Tourism Management 33 (2012) 683e691
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Tourism Management
journal homepage: www.elsevier.com/locate/tourman
Ecotourism-related products and activities, and the economic sustainability
of small and medium island chalets
Mastura Jaafar*, Siti Aishah Maideen
School of Housing Building and Planning, Universiti Sains Malaysia, Minden, 11800 Georgetown, Penang, Malaysia
a r t i c l e i n f o
a b s t r a c t
Article history:
Received 13 July 2011
Accepted 19 July 2011
Environment-related products and activities in the tourism industry are popular among visitors to
Malaysia. Such is the case off the coast of East Peninsular Malaysia, where several coral islands offer
various ecotourism activities. The present study examines the products and activities offered in the four
islands and related issues on the economic sustainability of small and medium island chalets (SMICs).
Through the multi-method approach, results show that island hopping and combination tours are the
most popular products. Meanwhile, snorkeling, round-island trips, and diving are the most highlighted
activities. These ecotourism-related activities are mainly due to the attractiveness of the environment,
which has drawn large numbers of tourists to the chalets on these islands. SMICs established their
businesses in the late 1990s on the back of growing confidence in the tourism industry in the 1980s.
Visitors include almost equal numbers of both local and international tourists. SMICs’ product and
activity development are highly correlated with environmental attractions, thus positively contributing
to the economic sustainability of SMICs. The present study proposes that the most appropriate business
model for SMICs would be that of a small local business community operating in the island. This model
would help maintain the sustainability of the island-tourism sector.
Ó 2011 Elsevier Ltd. All rights reserved.
Keywords:
Island tourism
Sustainability
Tourism products and activities
Small and medium island chalet (SMIC)
1. Introduction
Throughout the world, tourism has been acknowledged as a tool
for bringing economic benefits to a country or a specific region
(Eccles, 1995). According to Croes (2006) and Scheyvens and
Mornsen (2008), tourism spurs economic activity by creating jobs
for the community. In countries blessed with natural assets,
ecotourism has become a widely popular industry. The United
Nations (UN) and the World Trade Organization (WTO) have predicted that ecotourism will become the world’s biggest industry in
the future (Kaur, 2006).
Since the 1990s, the Malaysian government has given much
attention to the development of marine ecotourism in the country.
Vasanth (2005) claims that ecotourism currently contributes 10% of
the country’s tourism revenue. The classification of Tioman Island
as among the 10 most beautiful islands in the world has drawn an
influx of tourists to these islands, Redang Island, too, has been
recognized as the largest and most beautiful island in East Peninsular Malaysia (Tahir, 2008).
In Malaysia, marine parks have been established primarily for
conservation purposes and to conduct research on the rich
* Corresponding author. Tel.: þ60 4 6533888x2827; fax: þ60 4 6576523.
E-mail address: [email protected] (M. Jaafar).
0261-5177/$ e see front matter Ó 2011 Elsevier Ltd. All rights reserved.
doi:10.1016/j.tourman.2011.07.011
biodiversity in these water resources (Kaur, 2006). However, the
growing business of tourism has led to extensive public use of these
parks, and today, marine parks are compelled to maintain an
uneasy balance between conservation and tourism activities. East
Peninsular Malaysia was chosen as a study area because four
islands there constitute two marine parks: (1) the Redang Island
Marine Park, which comprises Redang Island, Kapas Island, Perhentian Besar, and Kecil; and (2) the Tioman Island Marine Park,
which includes Tioman Island (Ministry of Agriculture, Forestry and
Fisheries, Fisheries Act of 1985, Part IXeSec. 41e45).
Interestingly, these four islands face the South China Sea, which
exposes the islands to the monsoon season from November to
March. Strong and big waves and heavy downpours have been
known to restrict ferry services to and from the mainland. As such,
SMICs cannot operate all-year round. Previous studies have cited
a similar scenario in Northern Cyprus, where tourism’s seasonal
operations have led to low occupancy rates, transportation difficulties, and high prices (Akis & Warner, 1994; Altinay, 2000;
Lockhart, 1994), thus affecting the sustainability of the business
in the area.
Island tourism is highly dependent on the local environment.
Providing tourists with products that offer them a real feeling of the
local environment is necessary for tourism to succeed (Eccles, 1995).
Consequently, it is vital to look into the wise use of the destination’s
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M. Jaafar, S.A. Maideen / Tourism Management 33 (2012) 683e691
cultural and natural resources, which will attract tourists and ensure
the industry’s long-term profitability (Smith, 1994).
The sustainability of island-product development has been
a concern of researchers since the 1990s (Eccles, 1995). Islands are
integral to the earth’s biodiversity, as their distinct environmental
conditions offer a haven for a variety of threatened species of plants
and wildlife (Mueller-Dombois & Fosberg, 1998). Island tourism
could be defined as tourism that happens within the boundaries of
an island. To be sustainable, tourism-product development must
meet the customers’ needs. Thus, harmonization between the
product and the environment is a necessary condition to ensure the
economic sustainability of both the public and private sectors
(Eccles, 1995). However, in contrast with marketing, the issues on
product development have been given less attention (Smith, 1994)
even as marketing and product development are highly
interrelated.
Rushing the development of island tourism with little or no
consideration for the product’s life cycle or the environment could
lead to inappropriate tourism development (Eccles, 1995). This
would pave the way for adverse environmental and social impacts
on islands (MacDonald & Jolliffe, 2003). Kaur (2006) observed that
when demand rises, more development would be implemented,
causing extensive damage to the environment. The more popular
the destination, the less control there will be over development
activities. Previous studies on tourism have been very much concerned with the sustainable development from marketing viewpoints, for example those of Eccles (1995) and Jamrozy (2007).
Other researchers have also acknowledged that environmental
sustainability impinges on business sustainability (Buckley, 1996;
Deng & Burnett, 2002). However, the knowledge on tourism
sustainability is, to a certain extent, also limited. For example,
according to Alonso and Ogle (2010), there appears to be a lack of
agreement in identifying the current effects of tourism and hospitality operations on the environment, such as on the local
community. The discussion implies that even as the literature on
environment sustainability is rich, it has yet to explore product
development and economic sustainability among small and
medium enterprises.
To contribute to the growing body of knowledge on sustainable
tourism, it would be useful to explore the ecotourism-related
products and activities offered by SMICs in East Peninsular
Malaysia. Thus far, very limited studies have been done in relation
to the tourism islands in Malaysia, especially on their products and
activities. Exploring the ecotourism products and activities in
relation to small and medium businesses can contribute new
knowledge to tourism research. Moreover, by understanding
SMICs’ business operations, the present study hopes to provide
insights into the economic sustainability of SMICs, particularly
those in Malaysia. Despite the small population involved in the
current study, a combination of quantitative and qualitative
methods can provide meaningful data to ensure some level of
correlation between the variables.
The present study inquires into the importance of the environment, and the tourism-related products and activities in relation to
the economic sustainability of SMICs. It examines these dimensions
among the operators of SMICs of the island-tourism sector by
asking the following questions:
1. What are the ecotourism-related products and activities
offered in these islands, and how do they differ across islands?
2. How does local tourism development explain the establishment of SMICs?
3. What is the SMIC’s customer profile?
4. What are the perceptions of SMIC operators on their business
sustainability?
Knowledge gained from the present study will explain the
unique attractions existing in these four islands. Aside from
providing knowledge, the findings may raise awareness among all
stakeholders and policy makers so that they may more seriously
consider environment conservation and its effects on the economic
sustainability of local business communities. The rest of the present
study is organized as follows. Section 2 presents a review of the
literature. Section 3 outlines the physical attributes of the islands in
East Peninsular Malaysia. Section 4 describes the methodology
used in the present study, whereas Section 5 analyzes the data.
Section 6 discusses the findings, and Section 7 concludes and
makes recommendations.
2. Literature review
2.1. Sustainable tourism
The WTO (1998) has defined sustainable tourism as “tourism
which leads to management of all resources in such a way that
economic, social, and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, and biological
diversity and life support systems.” It also describes the development
of sustainable tourism as a process that meets the needs of present
tourists and host communities while protecting and enhancing the
requirements of the future generation. Butler (1993) has described
sustainable tourism as a community-based activity that embraces
long-term planning and the protection of natural and human
resources, being manageable in scale in relation to destinations,
promoting optimal economic growth, and reflecting an ethical
treatment of the environment.
In integrating aspects of sustainable development and sustainable tourism, the literature suggests the adoption of balance
between traditional financial goals and environmental-social
objectives (Stephen, Burgress, & Nickerson, 1998). The three main
principles that can serve as focus are economic growth, environment protection, and social progress. According to Vagasi (2004),
sustainability in the company level should include the following:
1. Principle of Environment: Integration of environmental
objectives and actions into strategies, and the implementation
of “environmental management;”
2. Principle of Society: Integration of stakeholders’ interest and
implementation of stakeholder management; and
3. Principle of Economy: Defining financial goals and performance in harmony with environmental objectives.
Sanchez and Jaranillo-Hurtado (2010) claimed that the
sustainable development model is the most feasible for ecotourism.
The variations of biodiversity offer visitors a chance to enjoy the
attractions besides offering rewards that benefit the local
communities. These stakeholders do not only benefit economically;
their role as conservation agents for the protection of the environment is highlighted as well. This mutual benefit sees the
concept of economic sustainability as vital in enhancing the business’s long-term economic goals and its concern for the environment. In reality, however, every development’s facilities and
infrastructure gradually erode the environmental resources on
which the business depends.
2.2. Tourism-product development
The environment has been a main concern of island tourism.
Previous researchers have proposed different concepts of “tourism
product.” Medlik and Middleton (1973) used the term “tourism
products” to refer to a bundle of activities, services, and benefits
M. Jaafar, S.A. Maideen / Tourism Management 33 (2012) 683e691
related to tourism. Kotler (1984), from a marketing viewpoint,
related tourism products with services, persons, places, organizations, and ideas. Lewis and Chambers (1989) proposed tourism
product as “goods, environment, and services” (p. 36). Smith (1994)
claimed Gunn (1998) was the first to provide a clear definition of
tourism products, referring to the key components of the demand
angle, and covering the relationship of different components like
attractiveness, promotion, information, transport, and service. In
relation to the work by Gunn (1998), Smith (1994) proposed five
elements of tourism products, namely, physical plant, service,
hospitality, freedom of choice, and involvement. These components
have different levels of importance depending on the specific type
of product. The product’s success in meeting the needs of tourists is
determined by synergic interactions among all the components.
Smith (1994) viewed each component as follows:
1. Physical plant is a site, a natural resource, or facility, such as
waterfalls; physical environment includes weather and infrastructure design.
2. Services add value to the physical plant.
3. Hospitality is a kind of “enhanced services” or “something
extra” that can be offered to the customers. It relates to the
attitude or style with which the task is performed.
4. Freedom of choice refers to the traveler’s need for an acceptable
range of options to make the experience satisfactory. It varies
depending on the purpose of travel and how they choose to
travel.
5. Involvement is participation by consumers and a combination
of the four previous components.
Some tourists may perceive remote, hard-to-reach rural areas as
having certain qualities in terms of their natural beauty, quaintness,
and otherness (Brown & Hall, 1999). Galloway (2002) identifies two
types of motivational factors of tourism, known as push and pull
factors (Goossens, 2000). In relation to the model proposed by
Smith (1994), a push factor can be related to freedom of choice
where it is associated with demographic attributes and psychological variables, such as need and personal values. Pull factors can
be associated with the three components, that is, physical plant,
service, or hospitality, which are external to individuals and are
elicited by the destination. He also argues that image formation
created by the pull factors (a combination of tangible and intangible
factors) will determine the involvement, that is, the last component, which can be referred to as a process of choosing a place to
stay (Bigne, Sanchez, & San, 2001).
Dann (1981) states that ample research has been done on the pull
factors, that is, the place attractions. For example, Thornton, Shaw,
and Williams (1997), Yamamoto and Grill (1999), and McGehee,
Loker-Murphy, and Uysal (1996) have offered a list of some products and activities that can be maximized in tourism, which generally
relate with heritage and culture, recreation, comfort and relaxation,
outdoor resources, resort enclave, budgetary environs, natural and
urban settings, resorts, sports, and food and beverage. Eraqi (2006),
for example, maintains that tourism products are even more diverse,
as they may consist of natural and cultural resources, tourist facilities,
communications infrastructure, accommodation, and restaurants.
Generally, researchers agree on the combination of local tourism
resources and services that determine the images of “tourism type” in
every destination (i.e., coastal or mountain tourism, sports or religious tourism, thermal or gastronomic tourism, and business
tourism), which influence the choice of the customer.
The local-environment attraction of these rural places, that is,
the pull factors, has led to the existence of many new small firms
(Irvine & Anderson, 2004), such that the development of rural
places is highly dependent on small tourist firms. The viability of
685
small businesses may depend on their ability to identify and
respond to trends and opportunities shaped by the external environment (Smallbone, North, & Kalantaridis, 1999). Some of the
challenges to the sustainability of small rural firms engaged in
tourism are the low quality of the marine environment, seasonality,
and low occupancy rates. In Malaysia, there has been growing
concern about the impact of tourism on marine parks brought
about by overcrowding, environmental degradation, and coral
bleaching. Businesses will normally pursue their own strategy
toward product differentiation, which could lead to competitive
advantage. Explored below are the types of tourism products and
activities based on previous literature.
2.3. Island hopping
Island hopping is a term that has several definitions, depending
on its application in specific fields. Typically, the term refers to
a series of short journeys between islands. Island hopping has been
associated with tourism in island or coastal areas. Today, attracting
tourists to island destinations has become more competitive, and
this has led to the development of a variety of tourism products and
activities using the naturally existing attractions of “sun, sea, and
sand.” Simply put, the natural resources have become the main
attraction in island hopping, which are capitalized on by local boat
operators to create recreational activities for the tourists (Mohd Nor
& Mohd Shariff, 2006). Mohd Nor and Mohd Shariff (2006) further
offer two reasons for this emerging trend. First, tourists have
changed their preferences (i.e., from the plain holiday approach to
one that is more adventurous, responsible, or environmentally
driven). Second, an island is almost homogeneous in nature, such as
in the setting of beaches, and thus can offer multiple activities at
the same time.
2.4. Ecotourism
In Malaysia, ecotourism is defined as “travel and visitation that is
environmentally responsible to relatively undisturbed natural areas in
order to enjoy and appreciate nature (including any accompanying
cultural features, both past and present), promotes conservation, has
low visitor impact and provides for beneficially active socio-economic
involvement of local populations” (The National Ecotourism Plan,
1997). In relation to marine parks, Mike (1999) has defined the
concept as “ecotourism that takes place in coastal and marine
setting.” Schillinger (1995) describes ecotourism as something old
but otherwise rebrandedda 19th-century expensive travel of the
wealthy and sophisticated applied in a modern-day setting. In other
studies, ecotourism is touted as “nature tourism,” “green travel,”
“socially responsible tourism,” or “ecoventures.” Tour operators and
government agencies throughout the world have used these terms
successfully to attract a growing population of travelers concerned
with the environment (Schillinger, 1995). As for Malaysia, Kaur
(2006) has argued that ecotourism is exceptionally important, as
it testifies that the country is blessed with “breathtaking islands
along with white, sandy beaches and clear waters.”
2.5. Family holidays
Family holidays are no longer a new activity (Ahmad, 2002a,
2002b; Ahmad & Hadi, 2006; Butcher, 1979). Tourism activities
ranging from the simple (e.g., the typical family visits to a village/
kin/acquaintance or picnics by the seashore) to the elaborate (e.g.,
family holidays and expeditions) now comprise the list of family
holiday-certified activities by the International Tourism Nation.
Family holiday is rendered outside the working hours, and from the
perspective of tourism, is filled with many activities incorporating
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M. Jaafar, S.A. Maideen / Tourism Management 33 (2012) 683e691
various motives and the participation of some, if not all, of the
family members (Ahmad, 2002a).
2.6. Combination tours
Combination tours and package tours have similar definitions.
Beaver (2005) defines a package tour as “a prearranged combination
of not fewer than two of the following tourism services when sold or
offered for sale at an inclusive price and when the service covers
a period of more than 24 hours, or includes overnight accommodation,
transport, other tourism services not ancillary to transport or
accommodation and accounting for a significant proportion of the
package tour.” Holloway (1989) describes combination tours as
packages purchased from tour operators in separate elements (i.e.,
transport, accommodation, and other services) combined into
a package. Although package tours involve the extensive combination of prearranged services, they are, at the same time,
a complex and vulnerable service product; it is intangible and
highly perishable (Gabbott & Hogg, 1998).
2.7. Round-island activity
Round-island activity refers to island trips that expose tourists
to various attractions and historic landmarks in an island. Resort
operators usually take tourists on a boat ride. Normally, the journey
takes anywhere from one to three hours, depending on the number
of places that need to be visited.
3. Island in east peninsular Malaysia
This section provides the physical descriptions of the research
area, namely Kapas, Redang, Perhentian, and Tioman Islands.
In terms of location, Kapas Island is nearest to the mainland,
only about 30 min by slow boat or 10 min by fast boat from the
jetty. Kapas Island is known for its “small island with beautiful,
quiet, unspoiled sandy beaches, cool and clear blue waters, swaying
coconut trees, and caves with swallows’ nests.” The coast of Kapas
is also home to a diverse marine life (e.g., as fish, turtles, and corals).
The place is popular for swimming, snorkeling, diving, wind
surfing, kayaking, and boating. A World War II shipwreck located
five nautical miles offshore is the main attraction for the divers.
Squid-fishing activities are available from May to August.
Redang Island is undoubtedly one of Malaysia’s most wellknown islands. It has been delineated as a marine park, and is
considered one of the best marine parks in Malaysia. Its coast is
home to a wide variety of marine life (e.g., fish, turtles, and corals),
making the place a popular diving destination. In fact, its diverse
coral species is among the best in the world. A few shipwreck sites
in the island have been visited by divers. Besides diving, other
popular activities include swimming, snorkeling, fishing, and
boating. Many resorts on the island offer full packages, including
land and sea transfers, accommodation, full board meals, and other
activities. Simple room packages are made available to tourists.
Perhentian Island is situated about 21 km off the coast of Terengganu and comprises two islands, Perhentian Besar and Perhentian Kecil. Surrounded by a tropical rainforest and renowned
beaches, this island is often visited by nature lovers. Perhentian is
also an ideal destination for swimming, wind surfing, deep sea
fishing, sailing, boating, and canoeing. It boasts a wide range of
marine life (e.g., naturally formed coral gardens, turtles, reef sharks,
and various kinds of fish). Tourists can participate in activities like
dolphin and whale shark viewing.
Renowned for its exotic flora and fauna, Tioman Island is
internationally hailed as one of the most beautiful islands in the
world. Tourists can explore its “big, blue garden of beautiful corals,
teeming with rainbow-colored tropical fishes, and sail the waves.”
Apart from its coastal resources, Tioman is backdropped by verdant
mountains. Some of the popular activities in the island are snorkeling, scuba diving, and jungle trekking. The major transportation
is by boat, and each village has at least one boat-service provider
that offers trips to various recreational spots in the island.
4. Methodology
The quantitative and qualitative methods were used in the
present study, as almost all data-collection methods have some
biases. Collecting data through the multi-method approach and
from multiple sources lends breadth and rigor to the present study.
A similar design (i.e., multi-method approach) was used by Reijonen
(2008) for data collection in North Karelia, Eastern Finland.
4.1. Sample
The research covered SMIC operators from the four islands in
East Peninsular Malaysia, namely, Perhentian (i.e., the two islands),
Redang, Kapas, and Tioman Islands. A list of chalets was gathered
from various sources, such as the Internet, the Malaysia Travel Guide
Book published by the Ministry of Tourism Malaysia (2009), and
through field research. The respondents were owner-managers
actively involved in their respective firms. Results from our
Internet search showed that there are 13 chalets/resorts in the 4
islands, 31 chalets/resorts according to the Malaysia Travel Guide
Book, and 8 new resorts based on our field research. The list of
chalets and resorts from the three sources was checked for duplications. Of the 52 chalets/resorts, only 38 representatives gave their
responses; of this number, only 33 questionnaires were useable,
representing a 73.1% response rate. Specifically, there were 11
respondents from Perhentian Island (i.e., 9 from the big island and 2
from the small island); 4 each from Redang and Kapas Islands; and
14 from Tioman Island.
To allow further conceptualization, the present study conducted
follow-up interviews with a selection of six respondents. For the
qualitative method, we identified respondents who could provide
for the most appropriate information (e.g., owner-managers) on our
research. A sampling frame was developed to provide six case
studies fitting the criteria of the subsectors identified in the quantitative analysis. A researcher was instructed to ask the respondents
if they were willing to participate in the study. Six respondents were
approached, but only five were available for interview. In-depth
interviews were organized according to the available time of the
respondents to avoid major disruptions. The duration of the interview was limited to 30e45 min. All interviews were recorded and
subsequently transcribed. Given that the purpose of questionnaire
was to provide the answer to “what,” the in-depth interview sought
to elicit explanations (or answer “why”). Through the conversations,
the research team explored the variables listed in the questionnaire.
4.2. Questions
The questionnaire contains several parts. The questions in Part A
sought to establish the profile of the premises: when they started
and the number and type of rooms they offered. The questions in
Part B were on the tourist attractions in terms of tourism products
and activities. The questions were designed based on Mike (1999),
Mohd Nor and Mohd Shariff (2006), Beaver (2005), and Vasanth
(2005). To ensure the high reliability of the questions, some of
the products and activities included in the questionnaires were
lifted from the SMIC’s Web site. The range used was a 3-Likert scale,
with 1 ¼ most unpopular to 3 ¼ most popular. The last part of the
questionnaire sought to create a profile of the tourists visiting the
M. Jaafar, S.A. Maideen / Tourism Management 33 (2012) 683e691
SMICs. Among the questions were tourist category, and the purpose
and duration of visit. These questions could provide information in
relation to the sustainability of the SMICs. The interviews thus
captured a picture of business sustainability.
4.3. Pilot study
To boost validity and reliability, the present study conducted
a pilot survey to pre-test the questionnaire. The pilot study was
carried out before the questionnaires were distributed to the
respondents. Six respondents were selected for the pilot test, which
was conducted among the owner-managers who had been extensively involved in the tourism industry. Feedback from the pilot
study was carefully scrutinized, and necessary changes were made
on the questionnaires.
The present study acknowledges that the number of SMICs was
very limited in each island. However, the high response rate has
provided enough data to arrive at broad generalizations on these
four islands. Given the areas’ peculiar environments, the findings in
the present study should be treated with caution.
5. Data analysis
The most popular tourism product is island hopping (mean
rank ¼ 3.55), followed by combination tours (mean rank ¼ 3.21)
and shopping centers (mean rank ¼ 3.11) (Table 1). A few interviewees acknowledged the importance of the tourism product
associated with the chosen destination. As an interviewee from
Tioman said, “Foreign tourists know much about Tioman Island.
Tioman is one of the best islands in the world, but among local tourists,
they only see Tioman as a duty-free centre for shopping.”
The most popular tourism activity is snorkeling (mean
rank ¼ 15), followed by island tour (mean rank ¼ 13.47), barbecue
parties (mean rank ¼ 13.27), diving (mean rank ¼ 11.61), and
fishing trips (mean rank ¼ 11.03). An interviewee from Perhentian
said, “In our island, the main purpose of people is only to swim, dive,
and snorkel.”
Table 1
Tourist attraction in terms of products and activities offered.
Producta
Mean rank
Rank
Island hopping
Combination tour
Shopping center
Family trip
Ecotourism
3.55
3.21
3.11
2.67
2.47
1
2
3
4
5
Activitiesb
Mean rank
Rank
Snorkeling
Island tour
Barbecue parties
Diving
Fishing trip
Canoe
Beach volleyball
Turtle trip
Jungle trekking
Karaoke
Banana boat ride
Spa and massage
Board games
Gym room
Archery
American pool
Surfing
15
13.47
13.27
11.61
11.03
10.17
10.03
9.2
8.83
7.08
7
6.85
6.08
6.06
5.82
5.79
5.73
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
a
b
Non-parametric test: chi-square 15.588; asymp. sig. 0.004.
Non-parametric test: chi-square 272.050; asymp. sig. 0.000.
687
Table 2 lists the results of the one-way ANOVA, comparing the
differences of the products and activities available in the four
islands. The data distribution are normal, and there are heterogeneous variances across the subgroups. For tourism products,
a strong significant difference was found for shopping centers
(p < 0.01), whereas island hoping and family vacations showed
lesser significance (p < 0.05). Tioman is well known for its shopping
activities (mean ¼ 2.86); meanwhile, island hopping is a popular
tourism product for Kapas and Tioman (mean ¼ 2.25 and 2.36,
respectively). In terms of activities, island tour, turtle trip, archery,
and surfing appear to be the most popular activities (p < 0.01);
canoeing and use of the American pool were significant at p < 0.05.
In relation to the unique attractiveness of each island, Table 3
lists the background of the SMICs operating on the island.
Majority of the chalet operations existed during the period
1976e1986 (36.4%), followed by 1987e1997 (33.3%). The list further
suggests that 24.2% of the chalets continued their operations after
the economic recession (i.e., in 1997e1998). However, few of the
premises only started their operations not long after their actual
establishment. For example, 27.3%, 36.4%, and 30.3% started their
operations in 1976e1986, 1987e1997, and 1998e2008, respectively, indicating a gap in the date of establishment and the year of
start of operations. In the interview, many owner-managers
explained that their business operations were postponed temporarily, as chalets had to undergo construction, were under renovation, or were being upgraded. In terms of size categorization,
based on the number of rooms, 87.9% of the total were operated as
small-sized chalets (0e50 rooms), whereas only 12.1% were
medium-sized (more than 50 rooms). Most of the SMIC operatorrespondents relayed that they operated as small businesses,
either as personally owned or through family business operations.
Results from the interview show that most chalets operate as smallsized businesses with less than 10 employees.
Rooms are categorized into two, with air conditioning and
without air conditioning. In the study sites, majority of the rooms
Table 2
One-way ANOVA on products and activities of the four islands.
Product
Pulau
Kapas
(mean)
Pulau
Redang
(mean)
Pulau
Perhentian
(mean)
Pulau
Tioman
(mean)
F
Island hopping
Combination tour
Ecotourism
Family trip
Shopping center
2.25
2.50
1.25
2.25
0.50
0.50
1.00
0.50
0.75
0.50
1.27
1.82
0.91
1.09
0.45
2.36
1.00
0.50
0.36
2.86
3.058*
1.753
0.717
3.055*
35.586**
Activities
Pulau
Kapas
(Mean)
Pulau
Redang
(mean)
Pulau
Perhentian
(mean)
Pulau
Tioman
(mean)
F value
Fishing
Snorkeling
Banana boat ride
Jungle trekking
Spa and massage
Barbecue parties
Karaoke
Beach volleyball
Diving
Canoe
Surfing
Archery
Board games
American pool
Gym room
Turtle trip
Island tour
2.00
3.00
1.00
1.75
1.00
3.00
1.25
2.00
2.25
2.50
0.75
1.00
0.50
0.75
0.50
2.75
2.75
0.50
3.00
1.00
0.50
0.50
1.25
0.50
2.00
3.00
2.25
0.25
0.25
0.50
2.50
2.50
0.75
0.75
1.73
3.00
0.91
1.10
0.91
2.09
0.45
1.10
2.18
1.55
0.27
0.27
0.27
0.27
0.62
2.00
2.64
2.00
2.79
0.00
1.07
0.00
2.64
0.64
1.14
1.21
0.64
0.00
0.00
0.21
0.00
0.00
0.14
2.71
2.283
0.428
2.822
0.767
2.794
2.832
0.593
0.977
2.433
3.528*
4.813**
6.133**
0.286
3.119*
2.102
10.929**
5.155**
Level of significance: **significant at 0.01; *significant at 0.05.
688
M. Jaafar, S.A. Maideen / Tourism Management 33 (2012) 683e691
Table 3
Operations of island chalets.
Description
Criteria
Frequency Percentage (%)
Year the facility was established
Before 1975
1976e1986
1987e1997
1998e2008
2
12
11
8
6.1
36.4
33.3
24.2
Year the facility started to operate Before 1975
1976e1986
1987e1997
1998e2008
2
9
12
10
6.1
27.3
36.4
30.3
0e50 Rooms
29
51e100 Rooms 4
87.9
12.1
Total rooms in the facility
were equipped with air conditioning. The most popular types of
rooms were “double deluxe,” followed by “triple,” “single,” and
“quad” (or “family).” Room prices varied. Most of the interviewees
said that they would offer rooms without specific packages. Based
on the interviews, the respondents agreed that tourist preferences
vary. Foreign tourists normally prefer the “rooms only” package, as
opposed to local tourists who typically opt for the offered packages.
The most popular among local tourists is the “3 days, 2 nights”
package. According to one respondent, “Foreign tourists dislike being
tied to the activities offered by the packages and prefer to spend time in
their own way, whereas local tourists like to fill all available time with
plenty of activities.”
Table 4 presents the tourist segment profile in response to the
products and activities offered by SMICs. A high percentage of the
respondents (87.9%) claim that tourists visit the area for family
vacation. They said only a handful visited the islands for business
and seminars. The main purpose of the visit is to fulfill short-term
Table 4
Tourist profile as perceived by respondents.
Description
Criteria
Frequency
Percentage
(%)
Tourist category
Businesspeople
Seminar participants
School trip
Teenagers
Family vacation
Others
8
8
17
19
29
18
24.2
24.2
51.5
57.6
87.9
54.5
Purpose of the visit
Long-term vacation
Short-term vacation
Day trips
Visit friends and relatives
Business travel
Others
26
32
9
3
5
2
78.8
97.0
27.3
9.1
15.2
6.1
Percentage of local
and foreign tourists
Local vs. foreigner
Low (0e33.3%)
Middle (33.4e66.8%)
High (66.9e100%)
14
8
11
42.4
24.2
33.3
Mean
3.28
3.54
2.68
1.84
2.20
2.78
2.37
SD
0.96
0.72
0.83
0.82
0.84
1.11
1.14
Percentage of tourists
staying at the facility
Public holiday
School holiday
Weekend
Normal day
Rainy season
Celebration day
Special day
1 ¼ 0e25%;
2 ¼ 26e50%;
3 ¼ 51e75%;
4 ¼ 76e100%
vacation trips (97.0%); in addition, 78.8% would like to stay for longterm vacation, whereas only 27.3% come for day trips. In terms of
the ratio of local and international tourists, 42.4% of the respondents said that the proportion of the international tourists is high
(i.e., in the range of 67e100%); 24.2% reported that it is medium;
and 33.3% said that percentage is low. In terms of percentage of
tourists staying at the premises, the peak period is during public
holidays (69.7%), followed by school holidays, weekends, and
celebration days. In terms of customers, SMIC operators have their
own preferences. For example, the interviewee from Tioman said,
“The majority of my customers are foreign tourists. Local tourists come
only during school or public holidays, and on weekends.” In general,
most of the international tourists are from European countries like
Sweden, Denmark, Germany, and France. Interestingly, one
respondent noted, “International tourists will not determine the
actual period they want to stay. If they are satisfied with our services,
they might probably extend their stay.”
In-depth interviews helped to explore the economic sustainability of these SMICs. The respondents assumed seasonality as part
of the normal business; they were satisfied with the income
generated throughout the year. All of them were confident in the
economic sustainability of the business. As one of the respondents
from Redang Island said, “We have no problem about competition with
large hotels because we have a very strategic location facing the sea. Our
customers love to bring their [families.near] the sea. Furthermore, we
only have 20 rooms and all [these] are normally fully occupied.” All of
the interviewed respondents had a mission to either expand on their
chalets or ensure business continuity by passing these on to family
members. One of the women-operators in Tioman Island agreed on
the positive trends in the industry: “There has been a positive move in
the last five years, in which the room rate more than doubled.” As one of
the successful chalet operators, she is working toward achieving
a three-star resort status for her chalet in the next few years. One of
the respondents remarked that the increasing number of chalets
every year is due to the rise in demand.
As their businesses depend largely on the attractiveness of the
environment, all of the respondents expressed concern for
conservation, which they said should be given more attention by
the government. One respondent noted, “We have a bright future if
we can maintain the coral reef because it is something unique for the
international tourist.” The respondents added that they have been
receiving complaints from a regular customer with regard to the
deteriorating quality of the marine sanctuary. They also cited their
limitations with regard to size and access to resources, which put
a cap on the activities they could offer tourists. Still, all of them
remained positive on their business’s sustainability, even as they
call on the government to take action on the very real possibility of
coral extinction, which might affect their future business.
6. Discussion
The responses for tourist category and purpose of the visit were obtained through
the multiple-response approach.
The findings suggest that the most popular activities offered are
snorkeling, island tour, barbecue parties, diving, and fishing trips.
These shows the attractiveness of ecotourism-related activities in
these islands, which is primarily related to the location (i.e., East
Peninsular Malaysia, which offers pristine beaches and marine life).
Thus, tourists normally enjoy their visits by snorkeling, taking
island tours, and undertaking diving activities. In addition, international recognition, especially for Tioman and Redang, has boosted the global popularity of these islands.
Comparing the islands, Tioman (mean ¼ 2.86) was the only
popular place for shopping, as it offers tax-free goods. Tourists can
buy many low-priced imported goods, unlike in the three other
islands where they can only buy specific items or souvenirs, such as
batik, sarung, key chains, T-shirts, and food. For island hopping,
M. Jaafar, S.A. Maideen / Tourism Management 33 (2012) 683e691
both Tioman and Kapas are known as popular destinations, with
mean values of 2.36 and 2.25, respectively. Kapas, being nearer to
the mainland, allows for family vacation trips on a daily basis
(mean ¼ 2.25); as it is relatively free from activities associated with
the cities in the mainland, a visit to Kapas is always relaxing and
peaceful.
In our data analysis, island tour, turtle trip, and surfing showed the
most significance (p < 0.01) across the islands; canoeing is significant
at p < 0.05. Island tour is actively offered and had good response rate
from tourists who visited Kapas (mean ¼ 2.75) and Tioman
(mean ¼ 2.71), followed by Perhentian (mean ¼ 2.64). These results
support the higher mean value on island hopping. Surfing is not
offered in Tioman Island (mean ¼ 0) but is offered in Kapas
(mean ¼ 0.75). Turtle watching is a popular activity in Kapas
(mean ¼ 2.75) and Perhentian (mean ¼ 2.0); these two islands are
also popular destinations for watching turtles lay their eggs. Canoeing
is popular in Kapas (mean ¼ 2.50) and Redang (mean ¼ 2.25).
Based on the product popularity of island hopping and combination tours, and activities such as snorkeling, visitors apparently
enjoy the natural environment. Most of the SMICs offer nearly
similar tourism products and activities, even as priorities differ
across the islands based on environmental conditions. For example,
Tioman Island has more to offer, such as shopping, besides activities
at the marine park, whereas Redang Island restricts its activities to
its marine park. The initiatives of SMIC operators to offer different
products and activities provide pull factors, which could influence
different tourist preferences, that is, push factors (Goossens, 2000).
However, resource limitations and the smallness of the SMICs have
held back these businesses from creating greater variety in their
products and activities.
The respondents acknowledged the importance of tourism
products related to tourist destinations as a means to attract tourists. These findings are similar to those by McGrath (1999), who
argued that tourism products should cover a large spectrum, that is,
by incorporating tourist destination, transport, hotel, food, and tour
operations with natural and man-made attractions. In addition,
services and hospitality can be considered if SMICs need to add
value to their products (Smith, 1994). With combination tours as
the most popular product, the SMICs’ creativity could be challenged
in terms of, say, networking. Tourists tend to plan their holidays in
advance and, often, they know exactly what activities or products
are on offer in the areas before their actual visit.
Government promotion of tourism in the late 1980s has seen
a significant development in terms of the number of chalets in these
islands. Findings suggest that regular tourism activities have been
taking place in the islands of Kapas, Redang, Perhentian in the late
1980s, whereas Tioman Island has seen tourism activity since the
late 1970s. The increasing number of island chalets in 1976e1986
and 1987e1997 also reflects the rise in the number of tourists
visiting these islands. Most chalets started their operations between
1987 and 1997. By looking at the current scenario in the islands, the
number of chalets could have reached the optimum level if all the
popular places offered accommodations. Fortunately, local tourism
development is supported by government efforts to promote
Malaysia as a tourist destination. For example, the declaration of
areas as eco-marine parks in 1985 raised the value of the said islands.
According to the Terengganu Economic Planning Unit (2004), Perhentian Island, which is only 15 km in size and one of the major
island ecotourism destinations in Malaysia, has the most number of
chalets or resorts. Moreover, the aggressive promotion of Malaysia as
a tourist destination of choice has helped the islands achieve their
acclaimed status. A few large hotels have recently been developed in
the islands of Redang and Tioman to cater for visitors.
Based on the number of rooms and permanent workers, the
SMICs function as small enterprises. This is not surprising, as
689
tourism is recognized traditionally as an industry having mostly
small- and medium-sized operations (Avcikurt, 2003). The rooms
offered in these islands are either with air conditioning or without
air conditioning. There are more air-conditioned rooms than nonair-conditioned ones, which are offered purposely to tourists who
like to enjoy the natural environment. Foreign tourists usually
spend their long holidays in rooms without air conditioningda
rather appropriate way to enjoy warmer climes. On the other hand,
local tourists normally choose air-conditioned rooms. The most
popular rooms are family-type rooms such as “double deluxe,”
followed by “triple,” “single,” and “quad.” The resorts also offer
chalets for rent. Tourists can also pitch tents and use public toilets
when in the islands.
The monsoon season forces SMICs either to close down
temporarily or to offer nothing but accommodation to visitors.
According to many chalet owner-managers, their chalets operate
only for an average of seven months in a year. This seasonality
greatly affects their operations, as maintaining small-scale businesses is often the only means to support overall resort operation
costs. As reported, an almost equal number of international and
local tourists visit the islands, either for short- or long-term trips.
The peak period for the visits is during school and public holidays.
Based on the interviews, chalet operators vary in their target
customers, as some mainly target international tourists, whereas
others attract the locals.
All our interview respondents were comfortable with what they
have in terms of number of rooms and products. Tourists enjoy
themselves in many different ways, with a good number of them
taking pleasure in learning more about the local culture. According
to the respondents, international tourists tend to be more independent and enjoy exploring the island on their own. They are
likely to stay in the island longer if they are interested in the local
environment. On the other hand, local visitors have limited time,
hence their preference for prearranged activities. Knowing this,
operators of SMICs tailor their products to their customer’s preference. Customer satisfaction, which is the main target among large
hotels, also applies as the creed among SMICs because it adds value
to their services and fulfills the hospitality requirements implicit in
the tourism industry. Sound image branding ensures customer
demand.
The present study supports the involvement of SMICs in the
local community agenda of promoting island tourism. Buckley
(1996), and Deng and Burnett (2002) have cited the environment
as the main source of sustainability among small businesses.
McKercher (1993) has argued that sustainable tourism development entails the protection of the resource base. The indigenous
and natural attractions of the islands of Tioman and Redang are
under threat from developments by large hotel operators
leveraging on the influx of tourists to the islands. However, such
profit-driven enterprises might tilt the balance between conservation and tourism activities (Kaur, 2006). Eccles (1995) has said
that the environment should be the main concern in any island
development to ensure environment protection. There is clearly
a need for the government to look more deeply at the factors that
should inform an ecotourism development policy, and perhaps
promote coordination among the stakeholders and enforcement to
maintain the sustainability of local business entities.
7. Conclusion and recommendations
The current study has explored the popular products and
activities offered by SMICs, the latter’s customer profiles, their
owner-managers’ perspectives, and their prospects for sustainability. Based on research in the four famous islands in East
Peninsular Malaysia, the present study has contributed to the body
690
M. Jaafar, S.A. Maideen / Tourism Management 33 (2012) 683e691
of knowledge on island tourism. This study strongly supports the
importance of tourism products and activities in ensuring the
sustainability of SMICs. Innovation and creativity on the part of the
SMICs will also go a long way in securing competitive advantage for
SMICs.
Results also showed that the development of SMICs in these
islands might have reached its optimum level: demand clearly
outstrips supply. To maintain and preserve the islands’ attractions,
it might do good to proceed with development that entails less
environmental impacts. Heedless development will certainly affect
the sustainability of marine life, which, in turn, will degrade the
value of products and activities offered by these SMICs. Thus, to
ensure the economic sustainability of SMICs, the government must
look into the preservation of marine life in these classified areas.
Most of the tourists agree that the islands, especially Tioman and
Redang, have been exposed to too many tourism activities, which
will definitely affect their marine ecosystems in the long run.
The small sample size of this study is restrictive, and the results’
generalizability is limited to the particular population in a specific
region of a specific country. Although the data’s narrow scope
might have limited the results, the latter brought to light empirical
evidence of environmental awareness as being of central concern to
the sustainability of SMICs. The higher correlation between the
environment and product development and SMICs’ survival is a call
for the public and private sectors to join forces in preserving the
environment to ensure the viability of small businesses.
The present study has provided meaningful documentation of
the four islands in East Peninsular Malaysia; further studies can
enhance the value of this research. For example, future studies
could look into networking potential for different small business
communities in each island. It would be interesting to learn how
these business communities could cooperate and, in turn, enhance
their tourism products and services. Community-business groups
are more manageable, and they directly impact the local population. Today, networking plays a significant role in business
survivability. To enhance competitiveness or to improve performance in the tourism industry, future research also needs to obtain
deeper feedback from both international and local tourists to help
shape the model for the sustainability of island tourism in Malaysia.
Acknowledgement
This work was supported by the Universiti Sains Malaysia (1001/
PPBGN/816033).
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Assoc Prof Dr Mastura Jaafar is currently a lecturer in the programme of Quantity
Surveying at the Universiti Sains Malaysia for the School of Housing, Building and
Planning. She has working experience as a project manager for contracting firms
before pursuing her Ph.D. in strategic management. She is currently involved in several
research projects and consultancies related to tourism and small and medium enterprises. She has presented her research papers in international and national conferences. She also has published research articles in international and local journals.
Siti Aishah Maideen graduated with B.Sc. (Hons.) in Operation Management and M.Sc.
Tourism Management from Universiti Utara Malaysia and Universiti Sains Malaysia in
2004 and 2010 respectively. She is currently doing her Ph.D. on island tourism.