Hotel and Tourism Development in Vietnam
Hotel and Tourism Development in Vietnam
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By:
Connie Mok, Associate Professor, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, Houston, TX 77204.
Terry Lam, Lecturer, Department of Hotel and Tourism Management, The Hong Kong Polytechnic University
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Since 1996, the introduction of an economic reform policy, Doi Moi, Vietnam has undergone a transition from a centrally planned economy to a free-market-oriented economy. Vietnam 's entry into ASEAN in 1995 and the restoration of diplomatic relations with the U.S. are expected to bring a boost to the tourism and hotel industry in the country. Nonetheless, Vietnam is not ready for a large influx of tourists at the moment as there are a number of constraints hindering its development. This paper aims at providing an overview of Vietnam 's tourism industry, its market potential and challenges during this transition period in the economy. Recommendations for future tourism developments are also presented.
Introduction
The famous Vietnam War came to an end when the U.S. withdrew its troops from Saigon (now called Ho Chi Minh City) in 1975. Devastating wars had caused Vietnam 's economy to virtually collapse. Rarely did visitors go to Vietnam for travel or to do business in the 1970s and early 1980s. In 1986 the Sixth Party Congress of Vietnam approved an economic reform policy called the Doi Moi, designed to remove restrictions on investment by the private sector, introduce foreign investment law, devaluate the official exchange rate and restructure the banking system. Foreign visitors started going to Vietnam to explore business opportunities. The introduction of Doi Moi, on the one hand, has helped the tourism industry to develop from scratch since 1987. On the other hand, the country 's political stability has also laid down a good foundation for its tourism development.
Nevertheless, there are a number of constraints hindering Vietnam 's tourism development. They
---
By:
Connie Mok, Associate Professor, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, Houston, TX 77204.
Terry Lam, Lecturer, Department of Hotel and Tourism Management, The Hong Kong Polytechnic University
---
Since 1996, the introduction of an economic reform policy, Doi Moi, Vietnam has undergone a transition from a centrally planned economy to a free-market-oriented economy. Vietnam 's entry into ASEAN in 1995 and the restoration of diplomatic relations with the U.S. are expected to bring a boost to the tourism and hotel industry in the country. Nonetheless, Vietnam is not ready for a large influx of tourists at the moment as there are a number of constraints hindering its development. This paper aims at providing an overview of Vietnam 's tourism industry, its market potential and challenges during this transition period in the economy. Recommendations for future tourism developments are also presented.
Introduction
The famous Vietnam War came to an end when the U.S. withdrew its troops from Saigon (now called Ho Chi Minh City) in 1975. Devastating wars had caused Vietnam 's economy to virtually collapse. Rarely did visitors go to Vietnam for travel or to do business in the 1970s and early 1980s. In 1986 the Sixth Party Congress of Vietnam approved an economic reform policy called the Doi Moi, designed to remove restrictions on investment by the private sector, introduce foreign investment law, devaluate the official exchange rate and restructure the banking system. Foreign visitors started going to Vietnam to explore business opportunities. The introduction of Doi Moi, on the one hand, has helped the tourism industry to develop from scratch since 1987. On the other hand, the country 's political stability has also laid down a good foundation for its tourism development.
Nevertheless, there are a number of constraints hindering Vietnam 's tourism development. They
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