SUSTAINABLE RURAL TOURISM DEVELOPMENT

Sustainable Rural Tourism Development

ABSTRACT 8

Delving into The Pre-Requisites for Involvement in Tourism Business:
Perspective from Rural District of Kiulu, Sabah

Yuzainy Janin
Faculty of Business, Economics and Accountancy

Universiti Malaysia Sabah
Kiulu is one of the two sites in our ongoing project entitled Sustainable Tourism Development for
Poverty Alleviation. The purpose of this presentation is to share our initial findings related to one
of our research questions; What are the opportunities and constraints for the rural poor in rural
destination in Sabah to achieve the aim of poverty alleviation? To do this, the presentation will be
focusing on the pre-requisites - either the ones that need to be put in place in the destination, or
the knowledge and skill need to be possessed by an individual (specifically those fall under the
rural poverty category) to be able participate or involved in any income generating tourism-related
activity in Kiulu. This will offer information towards crafting a compatible assistance or program
towards realization for any poverty alleviation initiative in rural tourism destination such as Kiulu.
The overarching proposition for this presentation is that tourism can be an effective solution for a
rural area to alleviate poverty if it is thread lightly. If not, it will just bring false hope and resentment
or perhaps building hostility of the locals towards tourism.
Keywords: rural, poverty alleviation, tourism, Kiulu, community-based

8

Delving into the pre-requisites for
involvement in tourism business:
Perspective from rural district of Kiulu,

Sabah

Yuzainy Janin
Faculty of Business, Economics and Accountancy

Universiti Malaysia Sabah

Research Project: Sustainable Tourism
Development for Poverty Alleviation

• On-going
• Kiulu, Tuaran and Kadamaian, Kota Belud in Sabah

Kiulu

• 60km from Kota Kinabalu
• 647sq km

• 105 villages
• Population of over 50,000
• Majority being Kadazandusun

related
research
question

Pre-requisites
for involvement

Why Kiulu?

The pre-requisites

Kiulu ticks all the 5A’s of tourism destination
(Dickmans, 1989)

• Attractions
• Activities
• Accessibility
• Accommodations
• Amenities

Attraction/activities in Kiulu Zip Borneo
Tagal
KONDiS POiNT

Homestay/Farmstay Water rafting

Extension of another 2 A’s

Administration Ability

Administration Ministry of Tourism and Culture
(Government) (MOTAC, Federal)
Ministry of Tourism, Culture and
Environment (Sabah)

• Sabah Tourism Board
(sabahruraltourism.com)

Ministry of Rural Development

• Institute for Rural Advancement (INFRA)

Administration Kiulu Tourism Association
(Association) (KITA)
Mukim Ulu Ecotourism
Solutions and Technologies
(MUKEST)

Association

KTA – Kiulu Tourism
Association

In May 2016, Mukim Ulu Ecotourism Solutions and
Technologies (MUKEST) Society was formed, as a building
capacity platform in an effort to improve economy and
livelihood of the villages in Kiulu Farmstay.

Originally covered 3 villages of Kg Mantob, Kg Dumpiring and
Kg Pinagon Baru has now been extended to 13 villages.

Association

MUKEST – Mukim Ulu
Ecotourism Solutions and
Technologies

Ability possession of the means or
skill to do something
talent, skill, or proficiency in a
particular area

Ability Management vs Operation
Ownership
Size
Employee
Education level needed
Position

Ability – MOU (2nd October 2018) among 4 main parties,
Capacity namely UMS (Borneo Tourism Research Centre),
Building Almacrest international College (AIC),
Kadamaian Tourism Association (KATA) and Kiulu
Tourism Association (KTA)
Aims to strengthen the collaboration and
partnership among the higher learning
institutions and tourism associations in
developing competent rural tourism in Sabah
through training and development of rural
tourism operators and local youth participation
in tourism.

Closing remarks

Closing • Five districts in Sabah recorded
remarks the highest poverty, led by Tongod
(extended) (56.6 per cent), Pitas (53.6 per
cent), Kota Marudu (46.1 per
cent), Beluran (45 per cent), and
Telupid (40.7 per cent).

(The Department of Statistics
Malaysia -
https://www.nst.com.my
September 19, 2020)

• Opportunity for Kiulu as a model
for these districts to improve?

Thank You

Sustainable Rural Tourism Development

ABSTRACT 9

A Preliminary Local Value Chain Analysis of Rural Tourism in Sabah:
The Case of Kadamaian Destination

Kamarul Mizal Marzuki
Faculty of Business, Economics and Accountancy

Universiti Malaysia Sabah
[email protected]

Rural tourism, if developed in the right manner, can generate business and employment
opportunities for local communities in rural area. To realise this potential, it is requiring an
understanding of the volume of tourism benefits that reach the local community and ways to
enhance the access of the community to the tourism value chain. The main objective of this paper
is to explore the potential use of Local Tourism Value Chain Analysis (LTVCA) and simulate the
direct and indirect effects of rural tourism value chain to the local economy with special reference
to Kadamaian, Sabah. The research was conducted with quantitative approach and data collected
through structured interview using questionnaire with tourism business operators in the study area.
As data collection still ongoing, the results from the analysis are derived mainly based on data
estimation, assumption, and simulation. At this current stage, the process involved were tourism
business and product inventory, assemble market knowledge, conduct tourism business survey,
value chain mapping, quantify aggregate results, and draw conclusions. The study shows that
rural tourism in Kadamaian has the potential to provide significant benefit to local economic
development although now it still at minimal impact. In addition, the analysis reveals that
recreational activities and accommodation provide more benefits to the local economy. To boost
the benefit of rural tourism in Kadamaian, the tourism businesses need to shift from a product-
based approach to a market-based approach, focus on product differentiation and adopting
innovative pricing strategies. Through the preliminary analysis, it can conclude that LTVCA is the
best approach that can be used to measure the effect of rural tourism on the local economy,
provide implications for practitioners who aim to intervene to boost impacts on the local economy
and indirectly contributing to sustainable rural tourism development. On the other hand, sufficient
and reliable data are essential to provide accurate results when conducting the analysis.

Keywords: value chain analysis, economic assessment, rural tourism, Kadamaian

9

This study is funded by Universiti Malaysia Sabah (UMS) under Niche Grant Scheme
(SDN0017) – ‘Sustainable Tourism Development for Poverty Alleviation’

INTRODUCTION

• Tourism can be an effective means -
socio-economic opportunities for rural
communities and help with increasing
the attractiveness and vitality of rural
areas.

• Creating new opportunities for jobs and
economic activities from rural tourism
requires a holistic approach: TOURISM
VALUE CHAIN and promotes Public-
Private-Community (PPC) partnerships.

• Often tourism’s overall impact on the
economy is estimated by looking at the
effect of tourism expenditures through
direct, indirect and induced spending
using a multiplier effect approach.

• Value chain analysis is a tool that
permits a deeper look into economic
flows and distribution within the
tourism destination - interventions can
be planned in order to improve local
benefits and sustainable development

KADAMAIAN RURAL
TOURISM DESTINATION

• dKaedstainmaatiiaonnsisinamSaobnaght(hKeiuflaust&-gTraomwibnugnraunr)al tourism
• CMcllaeissassnioRlinunre:as‘lsTToboyTurr2ai0snm2sf5oLromcaKtiaodnawmiathiaTnoipnt-colaasWs orld-
• LKoincaabteadluinCiKtyo)ta Belud Districts (80km from Kota
• Kpscareodndaeumrcyat,sialo–ncpoarlfifsceturinslteuarrvaiavlerhireestr,yitwaoagftereurrfaalll-se,choitllosu, rfoisrmests,
• T6–h6KeAorTpeAea)rraeto1r1s1jotionuinrigsmKaodpaemraatiaonrsTionuKraisdmamAsasiaonci(aotinolny
• 6coo3pm%ermatotuounrrsiitsaymn(cdbou1-os%ipnreeursnastebivsyeag)r,oev3oe6pr%nemrbayetenpdtr.ibvyate
• 1o5peorpaetorarsto’ rs are considered as ‘the most active
• KBaadseadmTaoiaunri:stmheArweacirpdie(2n0t 1o9f)thineHAasneoain, VCioemtnmamunity

Understand of how the tourism
1 economic flow operate

2 Describes the size of the tourism
sector

3 Measure impacts of tourism on local
economies in tourist destinations

4 Assess share of tourism expenditure

5 Develops and enhances the tourist
sectors’ growth and competitiveness

• ‘The value chain describes the full
range of activities which are
required to bring a product or
service from conception, through
the different phases of production
..., delivery to final consumers and
final disposal after use.’ (Kaplinksy
and Morris 2002).

• Undertaking VCA in a tourist
destination requires estimating the
value of total tourist expenditure
and disaggregating this into the
different functional areas





• Total visitors = 216,882 Visitor (216,882)
• Local/Domestic = 189,410 (87%) • FIT (90%),
• Foreign = 27,472 (13%) • Packaged Tour (10%)

• Overnight Tourists Transportation • Day trippers
(15%) (85%)

• Tour Operator Government KADAMAIAN • Hire car
Transport • Policy (Rural Tourism • Private Transport
• Infrastructure Destination) • No public transport
• Hire Car • Marketing
• Private Transport TOTAL REVENUE = RM2,570,000

Accommodation Restaurants Local Transport Vendors – Activities (Fee) Facilities/
(25% - (7% - RM179,900.00) (1%-RM25,700.00 handicrafts, snacks (59% - Equipment (6%-
• Food stall • Not provide local (2% -RM51,400.00) RM154,200.00)
RM642,500.00) transport (on • Small grocery RM1,516,300.00) • Rental (Shelter)
• Camping site demand) • Hiking/Tracking • Water-based
• Homestay (PP) • Informal shop • Cultural activity
• Guesthouse transport • Local food equipment
Performance
producer • River recreation
• Survival Camp
• Guided-tour

• Community member • Operators • Petrol (outside • Handicraft producer • Local operators • Local operators
(Co-operative) • Part of homestay Kadamaian – Kota • Local businesses • Local guides • Local workers
Belud (15%), • Local farmers • Dance troupes
• Individual Operators package KK/Tuaran (85%)
(family member, few • Local food producers/
employees) • Local driver
business
• Construction labour • Non-local food &

products

Benefit to Poor People

• High volume: Low Revenue
• Majority of visitors are day trippers (TOURISM or

RECREATION?)
• The business model used by tourism operators strongly

affects their revenue
• More income/revenue generated from entrance fee

(RM3.00/person: 43%) and equipment rental (14%) –
recreational activities
• Lack of pricing strategies – premium pricing/value for
money OR Product-Quality Leadership
• Cultural tours, village visits and dance performances
currently generate a relatively small share of income
from rural tourism.
• Competition among rural tourism operators (similar
products/activities & target market)
• Lack of quality tourism product: packaged tours

• Cpnerroeeaddtueivcdetsta/odniednscitrniennaaostveioavntia.vleueprtiocirnugrastlrtaotuergiisems
• pdBirefeftefteerrerenpntrcioaedtsiuo, cantn, dduenmvdeaelrorkspetmatndedenivntegalnoodpf mtoeunrtist
• SKceeynSeurcyc/eSsesttFinacgt,oArcst(iAvictcye-sFsriibeinlidty/,Family)
• pdtVherCeosAvtlioihndcaaianstligobtaoneneu. nruispidm-etone-tcdiofainetoedmaanysdainnsyaesfstfepemecctiiicvfiepcittcootuourlreiisnmof
• eCsosmenptleiatlet/osupfrfoicdieuncteaangdoaocdcuvaralutee-dcahtaainaraenalysis
• FlimgDtinoenuetautkrevptraoeghipgsrlveoiemaenrptsrgeaabisnntlweilomanKpiltseaypihcufsdltiepiptausp:mrar(ofoe1pla-ro)poptiwacsfovont)roamoual2rurna)paaedsflnleusctartirhoseletytauphsdiiroeninisasrrtammt3aain)nnacabgsapolpeylpplyanlsueistinesicirsafgpt4ilittoro)osusnaerantsol.d

Thank You

Sustainable Rural Tourism Development

ABSTRACT 10
Exploring the Rural Tourist Experience in Sabah: The Perspective of

Millennials

Marry Tracy Anak Pawan
Faculty of Business, Economics and Accountancy

Universiti Malaysia Sabah
The present study explores the rural tourist experience in Sabah which based on the millennial
perspectives. Rural tourism is driven by the unique and memorable experiences in particular
setting, but the knowledge on visitor’s experience in rural destinations is still scarce. Therefore,
by using 4E Economy Experience, tourist experience was analyzed between the context of
entertainment, educational, esthetic and escapist. Based on the result, it shows how well a rural
tourism delivers the various dimensions of the experience economy paradigm (e.g. 4Es,
authenticity). This would be beneficial to determining if suppliers’ characteristics emphasize the
appropriate 4Es in their communication and promotion mix to potential visitors.

10

Exploring the
Rural Tourist
Experience in
Sabah: The
Perspective of
Millennials

Presented by : Marry Tracy Pawan

P ORESENTATION UTLINE

• Introduction
• Methodology
• Result & Discussion
• Conclusion

INTRODUCTION

• Domestic tourism contributes more to a countries
economy than international inbound travel (Jeuring,
2016).

• It facilitates the redistribution of wealth from
capital cities to rural areas by generating
employment and income (Ndivo, Waudo, & Waswa,
2013; Pratt, 2015); while enhancing lifestyles
through investments in commerce and
infrastructure (Quandt, Ferraresi, Kudlawicz,
Martins, & Machado, 2017).

• As Sabah braces for new endeavours, rural tourism
has also advanced silently, turning into a major
economical benefactor for communities, cultures,
and traditions.

SABAH : VISITORS ARRIVAL BY NATIONALITY 2020

WHO IS MILLENNIAL?

• fI2inni0nt1eat9nrhe)ci.ssiatilnriegngfalupredrno, cstepheaecntdMibinlelteecnarneusisatelinsoetrfgamvteehlne(tKirimofgf&reorPswairankng,
• mM22Pth60ooie)1pll,s8eetwn;stkpKinotuuiihuma,rrlclsiihs&t2emaa0rPrs1aeia7ntru;gdiknre,edpCf2iuoain0dswve1teadr9engy)rtn.a”ifasyr((ioAC“nt,hlghčaaetStkhztoaaeiggvfmefeiićoe,agrrgsir,oitPouhau&pev, lfow2uPv0itoit1ućsh7,rtem,thopa&ef.,
• M(lFimliolliretoensdn,iCaclaoin,cMsoehcnoKsreutnsnwoan,it&htihAnejeteahbge,e20bto1ou9ur)ni.sdmarielsiteorfattuhree
• (tG1SaPD2htg9eier0moen8an1sdd5uoee9)esrc),2asrkbagt2aonia–(sor2(ds3nn2tb04t0(e1hYb20t8eye0w0-)et0)ieGwaaf9eorle)eosnarneensenxii1gnnrp9as1wlb8att29aei1iio0tn8nthn2ws1ac0en(eMG)1adeen9dinlan2ld9eese0f9nir10–n1aan902e9ti9a,0id7sol6u0a7sn,M2bn()-d1FW.isall9eloHneh8grdnyo6omnw–s(ei11ae1ne99l9stt98a98n2aao4d–lsf-..

4 E ECONOMY EXPERIENCE

4Es in the Experience Economy (Pine & Gillmmore, 1998)

METHODOLOGY
• Descriptive Study
• Scope – Millennial
• Using Questionnaire
• Convenience Sampling

GENDER Respondent Characteristics

34.1 % AGE GROUP
MALE
65.9 %
FEMALE

ETHNICITY NATIONALITY

Respondent Characteristics OCCUPATION

EDUCATIONAL LEVEL

POSTGRADUATE 11

DEGREE 42.5

CERTIFICATE 28.8

PRIMARY 17.8 50
0 10 20 30 40

RURAL TOURIST PATTERN

How do you know about this How many time have you
place? been to this place?

RURAL TOURIST PATTERN

General length of the trip What is the most common
purpose of travel?

ENTERTAINMENT 4Es ECONOMY EXPERIENCE
AFFECTION

EDUCATIONAL

ESTHETIC ESCAPIST

CONCLUSION

• Research about how well a rural tourism delivers the various dimensions of
the experience economy paradigm (e.g. 4Es, authenticity).

• This would be beneficial to determining if suppliers’ characteristics
emphasize the appropriate 4Es in their communication and promotion mix
to potential visitors.

• For instance, if escapist experiences were found to be important, they
could be highlighted through advertising and website photos, videos, or
narratives that underscore the immersive and participatory nature of
activities offered at recreational or cultural attractions.

• This could communicate to potential visitors the ultimate experience, as
defined by the experience economy model.

List of Participated Organization

1. Prof Datuk Dr Kasim Hj. Md. 29. Saizal Pinjaman
Mansur
30. Tini Maizura Mohtar
2. Jennifer Chan Kim Lian
3. Nghiem Phu Binh 31. Bibianah Thomas
4. Liu Hao
5. Awangku Hassanal Bahar 32. Ms Christiana Jonut

Pengiran Bagul 33. Universiti Malaysia Sabah
6. Therdchai Choibamroong
7. Jocelyn Bantigue 34. Karabiik University Turkey
8. Noor Fzlinda Fabeil
9. Yogendra Kayastha 35. Kadazan Dusun Chamber of
10. Mori Kogid
11. Yan Guo Commerce Industry
12. Yuzainy Janin
13. Kamarul Mizal Marzuki 36. GEC Japan Office
14. Marry Tracy Pawan
15. Oliver Valentine Eboy 37. Rejoice Tours & Travel Service
16. Kong Teck Sieng
17. Andi Tamsang Andi Kele Sdn Bhd
18. Andy Lee Chen Hiung
19. Borhan Abdullah 38. Arellano University
20. Datuk Razali Datu Datuk
39. Universiti Malaysia
Eranza
21. Faizan Hasan Terengganu
22. Fiffy Hanisdah Saikim
23. Izyanti Awang Razli 40. Sabah Forestry Dept.
24. Jainurin Justine
25. Mohd. Nas Hafizee Ag. 41. UiTM Sabah

Abdullah 42. Adamson University
26. Mohammad Adzham Fathy
43. Sabah Tourism Board
Abdul Halim
27. Oscar Dousin 44. Sabah Society
28. Rostika Petrus Boroh
45. Kasetsart University Sriracha

Campus

46. University of Malaya

47. Discovery Tours (Sabah) Sdn.

Bhd

48. Universiti Malaysia Kelantan

49. Socioeco Research and

Consultancy

50. Green Borneo Quest

51. Mt. Kinabalu Bongol Rafflesia

Garden

52. Journey Lab

53. Morahols Travel Langkawi Sdn

Bhd.

12

List of Participated Organization

1. Prof Datuk Dr Kasim Hj. Md. 29. Saizal Pinjaman
Mansur
30. Tini Maizura Mohtar
2. Jennifer Chan Kim Lian
3. Nghiem Phu Binh 31. Bibianah Thomas
4. Liu Hao
5. Awangku Hassanal Bahar 32. Ms Christiana Jonut

Pengiran Bagul 33. Universiti Malaysia Sabah
6. Therdchai Choibamroong
7. Jocelyn Bantigue 34. Karabiik University Turkey
8. Noor Fzlinda Fabeil
9. Yogendra Kayastha 35. Kadazan Dusun Chamber of
10. Mori Kogid
11. Yan Guo Commerce Industry
12. Yuzainy Janin
13. Kamarul Mizal Marzuki 36. GEC Japan Office
14. Marry Tracy Pawan
15. Oliver Valentine Eboy 37. Rejoice Tours & Travel Service
16. Kong Teck Sieng
17. Andi Tamsang Andi Kele Sdn Bhd
18. Andy Lee Chen Hiung
19. Borhan Abdullah 38. Arellano University
20. Datuk Razali Datu Datuk
39. Universiti Malaysia
Eranza
21. Faizan Hasan Terengganu
22. Fiffy Hanisdah Saikim
23. Izyanti Awang Razli 40. Sabah Forestry Dept.
24. Jainurin Justine
25. Mohd. Nas Hafizee Ag. 41. UiTM Sabah

Abdullah 42. Adamson University
26. Mohammad Adzham Fathy
43. Sabah Tourism Board
Abdul Halim
27. Oscar Dousin 44. Sabah Society
28. Rostika Petrus Boroh
45. Kasetsart University Sriracha

Campus

46. University of Malaya

47. Discovery Tours (Sabah) Sdn.

Bhd

48. Universiti Malaysia Kelantan

49. Socioeco Research and

Consultancy

50. Green Borneo Quest

51. Mt. Kinabalu Bongol Rafflesia

Garden

52. Journey Lab

53. Morahols Travel Langkawi Sdn

Bhd.

11

54. NIT, Fukushima College Japan 79. WWF Malaysia

55. DBKK 80. Trig Hill Keningau

56. Sekolah tinggi Ilmu Ekonomi 81. Kampung Tanjung Aru

Sabang Nelayan

57. Sabah Tourist Guides 82. Trash Hero

Association 83. Ubon Ratchathani University

58. LTGA Thailand

59. Guas Nabalu Homestay 84. Chiang Rai Rajhaphat

60. Universiti Putra Malaysia University

61. Borneo Ecotourism Solutions 85. Tambunan Tourist Society

and Technologies Society 86. Land & Survey Department

(BEST Society) 87. Borneo Land Adventures Sdn.

62. BIMP- EAGA Business Bhd.

Council Malaysia 88. Vixtech

63. IDS (Sabah) 89. University of Lampung

64. The Duo Keningau 90. BMP Solutions

65. Pomosuon Piasau Enterprise 91. Walailak University, Thailand

66. Labuan Tour Guides 92. Alliance University, India

Assoociation 93. Chartes in Logistics &

67. Koperasi Pengguna Sabah Transportation Malaysia

Bhd (CILTM)

68. Asian Tourism Institute 94. Pusat Pembangunan

69. Ranau Tourism Association Kemahiran Sabah PPKS

70. PACE A VOI 95. Sabah Backpacker Operator

71. Timberwell Berhad Association

72. Global Environment Centre 96. Society of the Environment

73. Tambunan Tourism 97. MATTA

Association 98. Kampungstay & Homestay

74. Quest International University Malaysia

75. YK Travel & Tar Services Sdn 99. Politeknik METrO Betong

Bhd Sarawak

76. Philippine Association of 100. Horizon Borneo Travel Tours

Campus Student Leaders Sdn. Bhd

77. JTEA 101. Expence Consulting

78. Phuket Rajabhat University 102. Borneo Tourism Institute

12