Presentation on theme: "MAINSTREAMING TOURISM FOR RURAL POVERTY ALLEVIATION:"— Presentation transcript:
1 MAINSTREAMING TOURISM FOR RURAL POVERTY ALLEVIATION: A CASE IN PENARIK, TERENGGANU, MALAYSIAWorld Ecotourism Conference8 – 11 July 2010Kuala Lumpur Convention CentreBy:Norhazliza Abd HalimPhd candidate, University of Tasmania, AustraliaLecturer, Universiti Teknologi Malaysia
2 BACKGROUND“ Tourism can be used way of addressing poverty, not as a panacea but as a useful tool of development and poverty alleviation especially in developing countries ”(Christie, 2002; Jamieson, Goodwin, Edmunds, 2004)Tourism’s potential for being pro-poor lies in four main areas:Tourism is a diverse industry - increases the scope for wide participationThe customer comes to the product - provides considerable opportunities for linkagesTourism is highly dependent upon natural capital - assets of the poorTourism can be more labour intensive - higher proportion of tourism benefits.(Ashley, Roe and Goodwin, 2001)
3 KEY CONCEPTS Who is most affected by Rural Poverty? Those who live in remote areas, have higher child/adult ratios, work in insecure and low-income jobs and belong to ethnic minorities.Most rural poor are smallholder farmers who live in low-fertility regions and are dependent on uncertain rainfall. Their survival depends on subsistence crops, and sometimes on livestock.(IFAD, 2001)Approach to link tourism with poverty alleviationPro Poor Tourism: lead by Overseas Development Institute in late 1990s“tourism that results in increased net benefits for the poor”(Ashley, Roe, & Goodwin, 2001)Sustainable Tourism for Eliminating Poverty (ST~EP): lead by UNWTO, supported by UNCTAD in 2002“…will help to promote socially, economically and ecologically sustainable tourism, aimed at alleviating poverty and bringing jobs to the people…”(UNWTO, 2002)
4 PPT / ST~EP 1 2 3 1999, Pro-poor tourism was put on the agenda … It is not a new kind of tourism product but an approach to tourism which focuses on ‘tilting’ the cake at the micro, meso and macro levels towards the poor rather than expanding the cake.(Sofield, De Lacy, Lipman & Daugherty, 2004)A different way of doing business, not just philanthropy.(Ashley, Nyathi, & Haysom, 2005)Tourism could be pro poorAnd it could be made morepro poorPPT is an approach that canbe applied to any tourism. Itis not a ‘niche`123(Source: Ashley & Harrison, 2006)How tourism can alleviate the rural poverty?(Especially in Malaysia context)
5 The Fact…As many as 75% of the world’s poor live in rural areas (IFAD, 2001:15)Poverty rates remain the highest in the predominantly rural areas of Malaysia % - based on Poverty Line Income (PLI) of RM657 per month (Government of Malaysia, 2006)Top tourism destinations, particularly in developing countries, include national parks, wilderness areas, mountains, lakes, and cultural sites, most of which are generally rural.As the 2nd largest economic contributor to the Malaysian economy, tourism has become the priority tool to energize the rural economy.Pro-poor tourism is still a relatively new phenomenon in Malaysia, although certain elements of pro-poor tourism may be observed in the tourism developments.
6 The Challenge…Pro-poor tourism remains predominantly at the micro level – current interventions cannot deliver impacts at a significant scale – tourism for poverty alleviation should be expanded and applicable in mainstream (mass) tourism.The biggest challenge is to ‘mainstream’ PPT so that it is a business approach across the industry, rather than a niche market.How to mainstreaming poverty alleviation through Tourism?(In the context of Rural Poverty)
7 Why Mainstreaming ?…PPT will contribute little to poverty alleviation unless it is mainstreamed (Roe, 2006)Mainstreaming: ensure that sustainable tourism development is included in wider poverty alleviation programmes.Include poverty alleviation measures within overall strategies for the sustainable development of tourism.PPT should be on a big scale rather than a piecemeal micro enterprise approach like the traditional CBT, where all forms of potential work should be considered in assessing value chain benefits to the poor.
8 Why VCA ?… Value Chain Approach to Pro Poor Tourism To identify:Where the poor participate in the tourism economy and;What opportunities exist for increasing the participation andearnings of the poor, in different parts of the tourism chainValue Chain Approach to Pro Poor Tourism- VCA focuses on the inter-linkages between elements of the value chain,and usually addresses both economic flows and governance issuesbetween levels.Tourism and the local economy – building linkages.Building linkages with the local economy is also known as PPT (www.propoortourism.org.uk), which is about doing business differently as well as communities can benefiting through tourism (Sofield, 2008).Industries related to tourism can grow, become more competitive and contribute to a more dynamic economy.
9 3 Pathways by which Tourism affects different poor people Direct income from employment, Small and informal sector, non-labour income and non-economic livelihood effectsIndirect income from supply chains, from tourism staff spending their wages and other induced effectsDynamic effects on the local and national economy(i.e. human resource development, improved infrastructure ‘spill over’,and tax)(Source: Mann and Mitchell, 2006)Area covered by VCA
10 Increased income of existing poor participants in tourism A change in the operation of the value chain can benefit poor people in 3 different ways:Increased access to the tourism value chain to more poor people, thus creating new entrantsIncreased income of existing poor participants in tourismIncreased non-financial benefits to poor households(Source: After Ashley, Goodwin, McNab, Chaves, Scott, 2006)
11 RESEARCH GOALAimed to clarify how fostering linkages between private sector in tourism and other community activities as pro-poor tourism strategy through tourism value chain analysis and recommend directions to effectively apply tourism as a tool for rural poverty alleviation with the focus on a high-end resort and its linkages with the local community in several traditional fishing villages in Penarik, Terengganu, Malaysia.
12 RESEARCH OBJECTIVESUnderstand the nature of the existing level of knowledge on tourism for poverty alleviation in rural area of Malaysia.Identify the existing linkages (potentials and constraints) between tourism and local economic in Penarik, Terengganu.Analyse the involvement of key stakeholder (roles and interactions) related factors enabling and constraining (potentials and constraints) in application of tourism as a tool for rural poverty alleviation in Penarik, Terengganu.
13 (Roles and Contribution) DATA COLLECTIONTERRAPURI HERITAGEVILLAGE(The high-end resort)PENARIK COMMUNITIES(Local Linkages)KEY STAKEHOLDERS(Roles and Contribution)Local craft, fishermen, farmers,artisans, restaurants, retailoutlets, hawkers, vendors andtraders, local entrepreneurs,local culture and heritageproduct, tourism SMMEsVariables:JobsDirect jobsIndirect jobsIncomeBasic salaries schemeAdd-ons (i.e: training)Working conditionsCareer optionsHousekeepingDining room and KitchenFront DeskSupervisionSecurityPurchase of goodsand servicesFurniture, decorative objectshousekeeping materialsFood and drinksGuidesTransportationSocio-economic conditionOccupations; Education levelIncidence of povertyFinancial ResourcesIncome; Type of earningsSubsidiary / Funding fromInstitutionalTourism Acceptance andexpectation to gain from tourismLinkages with tourismType of productsEarningsBenefitsMinistry of Tourism, TourismPromotion Division, ECER (tourism)Tourism Action Board (State),State Economic Planning Unit,Community leader, etc.RolesGovernment agenciesNGOsUniversitiesTourism IndustryPolicies and GuidelinesPartnershipCapacity buildingFundingMarketing and promotionNetworkingIntegration approach
14 Case Study… MALAYSIA PENARIK TERENGGANU TERENGGANU located at the East Coast of Peninsular MALAYSIAPENARIK – located at the northern of TERENGGANU
15 MALAYSIA at a glance…The number of international tourists to Malaysia in 2008 is 22.0 million, compare to 20.9 million in generating a revenue of RM 49 billion (Tourism Malaysia, 2009)Poverty in Malaysia – 3.6% in 2007 and 7.1% in rural area – poverty alleviation strategies include: macro economic strategies, capacity building, & social equity.
16 TERENGGANUat a glimpse… Rich and well-known with cultural, natural and heritage tourism products.Became ‘tourism hub’ for east coast Malaysia - ECER Master Plan identified tourism development as one of economic drivers, which PPT is central to the role of tourism in revitalising the rural economy and poverty alleviation.Poverty in Terengganu – 10.5% in 2005 (2nd highest in peninsular Malaysia) – mostly in rural area.
17 PENARIK… villages by the sea Has an area of 8,499.4 hectare – traditional fishing villages.Highly sensitive coastline and wetland area encompasses Setiu lagoon – preserves various aquaculture wildlife (turtle, river terrapin, fireflies) and mangrove.
18 PENARIK is poor…Lack of employment and other economic opportunities is a serious problem
19 PENARIK is rich…It is blessed with tourist attractions – agricultural, natural, heritage, and cultural resources that are largely untapped or neglected
20 Major economic activities Profile of the Poor …Total population is 3,423; 97% Malay, 0.26% Chinese, and 0.02% India.No. of poor: 350 (under RM657/ month)Major economic activities85% are fishermenOthers: farmers, and hawkersType of earningMore than 75% are based on daily earningsOthers are based on salaryIncome42% earn just above poverty line (RM657 – RM1,000)10% below poverty line (under RM657)48% earn much above the poverty line (above RM1,000)Education level65% have formal school level (mostly until secondary school)
21 Pro Poor Tourism Product… HomestayExperiencing the way ofvillage lifeEcotourismTraditional performing art- Makyong / MenoraLocal SMEs products- cracker, salted fish, songket etc.
22 Terrapuri Heritage Village… Employ 90% (now 21 staff)from the local communitiesSince the building of the resort.Tourists (arrange by the resort)were taken to experience the way oflocal life – help to boost the CBT productA boutique resort - embraces ‘Terengganu Royal’ spirit - catering high end market segmentsMore than 90% of resort’s suppliesare purchase from the local farmers andfishermen – actively support local products
23 VCA of Terrapuri Heritage Village… The main chain will be assessed – Terrapuri Heritage Village (accomodation)Another 4 sub-chain will be look through, which link with the resort – food and beverage, agriculture, excursionsand handicrafts‘Poor’ defined as unskilled and semi-skilled peopleTOURISTTerrapuri Heritage VillageStaffFoodCultural & HandicraftRestaurantStallsCraft ShopEntertainment & PerformanceSUPPLY CHAINExcursion & TransportLocal GuideLocal TransportAgriculturalFish & MeatManufactured Goods
24 Findings from Pilot Study… Most of the resort’s consumers are dominate by domestic tourist and high-endmainstream holiday package touristsUp to half of earnings of the poor come from food supply chainMost of the local products from the farmers and fishermen supply to the resort –local linkages existThe resort as an example of mainstreaming provides ‘x’ benefits versuscomparison with home-stay (non-mainstreaming) provides ‘y’ benefits – how bothof this can work together.Researcher identified 5 productive chains as holding competitive opportunitiesfor the community to link with the resortFruit and vegetable agriculture,FishingCultural activitiesArtisan productsLocal food
25 Pro Poor Tourism Issues… Both tourism and development policy makers did not fully understand the role of tourism in rural poverty alleviation – PPT not addressed in most formal development plan.Lack of infrastructure, of pro-poor value chains and of leadership (at regional and local level), ability to supply tourists with local products are small.Tourism only been introduced to this research area in late 2003 with the opening of homestay programme (Kg. Rhu10) – a lot of tourism resources yet being neglected or untapped.Difficulty in getting funding at initial stage, lack of capacity building, training, and credit.
26 CONCLUSIONContribution to tourism - Pro-poor tourism has the potential of benefiting the poor, decreasing inequality and mainstream the linkage from a narrow focus on community to all kind of things where communities could benefit through tourism – Need all possible poverty alleviation tools.Relevant to the Malaysian case – Very recently, tourism started to adopt tourism as a tool for reducing poverty – still need a thorough research as a model.Very recently the Malaysian Government has moved to adopt PPT in part for CBET in its eastern provinces of Sabah and Sarawak, and has joined with other BIMP countries to implement a five year strategy for that purpose.