Introducing Tourism Law in Cambodia, Laos and Vietnam 33
from tourists for the benefi t of the national tourism fund. The national tourism fund has been established for the development and promotion of tourism, in particular: development of human resources, development of facilities for tour-ism, advertising and promotion of tourtour-ism, and performance of obligations to international organizations relating to tourism. It is obtained from the State Budget, contributions from domestic and foreign organizations and revenues from tourism activities. The tourism law also provides for monitoring activities such as regular systematic inspections and emergency inspections.
Vietnam’s tourism law
Like the other two CLV countries, Vietnam’s tourism law (The Socialist Republic of Vietnam, 2005) is also based on the need for the development of sustainable tourism, hence ensuring alignment with the overall government master plan, and in addition mentions the need for support of its national sovereignty (in the form of maintenance of national defence, security and civil order and safety). The law encourages both domestic and international tourism, with a view to attracting as many international tourists to Vietnam as possible.
The law highlights the importance of creating a tourism-friendly operating environment to support tourism development in which the sector is given priority as a leading industry for national economic development. It provides for incen-tives for organizations investing in the protection and enhancement of tourism resources and environment; tourism marketing; training and human resources development; research, investment and development of new tourism products;
modernization of tourism activities; construction of tourism infrastructure; and development of tourism in remote and isolated areas, which contributes to social development and poverty reduction. The law specifi es the roles of the state in administering tourism, defi nes the state’s responsibilities and describes the rights and obligations of tourists and of organizations or individuals conducting tourism businesses.
Interestingly, the role and content of tourism promotions are defi ned as the creation of awareness of Vietnam, its people, landscapes, history, revolutionary and cultural heritage and identity and artistic treasures among both the local and international communities; support for investment in infrastructure and tourism services; and increased awareness of tourism and its benefi ts. In order to achieve this, there is explicit recognition of the need for market research and product development. Cooperation with other countries and international organizations is encouraged to develop tourism, as well as create political goodwill.
34 P. Semone et al.
Accountability
Accountability refers to the way in which an organization (whether a business, government agency or other structure) is accountable to its public and/or institu-tional stakeholders (Siddiqi et al., 2009). Specifi cally, it is concerned with who is accountable to whom and why. In non-corporate settings, this concept also refers to the need to take ownership and responsibility for tasks and the outcomes of decision making (Rhodes, 1997).
Transparency
Transparency refers to the sharing of information and acting in an open manner.
In a corporate setting, transparency includes providing ‘suffi cient, accurate and timely information regarding the fi rm’s operations and its fi nancial status to enable shareholders to be able to monitor the fi rm’ (Bai et al., 2004:605). Trans-parency is also a crucial aspect in government settings and non-governmental organizations in limiting corruption and illegal practices.
Involvement
Involvement refers to the myriad of stakeholders that should have a voice in the decision-making process of organizations, both public and private. Involve-ment also encompasses the systems and mechanisms organizations have in place to solicit the participation of various stakeholder groups and constituents in decision making and planning decisions.
Structure
Structure refers to the examination and regulation of relationships between inter-related components of a system (Palmer, 1998). This dimension determines whether one organization is responsible for all decisions, or whether different organizations or agencies (i.e. local, state or national governments) are involved in decision making and performance. An examination of internal and external bureaucracy is an important component of structure and the ways in which deci-sions are made and how these are disseminated within the organization (whether public or private).
Effectiveness
Effectiveness is defi ned as the capacity for an organization to fulfi l its objectives (Batterbury and Fernando, 2006). This dimension essentially refers to the perfor-mance of an organization and the extent to which it is publically accountable for meeting its objectives. In a public sector context, this can include the need to
Introducing Tourism Law in Cambodia, Laos and Vietnam 35
ensure that policies are clear and cohesive and will be completed in a timely manner (Batterbury and Fernando, 2006).
Power
The fi nal dimension identifi ed in the review of the governance literature was power. For example, in a destination context, some fi rms may have more power than others and government bodies have inherent power over decision making within a particular locale. In a corporate context, an example may be a major shareholder who withdraws support or funds if its plans or intentions are not supported (Nordin and Svensson, 2007). In the public sector, a change is noted as, in many countries, governments are attempting to shift power structures and decentralize decision making to local, regional and/or national groups, who are encouraged to form their own coalitions with limited intervention (Rhodes, 1997).
Table 3.2 applies these dimensions to compare the tourism laws of CLV.
Of the three countries, Vietnam’s tourism law is the most detailed and pro-vides for the greatest level of involvement of all sector stakeholders. Although the Vietnamese tourism law is centralized in nature with a clearly stated role and function at the central state level, it provides for a large degree of fl exibility at the local government level and within the private sector. At the other extreme is Table 3.2. Comparison of CLV tourism laws.
Dimension Cambodia Lao PDR Vietnam
Accountability Centralized at the national government level through the Ministry of Tourism.
Little accountability at the provincial and municipal level or among private sector stakeholders.
Shared responsibility between the national, provincial and district levels.
Clearly stated role for the private sector.
The Ministry of Culture, Tourism and Sport, through its agency, the Vietnam National Administration of Tourism, is fi rmly in control of tourism in the country.
Some shared responsibility at the provincial level and among private sector stakeholders.
Transparency Very low levels of transparency between the public and private sectors. However, the law on tourism sets standards for both illegal practices and corruption.
Tourism rules and regulations are clearly stated, but monitoring may be diffi cult to carry out.
The ministry sets policy, but there appears to be fl exibility at the local level to develop and administer tourism activities.
(Continued )
36 P. Semone et al.
Table 3.2. Continued
Dimension Cambodia Lao PDR Vietnam
Involvement Decision making is controlled totally by the central government, with little participation by the private sector.
Decision making appears to be open, with a mix of both public and private sector institution involvement.
Decision making and planning is controlled at the ministry level, but local authorities have reasonable autonomy in carrying out their tourism development plans.
Structure Total control at the central government level.
Decision making is shared and very open between all public and private sector stakeholders.
The ministry is responsible for all decisions related to tourism; however, the provinces are empowered to make local-level decisions on tourism development and administration.
Effectiveness Law on tourism is clear and cohesive and covers every aspect of tourism.
How well rules and regulations are actually enforced cannot be determined.
The monitoring of tourism business activities may be too weak and a more centralized control mechanism may be required.
The law on tourism is extremely detailed and covers all sectors of the tourism industry clearly and concisely.
Power Overwhelming direction and power at the central government level.
Little to no input from the private sector or at the provincial government level.
Questionable how effective the LNTA is in controlling tourism policies.
Stronger control and enforcement at the national level may be required.
The ministry exercises strong control, but the local authorities seem to have fl exibility in carrying out their tourism development plans.
Cambodia’s tourism law, which emphasize strong central control with little to no input at the local level or from the private sector. Lao PDR’s tourism law provides a strong policy framework but, from the analysis above, it seems unlikely that these policies can be enforced at the local level. The role of the private sector, to a large degree, remains unclear and lacking in direction.