The Trouble With Tourism

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For a developing country, dealing with increasing tourism can be an extreme challenge.

After exploring Southeast Asia for a few months, we’ve seen this with our own eyes and through our own experience. Already in Malaysia, but especially in Vietnam, we could see what kind of a weight tourism puts on a country’s infrastructure. And it’s not pretty.

During the past ten years, the tourism in Vietnam has grown from 4,25 million to 15,5 million tourists. Generally, increasing tourism is seen as something positive. When more people visit a country, they bring in more money – and they, with their money, create more opportunities.

The Vietnamese have taken advantage of these opportunities. However, from what we’ve seen, the opportunities come with a cost – especially if you don’t know how to benefit from the opportunities in the long run.

Easy Money

As the amount of tourists visiting a country increases, it becomes very attractive to take a job that has to do with tourism. Driving a taxi, running a homestay or other forms of accommodation, organizing trips and courses, running a restaurant… There’s a lot to choose from.

And those who don’t have the money needed for the investments to drive a taxi or run a homestay or a restaurant, can get money from the tourists by selling smaller items such as fans, scarfs or sunglasses; selling fruit or drinks; or posing for a photo together with a foreigner.

The possibilities seem endless and the money easy – and that makes business in tourism so attractive. However, as there are such easy money sources available, it can become too tempting to get a little bit of extra income while you’re already at it.

That’s what we call haggling (or scamming), something that characterizes many of the Southeast Asian countries.

It can be seen as an opportunity – but it really is not. Not, at least, in the long run.

Short-Term Success

Haggling and tricking tourists for money is so attractive because Vietnam as a country has been poor for a very long time. Many of the locals who haggle are living their life on a day-to-day basis because they don’t know what life brings them the next day, if they even live that long. Therefore, what they gain today, they spend today.

That’s why haggling seems like a good idea for the locals – it gives you the possibility to spend more money today than you did yesterday.

Seen that way, it makes sense. However, when you look at haggling from another perspective, you can see that it only brings you short-term success and is actually more harmful in the long run.

The benefit of having fixed prices with your products is that it allows you to take a peek into the future. If you sell ten t-shirts, all for the price of one dollar, you know you’ll have ten dollars when you’ve sold all ten shirts. And if you, in a month, sell one hundred shirts, you’ll have one hundred dollars. In a year, if you sell one hundred shirts every month, you make 1200 dollar – and that allows you to ask yourself the question:

What do you want to do with that money?

But if you have 100 shirts that you end up selling them for 100 different prices – how much money will you have? Can you do anything extra with it? Is is worth saving the money from todays sales if you don’t know how much you will get for your shirts tomorrow?

Haggling only brings you success in the near future. However, if you’re playing the long game, you are not doing a favor for yourself.

Developing Harmful Behavior

The Vietnamese are not in any way stupid – they know that Westerners have money and that for us, their products and services are cheap. We can afford the price they ask even if they’d ask us a bit more. But that’s where things start to go downhill.

In a taxi, the drivers have taxi meters that tick in an incredible speed and that mean you end up paying four or five times more than the actual cost would have been. In a restaurant, there is one menu for tourists with fixed prices and another for Vietnamese without prices. Somewhere else there are sudden extra costs for something or someone comes up claiming there is a parking fee for motorbikes. And if you need to haggle for the product you want, a tourist will certainly pay a higher price than a local.

It almost becomes worth it to play dirty – but how does that affect your personality, your ethics? In the long run, haggling doesn’t make you a good, trustworthy person. When you’ve lied once, it’s easier to lie again. When you’ve successfully tricked someone, your likely to trick again.

Haggling isn’t sustainable – but it’s too tempting to ignore.

The Bad Loop

Although haggling maybe gives the locals the thrill of debating and is part of their culture, it’s actually more harmful than beneficial for the locals.

It’s not a sustainable way of doing business because it doesn’t build for a better future – or for a better personality. However, that is the only way of business the locals know and because they know it, they can also use it to their benefit when it comes to tourists.

Tourism invites the locals to keep up their harmful behavior. It keeps them in the short-term loop instead of helping them to look longer into the future and help them develop better ways of securing their income.

If the locals would give up haggling and tricking and settle for fixed prices, they could end up with more time and energy – two of the resources needed for making more money. But they can’t see that because they’ve learned to see only the opportunities right in front of them – the opportunities growing tourism gives them.

Vietnam has developed into a lower-middle income country, which means that tricking for money shouldn’t be as necessary than it was before. As their GNP is growing and the average income is on the rise, there shouldn’t be a need for haggling and tricking.

However, it takes a long time to change behavior.

And tourism, for sure, is not helping with this.