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Purpose

The purpose of this study is to employ social exchange and social representation theories to explain Kinh and Ethnic minorities’ perceptions toward tourism development in Sapa. A cluster analysis is used to segment their perceptions based on tourism impacts.

Design/methodology/approach

The primary data collection involved a survey with local residents in Sapa, Vietnam.

Findings

The results from cluster analysis separate 357 local residents into three clusters which are supporters, pessimists and neutralists. The supportive cluster comprises mainly young, female and less-educated respondents who support tourism development because of their employment and income; however, the pessimistic cluster which mostly consists of highly educated and elder respondents show more concerns about tourism development. Demographic profiles of respondents are classified in each cluster, so that policymakers can put forward specific policy for each ethnic group.

Research limitations/implications

The main limitation of this study is the high rate of incomplete responses in the questionnaires from ethnic minority groups.

Practical implications

Based on the findings of the study, implications are made for tourism planners and policymakers toward a future of more sustainable tourism development in the target context.

Originality/value

To the best of the author’s knowledge, this is the first study to segment the perceptions of Kinh and Ethnic minority groups toward tourism impacts in Sapa, Vietnam.

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