Summary of Doctoral thesis Business administration: Local marketing strategies to promote tourism development in Can Tho city

MINISTRY OF EDUCATION AND TRAINING CAN THO UNIVERSITY

SUMMARY OF DOCTORAL THESIS Major in: Business administration Code: 62340102

NGUYEN HUYNH PHUOC THIEN

LOCAL MARKETING STRATEGIES TO PROMOTE TOURISM DEVELOPMENT IN CAN THO CITY

Can Tho, 2021

COMPLETED AT CAN THO UNIVERSITY

Main supervisor: Prof. Dr. Ho Duc Hung Co-supervisor: Dr. Vo Hung Dung

This thesis is to be defended at the school-level doctoral thesis review board Venue: .................................................................... Time and date: .....................................................

Thesis review No. 1: ........................................................... Thesis review No. 2: ...........................................................

Detailed information on this thesis can also be found at the following places. - Learning Resource Center of Can Tho University - Vietnam National Library

LIST OF PUBLISHED WORKS

1. Nguyen Huynh Phuoc Thien and Ho Duc Hung (2020). Factors affecting tourist attractions in Can Tho city. Journal for Economic and Forecasting, volume 12, page 39-42.

2. Nguyen Huynh Phuoc Thien and Ho Duc Hung (2020). Visitors’ satisfaction with tourism marketing in Can Tho city. Journal for Economic and Forecasting, volume 21, page 48-51.

3. Nguyen Huynh Phuoc Thien, Ho Duc Hung and Vo Hung Dung (2020). Effects of local marketing elements on visitors’ satisfaction in Can Tho city. Journal of Science of Can Tho University, 56 (4D), page 190-197.

4. Nguyen Huynh Phuoc Thien, Ho Duc Hung and Vo Hung Dung (2020). Local marketing strategies for tourism development in Can Tho city. Journal for Economic and Forecasting, volume 24, page 29-32.

CHAPTER 1. INTRODUCTION

1.1 Necessity of this topic

subjects, and

Nowadays, application of marketing science is not only limited to business fields of enterprises, but it has developed widely in social fields, especially in localities. Research on local marketing theory has been built by many authors, namely: Ashworth and Voogd (1990), Fretter (1993), Kotler et al. (2002). These authors have examined in detail theoretical issues of local marketing, such as target customers of localities, local marketing practices, local local marketing process. These marketing fundamental theoretical studies on local marketing are found useful for research and application in practice.

the participation of

Many researchers have applied such local marketing theory to carry out research projects in population attraction, investment attraction, tourism development and export development. In tourism, in their previous studies, the researchers namely Kadhim et al. (2016), Gilaninia and Mohammadi (2015), Magatef (2015), Özer (2012); Muala and Qurneh (2012), Sarker et al. ( 2012), Chye and Yeo (2015, Yang et al. (2011), Kotler et al. (2010), Ahmed et al. (2010), Kozak et al. (2009), Vengesayi (2003), Buhalis (2000) mainly applied mixed marketing tools to conduct local marketing research for tourism development. However, these studies have not evaluated the overall components of local marketing that affect tourism development. According to Kotler et al. (2002), local marketing activities also local involve marketing subjects including local government, local enterprises and residents. This is really an important suggestion, opening a new research direction for the thesis in inheriting and expanding the local marketing components when it comes to research on local marketing for tourism development.

Can Tho city, located in the central location of the Mekong Delta region, has great potentials for tourism development. Indeed, after more than 15 years of establishment (2004-2020), Can Tho city has achieved positive results in terms of tourism activities.

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According to Department of Culture, Sports and Tourism of Can Tho city (2020), the total number of tourists who come to Can Tho city during the period of 2004 - 2020 is 22,508,813; out of which the number of international tourist arrivals is 3,401,234, accounting for 15.1%, while the number of domestic tourists is 19,107,579, accounting for 84.9%. The figure of tourist arrivals has increased over the years, with the average growth rate of 11.7%/year, specifically 6.2%/year for international tourists, and 12.8%/year for domestic tourists. In addition to the increase in the number of tourists, tourism revenue of Can Tho city has also been on the rise over the years. Total tourism revenue generated in Can Tho city from 2004 to 2020 is 24,282,874 million dongs; out of which, revenue generated from international tourists is 3,732,529 million dongs, making up 15.4%, while that from domestic tourists is 20,550,345 million dongs, making up 84,6%. Average revenue growth in this period is 20.8%/year; out of which, international tourist revenue increased by 18.1%/year, and domestic tourist revenue increased by 21.9%/year.

in domestic important role

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However, in light of current tourism exploitation in the area, the city still faces some drawbacks related to tourism products, tourism distribution system, tourism promotion activities, tourism human resources, tourism service supply chain, tourism business management and administration by enterprises, and protection of tourism resources and environment. In addition, the world and Vietnam currently face the Covid-19 pandemic, which has a direct effect on economic development, especially the tourism sector. Therefore, developing tourism, or specially, domestic tourism tourism stimulation plays an development. Due to this fact, it is essential to conduct local marketing to make Can Tho city tourism a spearhead economic sector. This study approaches local marketing in the direction of analyzing and evaluating the current local marketing status of Can Tho tourism over the past and propose "Local marketing strategies to promote tourism development in Can Tho city". The topic has scientific and practical significance, making a positive contribution to Can Tho tourism in the near future.

1.2 Objectives of the study 1.2.1 General objective

This project is implemented with the goal of building and tourism strategies to promote

local marketing selecting development in Can Tho city. 1.2.2 Specific objectives

- Analysis of local marketing components affecting tourism development in Can Tho city;

- Analysis of local marketing environment to identify the tourism

internal and external environment factors affecting development in Can Tho city;

- Develop and select local marketing strategies to promote tourism development in Can Tho city;

- Propose solutions to implement local marketing strategies.

1.3 Subjects of the study and survey

1.3.1 Study subjects

to promote strategies

This thesis focuses on local marketing environment factors, including internal and external environment of the locality; thereby tourism local marketing proposes development in Can Tho city. 1.3.2 Survey respondents

Survey respondents include the following type of people (1) Domestic and international tourists who have experienced tourism attractions in Can Tho city; (2) Government officials; (3) Tourism enterprises; (4) Residents and (5) Tourism professionals. 1.4 Study scope

1.4.1 Physical space

The thesis is done within Can Tho city in comparison with some competitors in the tourism sector which are other localities in the Mekong Delta region and some centrally-run cities.

1.4.2 Time

- Secondary data: related to Can Tho city’s 2020 updates for its tourism activities and economic situation. Data on population 3

- Primary data: collected from respondent groups from June

and employment of Can Tho city and other localities has been updated as of 2019. 2019 to June 2020. - Local marketing strategies to promote tourism development in Can Tho city are proposed for the period of 2021 - 2025 with a vision to 2030.

1.4.3 Content

Local marketing is a comprehensive and synchronous plan to promote outstanding features of the locality to attract new residents, attract investment, develop tourism and develop export. For the purpose of this thesis, local marketing for tourism development is focused, with the specific case of Can Tho city. 1.5 Scientific and practical significance

1.5.1 Scientific significance

The results of this study have contributed to building an appropriate measuring system, measuring effect of local marketing components on tourism development, with the specific case of Can Tho city. This will serve as reference document for local marketing studies aimed at local tourism development.

1.5.2 Practical significance

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The results of this study make practical contributions to the local socio-economic development orientation and serve as the basis for leaders in planning, organizing, managing and effectively exploiting tourism potentials of Can Tho city. At the same time, organizations and individuals engaged in tourism services in the city can refer to it as a basis for business orientation, contributing to promoting tourism development in Can Tho city. 1.6 Structure of the thesis The thesis is developed into 5 chapters, including: Chapter 1 - Introduction; Chapter 2 - Literature review; Chapter 3 - Theoretical basis and research methods; Chapter 4 - Research results and discussion; and Chapter 5 - Conclusions and recommendations.

CHAPTER 2. LITERATURE REVIEW

2.1 Overview of experimental research

Through a review of relevant research projects carried out by foreign researchers (Buhalis, 2000; Vengesayi, 2003; Kozak et al., 2009; Ahmed et al., 2010; Kotler et al., 2010; Yang et al., 2011; Sarker et al., 2012; Muala and Qurneh, 2012; Özer, 2012; Chye and Yeo, 2015; Magatef, 2015; Gilaninia and Mohammadi, 2015; Kadhim et al., 2016) and domestic researchers (Ho Duc Hung et al., 2005; Hoang Van Hoan et al., 2007; Nguyen Thi Thong Nhat, 2010; Ha Nam Khanh Giao et al., 2013; Le Ngoc Nuong and Nguyen Hai Khanh, 2014; Nguyen Van Hien et al., 2015; Tran Thi Kim Oanh, 2016; Vo Minh Canh et al., 2020). Research results have been synthesized as follows.

that affect (1) Local marketing components

inherited 9 thesis has

tourism development. From synthesized results of domestic and foreign studies, the author has identified 9 local marketing components affecting tourism development, including: Tourism products, Price, Place, Tourism promotion, Tourism human resources, Service process, Tourism facilities - infrastructure, Power, and Local local marketing communities. The components that influence tourism development from previous studies and has added a new component: marketing capacity of tourism enterprises - this is done thanks to qualitative research, in- depth interviews with experts. Thus, in this study, 10 local marketing components will be used to build local marketing strategies.

(2) In terms of technique, analysis and measurement tools will be used. Previous studies have used techniques, analysis and measurement tools to conduct research on local marketing for tourism development, including: comparison, descriptive statistics, SWOT analysis, interviews with experts, analysis and synthesis, EFA analysis, multiple regression analysis, IFE matrix tool, EFE, QSPM, local marketing strategy tools, marketing mix (4Ps, 7Ps), 5 point Likert scale. The thesis inherits the techniques, analysis and measurement tools from previous studies. However, for the 5

marketing mix, the thesis expands to use 10Ps (10 local marketing components).

local image marketing,

(3) In terms of research content. The previous studies mainly focused on analyzing the following contents: (i) Analyzing the current situation of local marketing in the tourism development sector: previous studies only applied 4Ps, 7Ps; (ii) Analyzing internal and external environment of the locality; (iii) Proposing local marketing strategies for tourism development: previous studies only applied 4Ps, 7Ps or used local marketing strategy tools including: local outstanding feature marketing, local infrastructure marketing, local people marketing; (iv) Proposing solutions to implement local marketing strategies for tourism development: previous studies only applied 4Ps, 7Ps. The thesis inherits the research content from previous studies. However, the thesis expands to use 10Ps to analyze the real situation of local marketing implementation for tourism development. At the same time, both 10Ps and local marketing strategy tools will be used to propose local marketing strategies for tourism development. Besides, the use of 10Ps will be expanded to propose real solutions to local marketing strategies for tourism development. 2.2 Research gaps

Previous studies have used the marketing mix tools, the traditional 4Ps by McCarthy (1960) or the 7Ps by Booms and Bitner (1981) to conduct research on local marketing for tourism development. However, these studies have not evaluated the overall local marketing components affecting tourism development. According to Kotler et al. (2002) local marketing activities also involve the participation of local marketing subjects, 3Ps: Power, Public, Prosperous area. This is really an important suggestion, opening a new research direction for the thesis in inheriting and expanding local marketing components when it comes to local marketing research for tourism development.

Previous studies have applied 4Ps, 7Ps of the marketing mix to analyze the current local marketing implementation and propose local marketing strategies for tourism development; or propose a local marketing strategy through using local marketing strategy 6

local infrastructure marketing, and

tools including local image marketing, local outstanding feature marketing, local people marketing strategy. Therefore, the local marketing components as well as the overall local marketing strategy have not been fully demonstrated. 2.3 New points of the thesis

(i) On the local marketing components affecting tourism development. Through preliminary, qualitative and quantitative research, a scale system consisting of 10 local marketing components, including tourism products, prices, place, tourism promotion, tourism human resources, service process, tourism facilities - infrastructure, power, public, and marketing capacity of travel enterprises, has been set up to do a more comprehensive assessment of the impact that local marketing components have had on tourism development.

(ii) On technical and analytical tools. The thesis combines the use of a variety of technical and analytical tools. Regarding the marketing mix tool, while 4Ps, 7Ps are utilized in previous studies, this study expands to use 10Ps.

(iii) On research content. The thesis expands to use 10Ps to analyze the local marketing implementation of Can Tho city tourism. In addition, both 10Ps and 04 local marketing strategy tools (local image marketing, local outstanding feature marketing, local infrastructure marketing, and local people marketing strategy) are combined to propose local marketing strategies for tourism development in Can Tho city. Furthermore, 10Ps are also utilized to propose solutions to local marketing strategies.

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(iv) On theory. Theory has been supplemented with the 10Ps as the marketing mix and applied in studying and building local marketing strategies for tourism development. Accordingly, the 7Ps of service marketing by Booms and Bitner (1981) - Product, Price, Place, Promotion, People, Process, Physical evidence and have been combined with the 3Ps as local marketing subjects by Kotler et al. (2002): Power, Public, and Prosperous area.

CHAPTER 3. THEORETICAL BASIS AND RESEARCH METHODS

3.1 Theoretical basis

There have been many approaches in local marketing research. Ashworth and Voogd (1990) defined: “Local marketing is the process by which local activities match the needs of target customers as closely as possible. The intention is to maximize social and economic benefits of relevant areas, in line with the broader goals that have been set”. According to Kotler et al. (2002), “Local marketing is design of local images to meet the needs of target markets. This will be successful when residents and businesses are willing to cooperate with the community and expectation of tourists and investors”. In Vietnam, Ho Duc Hung et al. (2005), when referring to local marketing, can consider a locality or a country as a brand, called a "local brand". With this point of view, in terms of marketing principles, local brand marketing and brand marketing of tangible products or services are no different, but in terms of specific marketing, the local brand marketing program has its own characteristics. Local marketing involves 3 target groups: (i) Customers of a locality, (ii) Local elements to conduct marketing to customers, (iii) Local marketing planners.

Thus, from the above concepts, it is possible to draw some main theoretical issues to consider when a locality applies marketing to its socio-economic development, including: (i) Who are target customers of a locality and what do they need? (ii) What are some methods of marketing their locality? (ii) What type of people are involved in local marketing implementation? (ii) How is the local marketing process carried out?

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features marketing, outstanding According to Kotler et al. (2002), customers of a locality are individuals or organizations that the locality serves through directing its marketing efforts, consisting of four main groups: investors, tourists, workers, exporters; and a locality often uses a combination of four methods for local marketing, namely: local local image marketing, local people marketing. Local infrastructure marketing, and

involved in local marketing marketing subjects are people activities, including Power, Public, Prosperous area.

implementation program, (v) Organizing the Regarding the local marketing process, Ashworth and Voogd (1990) proposes a four-step local marketing process: (i) Market analysis, (ii) Goal setting and strategic planning, (iii) Determination of marketing mix for the venue, (iv) Finalization and evaluation. Fretter (1993) proposes a 6-step local marketing process: (i) Vision, (ii) Local understanding, (iii) Customer identification, (iv) Product adaptation and improvement, (v) Competitor understanding, (vi) Difference awareness. Kotler et al. (2002) propose a 5-step local marketing process on the basis of marketing approach to goods and services: (i) Assessing the current state of a locality, (ii) Determining vision and development goals of a locality, (iii) Designing local marketing strategies to achieve the goals, (iv) the Planning implementation and testing the marketing process.

Both research methods, namely qualitative research and Marketing process is a structure that shows how work is accomplished. It has a beginning, an end, and clearly defined inputs and outputs. Accordingly, Ashworth and Voogd (1990), Fretter (1993), Kotler et al. (2002) have different approaches to the local marketing process. However, considering the marketing aspect, a locality can be also regarded as a brand; a local brand or a brand of product or service has the same basic characteristics and specific features. Therefore, the local brand marketing process is like that of a product. With that approach, the local marketing process by Kotker et al. (2002) shows full content in the progress of building local marketing strategies. Therefore, in this thesis, the author applies local marketing process theory by Kotker et al. (2002) as a basis for building local marketing strategies for tourism development in Can Tho city. 3.2 Research methods quantitative research are used.

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On the basis of a review of relevant domestic and foreign studies, it shows that local marketing components that influence tourism development are tourism products, price, place, tourism promotion, tourism human resources, service process, tourism facilities - infrastructure, power, local communities. However,

is different. Therefore, to apply

conditions vary from locality to locality and in studies conducted in different localities and at different time, the influence of local marketing components in accordance with Can Tho city conditions, in addition to theoretical research and results of relevant experimental studies, preliminary, qualitative and quantitative research have been carried out.

research model consisting of 10

+

Tourism facilities - infrastructure (H1)

+

Power (H2)

+

Tourism products (H3)

+

Tourism human resources (H4)

+

Tourism promotion (H5)

Tourism development

Service process (H6)

+

Marketing capacity of tourism enterprises (H7)

+

Price (H8)

+

Local communities (H9)

+

Place (H10)

+

As a result of preliminary research, the author proposes an local marketing official components: (1) Tourism facilities - infrastructure, (2) Power, (3) Tourism products, (4) Tourism human resources, (5) Tourism promotion, (6) Service process, (7) Marketing capacity of tourism enterprises, (8) Price, (9) Local communities, (10) Place; and the official scale composed of 41 observable variables for 10 independent variables and 10 observable variables for dependent variables will be used for further quantitative research to measure the impact of local marketing components on tourism development. The research model shown in Figure 3.1 with 10 hypotheses H1, H2, H3, H4, H5, H6, H7, H8, H9, H10 corresponding to the marketing components from (1) to (10) is expected to have positive effects on tourism development.

Source: The proposal made by the author Figure 3.1: Quantitative research model 10

3.3 Research techniques

3.3.1 Data collection

Secondary data needed to implement the research is collected from Can Tho Statistical Office, Can Tho City Department of Culture, Sports and Tourism, Department of Culture, Sports and Tourism in other Mekong Delta provinces, Can Tho City Tourism Association, Mekong Delta Tourism Association, Vietnam National Administration of Tourism, General Statistics Office of Vietnam and projects and workshop documents related to research issues to analyze and evaluate the local marketing environment of Can Tho city tourism.

Primary data is collected by directly interviewing 05

respondent groups through pre-drafted questionnaires as follows.

Firstly, a survey of 800 tourists visiting Can Tho city is carried out, aimed at analyzing characteristics and needs of tourists, and assessment of tourists on the current local marketing status of Can Tho tourism and measuring the impact of local marketing components on tourism development in Can Tho city.

Secondly, 150 local people living and working in the districts of Can Tho city are surveyed to assess how much local people involve in tourism, what difficulties they have and what they wish to do when participating in local tourism activities.

to

Thirdly, a survey of 100 enterprises engaged in tourism business in Can Tho city is conducted to assess strengths and weaknesses of travel enterprises; At the same time, their opinions tourism development situation, state which are related management of tourism industry, tourism products and local tourism development solutions are also collected.

Fourthly, a survey of 30 government officials working in Can Tho city’s tourism agencies is completed to assess the current 11

tourism status of Can Tho city; strengths and weaknesses in the state management of Can Tho city tourism; typical tourism types of the city; advantages, disadvantages and solutions for tourism development in Can Tho city.

Fifthly, 35 experts who are knowledgeable in the tourism field are surveyed to build a scale of local marketing components that affect tourism development; evaluate the state management of Can Tho city tourism; identify typical tourism types of the city; build IFE matrix, competitive image matrix, EFE matrix, QSPM matrix and propose solutions for tourism development in Can Tho city.

3.3.2 Analysis techniques and tools

Depending on each specific objective, appropriate analysis

techniques and tools are used as follows.

Objective 1: Use test the reliability of the scale with Cronbach's Alpha coefficient, explorative factor analysis (EFA), multiple regression analysis to analyze local marketing components affecting tourism development in Can Tho city;

Objective 2: Use comparison

techniques, descriptive statistics, expert interviews, marketing mix, Internal Factor Evaluation matrix (IFE), competitive image matrix, and External Factor Evaluation matrix (EFE) to analyze the local marketing environment of Can Tho City tourism.

Objective 3: Use SWOT matrix (strengths, weakness, opportunities, risks), Quantitative Strategic Planning Matrix (QSPM), expert interviews, marketing mix, local marketing strategy tools to build local marketing strategies to promote tourism development in Can Tho city.

Objective 4: Use integrated analysis techniques to propose

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solutions to implement local marketing strategies.

3.4 Research process

The research process of the thesis is carried out in the order of

Determination of the research problem

Literature review

Theoretical basis and Research methods

- Test the reliability of the scale: Cronbach's Alpha coefficients - EFA analysis - Multiple regression analysis

- IFE matrix - Identify strengths - weaknesses

Analysis of the internal environment of Can Tho city tourism

Analysis of the external environment of Can Tho city tourism

- EFE matrix - Competitive image matrix - Identify opportunities and risks

Determination of vision, mission, and objectives of Can Tho city tourism

Strategy formulation through the SWOT matrix

Major local marketing strategies

Strategy choice through the QSPM matrix

Supporting local marketing strategies

Local marketing strategies to promote Can Tho tourism

Implementation of local marketing strategies

Solutions to local marketing strategies

Action program

Conclusions and recommendations

steps in Figure 3.2 below.

Source: Research by the author Figure 3.2: Research process of the thesis

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CHAPTER 4. RESEARCH RESULTS AND DISCUSSION

4.1 Real situation of tourism activities in Can Tho city

After more than 15 years of establishment (2004-2020), Can Tho city has achieved positive results in terms of tourism activities. According to Department of Culture, Sports and Tourism of Can Tho city (2020), the total number of tourists who come to Can Tho city during the period of 2004 - 2020 is 22,508,813; out of which the number of international tourist arrivals is 3,401,234, accounting for 15.1%, while the number of domestic tourists is 19,107,579, accounting for 84.9%. The figure of tourist arrivals has increased over the years, with the average growth rate of 11.7%/year, specifically 6.2%/year for international tourists, and 12.8%/year for domestic tourists. In addition to the increase in the number of tourists, tourism revenue of Can Tho city has also been on the rise over the years. Total tourism revenue generated in Can Tho city from 2004 to 2020 is 24,282,874 million Vietnam dongs; out of which, revenue generated from international tourists is 3,732,529 million Vietnam dongs, making up 15.4%, while that from domestic tourists is 20,550,345 million Vietnam dongs, making up 84,6%. Average revenue growth in this period is 20.8%/year; out of which, international tourist revenue increased by 18.1%/year, and domestic tourist revenue increased by 21.9%/year.

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In 2020, the tourism industry was directly affected and hard hit by the impact of the acute respiratory infection pandemic (Covid-19). The number of tourists coming to Can Tho city decreased significantly, down 32.8% compared to that of 2019. Out of which, international tourist arrivals declined by 72.8% while domestic tourist arrivals declined by 26.5%. Tourism revenue of the city also fell sharply, down 28.6% compared to that of 2019. Out of which, revenue generated from international tourists dropped 70.1% while revenue generated from domestic tourists dropped 20.5%. However, considering the results gained in 2020, this is an encouraging achievement for Can Tho city tourism.

4.2 Analysis of the local marketing environment of tourism in Can Tho city

4.2.1 Analysis of the local internal environment

favorable conditions to promote Corresponding to the increase in the number and revenue of tourism, the investment in infrastructure system for tourism are also focused, creating tourism development.

About tourism resources, Can Tho city has rich and diverse tourism resources. Traveling to Can Tho city, tourists can visit ecotourism sites and observe the way people plant, take care of and harvest some typical fruit trees in the Mekong River region. Besides, Can Tho city is also known for its historical and architectural sites, traditional craft villages, cultural festivals, sports, and other cognitive activities.

Human resources factor is one of the important factors that positively affects the local tourism development. However, the quality of human resources is still limited and there is a shortage of highly skilled employees to manage and develop large tourism businesses. A large number of professional employees have not been trained and their qualifications as well as majors are not tourism, which is not suitable for the job. Moreover, they are limited in foreign language skills and information technology.

tourism resources, development of

Can Tho city’s tourism development investment has had many positive changes over the past time. Local authorities are interested in building and promulgating mechanisms and policies to support investment in tourism development, mainly focusing on developing tourism infrastructure, building tourism development projects, environmental protection programs, conservation and improvement of tourism products, promotion of tourism, and development of tourism human resources.

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In addition, with the attention and direction of the City Party Committee, People’s Committee, the coordination and support of the relevant departments and agencies, the state management of

tourism in Can Tho City has been gradually strengthened, creating favorable conditions for tourism development.

Regarding local marketing activities, the topic surveyed 800 tourists visiting Can Tho City to assess the current situation of local marketing of tourism in the city. Can Tho. As a result, tourists highly appreciate the role of local authorities and communities, price policy, tourism facilities and infrastructure. Meanwhile, the components such as tourism distribution, tourism products, promotion, and human resources, service delivery process, businesses’ marketing capacity are considered average. In addition, the topic also assesses the effects of local marketing components on tourism development in Can Tho city through using techniques to test the scale reliability with Cronbach’s Alpha coefficients, exploratory factor analysis (EFA), and multiple regression analysis. The analysis results show that all 10 local marketing components positively affect tourism development in Can Tho city. Influence of each component of local marketing in descending order: Tourism products, Marketing capabilities of tourism businesses, Distribution and Promotion of tourism, Local communities, Tourism Facilities - Infrastructure, Human Resources for Tourism, Local Authorities, Service Delivery Process and Pricing.

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From quantitative research results with 10 local marketing components have been identified, the author continued to conduct in-depth interviews with some experts in the tourism field to identify the main internal factors affecting tourism development in Can Tho City, serving as the basis for inclusion in the internal factors evaluation matrix (IFE). As a result, the experts determine that the main internal factors affecting tourism development in Can Tho City consists of 10 local marketing components and 5 other elements added, including: (1) Can Tho City’s favorable geographical position for tourism development; (2) Investment in tourism development of Can Tho City; (3) Tourism resources; (4) State management of the tourism industry of Can Tho City; (5) Protection of natural resources and tourism environment. Thus, the synthesis results have identified 15 main internal factors of the IFE matrix. Next, the author proceeds to develop expert interview

questionnaires so that the experts score the importance level and classify the internal factors as a basis for calculating and constructing the IFE matrix.

for

The result of IFE matrix, with a total number of important points of internal factors reaching 2.64 > 2.5, shows that the tourism industry of Can Tho City is above average internally (average 2.5). The strong points supporting the development of the tourism industry of Can Tho City over the past time include (i) Can Tho City’s tourism favorable geographical position development; (ii) Investment in tourism development of Can Tho City; (iii) Tourism resources; (iv) The friendliness and hospitality of the local people; (v) State management of the tourism industry of Can Tho City; (vi) The local government’s interest in developing the tourism industry into one of the key economic sectors; (vii) Facilities conditions and infrastructure for tourism development; (viii) Prices of products and services. However, the tourism industry of Can Tho city also has weaknesses that need to be overcome, including (i) Tourism products; (ii) Distribution channel system organization; (iii) Tourism promotion activities; (iv) Human resources in the tourism industry; (v) Tourism service delivery process; (vi) Marketing capabilities of tourism businesses; (vii) Protection of natural resources and tourism environment.

4.2.2 Analysis of the external environment 4.2.2.1 Macro environment

The stable political environment in Vietnam has given tourists a view of Vietnam as a safe destination. Besides, the Government has timely orientations in tourism development for the whole country and the Mekong Delta. On that basis, Can Tho City has made duly adjustments in the orientation of local tourism development in line with the tourism development of the region and the whole country.

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Vietnam’s economy in recent years has grown steadily. According to the General Statistics Office of Vietnam (2015-2019), the average GDP growth in the period of 2015-2019 is 6.76% per year. In 2020, the Covid-19 epidemic has a negative impact on

socio-economic development. Vietnam’s GDP growth in 2020 only reached 2.91 The industry most directly and obviously affected by the Covid-19 epidemic is tourism. Many countries have carried out some measures as lockdown, travel restrictions, and quarantine, so the demand for tourism has decreased sharply. In the country, the epidemic situation also reduces the demand for tourism when the Government implements social distancing, limits the concentration of people, and cancels many festivals and cultural events. This is a big challenge for Vietnam tourism as well as Can Tho City’s Tourism.

impacts on security and

Regarding culture - society, Can Tho City has a diverse and featured cultural resource for tourism development. Besides, social evils have had negative tourism environment. Recognizing these risks, Can Tho City’s government has focused on drastically directing departments, agencies, organizations, and individuals operating in the tourism sector to proactively and effectively prevent the spread of evils.

Regarding the natural environment, tourism is an economic sector sensitive to natural environmental conditions. Tourism is considered one of the sectors most affected by climate change. The impacts of climate change are increasingly evident in the increase in air temperature, decrease in average annual rainfall, inundation, drought, saline intrusion, riverbank landslides, storms, and tornado, which greatly affects people’s life, production and trade activities, service, and tourism.

In addition, the development of science and technology has had a strong impact on all areas of social life, including tourism. When the fourth industrial revolution exploded, the promotion of information and communication technology became more and more urgent, allowing the creation of diversified application products, contributing to changing the face of the industry.

4.2.2.2 Micro environment

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Competition between localities in tourism development In recent years, Mekong Delta tourism has continuously tourism advancement significant following the recorded

development pace of the country. According to the Institute for Tourism Development Research (2016-2020), the total tourism revenue of the Mekong Delta in the period 2016-2020 reached VND 106,228 billion. The average growth in tourism revenue in this period was 19.5% per annum. In 2016-2020, the tourism revenue structure of the Mekong Delta provinces illustrates that Kien Giang accounts for 28.9%, followed by An Giang (18.5%), Can Tho (15.2%), Bac Lieu (7.6%), Ca Mau (7.3%), Ben Tre (6.1%), Tien Giang (3.9%), Dong Thap (3.6%), Soc Trang (3.0%), Long An (2.5%), Vinh Long (1.7%), Tra Vinh (1.1%) and Hau Giang (0.6%).

To evaluate the competition among localities in tourism development, in-depth interviews have been conducted with several tourism experts. The results have identified Can Tho, Kien Giang, and An Giang as major competitors in tourism development in the Mekong Delta. Next, interview questionnaires were developed so that the experts scored the importance level and classify the success factors as a basis for calculating and building a competitive profile matrix. The matrix results showed that Kien Giang tourism with a total of 2.73 important points ranked first, followed by Can Tho and An Giang tourism. Although the average annual tourism revenue in the 2016-2020 period of An Giang accounts for 18.5% of the tourism revenue of the Mekong Delta, while Can Tho only accounts for 15.2%, in terms of development potentials and advantages and competitiveness, the experts rated Can Tho tourism higher than An Giang. Tourists Domestic tourists of Can Tho City come from all regions of the country, mostly from the Mekong Delta and Ho Chi Minh City. By analyzing 690 questionnaires sheets for domestic tourists to Can Tho City which record the information related to the needs of domestic tourists, the author discovered the results as follows: Domestic tourists find out travel information mainly from their friends and relatives. Their main purpose to Can Tho City is merely traveling (60.3%), followed by business trips, visits to friends and relatives, study, research, business, and medical examination. The 19

domestic tourists to Can Tho City are mainly from the neighboring areas. Due to convenient traveling, they often come here on weekends (41.6%), self-organize their tour with friends and family (69.3%). Most domestic tourists come to Can Tho City for the first time (32.5%), some tourists come here 2-3 times (31.7%), 4-5 times (23.9%), even more than 5 times (11.9%). However, the length of their stay in Can Tho City is quite short; most of them go for a day (30.2%) or stay for only one to two days (52.9%) and then move to neighboring provinces and cities. This shows the attractions and entertainment activities in Can Tho City are not attractive to make tourists stay longer. Domestic tourists pay special attention to ecotourism and river tourism. In addition, other types of tourism obtain much preference such as cultural tourism, MICE tourism, resort tourism, urban tourism, experience tourism, study tourism, and medical treatment.

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Generally, international tourists Can Tho come from France, Germany, the US, Australia, the Netherlands, ASEAN countries, and Northeast Asia. Through investigating 110 questionnaires with demand-related information for international tourists coming to Can Tho City, the outcomes were determined as follows: International tourists use the main information channels from newspapers, magazines, radio, and the internet to learn about their trip. Mere traveling (67.3%) is the main purpose of visiting Can Tho. Besides, a number of international tourists to Can Tho aim to attend conferences, exhibitions, business trips, visit friends and relatives, do business, study, research, and medical examination. Due to the limitation of geographical conditions, international tourists often choose holidays, New Year and summer holidays (72.7%) as the time of travel. They often prefer package tours of travel companies (79.1%). However, international tourists visit Can Tho for the first time account for a significant proportion (64.6%) and stay here for only 1-2 days (49.1%). Thereby, the results showed that the attractions and entertainment activities in the city are not attractive to tourists. International tourists to Can Tho City are very fond of river tourism and ecotourism. In addition, they are

also interested in cultural tourism, MICE tourism, vacation tourism, study tourism, and medical treatment.

the factors of the EFE matrix. Next,

tourism

To establish the external factor evaluation (EFE) matrix, based on the above analysis, the author conducted in-depth interviews with a number of tourism experts to identify the main external interview questionnaires were created so that the experts score the importance level and classify the external factors as a basis for calculating and developing the EFE matrix. The results with the total number of important points of the elements in the EFE matrix is 2.60 > 2.5, showing that the reaction of the tourism industry in the Can Tho City is above average in terms of taking advantage of opportunities and minimizing the risks of impacts from the external environment. include: (i) The opportunities for Can Tho city Globalization trends and international cooperation to promote tourism development; (ii) Stable Vietnamese political system, guaranteed social security and order; (iii) The Government’s interest in developing the tourism industry, in which Can Tho City is identified as a major tourism and service center of the Mekong Delta; (iv) Better income making people tend to learn and explore typical nature and culture of the region; (v) Vietnam's economic development leading to the increase of demand for sightseeing, trade exhibitions, and conferences tends to increase; (vi) Positive effects of the science and technology development on tourism.

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Besides, the tourism industry of Can Tho City has to face the following risks: (i) Competition from neighboring countries thriving in tourism; (ii) Competition between localities in the country with similar or more unique tourism products; (iii) Increasing demand from tourists day by day; (iv) Social maladies such as begging, pickpocketing, clinging to sell, creating a bad impression on tourists; (v) Direct and serious impacts of the Covid- 19 epidemic on the tourism industry; (vi) Bad influence of climate change; (vii) Negative effects of the tourism development on the natural environment and traditional local culture.

4.3 Local marketing strategy to promote tourism development in Can Tho city

local marketing strategy, with

Based on the analysis result of the locality inside and outside environment, together with the vision, mission and tourism development goal of Can Tho City, the thesis uses matrix of Strengths - Weaknesses and Opportunities - Threats (SWOT) to form possible selectable strategies. Then, Quantitative Strategic Planning Matrix (QSPM) is used to choose a strategy which is prioritized to implement. As a result, the thesis has identified four strategies that the tourism industry of Can Tho City should follow in order of priority: (1) Local marketing strategy, (2) Market penetration, (3) Combination of tourism products differentiation and diversification, (4) Tourism human resources development. In which, Local marketing strategy plays a key role, including: (i) The the combination of main components: tourism product, price policy, distribution, tourism promotion, tourism human resource, service delivery process, tourism infrastructure facility, local authority, tourism business and local community; (ii) The supportive local marketing strategy, which coordinates to implement the marketing strategy of local image, local feature, local infrastructure facility, and local people. In addition, the tourism of Can Tho City must also prepare necessary plans using the remaining strategies that can replace the selected strategies according to each stage of development.

4.3.1 The main local marketing strategy 4.3.1.1 To identify the target market

The Covid-19 epidemic is still complicated in the world and expected to cause long-term effects; therefore, the domestic tourism market will play a key role to ensure the development of the tourism industry of Can Tho City. In particular, the market of domestic customers in Mekong Delta and the Southeast, especially from Ho Chi Minh City is focused on exploiting. Besides, with the development of new routes, the central coastal provinces and the Red River Delta will be potential market in the future.

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Moreover, the tourism in Can Tho City shall also prepare plans to serve international tourists when the Covid-19 epidemic is under control and the Government allows the reopening of

international tourist routes. Accordingly, traditional market is focused on exploiting, such as Southeast Asia, Northwest Asia, Europe, North America, Oceania. Additionally, new market, such as: South Asia, West Asia, Central Asia, South America and Central America, is also developed.

4.3.1.2 To locate Can Tho City’s tourism

Source: Tourismcantho.vn Image 4.1: Logo and slogan of Can Tho City’s tourism Can Tho City’s tourism together with the logo of Can Tho Bridge blending with the Mekong River, combining the slogan “Can Tho – Urban of river region”, creates a unified whole, conveying the content of the literature, nature and people, which represents Can Tho’s tourism.

4.3.1.3 To mix up local marketing components

tourism, experience tourism, study

Tourism products, the development of river tourism and MICE tourism is prioritized. In addition, complementary tourism products, such as ecotourism, cultural tourism, urban tourism, tourism, medical resort treatment, souvenirs, cuisine and entertainment services are developed.

Price, the tourism businesses need to comply with the regulations of the Government, enter into the commitment to implement regulations on price listing and strictly follow the listed prices; at the same time, implement a preferential price policy for each subject, number of tourists and low season.

Place, a distribution channel system is built so tourism products can reach tourists easily and conveniently. Three channels can be designed as follows: Direct channel: from destination owners or managers to tourists; 1-grade channel: through travel agencies to reach tourists; 2-grade channel: through the General 23

Division of Tourism or Department of Culture - Sports - Tourism to travel agencies and then tourists.

Tourism promotion, Department of Culture, Sports and Tourism of Can Tho City needs to coordinate closely with agencies, departments, and businesses in tourism to introduce attractive and original tourism activities in Can Tho. At the same time, they need to scientifically build a tourism promoting strategy which is suitable to each specific stage in the local socio-economic development strategy, gradually successfully building tourism brand of Can Tho on domestic and abroad tourism market.

Tourism human resource, Can Tho tourism industry should review the current tourism human resources and prepare a plan for training in association with the arrangement and use of effectively tourism human resources; attract high-qualified post-training human resources, scientists, domestic and foreign tourism agencies. At the same time, they need policies of supporting staff taking training, alternating and attracting staffs in accordance with the local actual situation and budget capacity.

to the service delivery process for quick

Service process, Can Tho tourism industry needs to enhance cooperation with domestic and foreign scientific organizations, guide and facilitate businesses to research and apply science and technology tour registration procedures, accurate tour schedules; design services to suit the needs of tourists and provide services as committed. invest infrastructure, facilities and Tourism in to

the construction of cultural works associated with tourism; to build key tourist zones and spots; to build to synchronize system of diversified accommodation, entertainment areas; to develop typical tourism products, promote regional urban strengths; to conserve and improve of tourism resources; and to focus on investment in infrastructure for tourism development.

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Power, to build tourism development policies consistent with local practices; to coordinate with local residents, utilize their contribution and have reasonable benefit distribution policy for them. In addition, the local government should have measurements

and sanctions to strictly handle violation in order to ensure security, order, safety and hygiene at tourist areas and spots; to promote education and propaganda about the sense of preserving and protecting tourist environment for all subjects participating in tourism.

Tourism enterprises, to reorganize businesses operating in tourism and coordinate and connect tourism businesses in providing suitable services meeting the needs of tourists.

Local communities, to propagate so they understand and co- ordinate to implement local marketing activities; are conscious to preserve and protect tourism resources and participate in cleaning and beautifying the tourist environment; know how to behave culturally, friendly to tourists.

4.3.2 The supportive local marketing strategy

Marketing strategy of local image, Can Tho City tourism industry can choose Ninh Kieu Wharf as a symbol of the Western Captial, which has long gone into Vietnamese poetry: “There is Ninh Kieu Wharf in Can Tho/A beautiful river and many beauties”. The charming river landscape and many boats there create a vivid picture of the western river region. It can be also said who has ever been to Can Tho City all stops at Ninh Kieu Wharf - the pride of Can Tho people.

Marketing strategy of local feature, to focus on developing two types of tourism with its own characteristics and capable of creating the tourism brand of Can Tho City, they are: river tourism and MICE tourism. Besides, to base on the strengths and characteristics of each district to combine many types of tourism to meet diversified needs of tourists. For example, tourists can join MICE tourism and urban tourism in Ninh Kieu District, river tourism in Cai Rang District, ecotourism in Phong Dien District, cultural tourism in Binh Thuy District, or experience career village tourism and agricultural tourism in O Mon, Thot Not, Thoi Lai, Co Do, and Vinh Thanh District.

Marketing strategy of infrastructure facility, local

to emphasize the role of an economic, political, cultural, scientific and 25

technical center of the region, an important transport hub connecting provinces and cities in the region with domestic and foreign tourists. Therefore, Can Tho should pay attention to upgrade and promote its infrastructure facility, especially the favorable geographical location of the locality.

Marketing strategy of local people, coming to Can Tho City, tourists not only experience the original tourism activities of a city along Hau River but also feel the featured character of Can Tho people: “Intellection – Dynamism - Kindness - Generosity - Elegance”. Moreover, Can Tho people are also known for their romance and broad-mindedness through the typical local art form – “Southern amateur music”. They will be important marks in the minds of tourists when coming to Can Tho.

To successfully implement local marketing strategy aiming at developing Can Tho City tourism, coordination of the Government and agencies, departments and branches; tourism businesses and local community; and, along with that, action program to specify the marketing activities to be done, the leading unit, the coordinating unit and the execution time is necessary. 4.4 Solution for implementing local marketing strategy

To implement local marketing strategy, Can Tho City tourism industry needs to implement the solutions:

(i) Strengthening the role of local authorities in state management of tourism.

(ii) Enhancing the role of local communities. Accordingly, people participate in activities to protect the tourism environment and resources; maintain social security, order and safety; preserve the local traditional cultural identity; participate in investment in tourism business.

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(ii) Improving tourism businesses’ activities. (iv) Completing service marketing components, including: tourism products, pricing policy, distribution, tourism promotion, tourism tourism human resource, service delivery process, infrastructure facility.

CHAP 5. CONCLUSIONs AND RECOMMENDATIONS

5.1 Conclusions

The research result of the thesis has fully showed and met specific research objectives, including:

The thesis has identified 10 local marketing components and the extent of impact that each local marketing component has had on tourism development in Can Tho city in the order given: Tourism products, Marketing capacity of tourism enterprises, Place, Tourism promotion, Local communities, Tourism facilities and infrastructure, Tourism human resource, Power, Service process, and Price.

the tourism,

The thesis has analyzed the local marketing environment of internal and external including Can Tho city environment. In terms of the internal environment, the results of the IFE matrix analysis place Can Tho city tourism in an above average position. In terms of the external environment, the results of the EFE matrix analysis show that the response of Can Tho city tourism is above average in taking advantage of opportunities and minimizing threats from the external environment

The thesis selected the main and supportive local marketing strategy to promote Can Tho City tourism. The main local marketing strategy is with combination of components: tourism products, price, place, tourism promotion, tourism human resource, service process, tourism facilities and infrastructure, power, tourism enterprises, and local communities. The supportive local marketing strategy, accordingly, coordinates the implementation of the marketing strategy of local image, local feature, local infrastructure facility, and local people.

tourism; Strengthening role of the

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The thesis has proposed solutions to implement local marketing strategy to promote tourism development in Can Tho City, including: Strengthening the role of local government in state management of local community; Improving tourism enterprises’ activities; Completing components of service marketing.

5.2 Recommendations

5.2.1 To the government and central agencies

Can Tho city plays an important role in the tourism development strategies of the Mekong Delta region. Therefore, the government and Ministry of Planning and Investment need to prioritize the budget capital for investment and development of Can Tho city tourism infrastructure and put Can Tho city tourism development projects in the list of projects calling for domestic and foreign investment.

international implementing they can facilitate Vietnam National Administration of Tourism should assist in encouraging investment, training human resources, propagating and promoting the image of Can Tho city tourism; at the same time, they should support coordination of localities to cooperate in tourism implementing national, regional and programs. Thereby, local marketing activities to develop Can Tho city tourism.

5.2.2 To the local government and local agencies Can Tho City People's Committee need

to support increasing

to promote infrastructure investment and development through preferential policies for investors, attracting investors to Can Tho city. In addition, tourism investment capital development, especially supporting infrastructure investment and development, tourism promotion, building tourism products and brands.

The State Steering Committee for Can Tho city tourism needs to strengthen its role in directing and orienting interdisciplinary and inter-regional issues (districts), creating unity and coordination among all sectors and all levels in employing local marketing strategy to promote Can Tho city tourism.

to strengthen coordination with

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Can Tho city Department of Culture, Sports and Tourism relevant agencies, needs departments and sectors during local marketing activities implementation process, such as developing tourism products, opening foreign representative office(s) for Can Tho city tourism,

tourism human and development of technical facilities

resource development, tourism promotion, investment and infrastructure for tourism, protection of tourism natural resources and environment, response to epidemics and climate change.

Can Tho city Department of Transport should check and put forward a proposal to Can Tho City People's Committee to invest in upgrading and developing traffic routes towards tourist destinations and areas to facilitate easier access to such destinations and areas.

sectors Other departments,

and People's branches, Committees of districts should check and identify relevant activities based on their own functions, duties and state-management power and coordinate with the agency in charge to launch local marketing strategies to develop Can Tho city tourism in a synchronized and efficient way. 5.3 Limitations of the thesis and future research directions

5.3.1 Limitations of the thesis

The research results of the thesis have made positive contributions in terms of science and reality. However, the study still has certain limitations.

(i) The thesis has built a scale system consisting of 10 local marketing components, including tourism facilities – infrastructure, local government, tourism products, tourism human resources, tourism promotion, tourism service supply chain, marketing capacity of travel enterprises, prices, residents, and distribution, to measure impact of local marketing components on tourism development, which is only tested for the specific case of Can Tho city. As a result, the research findings can be applied to Can Tho city only.

the external environment analysis affecting (ii) The thesis only tests the internal matrix components affecting tourism development, without testing the factors obtained from tourism development to include in the external matrix factors.

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(iii) The thesis focuses on studying local marketing strategies only to promote tourism development in Can Tho city.

5.3.2 Future research directions

Considering the above-mentioned limitations, some issues need to be carried out in future studies.

(i) Further research can expand the

local marketing components to do a more comprehensive assessment of the impact that local marketing components have had on tourism development, which can be applied to other localities;

(ii) Further research needs to test both the components of the internal matrix and those of external matrix affecting tourism development;

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(iii) Further research may expand the scope of research on local marketing strategies to promote regional or national tourism development.