Managing Indigenous Minority Groups in the Tourism Industry: An Exploratory Case Study in Southern Laos

Tourism-based employment has been promoted for reducing poverty in the least developed countries (LDCs). However, for employing the poor sustainably, particularly, indigenous minority groups, management has to cope with the socioeconomic disadvantages in these environments. This study aims to explore the challenges and practical strategies for human resource management (HRM) of indigenous minority groups in the tourism sectors of LDCs; specifically, those identified as “best practice” in southern Laos. Semi-structured interviews were conducted with the managing director of the project regarding training, compatibility with family life, benefits and incentives, and leadership and teamwork. A qualitative analysis was applied to the interview data and hypothetical HRM strategies were derived. Then, to examine the validity of these strategies within the project, semi-structured interviews were conducted with a half of the employees. The results suggest significance for the following HRM strategies: a social orientation toward tourism industry hygiene standards; a flexible leave system that allows employees to participate in family events and family-operated farming; and nonfinancial benefits such as food, clothing, and housing. 1 Background and Purpose of Study The need to eradicate poverty in the least developed countries (LDCs) has been recognized by the international community [1]. The role of the tourism industry in reducing poverty in LDCs has been emphasized recently by international organizations such as the United Nations World Tourism Organization [2] and the International Labour Organization [3]. In their policies, the employment of the poor in the tourism industry is considered to be one of the most direct and effective mechanisms to reduce poverty in LDCs [4]. Therefore, the tourism industry can contribute to poverty eradication in LDCs substantially if it can expand sustainable employment of the poor. However, the sustainable employment of the indigenous poor in the tourism industries of LDCs creates unique challenges for employers, which do not arise in economically developed countries. LDCs are mainly agrarian countries and most of the poor are traditional farmers, with little knowledge and few skills useful for the tourism industry. Furthermore, the training and development of tourism industry staff are not well-established, and the poor have limited access to training and educational systems economically, even if infrastructure exists in their country. Therefore, if companies and organizations plan to employ these groups in the tourism industry, then they must adopt HRM strategies that address this unique situation. This study specifically examines the HRM strategies in the tourism industry of the Lao People’s Democratic Republic (Laos). DOI: 10.1051/ C © Owned by the authors, published by EDP Sciences, 2014 /201412010 shsconf , 010 (2014) 12 SHS Web of Conferences 4