The Impacts of Tourism in Vietnam

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According to Business in Asia, tourism growth in Vietnam has been stable with a visitor increase of 20.5% in 2004 against the previous year although bird flu affected the tourist business in the first half of the year which was recovered at the end of the year. The highest number of tourists visits Vietnam from China and North Asian countries to be followed by ASEAN countries, Europe and North America. According to the theory of multipliers, the impact of tourism on the economy multiplies, which is an over-estimate of the impact on the economy. Studies give undue importance to tourism in economic growth especially in the matter of hotels which need the expertise of the line. Tourism is presented as a mechanism of urban advancement which is not based on facts and given unnecessary hype. Countries the world over use tourism as a strategy to justify huge public investments especially by organizations like EU Regional Development Fund, necessitating review studies of tourism impact on the economy. Generally, benefits are measured in terms of economic development of the area, the number of jobs, types of jobs, development of infrastructure and the appeal generated out of such activities for economic investment. The tourism multiplier model was developed first by Archer in the study of Anglesey, The Impact of Domestic Tourism. A vast range of authors that include Archer. Henderson. Wheller and Richards. Vaughan. Archer, Shea, and Vane have made use of these models. It helps policy makers to know the exact figures on the employment and income generation impact of tourism, taking both direct and inspired effects as based on scientific study of the impact.According to the study undertaken by Central London Polytechnic, Leisure Works and ORV Research (1990, p. 66), Tourism projects have had a positive net impact on the areas in which they have been undertaken. The 20 projects studied showed that other than indirect jobs, 1200 direct jobs and 348 temporary jobs were created. Secondary jobs were also in huge numbers, which in the case of the Albert Dock and Merseyside Maritime Museum, were 70% over the direct jobs and yet in another case examined Hull Marina and Post House. secondary jobs stood for extra 44% jobs. These secondary effects are known as the multiplier effect, to be measured by the multiplier.