18 6 14 destination management final-eng

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Destination management in Đà Nẵng, Huế and Quảng

Nam:Findings from Mission

Ha Thanh Hai, Team LeaderRobert Travers, International ExpertDuong Thi Tho, Regional Coordinator

ESRT Da Nang Workshop, 18 June 2014

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Background to mission

• Through policy support and institutional strengthening

• Facilitating competitiveness & public-private partnership

• Vocational education and training

ESRT works to bring about a better understanding of responsible tourism

Responsible tourism is everyone’s responsibility

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Mission details

• Met with 3 DSCTs and People’s Committee members

• Consulted with 89 people• 3 Tourism Associations• 13 Hotels• 9 Tour Operators & 2 Tour guides• 11 Visitor attractions including

spas• 2 Protected areas• 3 UNESCO World Heritage Sites +

visited Biosphere reserve• 1 Destination marketing group

ESRT team based in region through May 2014

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• Tourism product development vision

• Agree main strategic development & marketing issues

• Action plans for• 4 product themes• Marketing • Training

• Consultative forum• Destination management

coordination mechanism

Working towards

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DESTINATION MANAGEMENTPART 1

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A destination that can

hold visitors for 5+ days?

A destination in its own right?

A stand-alone destination?

A destination worth re-visiting?

Can we sell this region as:

Three provinces,

one destinatio

n

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Current length of stay (nights)(ESRT draft survey of destinations 2014)

Hue DN HA Total*

2.2

4.0 4.2

2.72.3

3.7

1.72.4

International Visitors National Visitors * Total average of three destinations

Why is Destination Management important?

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MISSION FINDINGS - DESTINATION MANAGEMENT PROVINCE BY PROVINCE

PART 2

Where are we now?

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• Growth/ development phase

Đà Nẵng

• Success but also in danger of stagnation (undercutting of prices, shortening length of stay). Discovery phase for rural areas

Huế

• Success phase in Hoi An but heading for problems/ stagnation. Discovery phase for South West

Quảng Nam

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Da Nang Fantasticity

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Situation analysis –

issues arising

ĐÀ NẴNG

• Good accommodation supply (mostly new)

• Increasing high quality luxury (resorts, spas & golf)

• Ba Na Hills (investment to manage large volumes of visitors)

• Urban infrastructure, bridges, city maintenance

• Easy access to other provinces• Airport facilities• Strong interest from domestic

market, particularly Hanoi• Seafood restaurants• Many tourism colleges

STRENGTHS

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Destination management issues Đà Nẵng

• Accommodation supply built around peak summer demand – over supply for much of the year

• Limited indoor attractions• Weak night life• Limited use of river and bay• Limited use of Son Tra as a green

area (trekking, nature)• Airport competitiveness –

attracting increased arrivals• Sea water quality (sewage

discharges on beaches), threat to seafood.

• Need for more attractions to meet current market needs

• Development too close to shore (erosion, access, views)

• Weak shopping for international tourists. No dedicated cruise terminal.

• Challenge of getting trained staff• Managing popular domestic

tourism sites (Hi Van, Marble Mountain etc.)

WEAKNESSES

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Da NangEstimated future room supply

2012 2013 2014 2015 2016 2020

5 & 4 star 2014 4305 4600 4184 6384 7,212

3,2,1 star 2771 8600 9368 10068 10518 12,288

Total 4,785 12.905 13968 15252 16902 19,500

Rooms to be sold 1.7 m 4.6m 5m 5.5m 6.1m 7m

Room occupancy (e)

55% 55% 50% ? ? ?

• Provide investors with accurate data on future accommodation supply and occupancy

• Encourage non-accommodation investments based on meeting (i) domestic market needs (attractions) and (ii) known international needs (e.g. shopping)

• Concentrate on improving occupancy, quality and profitability of tourism SMEs (adding value, not cutting prices)

• Focus more attention on improving low season performance (indoor events, use of sports facilities, conferences, winter festivals)

• Develop (with non-tourism partners) a water-based tourism strategy covering beach clean-ups, water quality, seafood supply, activities in the bay and on Han River. Han River navigation link to Hoi An.

• Upgrade tourism experience at domestic tourism sites• Further beach improvement, address water quality issues

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Destination management opportunities

Đà Nẵng

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• Investigate feasibility of cruise terminal/shopping facility/factory outlet village • Provide clearer guidance and training for officials on planning law regarding shore

access, erosion, sewage discharges and beach protection zones• Provide comprehensive training on beach maintenance and maintenance of picnic

areas, etc.• Cooperate with WWF ‘Save our Seafood’ (SOS) campaign to encourage sustainable

fishing • Work with airport and VNAT to encourage new markets• Develop Da Nang Fantasicity city break marketing with emphasis on near

markets, off-season marketing & “stay an extra day”.• Develop Da Nang Fantasticity website using professional e-marketing agency. Link

to booking engines.• Airport marketing to attract more passengers

(2)


Đà Nẵng

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Hue City

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Situation analysis –

issues arising HUE

• Long established tourism destination, high international recognition

• World Heritage Sites, increasing quality of heritage product, continuing investment, & new attraction planning

• City location, walled city and riverside ambience

• Well known festival and programme of historical cultural events

• Increasing high quality luxury (resorts, spas & golf)

• Improving airport facilities, rail link, road link 9

• Attractive rural countryside, many temples

• Responsible Tour Operator Group • Vocational training• UNESCO support

STRENGTHS

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Destination management issuesHuế

• Very short length of stay, low annual occupancy, low prices (Clear evidence of weak destination management)

• Addressing summer seasonality (festivals, events, meetings, etc.)

• Poor quality boat services• Limited use of beautiful

countryside for tourism• High hassle factor in city tourist

areas• No cruise terminal at port

• Weak shopping for international tourists.

• Challenge of retaining trained staff

• Very poor public beach management

• Managing popular domestic tourism sites

• Limited homestay• Limited engagement between

government and Tourism Association

• Festivals not integrated with tourism

WEAKNESSES


Huế• ‘Stay an extra day’ campaign

targetting tour operators and consumers

• Industry training & SME support – revenue management and quality issues

• Integrating festivals with tourism occupancy and tourism distribution systems

• Training and regulation of boat services. New product needed

• Promoting SME development in old city and rural areas

• Policing of tourism areas (training)• Improving tourism shopping (Hoi An

model)

• Public beach management training• Upgrading spa product• Encouraging homestay (Hoi An

model)• Opening more heritage attractions

and maximising PR• Marketing a festival city (52 festivals

a year) primarily to domestic & near Asian markets

• Develop a Uniquely Hue website using a professional e-marketing agency, linking festival and hotel booking capability.

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QUANG NAM

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Situation analysis – issues arising

Quảng Nam

• Long established tourism destination, high international recognition

• Hoi An World Heritage Site• Shopping & tailoring in Hoi An

(international market only)• Diving (Cham island)• Food• Some high quality luxury

(resorts, spas)• Improving airport facilities• Attractive rural countryside,

mountain landscapes, lakes• UNESCO & ILO support

STRENGTHS

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Destination management issues

Quảng Nam• Over-crowding as tourism

grows• Management of mass tourism

(e.g. to Cham Island)• Need to upgrade harbours• Coastal erosion & controlling

coastal development• Limited spread of tourism

beyond Hoi An• Very short length of stay at My

Son and limited local tourism SME development. Fire safety My Son

• Division between those who benefit from tourism and those who do not.

• Lack of variety in some products and extreme competition

• Bringing tourism to remote areas

• Need for new facilities to absorb growth

• Getting Hoi An ticketing right• Sewage treatment Hoi An

WEAKNESSES

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Destination management

opportunities Quảng Nam• Cham island & Hoi An coast – changing the product to be higher

value based on biosphere best practice• Introducing new product outside Hoi An to absorb volume growth

from Asia/Vietnam• Upgrading My Son experience, lengthening stay• Encouraging tourism SMEs around My Son (new tourism

destination)• Heritage ring route linking Hoi An – My Son- Hue- da Nang via HCH

trail (ILO project)• Phu Ninh lake as tourism destination• “Crafted in Quang Nam’’ brand (ILO, UNESCO)• Develop Quang Nam tourism website using a professional e-

marketing agency and linked to booking engines.

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Threats - All Provinces

• China situation • Typhoons, super typhoons• Coastal erosion and climate change• SE Asia recession

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MARKETING AT PRESENT

Individual city/province marketing (generally in cooperation

with selected trade and

VNAT

Joint DCST activity

(provinces take turns to plan and

execute)

Central Heritage

Road (limited uptake)

Festivals and events (independent

marketing)

CCV (high end hotels

consortium) – starts marketing “Central Coast

Vietnam”

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Visitors’ sources of information(ESRT draft survey of destinations 2014)

TV

Tourist information offices

Other

Print

Tour operator/Travel agency

Word of mouth

Internet

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

24.1%

2.6%

3.2%

14.0%

15.3%

32.4%

45.5%

3.1%

5.1%

7.1%

18.3%

29.5%

32.8%

60.1%

International Visitors (n=784) National Visitors (n=755)

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THREE PROVINCES TOGETHER

Part 3

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Main tourism products at present• Culture and heritage• Beach resorts (growing

length of stay)• Beaches• Food/seafood• Boutique hotels,• War tourism

• Shopping, homestay (mostly Hoi An)

• Domestic tourism attractions

• City/business & some incentive

• Some eco-tourism (mass & specialist)

• Spiritual tourism• Ethnic & rural tourism• Visiting Friends and

Relations• Festivals (but not

integrated with tourism distribution)

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Markets

Domestic market (strong for Da Nang)

Near Asian markets (strong growth potential)

Australasia

Europe & North America

Potential from Russia, China in long term.

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Ensuring a viable tourism industry

Addressing product weaknesses

New joint product opportunities

Marketing

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Key Joint DM issues arising from mission

Adding value, increasing occupancy and increasing revenues, raising competitive standards

Halt over-development, ensure supply will not exceed demand

Pressure to reduce prices = reduced profitability = reduced standards

Industry not cooperating to keep prices and standards UP: compete on service not on price

Need for initiatives to address seasonality Training in revenue management and marketing

Ensuring a viable tourism industry

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Key Joint DM issues arising

Management of domestic tourism/mass tourism

Beach and coastPolicing of tourism areasFestivals and events integrated to tourism

room salesContinued improvements at World Heritage

SitesTraining in hospitality skillsTraining outside hospitality – other parts of the

tourism value chain – drivers, police, airport officials, boatmen, beach managers, etc.

Addressing product weaknesses

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Focus on investments capable of managing high volumes at a high standard

Seek non-accommodation development at present to strengthen product offer

Encourage and support more tourism SMEs at local levels (local benefit) – night time product, quality boats, etc.

Develop products which link the 3 provinces Festivals and events etc. which address

seasonality (use all-weather facilities) and are linked to tourism room sales

Product which is not weather-dependent (e.g. indoor shopping) and can attract large numbers (e.g. sports events)

Continuing expansion of heritage offer

Need for new product

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Key Joint DM issues

• Area’s product richness and variety not being communicated sufficiently – result: short length of stay

• Beach tourism is a global commodity: The area’s uniqueness (heritage) and product variety is not being communicated sufficiently – result: tourism potential not being maximised.

• Area not being marketed effectively as a destination in its own right – result: short length of stay

• Outdated marketing methods, limited marketing skills – result: missed opportunities, little confidence in provincial marketing.

• Standards of service not competitive – result: few international repeat visitors

• Some marketing not sufficiently connected to private sector needs – result: low occupancies, low profitability, low standards

Marketing

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Presenting Product Clusters

• Heritage: Da Nang needs to strenthen its product, Hui needs to link festivals to tourism room sales

• Beaches & coastal protection: Beaches in all 3 provinces need beter management. Development is not being adequately controlled.

• City breaks: Hue, Da Nang, Hoi An• Landscape/Eco: Protect the landscape and

encourage high value eco-tourism in protected areas, not major resorts


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SUGGESTED WAY FORWARDPART 4

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PROVINCES’ MOU ON COOPERATIONPOSSIBLE AGENDA ITEMS - MARKETING

• To gain industry credibility, joint marketing should be run by a professional marketing company, not by one of the Provinces

• Develop inclusive, joint marketing strategy with industry – stress USP of heritage more for international markets

• Need for specialist airport marketing & incentives to attract new carriers & additional capacity from existing carriers)

• Need to market to existing visitors to encourage longer stays (‘’stay an extra day’’) One extra day increases average occupancy by 25%!

• Professional (pictorial) websites & apps essential for selling destination richness & variety

• Highlight new product, e.g.: luxury (CCV), festivals and events (linked to accommodation booking systems), rural tourism, new heritage product (as it develops)

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PROVINCES’ MOU ON COOPERATION –

Training

• Joint training programs on tourism information of the destination for tour guides and staffs of tourism information and guest assistance centres

• Joint training seminars for management staff of beaches, visitor attractions, entertainment centres; rescue teams and beach life guards, police, taxi drivers, etc.

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TrainingAt Training establishment level

Exchange of programs, text books of Training courses on tourism and hospitality between tourism faculties and Tourism and Hospitality Vocational Colleges

Learning exchange, teachers exchange, support each other by providing good teachers/ trainers

Exchange of students Sharing in implementing of training cooperation projects

signed with hotels and Travel Agencies at their request Cooperation in connectivity training up ( college to university )

and connectivity training down ( university to college, the college is considered as professional skills practicing place for university lectures)

To have a joint recommendation to move politics education to professional consciousness/awareness and tourism responsible

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PROVINCES’ MOU ON COOPERATION

Progressing joint development projects

• Hoi An-Da Nang river link• Heritage ring (Hoi An - My Son- HCM Trail- Hue- Da Nang)• Rural tourism: Encouraging links with responsible tour

operators across Provincial boundaries• Responsible tourism in protected areas, encouraging

special interest tours, • Coastal protection, beach management• Airport marketing strategy

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At industry level

• Exchanging cooperation between professional clubs of tour guides, hospitality..etc under Tourism and Hotel Associations in 3 provinces

• Reenforce effective cooperation with training establishments like: have requests for training; offer jobs for students before and after graduation; recommend qualified managers to dedicate in teaching and guiding professional skills in hotel and tourism schools


Training

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WHAT MAKES A SUCCESSFULLY MANAGED DESTINATION ?

Leadership Shared vision

Co-ordinati

onMarket orientat

ion

Investment• Product• Marketin

g • Training

Never stop improving

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