Before the COVID-19 pandemic, Vietnam’s tourism industry experienced significant growth, attracting 18 million international visitors in 2019. According to a study by Sopron University (Hungary) on the pandemic’s impact on Vietnamese tourism, this number plummeted to just 0.16 million visitors by 2021 — a 95.8% decrease compared to the previous year. This drastic decline forced numerous tourism enterprises to shut down or shift industries, creating a substantial gap in local livelihoods.
In this context, community-based tourism (CBT) has emerged as a sustainable solution, empowering local communities to organize and directly benefit from tourism activities.
CBT is a model of sustainable tourism that places local communities at the heart of the planning, operation, and benefit-sharing process. This new initiative not only offers travelers an authentic experience of local culture and daily life, but also contributes to socioeconomic development and the preservation of regional identity.
Where Does CBT Begin?
CBT originates from the basis of serving the local population, as they know their land best. They serve as storytellers, chefs, artisans, tour guides, and direct beneficiaries of tourism.
CBT adheres to a core principle: Tourism for the community and by the community. Locals are equipped with essential knowledge and skills, from guiding tours, managing homestays to basic foreign language communication. In this way, they do not simply provide services, but also take ownership of their own cultural products. An effective CBT model typically includes three key pillars:
- Education and Training: Locals are trained in essential tourism skills such as hospitality, food safety, storytelling, and crisis management to enhance professionalism.
- Collaborative Governance: Community tourism councils are formed, comprising both residents and local authorities, to ensure collective decision-making and transparent benefit-sharing.
- Cultural Preservation: Efforts are made to safeguard local customs, festivals, and traditional crafts, not as staged shows for tourists but as living components of community life.
CBT In Duong Lam: Linking Heritage With Contemporary Life
Duong Lam Ancient Village (Hanoi) stands out as a notable CBT model in Vietnam. With over 1,200 years of history, the village is renowned for its laterite houses, communal houses, temples, village wells, and well-preserved folk traditions.
Instead of merely sightseeing and taking photographs, visitors to Duong Lam can live with locals, make traditional rice cakes (bánh tẻ), prepare ancestral offerings, and learn handicrafts such as weaving, soy sauce fermentation, and calligraphy. These immersive experiences not only leave lasting impressions but also facilitate the organic transmission of culture.
CBT in Duong Lam clearly contributes to all three pillars of ESG (Environmental – Social – Governance):
- Environment: Visitor numbers are regulated to avoid over-tourism; ancient houses are restored using traditional materials. Locals and tourists alike engage in waste sorting, community cleanups, and limiting single-use plastics, thereby raising environmental awareness.
- Social: Profits are distributed fairly among households through community agreements. Locals receive tourism training while maintaining authentic lifestyles and cultural integrity, resisting the commercialization of experiences.
- Governance: The community tourism council, comprising both residents and local government representatives, collaboratively develops strategies, sets service prices, preserves heritage, and connects with supporting organizations.
These practices not only safeguard tangible and intangible heritage but also reinforce community spirit and generate localized economic value—a tourism approach that benefits both the present and the future.
How Does CBT Promote Sustainable Development?
According to a survey in a report by Economist Impact, training and skills development programs for local workforces are among the most effective policies to drive economic growth in the tourism sector. Two out of five policymakers surveyed across the U.S., Europe, and the Asia–Pacific region acknowledged the positive impact of such programs on tourism development.
Consequently, by shifting focus and investment toward CBT, communities can make practical contributions to tourism and the broader economy through the following:
- Resource Conservation: CBT promotes small-scale tourism aligned with broader planning efforts to avoid overexploitation of forests, water, and land. Residents become more aware of ecological protection and take initiative in safeguarding their environment.
- Empowerment and Livelihood Creation: CBT grants economic agency to communities. Locals transition from dependency on enterprises to becoming service organizers, tourism content creators, and managers. Income remains within the community, helping to reduce income disparities and strengthen self-reliance.
- Cultural and Human Connection: CBT fosters a reciprocal relationship between travelers and communities. Tourists become learners who respect local cultures, while residents have the opportunity to narrate their stories. This ensures culture evolves organically within the community, rather than being "touristified."
CBT is not only a people-oriented and sustainable tourism trend. It is an integrated development model that generates multidimensional value across economic, social, cultural, and environmental domains. In an era when tourism must embrace responsibility and long-term impact, CBT marks a return to the core essence of travel—deep connections between people, culture, and nature.
The 2025 Vietnam ESG Investor Conference by Raise Partners and Vietnam Innovators Digest is a two-day event, gathering investors and funds, business leaders, Vietnamese and international governments, start-ups, experts, academia, and the media to spark meaningful collaboration and accelerate green and inclusive growth in Vietnam.
When: 8:00 AM - 4:30 PM, 14-15th May 2025
Where: New World Saigon Hotel, 76 Le Lai Street, District 1, Ho Chi Minh City
Event details: find out more HERE
The 2025 Vietnam ESG Investor Conference is made possible with the support of: Australian Department of Foreign Affairs and Trade (Leading Government Partner); Dynam Capital and Ecolean (Program Partner); New World Saigon Hotel (Venue Partner); HSBC Vietnam, S&P Global, DEEP C Industrial Zones, Betrimex, Home Credit (Engagement Partner); Vietcetera (Media Partner); AusCham Vietnam and Dutch Business Association Vietnam (Communications Partner); Green Transition (Technical Partner) and Be (Travel Partner).