The Impacts of globalization on tourism industry in Vietnam

The Impacts of globalization on tourism industry in Vietnam Class: Academic writing Group: A3 Instructor: Mr. Nguyen Pham Duy Anh Le Trong Huu (ID: 16608) The Vietnamese-German University The impacts of globalization on tourism industry in Vietnam Introduction According to World Bank, Vietnam is a developing country whose GDP growth has risen about more than 5% since 1990, with not small contribution of tourism industry register at 11. 5 billion USD in 2014 and annual growth approximately 6% (Tổng cục Du Lịch, 2014). Go along with the impacts of globalization, it will be a powerful push for tourism industry in particular, for Vietnam in general. This essay will first propose definition of globalization and then discuss in-depth how globalization has affected tourism. Definition The terms “Globalization” can be known as the reinforcement integration in terms of economies, politic, culture and society, and civilizations. Moreover, international relations have been simplified and gone beyond. Globalization is a process which impacts majority aspects of human life: from political corporation, capital flows to personal opinions. It is also related to environmental issue, criminal behavior, heath, and, terrorism. Travel and tourism are one of the causes and results of globalization processes. (Hjalager, 2007) The tourism industry, also known as the travel industry, is traveling activities to other destination, either domestically or internationally, for social, leisure, or business purposes. It closely related to the hospitality industry, the hotel industry and the logistic industry, and its target is achieved the customers satisfied by responding or serving demands that they need during their holiday. A Brief Overview of Vietnam Vietnam has great potential to make tourism become a strong industry because Vietnam located in the central of Southeast Asia, with a coastline length of more than 3, 260 km along the water with forest trees green and scenic grandeur. Vietnam Nam boasts over 125 beaches and in the list of 12 countries leading to the bay the most beautiful in the world (Ministry of Foreign Affairs Vietnam, 2018) and more than 3, 000 scenic and historic sites listed as heritage countries. Up to 2019, Vietnam has eight ‘World Heritage’ (UNESCO, 2020) and thirteen ‘Intangible Cultural Heritages’ (UNESCO, 2020) that was recognized by UNESCO (United Nations Educational, Scientific and Cultural Organization). How globalization effect on tourism industry? 1. Positive effect Following the impacts of globalization, the series of agreement and organization had been signed and joint by Vietnam government such as ASEAN( Association of Southeast Asian Nation), WTO(World Trade Organization), EVFTA (European Union Vietnam Free Trade Agreement), CPTPP( the Comprehensive and Progressive Trans-Pacific Partnership) has been contributed to impulse economic and society in general, tourism in particular. Thereby, it facilitates to enhance global mobility. This means that “Globalization” has made easier to travel around the world. There are several cheaper flights which was offered, multi-companies are opening offices everywhere. Thanks to e-banking and international bank, the transactions and payments have been safely accomplished by single click of mouse. In 2017, Vietnam have 79 luxury hotels had just opened, among this register 10 five-star luxury hotel which added 101, 400 rooms and increased 10% year by year (Atkinson, 2017). Quang Nam is one of provinces outstanding with attract FDI ( Foreign Direct Investment), following statistic, up to 2018, there was 45 projects in tourists and services with capital investment about 4, 5 billion USD and accounting for 81% FDI investment (Anh, 2018). In 2018, Vietnam welcomed 15, 497, 791 international visitors, an increase of 19. 9% compared to 2017 and income in tourism have followed the growth of two-digit since 2009, peaked at 80, 6% in 2013 and obtained 289. 84 billion VND (Vietnam National Administration of Tourism, 2018).