Assessing the competitive advantages of tourism potentials in Tuy Hoa city, Phu Yen province
Nguyen Hien Than, Nguyen Huynh Anh Tuyet… - Volume 2 - Issue 2-2020, p.202-214.
Assessing the competitive advantages of tourism potentials in
Tuy Hoa city, Phu Yen province
by Nguyen Hien Than, Nguyen Huynh Anh Tuyet, Che Dinh Ly
(Thu Dau Mot University)
Article Info: Received 18 Dec. 2019, Accepted 20 Mar. 2020, Available online 15 June. 2020
ABSTRACT
This paper presents a Quantified SWOT (Strengths, Weaknesses, Opportunities
and Threats) analytical method and an analytical hierarchy process method
which provides more detailed and quantified information on tourism potential in
Tuy Hoa city. Quantified SWOT analysis was used to assess the competing
strength of Tuy Hoa’s tourism potential with other places. The results of the study
presented that Tuy Hoa city has many advantages of beautiful natural landscapes,
nature, rivers and mountains. The results of the comparing value of internal and
external factors of Tuy Hoa’s tourism potential indicated it under high
competitive pressure from neighbor destinations such as Phan Thiet, Hue, Nha
Trang and Da Nang. Tuy Hoa’s tourism potential was lower than that of neighbor
cities but it has more attractive tourism features.
Keywords: competitive advantages, QSWOT, tourist, Tuy Hoa
1. Introduction
Tourism has important contribution in maintainable development, economic benefits
and social willing, if planned methodically (Abdulla Al Mamun & Soumen Mitra,
2012). It has the potential to contribute towards environmental protection and poverty
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reduction. Environment and tourism contribute very significant role to the improvement
of each other. Without appropriate management of environment, there is no scope of
tourism while in other hand, the revenue generated from tourism assists in the good
protection of the environment. Therefore, tourism and environment are interconnected
playing a great position for the sustainable development of the region (Ramesh
Neupane, Anup, & Ramesh Raj Pant, 2013).
Tourism potential is extensively used and acknowledged term in tourism field. Tourism
potential mentions to the capability of a destination to interest and attract tourists with
concerns about convenience, landscape quality, understanding of resources, and so on
(Libo Yan, Bo Wendy Gao, & Meng Zhang, 2017). The methodologies applied in many
previous researches were different. Abel González-Ramiro, Gil Gonçalves, Alonso
Sánchez-Ríos, and Jin Su Jeong (2016) used volunteered geographic information and
gis-based multi-criteria approach for assessing the potential of rural tourism, Ballis,
John Paravantis, and Moschovou (2018) applied regression model, Mehmet Cetin,
Ilknur Zeren, Hakan Sevik, Cansel Cakir, and Huseyin Akpinar (2018) analyzed and
surveyed the most important feature of the Yesilyuva Nature Park by SWOT.
There is a practice to assess tourism potential and quantify all the features or
characteristics towards a single value using numerous tools of Multi-Criteria Decision
Methods (MCDM) such as SWOT analysis. The SWOT analysis is broadly applied in
planned decision support for business management. Recent growths have improved the
usability of SWOT by integrating quantitative approaches, such as the analytic
hierarchy process (AHP) (Rocco Scolozzi, Uta Schirpke, Elisa Morri, Dalia D'Amato, &
Riccardo Santolini, 2014). In Vietnam, a variety of the researches have conducted to
evaluate Vietnam’s tourism potential. However, almost studies were used to applying
quantitative methods in many reports. In this study, there was integrated quantified
SWOT and Analytic Hierarchy Process to assess the tourism potential of Tuy Hoa city.
Tuy Hoa is a coastal city and the political, economic, cultural and scientific center of
Phu Yen province, Vietnam. Tuy Hoa city has an area of 107 km², located within Tuy
An district in the North, Phu Hoa district in the West, Dong Hoa district in the South
and the sea in the East with the entire coast length of over 30 km, about 560 km north of
Ho Chi Minh City. The topography of the city is mainly alluvial plain due to the
downstream of Ba River (another name is Da Rang river). There are two peaks of Chop
Chai and Nhan Mount in the centeral city. Besides, Da Rang bridge - the longest bridge
in the Central is located on Highway 1 connecting the city center with the southern
provinces. Tuy Hoa beach is a stretching, poetic beach with white sand, a famous tourist
destination of the city. As a place close to the sea and adjacent to the delta, Tuy Hoa
city‘s climate is generally located in the monsoon tropics, but it has its own
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Nguyen Hien Than, Nguyen Huynh Anh Tuyet… - Volume 2 - Issue 2-2020, p.202-214.
characteristic with average climate, is lower than other places. However, there has not
been any study to quantify the tourism potential of Tuy Hoa city and compare the
competitiveness with the surrounding area up to now. Therefore, this study will clarify
the potential and competitive advantages of Tuy Hoa city tourism. The results of the
study will contribute to develop the tourism in Tuy Hoa city in particular and Phu Yen
in general.
2. Methods
Quantified SWOT analysis
The study used QSWOT method to assess the competitive advantage of tourism in Tuy
Hoa City. The process of QSWOT analysis is performed in 7 steps as follows (Figure 1):
Step 1: Deciding what to compare, for example tourist destinations in Tuy Hoa and Quy
Nhon
Step 2: Researching and proposing the list of important factors of internal and external
assessment to build a hierarchical structure.
Step 3: Collecting data of objects were compared to each other.
Step 4: Conducting an interview with two purposes, studying the weights of important
factors using analytical hierarchy process method and collecting qualitative data (such
as tourism satisfaction level) of Tuy Hoa city and some other localities (Phan Thiet, Nha
Trang and Quy Nhon).
Determination of the weights of comparing factors by AHP method: The value of
weights will be standardized to distribute from 0 to 1. The total weight value is 1.
The weights for the adaptive factors are determined by the AHP method. The AHP
method is the most optimal method to determine the factor weights that satisfies both
objective (consistency and statistics) and subjective requirements (priority in current
development). In this method, the comparison is based on the questions: "A is several
times higher than B", "C is several times more important than B"(Nguyen Kim Loi and
Tran Thong Nhat, 2007).
The steps for determining factor weights by AHP method are as follows:
There are competitive elements considered relating to the weight of each factor in an
internal and external group j for the purpose of tourism development competition
(G). Establishing IJ groups (j = 1, 2, 3,..., n).
Conduct a pairwise comparative assessment of the importance of each factor on a
scale of 1 to 9 as follows.
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Thu Dau Mot University Journal of Science - Volume 2 - Issue 2-2020
Figure 1. Flowchart of Quantified SWOT analysis
TABLE 1. The rating value by Saaty in pairwise comparison (Damjan Krajnc & Peter
Glavic, 2008).
Comparative value of Saaty
Definition of judgment
1
3
5
7
9
Equal importance
Week dominance
Strong dominance
Demonstrated dominance
Absolute dominance
Intermediate values
2, 4, 6, 8
The evaluation results are showed in the relationship matrix of the factors with
each other.
A =
,
Equation 1
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Nguyen Hien Than, Nguyen Huynh Anh Tuyet… - Volume 2 - Issue 2-2020, p.202-214.
Calculating geometric average score for each indicator of each row:
mi =
The obtained weight vector were factors: W11, W22, W33,… Wnn. W = (W11, W22,
W33,… Wnn) = = 1.
,
=
, wi =
/
mi =
,
=
, wi =
/
Conducting the consistency test of comparative matrix between factors
We obtained the weight vector =[
] and matrix A from the importance evaluation
matrix.
The consistency of matric A is calculated as follow:
Calculating the total weight vector W of each row to get the vector B:
=
=
Dividing each element of vector B by the corresponding element in vector W (W11, W22,
W33,… Wnn) to get the new vector c: , max is the average of elements of
vector c: max
=
=
. Then, the consistency ratio is calculated according to the
Equation 2
following formula:
CI =
The consistency ratio: CR = CI/RI, CR < 0,1 the evaluation matrix is reasonable, on the
other hand, we have to conduct the assessment at the corresponding level. In particular,
RI is taken according to the following table of values:
TABLE 2. RI scale
n
3
4
5
6
7
8
9
10
11
12
13
14
15
RI 0,58 0,9 1,12
1,24 1,32 1,41 1,45 1,49
1,51 1,48 1,56 1,57 1,59
Step 5: Standardize
Standardize all key factors including quantitative and qualitative activities. The purpose
of standardization is to unify the ratio of comparative factors. The standardized method
is as follows:
The higher element is the better.
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Thu Dau Mot University Journal of Science - Volume 2 - Issue 2-2020
pij
r
,j
Equation 3
ij
maxpij
j
The lower element is the better.
minpij
j
Equation 4
Equation 5
r
,j
ij
pij
With the standard of median (the average is better)
min p ,p
0
ij
r
ij
max p ,p
0
ij
n
1
Where: p0
p
ij
n
j1
Step 6: Calculating the internal and external scores of objects compared separately and
determined the rating value. Rating values could be determined by two approaches: 1)
taking the average; 2) taking the rank of the object as the rank value. In this study, we
determined the classification value according to the first approach.
Step 7: Calculating and comparing the aggregate value of the internal and external
assessments and show them on the chart of quadrants.
First, the internal and external points of the comparable objects were added and then
subtracted from the rating value. The final value was the aggregate value of the object
compared in the QSWOT analysis matrix. The aggregate value obtained in the range of
-1 to +1. Subjects possess opportunities and strengths when the aggregate value was
greater than the rating value, whereas the object was relatively weak points and
challenges when the aggregate value was smaller than the rating value.
ICj = Ij - IB
j = 1,2,…,n
Equation 6
ECj = Ej – EB j = 1,2,…,n
Where:
ICj: value of the coordinates for internal evaluating of object j
Ij: score of internal evaluating of object j
IB: classification value for internal evaluating
ECj: value of the coordinates for external evaluating of object j
Ej: score of external evaluating of object j
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Nguyen Hien Than, Nguyen Huynh Anh Tuyet… - Volume 2 - Issue 2-2020, p.202-214.
EB: classification value for external evaluating (Hsu-Hsi Chang & Wen-Chih
Huang, 2006).
For comparison on a quadrant plot, the ordinate (y) was specified for the external
environment location (opportunities and challenges). The abscissa axis was defined for
the internal environment (strengths, weaknesses).
3. Research result and discussion
3.1 Analyzing strengths, weaknesses, challenges and opportunities of tourism
development in Tuy Hoa city
Strengths
Weaknesses
Advantage of geographical location, traffic
Advantage of diverse marine resources
The operation effectiveness of the tourist spot is
not high
Environmental protection in tourist destinations
has not been paid attention
Many beautiful natural landscapes (bays, lakes,
mountains)
There are no specific tourism products
Many historical cultural relics, landscapes
Warm climate throughout the year
Some monuments, famous landscapes are in
danger of degradation and abuse
The increasing number of accommodations and
tourism services
Tourism infrastructure has not met the demand
Human resources for tourism are still lacking and
weak
Tourism advertise is focused
The provincial People's Committee funding for
tourism development is limited
Linkages among sectors are not yet
comprehensive
Special traditional festivals have not been paid
attention to promote tourism development
Cling and dragging tourists
Threats
Oppotunities
Travel demand is on the rise
Competition from other localities
The effectiveness of tourism management of the Demand for tourist attraction are getting higher
local Goverment is increasingly improved
and higher
The number of visitors is increasing
The global and domestic economic situation is
facing many difficulties
Investment in building tourism infrastructure is
focused
Awareness on sustainable tourism development of
the community and businesses is low
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Thu Dau Mot University Journal of Science - Volume 2 - Issue 2-2020
Attracting the attention of many investors
Transportation system to key tourist sites and
destinations has been built
3.2 QSWOT matrix for analyzing the competitive advantage of tourism in Tuy Hoa
City and surrounding areas
Based on the SWOT matrix and tourism information of nearby areas, it was possible to
determine factors used to compare the tourism potential between Tuy Hoa city and
surrounding areas. The vicinities having high competitiveness with Tuy Hoa city
accompanied by Quy Nhon city, Hue city, Da Nang city, Nha Trang city and Phan Thiet
city Table 3 to Table 5.
TABLE 3. The internal factors impacting on the development of tourism potential
Subjects
Factors
Unit
Code Indicator
type
Advantage of diverse marine resources
Many beautiful natural landscapes
Many historical cultural relics, landscapes
Attractive tourism spot
Scale
Scale
Scale
Scale
Scale
0C
I1
I2
I3
I4
I5
I6
I7
I8
I9
+
+
+
+
+
+/-
+
-
Travel
resources
Advantage of geographical location, traffic
Warm climate throughout the year
Serving quality
Natural
condition
Scale
Scale
Scale
Tourism
Tourism products are not plentiful
Tour guide qualifications are poor, not enthusiastic yet
effectiveness
-
Number of accommodation facilities and tourism
services
Facility
I10
I11
I12
I13
I14
I15
+
+
+
+
+
-
Infrastructure
Rate of urban water supply
Tourism advertise is focused
Cheap goods
%
Scale
Scale
Scale
Scale
Scale
Tourism
operation
and
Human attitude
Annoyed by street vendors
development
The habit of indiscriminate littering of Vietnamese
people
I16
I18
-
Linkage among sectors
Scale
+
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Nguyen Hien Than, Nguyen Huynh Anh Tuyet… - Volume 2 - Issue 2-2020, p.202-214.
TABLE 4. The external factors impacting on the tourism development
Subjects
Factors
Unit
Code
Indicator
type
Scale
Tourism competitiveness
E1
E2
+
+
Competition
The number of tourists
Scale
Scale
The interest level of investing in construction of
tourism infrastructure
E4
E5
+
+
Tourism
environment
policy
Scale
Scale
The effectiveness of the Government on tourism
Transportation system to tourist areas and
destinations is invested and upgraded
E6
E7
+
+
Scale
Tourism
Awareness on sustainable tourism development of
the community and businesses
environment
According to Noga Collins-Kreiner and Geoffrey Wall (2007), the aspects of the
tourism potential of Tuy Hoa city was built in related to social, cultural, economic,
infrastructure, political, geographic and environment. The internal subjects of tourism
Tuy Hoa included travel resources, natural condition, tourism effectiveness,
infrastructure and tourism operation and development. The external factors in term of
weakness and threats of Tuy Hoa city were competition, tourism environment policy
and tourism environment. Based on "Results of tourist expenditure survey in the period
2003 - 2015" by General Statistics Office (General Statistics Office, 2017), QSWOT
analysis for tourism development advantages of Tuy Hoa city and neighboring cities
were calculated and the results were shown as follows:
TABLE 5. QSWOT analysis for tourism development advantages of the regions
Tuy
Phan
Nha
Quy
QSWOT Group
Tourism resources
Hue
Da Nang
Hoa Thiet Trang
Nhon
0.31
0.07
0.06
0.08
0.19
0.72
0.04
0.30
0.20
0.35
0.07
0.11
0.10
0.20
0.82
0.08
0.52
0.24
0.39
0.08
0.11
0.14
0.20
0.92
0.12
0.56
0.28
0.27
0.08
0.06
0.08
0.19
0.68
0.07
0.39
0.20
0.31
0.07
0.11
0.13
0.20
0.83
0.10
0.50
0.28
0.33
0.08
0.08
0.12
0.21
0.82
0.12
0.56
0.32
Natural condition
Tourism effectiveness
Infrastructure
Tourism operation and development
Internal evaluating value
Competition
Tourism business policy
Tourism environment
External evaluating value
0.54
-0.08
-0.27
0.84
0.02
0.03
0.96
0.12
0.14
0.66
-0.12
-0.16
0.88
0.03
0.06
1.00
0.02
0.19
Internal evaluating coordinate value
External evaluating coordinate value
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Thu Dau Mot University Journal of Science - Volume 2 - Issue 2-2020
Figure 2. Internal and external evaluating factors in Tuy Hoa city and other cities
The results of the QSWOT analysis showed that Tuy Hoa was advantages of internal
factors comparing to neighboring localities such as Quy Nhon. However, compared to
other localities such as Nha Trang, Phan Thiet, Hue, and Da Nang, the internal factors of
Tuy Hoa was lower scores. Although the internal factors of Tuy Hoa were higher than
Quy Nhon, but he external factors (opportunities and challenges) of Tuy Hoa were lower
than Quy Nhon and other localities. This showed that Tuy Hoa city was the potential of
tourism, but was not grasped and overcome challenges. For more specifically, we could
saw at the point histogram of the evaluating coordinate value (Figure 3).
Figure 3. Distribution of internal and external factors of competitive advantages of
tourism in Tuy Hoa city and surrounding spots
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Nguyen Hien Than, Nguyen Huynh Anh Tuyet… - Volume 2 - Issue 2-2020, p.202-214.
Comparing the internal factors between Tuy Hoa and Quy Nhon, Tuy Hoa was more
profitable in tourism resources than Quy Nhon. Other factors (infrastructure, natural
conditions, tourism effectiveness, tourism activities and development) were not much
different. However, it can be seen that Quy Nhon was better competitiveness and
tourism policies than Tuy Hoa. Thus, developing tourism and exploiting tourism
potentials of Tuy Hoa city needed to promote taking advantage of the capabilities and
make full use of maximum opportunities from the outside as like recommendation from
Keivan Saeb, Razieh Jafari Hajati, and Shiva Rezai (2012). Because of the
neighborhoods of Tuy Hoa such as Nha Trang (very strong competitiveness) and Quy
Nhon (more competitive), Tuy Hoa needed to develop tourism that was unique and
specific.
Figure 4. Compare internal factors of Tuy Hoa city
Figure 5. Compare external factors of Tuy
and Phu Yen
Hoa city and Phu Yen
Tuy Hoa city is located in an area with many advantages of beautiful natural landscapes,
nature, rivers winding around Truong Son mountain range, creating many beautiful
lagoons, bays and pools. Monuments and landscapes are such as Nhan Tower, Da Rang
River, Da Rang Bridge, many pagodas like Ho Son, Hoa Son, Minh Son, Khanh Son,
Bao Tinh, Bao Lam, Kim Cang, Da Ban Tourist Areas, Chop Chai Mountain, Wind
Afternoon Tourism, Tuy Hoa Beach, Ganh Da Dia, Han dam ...Currently, Tuy Hoa has
not exploited all its opportunities and strengths to develop tourism. According to Dijana
Oreski (2012), an effective marketing promotional strategy was the best solution could
have been implemented to plan for tourism development.
4. Conclusion and recommendation
Conclusion: SWOT analysis is very important in the process of tourism development.
In this study, a Quantified SWOT analysis pattern has been achieved. Tuy Hoa's
comparative advantages for tourism development are lower than those of other localities
although Tuy Hoa's tourism resource advantage is very large (higher than Quy Nhon).
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Thu Dau Mot University Journal of Science - Volume 2 - Issue 2-2020
Sea and cultural tourism is one of the strong fields in Tuy Hoa city. The result of the
study indicated that although Tuy Hoa city has a variety of the great potential for
tourism development, it has not exploited and taken advantage of this strength. The
results of QSWOT analysis showed that Tuy Hoa city still has many barriers due to
internal weaknesses and external threat factors of tourism potential. This is the
restriction that the tourism industry of Tuy Hoa city needs to be overcome to increase
the tourism competitiveness with the neighbor regions. In this work, we were quantified
internal and external factors affected to tourism development of Tuy Hoa city but we
did not assess the tourist values of Tuy Hoa city. This was the limits of our study.
Recommendation: Tuy Hoa should promote investment policies to attract tourism
development and needs to focus on developing resort tourist in combination with
cultural tourism. In this study, we were focused on the tourism potential of Tuy Hoa
city, the landscape and exploration value of Tuy Hoa city weren’t mentioned. The
landscape and exploitation value assessment of Tuy Hoa should be conducted in the
future to clarify the quantitative value of the tourism potential in Tuy Hoa city.
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