Ripple effect of tourism dollars in the Sapa communities

Community development and community support is the foundation of the CBT project. What started out as an idea to help get tourists to stay the night in a village has quickly developed into a trickle down effect that economically impacts more than just the homestay operators.

The project helps maintain critical capacity building momentum so that the benefits of increased tourist visitation are distributed widely in the villages and throughout the region.

During our most recent project trip this past August, the CBT team travelled to Tavan for lunch. This village is one of the original villages the CBT Vietnam project worked with from 2002 - 2007. Our host, Ms. Xoi, talked  about the economic impacts our lunch had on the village. 

Each portion of our meal was connected to the village through two or more people. The rippling of our economic activities from the homestay lunch was beneficial to many within the local / regional community. Her are just some of the examples Ms. Xoi highlighted: 

• A Giay woman down the street made the tofu that we ate, while another woman grew the soy beans to produce the tofu in Ta Van as well;
• The rice wine she bought from her sister, who does not own a homestay, but supplies many business owners with traditional rice wine for their guests;
• Another Giay person had butchered the meat we were eating which came from a family that raises pigs. Many of the pigs in the neighbourhood at the product of another family that studs out the male pigs throughout the village to all of the  people who have female pigs which creates an entire animal husbandry industry.
• Ms. Xoi grows most of her own vegetables but whatever she is unable to pick from her garden she purchase in the village at one of the family-owned markets. 

The UNWTO advocates for tourism's connectivity. “As so many different activities and inputs make up the tourism product, which has a large and diversified supply chain, spending by tourists can benefit a wide range of sectors such as agriculture, handicrafts, transport, and other services. Additional rounds of spending by those people whose income is supported by tourism spread the economic benefit further (the multiplier effect)” (STEP.UNWTO.ORG).

Prior to the enhanced development of homestays and community tourism products the guides and tour companies trucked in the food for their guests. Our research suggested that the economic impacts to the community were minimal. Now with increased number homestays and the development of local services, there is an increased need to have things like food markets in town to support the local community. Each time we visit the villages we notice that the the community has found ways to develop the local supply chain to benefit the local community. 

To learn more about the CBT Vietnam project please visit our website.