Abstract

In Thailand, agriculture still plays an important role in the rural economy but is facing several problems resulting in poverty in rural settings. Tourism can play an important role in improving a rural economy in some areas. This paper proposes employing the tourism micro cluster model to address poverty in a poor village in the northeastern part of Thailand. The study also addressed the theoretical foundation of a tourism micro cluster model for a rural village in Thailand that applies concepts derived from a board literature review. Data were collected through both qualitative and quantitative methods to gain insights about problems and potentials for tourism development in the village. The proposed model is built from analyzed data and in the light of resource-based view, clustering theory, and the Thai King’s sufficiency economy philosophy. The proposed tourism cluster is consisted by four complementary businesses including homestay, marked trekking, adventure trekking, and processed malva nut products. In light of our analysis, it is evident that tourism clustering is feasible in the context of this locality. The studied village has sufficient resources both tangible and intangible resources possible for planned tourism micro cluster development. However, an attempt at cluster development in the studied village would require an intervention to provide technical assistance from concerned parties e.g. local government in the early stage to build capacity building of local people for running businesses independently and sustainably. Although one of the limitations of this study is to focus on only one village, the case study of Kaeng Ruang village can provide contextual insight and meaningful implications for policymakers when considering clustering as a planned destination development strategy.

Highlights

  • Overall economic development in Thailand has been successful in term of economic expansion

  • The role of resource-based view model, clustering theory, and the King of Thailand’s philosophy of sufficient economy are among the contributions to the development of the proposed tourism micro cluster model that will be highlighted in this paper

  • A research team which consisted of four Czech students and one Thai professor went to the selected village and stayed with local families for four weeks to collect data and to a develop tourism micro cluster model

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Summary

Introduction

Overall economic development in Thailand has been successful in term of economic expansion. Annual economic growth averaged 7.6% between 1950s and 2000s when per capita income grew sevenfold. Even though the country had experienced growing inequality, Thailand’s Gini coefficient increased steadily over the same period and is highest among countries in the southeast Asian region. The overall poverty situation in Thailand is declining an enormous number of people still live their lives in poverty line. In the year 2016, 5.8 million Thai people were living below the poverty line as reported by Office of the National Economics and Social Development Board (Thansettakij, 2017). Poverty is mostly concentrated in the rural area in the North, Northeast and the South

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