capacity of Cu Lao Cham inhabitants in 2005 vs. 2010




LIST OF MAPS

Map 4.1 Cu Lao Cham, Quang Nam Province, Central Vietnam
Map 4.2 Tourism zoning and tourist attractions in Cu Lao Cham
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CHAPTER 1: INTRODUCTION


CHAPTER 1
INTRODUCTION

1.1 Rationale of the study
Vietnam, a beautiful country rich in history, cultures plus world heritages, and
blessed by nature, from the rolling green karst mountains and caves, to the
magnificent bays and splendid crystal white beaches along 3,260 kilometre
coastline stretched the entire length of the country, has opened its door for tourism
for more than fifty years and got beneficiaries in return.

Consequently, many tourist destinations inclusive of world heritage sites and
biosphere reserves have been overexploited by mass tourism. Halong Bay is
overcrowded of day and night tourist cruises and junks, while inhabitants of its
surrounding fishing villages become slovenly boat vendors. Love market, the
cultural phenomena of ethnic minorities in the Northwest is no longer participated
by tribes people but performed by actors and actresses. Untreated sewage is dumped
directly into the sea along Nhatrang and Muine beach resorts. Magnificent
waterfalls in Dalat are dried up becoming huge rubbish dumps. Cages of wildlife
and protected animals are ready to serve guests in local restaurants…
Vietnam on the move, Cu Lao Cham is the newest destination awaken to tourism
thanks to its beauty and wild natural environment. Tourists visiting Cu Lao Cham
have dramatically increased from 20,000 persons in 2008 to 35,000 right in summer
2009, and reached to more than 43,000 in 2010 (Figure 4.1), who bring along
demands and threats to the rural life of its community and the sensitive
environmental biodiversity.
It is essential for Cu Lao Cham to learn and prevent the consequences of mass
tourism development that have caused to other destinations. Sustainable tourism –
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CHAPTER 1: INTRODUCTION


the alternative form of mass tourism must be examined and applied. Otherwise Cu
Lao Cham particularly or Vietnam destination generally will not progress through
the development and consolidation stages of its life cycle but to the stagnation and
decline stages shortly.

1.2 Significance of the study
This study is a contribution to Vietnamese researches about sustainable tourism
development topic. It will provide a consolidation of related theories and

propositions how to mitigate the negative impacts of tourism development on the
society, economy and environment of the host destinations. These mitigations can
be applicable to the planning and management of not only Cu Lao Cham itself, but
flexibly to other destinations where tourism is commercially exploited as well.

1.3 Research questions
This study, based on the analysis of current situations when developing tourism in
Cu Lao Cham, will answer two major research questions:
1. Why is sustainable tourism development important?
2. How should sustainable tourism be developed appropriately?

1.4 Research objectives
To answer the research questions mentioned previously, this study has the following
objectives:
1. To reaffirm the importance of sustainable tourism development and its
applicability at host destinations, Cu Lao Cham particularly
2. To propose ideas that would mitigate the negative impacts of tourism on the
environment and socio-economic life of Cu Lao Cham inhabitants, in order
to secure its path to sustainable tourism development
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CHAPTER 1: INTRODUCTION


1.5 Structure of the study
Structure of the chapters contained within this study is presented as follows.
Chapter 2: Literature Review
This chapter introduces the background of sustainability, sustainable development
and provides further debates on the three terms sustainable development,
sustainable tourism and sustainable tourism development. Principles and

frameworks for sustainable development, theory on destination life cycle can also
be found in this chapter.
Chapter 3: Research Method
This chapter gives discusses about case study method and secondary data which are
primarily applied throughout the study.
Chapter 4: Presentation of the Case Study
Cu Lao Cham is the selected case for this study. Throughout this chapter, detailed
information about Cu Lao Cham and its recent achievements in developing
sustainable tourism are presented. Additionally, the possible negative impacts of
tourism development to the economy, society and surrounding environment of Cu
Lao Cham and how to deal with them are also proposed.
Chapter 5: Conclusion and Recommendations
This chapter revisits the research questions as conclusion of the study and
recommends directions for future researches.


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CHAPTER 2: LITERATURE REVIEW
CHAPTER 2
LITERATURE REVIEW

2.1 Background of Sustainability and Sustainable Development
According to The Sustainable Development Timeline of International Institute for
Sustainable Development (Appendix 1), Carson‟s Silent Spring published in 1962 is
considered the turning point in our understanding of the interconnections among the
environment, the economy and social wellbeing. Many milestones have marked the
journey towards sustainable development since then.
Although the original concepts of sustainable development were later discussed at
Paris Biosphere Conference (1968), during the United Nations Conference on the

Human Environment (1972) and mentioned in World Conservation Strategy by
International Union for the Conservation of Nature and Natural Resources (1980);
the term “sustainability” and “sustainable development” were only popularized in
Our Common Future, also known as the Brundtland Report of the World
Commission on Environment and Development in 1987 (Appendix 1).
Further to Our Common Future, at the Rio de Janeiro Earth Summit in 1992,
Agenda 21 was adopted as the blueprint for the implementation of sustainable
development. “Agenda 21 is a comprehensive plan of action to be taken globally,
nationally and locally by organizations of the United Nations System, Governments,
and Major Groups in every area in which human impacts on the environment.”
(
accessed on Oct11 2011)
Tourism was however not a major consideration in Agenda 21. Only until 1996, the
three organizations, the World Travel and Tourism Council (WTTC), the World
Tourism Organization (UNWTO) and the Earth Council together launched Agenda
21 for the Travel and Tourism Industry: Towards Environmentally Sustainable
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CHAPTER 2: LITERATURE REVIEW
Development, being the sectoral action plan for sustainable development based on
the outcome of the Rio Earth Summit in 1992. At that time, it was the only industry-
specific adaptation for Agenda 21 (UNEP Tourism Report, 2002).
In Vietnam, the sustainable development viewpoint was asserted in the Political
Bureau's Directive No. 36-CT/TW dated June 25
th
, 1998 on intensifying the
environmental protection work in the period of national industrialization and
modernization. This viewpoint was re-affirmed in the documents of the Sixth
National Congress of the Communist Party of Vietnam and in the 2001-2010 socio-
economic development strategy that "rapid, efficient and sustainable development

and economic growth are combined with social progress and justice as well as and
environmental protection" and that "socio-economic development is closely
associated with environmental improvement, ensuring harmony between artificial
and natural environments, and preserving bio-diversity".
Later in 2004, Deputy Prime Minister Nguyen Tan Dung, signed on behalf of Prime
Minister the Decision No. 153/2004/QD-TTg Promulgating the Oriented Strategy
for Sustainable Development in Vietnam (Vietnam’s Agenda 21), in order to
sustainably develop the country on the basis of closely, rationally and harmoniously
combining economic development, social development and environmental
protection.

2.2 Sustainability Terminology
2.2.1 Sustainable Development
The term “sustainability” derives from the Latin root sus-tinere, which means to
“under-hold” or hold up from underneath, implying robustness and durability over
time. Accordingly, sustainability depicts a paradigm that seeks to protect the
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CHAPTER 2: LITERATURE REVIEW
planet‟s life support systems to ensure longevity for humans and other species (Bell
and Annie Cheung, 2007).
“Sustainable development” was famously defined by the World Commission on
Environment and Development (WCED) in the Brundtland Report 1987 – Our
Common Future as “development that meets the needs of the present without
compromising the ability of future generations to meet their own needs”.
From this foundation, dozens, if not hundreds, of scholars and practitioners have
developed and promoted their own alternative definitions and adopted varying
stances on sustainability. Attempts have been made to classify these notions,
resulting in concepts of weak versus strong, anthropocentric versus eco-centric and
light green versus dark green. In which, the former in each case shows the view that

natural capital can be replaced with human-made capital whilst the latter considers
them incompatible (Haughton and Hunter, 1994).
In 1994, Elkington first coined the term Triple Bottom Line to reflect that
organizations have economic, environmental and social impacts, consequences and
responsibilities. The Triple Bottom Line concept (Figure 2.1), by emphasizing and
integrating the three dimensions of sustainable development, profit, planet and
people, forced corporations to widen their circle of responsibility and focus, for the
first time, “not just on the economic value that they add, but also on the
environmental and social value they add – or destroy” (Elkington, 1994).
Since then, the use of the Triple Bottom Line in academic literature that deals with
sustainability issues has drastically increased, and so has the number of (graphical)
interpretations of the model (Figure 2.2).
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Figure 2.1: Triple Bottom Line concept of sustainable development
(Elkington, 1994)







Figure 2.2: Illustrations of the Triple Bottom Line with inspiration from Elkington, 1994
(
key word “Triple Bottom Line”)



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CHAPTER 2: LITERATURE REVIEW
Few years later, O'Riordan (1998) based on the Triple Bottom Line approach,
developed an alternative model of sustainable development. In this model, which is
commonly referred to as the Russian Doll Model or Three Pillars Model (Figure
2.3), sustainability is viewed as the assimilation of economic activity, social well-
being and environmental integrity. The Russian doll emphasized the basic principle
that all economic activities should be bent towards social progress and that this must
be achieved within environmental limits.




Figure 2.3: Russian Doll Model or Three Pillar Model
(O‟Riordan, 1998)


The World Conservation Union, later in their program 2005-8, adopted in 2005,
demonstrated that the three economic, social and environmental objectives need to
be better integrated, with action to redress the balance between dimensions of
sustainability (Figure 2.4).


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2.2.2 Sustainable Tourism
The term “sustainable tourism” has evolved from the term “sustainable
development” and the industry‟s need to become sustainable (Jackson & Morphett,
2000). According to White et al. (2006), however, the lack of internationally
accepted definition of sustainable tourism has lead to a multiplicity of tailor-made
meanings and applications (Table 2.1)
It should be by the way aware that not only the term “sustainable” is combined to
“tourism” to describe the environmental, social and economic sustainability of the
industry, but according to CREST (2009), “responsible” is in used by 32.7% of 107
examined outbound tour operator websites, followed by “ecological/ ecotourism”
by 5.6% and, “ethical” by 3.7% or even “none” by 15.9% as well (Figure 2.5).

Figure 2.4: Theory, reality and change needed to balance the 3pillars of sustainable development
(
accessed on Oct13 2011)

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Figure 2.5: Terms describing types of “responsible” service or product provided
(CREST, 2009)

When sustainable is combined to tourism, it is assumed that the latter must

undertake the environmental, economic and social considerations and principles that
are inherent within the former. Wight (2002) nevertheless stated that sustainable
tourism is only part of the concept sustainable development, not its equivalent, thus,
differentiated between the term “sustainable tourism” and “tourism as it related to
sustainable development”. The former is, according to Wight, “is tourism which
continues to be viable over time”, whereas the latter refers to “tourism which is
developed so that the nature, scale, location and manner of development is
appropriate and sustainable over time, and where the environment’s ability to
support other activities and processes is not impaired, since tourism cannot be
isolated from other resource use activities as a tourism – centric approach to
sustainability”.
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CHAPTER 2: LITERATURE REVIEW
This differentiation again made it more confused and complicated to find an
internationally accepted definition for the term sustainable tourism and its
implementation.
Table 2.1: Definitions of Sustainable Tourism
“Tourism which is in a form which can maintain its viability in an area for an infinite period of time.”
(Butler, 1993)
“Environmentally responsible travel and visitation to natural areas, in order to enjoy and appreciate
nature (and any accompanying cultural features, both past and present) in a way that promotes
conservation, has a low visitor impact, and provides for beneficially active socio-economic involvement
of local peoples.” (IUCN,1996)
“Sustainable tourism is about managing tourism’s impacts on the environment, communities, and the
future economy to make sure that the effects are positive rather than negative for the benefit of future
generations. It is a management approach that is relevant to all types of tourism, regardless of whether it
takes place in cities, towns, countryside or the coast.” (English Tourism Council, 2002)
“Sustainable Tourism refers to a level of tourism activity that can be maintained over the long term
because it results in a net benefit for the social, economic, natural and cultural environments of the area

in which it takes place.” (ICOMOS, 2002)
“Sustainable tourism, one that establishes a suitable balance between the environmental, economic and
socio-cultural aspects of tourism development, is key to maximizing tourism’s positive contribution to
biodiversity at the local, national and global level. (UNWTO, World Tourism Day, 2010)
“Sustainable tourism, like a doctor's code of ethics, means "First, do no harm." It is the foundation for
destination stewardship.”
( accessed on Oct13 2011)
Table 2.1: Definitions of Sustainable Tourism

2.2.3 Sustainable Tourism Development
Murphy (1998), who conceded sustainable development a complex and multi-
dimensional concept, believed that a definition for sustainable development in
relation to tourism needs to reflect this complexity and multi-dimensional nature;
thus proposed sustainable tourism development definition “the management of all
resources upon which tourism depends in such a way that economic, social and
aesthetic needs can be fulfilled while maintaining cultural integrity, essential
ecological processes, biological diversity and life support systems”.
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One year later, UNWTO published Guide for Local Authorities on Sustainable
Tourism Development (1999), in which “Sustainable tourism development meets
the needs of present tourists and host regions while protecting and enhancing
opportunities for the future. It is envisaged as leading to management of all
resources in such a way that economic, social and aesthetic needs can be fulfilled
while maintaining cultural integrity, essential ecological processes, biological
diversity and life support systems.” was stated. Requirements for the development
of sustainable tourism, emphasizing on how environment and tourist resources
should be made used for today‟s society but preserved and improved for the future,
and how tourism should benefit all community members were also described

(UNWTO, 1999).
As far as a precise definition of sustainable tourism development is attempted to
achieve, confusion arises since tourism researchers interchangeably use the three
terms sustainable development, sustainable tourism, and sustainable tourism
development without differentiating meanings. Therefore, the debate for precise
definitions of sustainability terminology and their applications in the tourism
literature, according to McDonald (2006) will undoubtedly continue.
In the following section, principles of sustainability and sustainable development,
based on different viewpoints and scopes of possible applications are described.

2.3 Principles of Sustainability and Sustainable Development
As described, since 1990s, the growing awareness of environmentalism has paved
the way for internationally sustainable approach to the development of tourism, thus
required for the establishment of principles of sustainability.
Jacob (1991), with attempt to operationalize principles of sustainability after the Rio
Earth Summit, proposed three important principles concerning to the term
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sustainability and how it could be implemented. The first principle affirmed that
institutions should incorporate environmental considerations into policy and
practice in a logical and consistent way. The second principle insisted that no
depletion of the natural resource stock was justifiable thus there should be
intergenerational equity with respect to the natural capital of the planet. Finally,
sustainable development should not be considered synonymous with economic
growth.

Bramwell and Lane (1993) although less specific than Jacob‟s criteria, outlined four
crucial principles for sustainability:
1. Holistic planning and strategy making;

2. Preservation of essential ecological processes;
3. Protection of both human heritage and biodiversity; and
4. Development in such a way that productivity can be sustained over the long
term for future generations
In their discussion, Bramwell and Lane reaffirmed the importance of equity
between nations and bridging the gap between the rich and the poor in the society
that were previously mentioned in Our Common Future, which they believed must
be taken into consideration by the tourism industry.
If principles of sustainable development are considered successful in tourism and
have an important role in environmental protection and economic and social
development, according to Burr (1995), they should,
1. Respect the culture and environment of the host area, the economy and
traditional way of life, the indigenous behaviour, and the local leadership and
political patterns;
2. Involve the local population in planning, proceed only with their approval
and provide for a degree of local control;
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CHAPTER 2: LITERATURE REVIEW
3. Be undertaken with equity in mind, with the ideal of access to a fair
distribution of benefits and costs among tourism promoters and host peoples
and areas - now and in the future; and
4. Be planned and managed for the protection of the natural environment for
future generations, planned in an integrated manner with other economic
sectors, and assessed on an on-going basis to evaluate impacts and permit
action to counter any negative effects.

In Vietnam, according to Vietnam’s Agenda 21, the overall objective of sustainable
development is to achieve material prosperity, spiritual and cultural wealth, equity
of all citizens and consensus of the society, the harmony between humans and

nature; development must represents the close, rational and harmonious
combination of economic development, social development and environmental
protection. Detailed objectives for economically, socially and environmentally
sustainable development and guideline principles to attain them are also described,
briefed as below (Table 2.2).

On the global level, Agenda 21 for the Travel and Tourism Industry: Towards
Environmentally Sustainable Development adopted from the twenty-seven
principles in Rio Declaration on Environment and Development (1992), identifies
guiding principles to assist governments and tourism organizations to achieve
sustainable development at local and national levels. These guiding principles are
highlighted below (Table 2.3).




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Table 2.2: Vietnam’s Agenda 21 – Principles for Sustainable Development
1. Human beings are the centre of sustainable development.
2. Economic development is considered the central task in the coming stage of
development.
3. Environmental protection and improvement must be considered an indispensable element
of the development process.
4. The development process must satisfy the needs of the present generation in an equitable
manner without causing problems to the life of future generations.
5. Science and technology constitute the foundation and driving force for industrialization

and modernization as well as for rapid, vigorous and sustainable development of the
country.
6. Sustainable development is a must to mobilize to the utmost the participation of all
concerned people in selecting decisions on socio-economic development and
environmental protection at the local and national levels.
7. Independent and autonomous economy is actively integrated into international economy
for sustainable development of the country.
8. Ensuring the economic, social development and environmental protection is closely
combined with ensuring national defence and security as well as social safety and order.

Table 2.2: Vietnam’s Agenda 21 – Principles for Sustainable Development
(Decision No. 153/2004/QD-TTg dated August 17
th
, 2004)