Workshop on Poverty Reduction and Decent Work through Tourism: Dcent work needed to sustain tourism development

The two-day workshop on Poverty Reduction and Decent Work through Tourism, organised by the ILO in the central resort city of Hoi An which gave a focus on pro-poor tourism and provided an opportunity for policymakers, stakeholders, employers and workers to raise their voice on an action plan to further support the industry in Viet Nam.

Press release | 07 May 2012

HOI AN, QUANG NAM (ILO News) – The increased employment in the tourism industry should include not only job creation but decent and productive work opportunities, the International Labour Organization (ILO) country director Mr Gyorgy Sziraczki has said.

He was addressing the two-day Workshop on Poverty Reduction and Decent Work through Tourism, organised by the ILO in the central resort city of Hoi An on May 7, which gave a focus on pro-poor tourism and provided an opportunity for policymakers, stakeholders, employers and workers to raise their voice on an action plan to further support the industry in Vietnam.

The significant growth of tourism, a US$5 billion industry in the country, has been a major source of job creation but has yet to equally benefit different parts of the workforce.

According to the Ministry of Culture, Sports and Tourism (MoCST), the sector employed some 434,000 people directly and 955,000 indirectly in 2010, up by two thirds against 2007. The industry is dominated by young and particularly female workers, who make up 58 per cent of the total workforce.

The domestic trend goes in line with the global picture. Tourism around the world is one of the fastest growing industries, accounting for 10 per cent of global gross domestic product (GDP) and creates more than 230 million jobs.

“High intensity of labour places tourism among the world’s top creators of jobs,” said Mr Sziraczki. “Importantly, the sector requires varying degrees of skills and allows for quick entry into the workforce by youth, women and migrant workers.”

In Vietnam, the potential contribution of tourism to job creation will continue to increase as the country has been repeatedly ranked sixth in the world for tourism and travel growth.

Aiming to receive 10 million international visitors a year and generate total annual revenue of $18-19 billion by 2020, the Vietnam’s tourism expects to directly employ 940,000 workers by the end of the decade, more than double of the 2010 number.

“However, the growth in tourism human resources has not been equal,” said Dr Nguyen Van Luu, Deputy Director of MoCST’s Training Department.

Much of the tourism development has been limited to a few key areas whereas those in the rural interior of the country have benefited little.

The central province of Quang Nam shows a vivid example. Bordering the central tourism hub of Da Nang, Quang Nam has attracted significant investment to bring into full play its 125km of sand beach, unmatched coral reefs and the world’s two cultural heritage sites – My Son Sanctuary and Hoi An Old Quarters. Tourism, however, is largely limited to day trips from the coast, leaving the further inland areas with hardly any development. Therefore, some 24 per cent of households in the province are living under or close to the poverty benchmark ($21 per month per capita) despite the huge opportunities.

To realize the potential economic and social benefits of tourism, the ILO is supporting Quang Nam Province in using the sector as a vehicle for poverty reduction by bringing hospitality and tourism development opportunities to rural and mountainous areas.

Quang Nam People’s Committee Vice Chairman Mr Tran Minh Ca said the ILO project is helping the province maximise the benefits of tourism and hopefully reach its goal of increasing by 10 per cent the business start-ups related to tourism in the interior districts by end of next year.

“I hope Quang Nam’s experience and the local governments’ great efforts will be shared in the tourism sector nationwide to make the industry equally benefit Vietnam,” said the ILO country director.

For those who already have a job in the tourism industry, working conditions are another story in many places in the country. The ILO, therefore, is trying to promote “decent work”, or opportunities for productive work that delivers a fair income, security in workplace, social protection for workers, freedom to express their concerns, and equality for all, in the sector.

Convention 172, an ILO tool ensuring such decent working conditions in hotels and restaurants, is expected to help Vietnamese policy makers and other relevant stakeholders put the national tourism strategies towards better sustainability.

“But at the end of the day,” Mr Wolfgang Weinz, ILO global Specialist in Hotels, Catering and Tourism, said “enterprises should take the lead in tourism sector, for their own sake and their workers’ benefits.”

For more information please contact:

Ms Mimi Groenbech and Ms Nguyen Thi Huyen
Strengthening Inland Tourism Project
Tel: 0510 3814 079
Email: sitvn@ilo.org


Background information:

The ILO project “Strengthening of Inland Tourism in Quang Nam” has made good progress since its start in May 2010.

The US$1.35 million project, funded by the Luxembourg Government, aims to develop a replicable and sustainable approach that contributes to pro-poor tourism in Vietnam. The emphasis of the supports is on young men and women, but not to the exclusion of others.

By its completion in December 2013, the project is expected to help the poor benefit more from the development of inland tourism in the central province of Quang Nam.

The ILO is supporting the grassroots government and people to select and promote two value chains which are critical for the local hospitality and travel industry.

The inland destination value chain has been identified as the Ho Chi Minh Trail, which includes Boo Hong and Za Ra villages, and home stay services at My Son.

The other value chain of local products, meanwhile, is to improve income generation for the rural communities through Ca Tu weaving products, spices and tea gift baskets, hotel room amenities, “Made in Quang Nam” branding and “Products with a story”.