Local Economic Linkage between Private Enterprises and Local Communities: A Comparative Case Study of Thailand Tourism Business Developments
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Abstract
Today’s sustainable tourism makes optimal use of environmental resources and respects socio-cultural integrity. It also ensures fair and long-term economic benefits to host communities. This study focuses on the economic benefits of tourism to host communities. It examines local strategies, documents the practical experience, and explains how benefits to host communities and linkages with private enterprise have been created. Useful lessons and good practices are identified which can be developed into policies aiming to increase benefits to local communities. This study applied case study strategy using mixed qualitative approach (in-depth interviews, participatory observation, and documentation) to explore 3 businesses with outstanding practices of the economic multiplier effect. They were collaboratively chosen according to the criterion selection. Strategies creating local linkages between host communities and private enterprise for three different types of tourism (health, cultural and business tourism) are discussed. Findings indicate that local alliances, local procurement and use of local labor skills substantially contribute to long-term viable economic development at the community level. Also, developing new business opportunities leads to the improvement of community product and service quality as well as local training and empowerment. Involving local communities demonstrates caring values, reduces business costs, increases employee morale and retention, creates trust and stronger bond, and boosts business visibility. The growth of enterprise profiles will lead to better marketing strategies through an increase of brand awareness, customer loyalty, and stronger business value.
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