Title: FACTORS AFFECTING HOMESTAY BUSINESS PERFORMANCE AND ITS CONTRIBUTION TO HOUSEHOLD INCOME

Authors: Dieu Thai NGUYEN*, Minh Long DO

Abstract: Homestays linked to community-based tourism are becoming an increasingly important livelihood option for ethnic minority households living in the buffer zones of nature conservation areas in northern mountainous Vietnam, including PhuTho Province. This study examines the factors influencing homestay business performance and the extent to which homestay activities contribute to household income, using a linear regression framework and survey data from 150 homestay households. The results show that average monthly visitor volume is the strongest and most consistent determinant of both business performance and the share of household income generated by homestays, whereas greater dependence on the tourism season tends to reduce perceived business performance. The analysis also identifies multicollinearity between room capacity and visitor volume, suggesting that future studies should adopt a more comprehensive measure of business scale. Based on these findings, the paper proposes several policy implications for improving homestay performance and strengthening the sustainability of household livelihoods at selected tourism destinations associated with national parks in PhuTho Province.

Keywords: Homestay; community-based tourism; household livelihoods; household income; PhuTho Province.

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