RETHINKING WELLNESS TOURISM IN VIETNAM ON THE PATH TO SDG 12
CIRCULAR ECONOMY AS KEY DRIVER FOR SUSTAINABLE DEVELOPMENT
INTRODUCTION
Wellness tourism is established as one of the strategic development sectors of the travel industry, according to Vietnam National Administration of Tourism. However, when mentioning wellness tourism, the current focus is often on individual care for tourists, without an emphasis on small and medium businesses and local communities in rural areas of Vietnam, despite them being key stakeholders in the industry. Circular economy principles, including waste minimization and resource efficiency, as well as an overall regenerative economic service design, offer a benchmark for setting up wellness tourism standards in Vietnam. The proposed approach would align Vietnam with achieving Sustainable Development Goal (SDG) 12: Responsible Consumption and Production. The essay will first explain how wellness tourism should adopt a more holistic approach, including more interactive experiences for tourists, and how greater consideration should be given to SMEs in tourism and rural local communities. This is feasible by incorporating circular economy principles. Then it will discuss how wellness tourism should not be reduced to a self-centric service, where circular economy principles can enhance the tourist experience. The essay then argues that these practices can help SMEs sustain their operations. Finally, it argues that CE can help rural communities become more resilient.
Consumer preference for more interactive wellness: a playground for Circular economy
Firstly, wellness tourism in Vietnam should rethink the consumer position for the sector. It is suggested that the public policy attention considers the shift of tourist behaviours towards more immersive, participatory experiences demands. Wellness travelers today want active, meaningful experiences, not just passive relaxation (Smith M., 2021). Many expect wellness tourism to include participation in the sustainability process, not just focusing on personal well-being (Nasim Hekmat et al., 2022).
Hence, the circular economy offers solutions for wellness tourism to adapt to these demands. More concretely, including circular service design can turn the travel experience more interactive with the destination and local community. For example, farm-to-table dining experiences allow visitors to learn about organic food, food waste reduction, and local farming. Eco-friendly spa treatments involve tourists in water conservation and zero-waste wellness practices. These experiences strengthen the connection between wellness of a destination and consumer well-being, ensuring that wellness tourism benefits both tourists and the environment (Prebensen et al., 2013). By adopting circular economy practices, Vietnam’s wellness tourism can offer richer, more meaningful experiences, therefore more solid positioning in the international wellness tourism picture. This approach will directly support SDG 12: Responsible Consumption and Production.
Circular economy: Driver for more effective operations in tourism SMEs
Secondly, circular economy strategies can offer an alternative management model for small and medium enterprises (SMEs) to balance between eco-responsibility and operational efficiency, therefore contributing to Vietnam’s attainment of SDG 12. Since SMEs make up 75% of the total number of operating enterprises in the Vietnamese tourism sector, their resilience should be taken into consideration when it comes to wellness tourism in Vietnam. By improving resource efficiency and minimizing waste at the source, these solutions lower costs and make wellness businesses more environmentally responsible and economically viable (Barros et al., 2021). For example, solar-powered heating reduces electricity bills for spas and wellness retreats, while rainwater harvesting allows spas to reuse water for treatments, cutting water use by up to 50% (Gössling, 2015).
Moreover, shifting to local sourcing and a more closed-loop of service providing helps businesses save on cost, higher added-value and support local farmers (Strippoli et al., 2024). For example, a spa that replaces imported wellness oils with locally made herbal balms can cut costs and attract a higher quantity of eco-conscious customers by leveraging these practices into a strengthened product positioning.
While the results may not be immediately visible, applying circular principles also lowers business expenses (Strippoli et al., 2024). For example, instead of discarding herbal treatments after use, they can upcycle herbal waste into herbal compost. Replacing single-use products with reusable packaging and encouraging customer behaviors in this matter can also reduce costs over time (Ellen MacArthur Foundation, 2017).
Local well-being as crucial part of wellness in tourism: Circular economy as a feasible solution
Thirdly, it is highly recommended that emphasis of wellness tourism should benefit local communities, not just tourists and businesses. While wellness tourism revolves around nature and natural resources, the majority of its destinations are therefore in rural Vietnam. Rural areas in Vietnam are rich in natural landscapes and cultural traditions, offering diverse types of immersive experiences for wellness travellers. However, local rural communities often stay behind in the benefit chain of tourism, meanwhile they will be the most affected by tourist activities, mainly because they are rooted at that travel destination. Circular economy offers a change to this by integrating local communities into wellness tourism supply chains, ensuring that tourism income stays in the community (Lijun et al., 2024). For example, instead of outsourcing wellness products, resorts can buy directly from local herbal medicine producers and farmers, providing stable income and fair economic opportunities.
Circular economy, based on minimizing waste and optimizing resources use, also encourages direct partnerships between wellness tourism SMEs and local artisans, farmers, and wellness practitioners (Bosone et al., 2022). Collaborating with local herbal medicine cooperatives allows wellness resorts to sourcet traditional, authentic products, reducing import dependency while strengthening local economies. By proactively incorporating this approach, Vietnam’s wellness tourism industry can align with SDG 12.
In conclusion, circular economy principles and practices offer a benchmark for setting up wellness tourism standards in Vietnam. It is firstly suggested that wellness should be redefined. Instead of focusing on customers as the main beneficiaries of wellness service, this concept must include the well-being of the local economy and communities. Therefore, circular economy principles offer suitable solutions for this more inclusive approach. Circular strategy and implementation include waste optimization from the source, local and ethical sourcing, energy efficiency. These practices can reduce operational costs while benefiting local communities. Therefore, this specific wellness tourism sector in Vietnam can find a balance between a customer-centric approach and community-centric approach. Hence, wellness tourism can benefit the inclusive ecosystem of stakeholders in the sector. It is recommended that the Vietnamese government should establish more concrete incentives for stakeholders adopting circular economy principles in wellness tourism. Future research should explore potential standards, business models and regulatory frameworks that can support this sector in Vietnam to transit towards a more circular wellness tourism, building pathway to SDG 12 - Responsible production and consumption.
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