Business and Economic Research

ISSN 2162-4860
2011, Vol. 1, No. 1: E4

Corporate Social Responsibility and Sustainable

Tourism
Luu Trong Tuan
Ho Chi Minh City University for Natural Resources and Environment
E-mail: luutrongtuan@vnn.vn

Received: August 18, 2011

Accepted: September 2, 2011

doi:10.5296/ber.v1i1.890

Abstract
The principal aim of this paper is to study the role of Corporate Social Responsibility in the
development of sustainable Tourism in Ho Chi Minh City. Interview sessions of 25 key
people in three large tour companies Vietravel, Fiditour and Festival Travel seek to clarify
these companies plans, strategies and current activities besides the challenges in developing
sustainable tourism.
Keywords: Tourism, Tourism development, Sustainable tourism, Corporate social
responsibility (CSR)

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1. Introduction
In most countries, especially low income countries, tourism is seen as a viable option for
economic growth, but current unsustainable tourism practices can impact the health and
well-being of the environment and community as well as tourism itself. Tourism industries
often create negative impacts on the environment, society, culture, and sometimes even on the
economy. However, few countries are using economic, regulatory or institutional policy
instruments for tourism management (Logar, 2010). In most industries, corporate social
responsibility (CSR) standards and practices have been developed by the private sector to
respond to external pressure. In tourism, however, the use of codes of conduct and
certification is not widespread and is not based as yet upon agreed international standards. It
is difficult to make generalisations about CSR without first examining the context in which
sustainable tourism operates, its demand and also assessing the numerous certification
schemes, codes of conduct and best practices within the industry. According to the Ministry
of Culture, Sports and Tourism, Viet Nam National Administraton of Tourism, the
conservation of our natural, cultural and aesthic resources, the protection of our environment,
and a continued welcoming spirit among our enterprises, employees and within host
communities, are essential conditions for sustainable tourism.
In the condition of higher living standard, people tend to spend a lot of money for
entertainment and travel besides their basic needs for eating, clothing, and living.
Occasionally in the Tet Holidays, there are 4.000 tourists from Ho Chi Minh travel abroad,
increased 10% than 2010. Many destinations in Ho Chi Minh also attracted over 75.000
domestic tourists (Vinanet). This research is to examine the CSR and sustainable tourism in
Ho Chi Minh City.
2. Literature review
2.1 Components of Sustainable Tourism
Sustainable development has been defined as development that meets the needs of present
and host regions while protecting and enhancing opportunities for the future. Sustainable
tourism, in addition to the criteria of sustainable development requires a holistic, integrated
perspective that takes into account all the industries and resources upon which tourism relies.
The set of criteria or principles that define the conditions for its achievement comprises:

Protect and conserve sustainable resources

Be a multi-stakeholder approach

Be environmentally responsible

Maintain the well-being and involvement of the local population or host

Provide meaningful and fairly remunerated employment for the host population

Have economic benefit

Have a long-term view

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Have a triple-bottom line approach (environmental, social and economic)

Be equitable

Government must play a leadership role (e.g., impose a greater good approach)

Obtain optimum guest satisfaction and educate tourists about environmental and
social concerns

Simion, Mazilu, Ptruescu, and Ispas (2010) summarized the fundamental indicators of
sustainable tourism as displayed in Table 1.
Table 1. The fundamental indicators of sustainable tourism
1. Site Protection

The category of the site's protection after the index of the

International Union for the Preservation of Nature (IUCN)

2. Pressure

The number of tourists who visit the site (year/month with

maximum influx)

3. Intensity of use

The intensity of use during peak periods (the number of

people and per hectare)

4. Social impact

The report tourists/residents (during the peak period, but also

during the rest of the period)

5. Development Control

The existence of a method of study of the environment or

specific controls on the planning method of the area and the
density of use

6. Waste management

Ratio of treated wastewater of the site (additional indicators

may lead to structural limitations of other site infrastructure
capacity, such as the water supply)

7. Planning process

The existence of a methodical plan for the tourist destination

in question (with a component "tourism")

8. Fragile ecosystems

The number of rare species or endangered ones

9. Customer satisfaction

Visitor satisfaction (using a questionnaire)

10. Satisfaction of the Satisfaction of the local population (using a questionnaire)

local population
11. Contribution of How much tourism represents (%) in all the economic activity
tourism
to
local
economy
The definition of corporate social responsibility (CSR) has many similar elements to
sustainable tourism in that both focus on how stakeholders should be identified and engaged
and that initiatives should be measured to determine their impact on others. Whereas CSR
relates to a companys obligation to be accountable to all of its stakeholders in all its
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operations and activities with the aim of achieving sustainable development not only in the
economical dimension but also in the social and environmental dimensions, sustainable
tourism was first seen mainly from an environmental perspective and has only recently
incorporated social and community aspects. Today, it is commonly recognised that
sustainable tourism is more than just environmental conservation of a natural area, but that is
must also address the quality of life of those visiting it and those being visited.
Sustainable tourism development is about making all tourism more compatible with the needs
and resources of a destination area. Tourism needs to take into account a holistic and
comprehensive approach that balances tourism development with other activities yet tourism
is made up of many sectors and is very fragmented, therefore effects and monitoring
processes through one company or mechanism has been difficult. The supply chain of
product to end user is not often controlled by solely one party or individual and different
elements are often operated by multiple stakeholders. This therefore has led to difficulties in
controlling elements of corporate social responsibility.
Miller, Rathouse, Scarles, Holmes, and Tribes (2010) research paper presents the results of
research conducted amongst members of the public in England on their understanding of
sustainable tourism; their response to four desired tourism behaviour goals, and expectations
about the role of government and the tourism industry in encouraging sustainable tourism.
The research shows a lack of awareness of tourisms impact relative to day-to-day behaviour,
feelings of disempowerment and an unwillingness to make significant changes to current
tourism behaviour. In their research, Erku-ztrk and Eraydn (2010) analysed together
governance networks and literature on sustainable development, and provided empirical
findings that highlight the importance of governance networks in sustainable tourism
development, the importance of different scales of collaborative governance networks and the
role of organisation building for environmentally sustainable tourism development in Antalya.
Logars (2010) study explores the potential use of eight such instruments for managing more
sustainable tourism in the coastal town of Crikvenica, Croatia.
2.2 Labour standards as part of sustainable tourism
Environmental aspects have been the priority of official certification programmes and
voluntary initiatives since the early 1980s and only recently have social or community issues
been added. Human rights and labour issues have been more focused upon in developing
countries. Additionally, more advanced concepts such as the triple bottom line
(environmental, social and economic) are just now being incorporated into definitions and
initiatives.
There are a number of labour issues which affect the tourism industry. These include
womens rights, fair wages, long working hours, qualification and skills requirements for
employees, inability to join trade unions, importing of labour and displacement of traditional
employment to benefit from tourism dollars. Tourism workers often do not earn a living wage
and are dependent on tips and service charges. Many workers have temporary contracts or
none at all, work long hours and are employed in low skilled areas such as waitressing and/or
house cleaning.
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2.3 Demand for Sustainable Tourism/CSR within Tourism

Within the tourism industry it is generally agreed that there are increasing overall societal and
environmental concerns, and that this will increase the demand for more sustainable
destinations and travel preferences. These will increase the pressure for destination
management policies and tour operator responsibility. The destination which were the result
of overbuilding, are expected to face severe decline as consumers look for more attractive
destinations that feature a clean environment and well preserved natural and cultural
attractions. Another trend affecting sustainable tourism is health and wellness. Active or
adventure holidays, wellness and spa products and sun destinations are likely to increase in
popularity. Authenticity or experiential tourism is another trend. Artificial type destinations
(e.g., theme parks), which do not meet higher consumer quality standards, will decrease as
the consumer searches for the greater authenticity. Furthermore, there has also been an
increase in tourists seeking meaning from their vacation experiences with a resultant
noticeable increase in the number of organisations that offer volunteer based travel or
educational travel, notably from non-traditional NGO (Non Governmental Organisation)s
such as Volunteer Services Overseas (VSO), etc.
The market share of sustainable tourism is difficult to assess as many consumers do not just
purchase one type of holiday. During the same year, they may choose a typical package sun
and sand holiday as well as one that specifically caters to nature and adventure. Sustainable
tourists are approximately 50% free and independent travellers (FIT) and 50% package tour
travellers (those travelling with a tour operator. The majority of tourists seeking nature or
adventure type holidays typically travel with niche or small scale operators as mass operators
tend to accommodate sun, sea and sand packages.
2.4 Demand for sustainable tourism
The number of foreign tourists came to HCMC in the first five months of 2011 are about 1,4
million times, increased 8% than 2010 and got 40% of plan in 2011. The total revenue is
about 19.480 billion VND, increased 20% than 2010 and got 40% of plan in 2011 (The
Department of Culture and Tourism Information Vietnam). Overall, the percentage of
consumers who consciously look for sustainable travel packages or ecotourism has been
estimated to be as high as 5% of the overall market for travel, although up to 30% feel that it
would be nice to have but without an accompanying willingness to pay (World Tourism
Organisation-WTO). With increased awareness of general societal issues regarding
sustainability, this number is expected to increase somewhat.
Sustainable tourism demand is difficult to assess as most figures are anecdotal evidence of
market share. A number of surveys have been completed over recent years which have
assessed demand for more sustainable forms of travel. A report by the WTO in 1997
presented information to indicate that ecotourism (not sustainable tourism) accounts for 20%
of the world tourism market. The International Ecotourism Society Report, whose statistics
were cited worldwide in other reports, indicated that ecotourism contributed US$154 billion
in receipts for 2000 and was growing at a rate of 20% per year compared with 7% for tourism
overall. This number has not been substantiated in any recent reports.
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2.5 Consumer motivations

As one industry leader noted, In several surveys done in the last years, a considerable
number of people always affirm they would be ready to pay for sustainable tourism products.
But unfortunately the reality shows that the customers decisions are often dominated by
other criteria, and mostly by price. There is obviously a contradiction between intention and
behaviour. It is what we call a cognitive dissonance. However, in many destinations, it is
common practice that tourists on an excursion in wildlife reserves pay an extra fee for nature
protection activities and this is well accepted.
Sustainability issues are also not perceived to be a key factor in the tourist decision making
process. A report in 2000 notes that surveys have been unable to conclude that environmental,
social or sustainability criteria are a key concern in holiday decision-making by tourists
even so-called ecotourists are not often motivated to travel because of interest in being
responsible or environmentally concerned. It is clear that marketers need to connect
consumer motivations with actual purchasing. As one expert noted, "consumers are willing to
make a greener choice if the product comes from a company or destination they already know
and trust, it doesn't require any behavioural changes to use, and it's at least as good as what
they're already buying in terms of aesthetics, style, taste, etc.".
Price, accommodation quality and personal security rank as the most important
considerations of booking holidays. Consumers are susceptible to health and safety issues,
however, with cleanliness and quality being major factors in their destination choice. From
existing research and interviews with tour operators and other experts, it can be concluded
that consumers would change their destination choice as a result of bad press about health
(e.g. dirty beaches) or safety issues, but not for lack of environmental or social responsibility
on the part of suppliers.
If evidence suggests that consumers are looking for more sustainable product in tourism yet
are driven mainly by price or health issues, there is a need to rethink a strategy to shift
product and packaging so that product offered to the consumer integrates wider issues of
sustainability.
3. Methodology
3.1 Participants
This report is based on both extensive secondary research and a large number of key
informant interviews. First, a review of existing research on a review of research on the
demand for sustainable tourism. Supplementary interviews with ten managers of Vietravel,
seven managers of Fiditour and eight managers of Festival Travel were carried out to assess
demand for sustainable tourism. Companies approached to be interviewed included the
largest tour operators. From June 1- June 15 2011, the researcher had the arrangements to
interview these key people through the relationship with his previous employer Vietravel
and his friends companies Fiditour and Festival Travel through snowball or chain
sampling method (Babbie, 2002: 179; Patton, 2002: 237).

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3.2 Instrument
For the purpose of studying the role of Corporate Social Responsibility in sustainable tourism,
the interview sessions were conducted through these questions:

What do you think about sustainable tourism?

Why do we need to care about the sustainable tourism Or what bad influences to the
Tourism industry of people dont care about sustainable tourism?

What do your company have any policy, plans and strategies for developing
sustainable tourism?

What difficulties have your company faced on the way of developing sustainable
tourism? (the price of tour is higher, service price is higher)

How about your customers behavior? Do they support or go against?

What do you think about CSR of tour operators, customers, the government and the
society to develop sustainable tourism?

4. Findings and discussion

In many low income countries there are problems of lack of tourism planning, established
tourism ministries as well as clear roles and objectives. Therefore focusing on public-private
partnership to forward the CSR agenda should have a greater overall positive impact and
advance sustainable tourism in the industry.
In order to enhance sustainable tourism development in low income countries, there is a need
to focus on elements of the tourism industry which can affect a greater number of products
and businesses and contribute environmentally, socially and economically to lower income
countries.
Initiatives must be industry led as labour standards and other elements of sustainability are
not visible to the consumer but crucial nonetheless to the long-term wellbeing of the
destination. CSR reporting means a company is more transparent and accountable to external
stakeholders, enabling investors to avoid risk and consumers to support more sustainable
businesses, therefore having a multiplier effect.
Currently there is low brand loyalty as consumers make decisions primarily based on price;
CSR initiatives could potentially lead to increased brand loyalty and product differentiation.
As there is currently little consumer support or awareness, information databases need to be
linked so that environmental and social criteria can be provided to the client when they are
booking their holiday.
To ensure that a more sustainable form of tourism is pursued, there is a need for stricter
legislation coupled with joined-up government.
Stricter legislation in low income and developing countries is often fraught with issues of
corruption, lack of monitoring and lack of governance, as there are often neither tourism
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master plans that incorporate sustainable tourism practices or measures nor incentives for
industry to adopt them on their own initiative. To date, few developing countries have
imposed social or environmental criteria to foreign investors, seeing only short term
economic gains instead of long-term, holistic, sustainable tourism development.
5. Conclusion
Sustainable tourism can help overcome many of the negative impacts associated with tourism
development. Based on the interviews conducted, it is clear that guidelines alone are not
strong enough to overcome the short-term profit motive of many operators, governments and
destinations. At the same time, national certification programs are too numerous, with too
many varying criteria, and not enough accredited product to be effective at this point in time.
The conclusion of this research is fourfold. First, there is little overt demand for sustainable
tourism in Ho Chi Minh City therefore more research is needed to determine how product can
be shifted to include sustainability. If the consumer and the industry are driven by price then
there is a need to re-think the strategy of how to include sustainability within current cost
structures. Second, there is low awareness and success of certification programs to date.
There is a need to further develop the concept of an international certification label for the
travel and tourism industry that is inclusive (environmental, social, cultural etc.), affordable,
monitored, and reported. As there are already a number of recognised and internationally
accepted schemes, these should be promoted to extend their reach rather than developing new
schemes which add to the confusion of both the industry and the consumer. Third, in order to
achieve more sustainable forms of tourism, it needs to move away from voluntary measures
towards reporting where progress can be measured and buyers and suppliers held accountable
for their actions. Fourth, CSR could help with a number of issues facing tourism with regard
to promoting sustainable tourism practices, however, industry must see government
involvement and support if they are to increase their own involvements in CSR. There is a
need for governments to step up to the challenge of ensuring more sustainable forms of
tourism will be supported and to reassure investors and players in the tourism sector that
government will support and encourage sustainable tourism management and development.
Practical implication can be recapitulated as follows:

Governments should focus their capacity-building efforts on suppliers, using such

methods as legislated compliance (e.g., environmental, reputation and business
probity), ensuring that resources are available for training and learning by suppliers
and, where needed, fill resource gaps.

Increase public-private partnerships of training for environmental and social

awareness and mitigation strategies.

Offer incentives and reporting guidelines to the tourism sector distributed through
industry associations. Support training and sharing of best practices.

Encourage industry associations to make adherence to sustainable or responsible

tourism policies a condition of membership and to report on progress.

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Encourage CSR reporting from tour operators, airlines, cruises, hotels and
destinations themselves so that they can understand the impact they themselves are
having. Reporting will also provide measurable criteria by which companies and
destinations can be compared.

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