Homestay Business on Island Region: A Preliminary Study of Langkawi Homestay
Muhammad Abdul Malik Saedon1, Nadratun Nafisah Abdul Wahab2
1Faculty of Art, Computing and Creative Industry, Universiti Pendidikan Sultan Idris (UPSI) 2Faculty of Management and Economics, Universiti Pendidikan Sultan Idris (UPSI)
abdulmalik@fskik.upsi.edu.my1, nadratun@fpe.upsi.edu.my2
Article History: Received: 10 November 2020; Revised: 12 January 2021; Accepted: 27 January 2021; Published online: 05 April 2021
Abstract: This study discusses about homestay business as one of the income contributors to the country of Malaysia. As a
tourism product, homestay program on island region like Langkawi inevitablyface with many issues. Even though the issues are challenging, island homestay should continuously play its role as an agent in promoting Malaysia and contribute to the country’s economy. To raise the issues, a preliminary study among island homestay operators was conducted to investigate the issues that occur among the five island homestay communities. Document analyses were also conducted to determine the island region and to elaborate the features of Langkawi Island. As a result, income performance becomes one of the raising issues among the island homestay operators that need to be addressed.
Keywords: Homestay Business, Island Homestay, Island Region, Rural Tourism, Homestay Program
1. Introduction
The tourism industry in Malaysia is an important income contributor for the country as it is the second largest foreign exchange earning source after the manufacturing sector (Bhuiyan et al., 2011). According to Bhuiyan, Siwar, Ismail, and Islam (2011), the Malaysian government through the Ministry of Tourism and Culture (MOTAC) has given more attention to the tourism sector in order to increase income, generate employment, and improve the economic development of the country. The increasing number of tourist arrivals has proven that this industry is an important part of the country’s development. It can be proven where the number of tourist arrivals in Malaysia relatively increases year by year since 2006 until 2016 (Tourism Malaysia, 2017). Based on the potential sector as an important income source, the government has allocated funds to develop more accommodation to fulfill this demand. It is because tourism has a direct impact on the country’s economic development (Hall, 1995). Therefore, the establishment of the lodging component of tourism such as homestays has brought a valuable benefit to the local business community. One of the local business communities that get benefit from the tourism industry is homestay business that operates on island.
2. The Malaysian Homestay Industry
Homestay industry in Malaysia brings a lot of benefits for the economic growth and developmental progression of the rural areas. This kind of rural tourism can sustain the country’s tourism sector and remains under the 10th Malaysia Plan for 2011 to 2015 (Economic Planning Unit, 2010). Literally, homestays can be
found in many locations in every state in Malaysia including non-island and island regions. Villages or communities in these regions that participate in the Malaysian homestay industry are carefully selected and must comply with certain criteria set by the Ministry of Tourism and Culture Malaysia (MOTAC). Essentially, the criterion in selecting homestay is related the homestay operators’ willingness to invite guests to stay together with them as host family.
In the context of Malaysia, homestay can be defined as a form of lodging component of tourism that offers a village or kampong lifestyle experience for tourists or visitors (Leh & Hamzah, 2012). It refers as a private accommodation that offers a fully-furnished house which enables tourists to stay with a host family for a certain period (Oxford Dictionary, 2013). This homestay lifestyle involves cultural exchange especially with foreigners as the tourists from many countries around the world. Homestay is not solely a platform to generate money, but it is also a platform for villagers in the rural areas to develop their entrepreneurial skills (Pusiran & Xiao, 2013). Similarly, homestay provides facilities as staying at one’s own house and presents a unique alternative to hotel accommodation combining with the personal attention and local cultural life that are provided by the host family (India Social, 2011). Paying guests who stay with a host family can interacts and experience the local culture for a reasonable charge (Pusiran & Xiao, 2013). It is a valuable experience for them astourists in terms of knowledge gathering, cultural experiences, and local lifestyle of the host family (Ibrahim & Razzaq, 2010). Fundamentally, the homestay industry consists of five components that need to be implemented together. The five components are displayed in Figure 1.
Figure 1. Components of the homestay program Source: Levitt (1986).
Participating in the homestay program, the visitors can experience with these five components that benefit to them. They are provided with good experience of traditional lifestyle including participation in delightful traditional dances, games and festivals, participation in economic activities such as rubber tapping and paddy planting. Participation in recreational activities such as sightseeing, jungle trekking and visiting tourism products, and participation in environmental preservation are also can be experienced in the village lifestyle (Ministry of Tourism and Culture Malaysia, 2017). Based on the beneficial offerings by the homestay industry, MOTAC Malaysia has taken this initiative of the establishment of homestay program as an important part in tourism.
Local people in the village or community that took opportunity of tourism-based business fundamentally make this opportunity as a common strategy to generate extra household income (Abby, 2005). The opportunity to generate money through this platform is based on the good status of an area which influences the local community to be involved in tourism development, particularly in establishing equality in the distribution of resources and opportunities (Ashley, Boyd, & Goodwin, 2000; Ashley & Roe, 2002; Goodwin, 2005). Besides, participation of the local community in the homestay industry is also based on the advantages that existed in an area (Leh & Hamzah, 2012). Many of the local people were motivated to participate in this industry due to the good potential of supplementary income and employment that exist in the homestay industry (Pusiran & Xiao, 2013).Their participation is also due to a large number of tourist arrivals and existing environment of sophisticated tourism establishments in places. Moreover, the homestay is a helpful solution to occupancy problem for rural tourism because it offers rooms to tourists (Bhuiyan et al., 2012).
3. Ecotourism Benefits of the Homestay Industry
The Malaysian government aims to promote the Malaysian culture and increase the development of rural areas. As one of the contributing mediums for ecotourism, rural tourism is a focus key because it can sustain the country’s tourism (Economic Planning Unit, 2010). This industry becomes a catalytic program in rural area which is local communities become an important party for the homestay operation. Therefore, the Malaysian government gives great attention on homestay development in villages. This giving attention is important to achieve the government’s objectives which are to improve local people economy and further to reduce poverty. To prove the benefits of the homestay industry, Table 1 lists the total tourist arrivals and total income revenue of the Malaysian homestay industry for 2012 to 2016.
Table 1. Tourist Arrivals and Revenue of the Malaysian Homestay Industry
No. Items 2012 2013 2014 2015 2016 1. Number of Domestic Tourists 259,423 288,107 296,439 319,395 353,344 2. Number of International Tourists 65,835 62,847 71,034 71,830 57,718 3. Total Number of Tourists 325,258 350,954 367,473 391,225 410,522 4. Total Revenue (RM) 18,545,656.00 21,570,949.20 23,229,550.50 28,392,933.50 27,714,894.10
Based on Table 1, the number of tourists who have stayed in homestays increased every year and there is also an increment in the total revenue for each year. The total revenue increment showed a significant increase where this increment from 2014 to 2015, for an instance, increased approximately RM5 million. The increased homestay revenue indicates a good potential for the Malaysian economy and it must be continued in order to improve and sustain the country’s economy in future. Moreover, the success of the homestay industry has been proven after this industry won the first prize for the United Nations of World Tourism Organization’s (UNWTO) Ulysses Award for Innovation in Public Policy and Governance for the Malaysian Homestay Experience Program in 2012 (Ministry of Tourism and Culture Malaysia, 2013). Besides that, the government’s agenda regarding homestay program is to reduce the people’s poverty and create job opportunities for the community.This ecotourism platform also benefits to the homestay program on island region.
4. Island Homestay
Island is one of the tourist attractions that exist in many countries. This region has unique characteristics including natural environment and earth biodiversity that do not exist in non-island region. For example, experience of island hopping, boating, sailing, and island tour cannot be experienced elsewhere. Besides that, island tour packages that can be offered within island homestay packages are commonly available in the island region rather than the non-island region. This uniqueness has motivated the researcher to choose the island region as a sample of the study. In other aspect, many foreign tourists prefer to stay in the rural areas in order to experience the natural and cultural heritage in the country side (Loganathan & Ibrahim, 2010). According to McGrath (1999) and Jaafar and Maideen (2012), tourism products of an island cover a large spectrum including transport, accommodation, food, tour operations, man-made attractions, and tourist destinations. Thus, the island homestay is focused in order to achieve the aim of this study.
5. Method of the Study
To study about homestay business on island,the region of homestay needs to be conceptualized. Firstly, data and statistic about homestaywere derived from an authorized officer at MOTAC, Kedah office. Information about Langkawi was also collected to strengthen the reason in choosing Langkawi as the sample of the study. For the participation, the preliminary studyinvolved homestay coordinators and homestay operators on Langkawi Island. They were given a permission letter for the purpose of collecting data. A serial of face-to-face interview was conducted to gain any issues occur in island homestay. Closed and opened-ended questions were asked in the interview. Lastly, all the collected data were analyzed and interpreted.
5.1. Island Region
Documents of homestay data and statistics derived from the authorized officer were analyzed. They werebooks, brochures, fact sheets, and electronic articles pertaining to the Malaysian homestay industry. These documents have been interpreted to gain the required information related to homestay statistics. After the interpretation was completed, two types of regions were identified. The regions of the operating homestays in Kedah are divided into two categories, namely non-island homestays and island homestays. Table 2 tabulates all the homestays were registered with MOTAC in the both regions.
Based on Table 2, there are 199 (59.93%) non-island homestay operators and 133 (40.07%) island homestay operators that provide 242 (56.41%) and 187 rooms (43.59%) respectively. The percentage of operators and rooms between the two different regions are quite similar. However, the income revenue indicated a large interval whereby the island homestays only attained RM213,366.00 (19.28%), while the non-island homestays attained RM893,323.00 (80.72%). Due to the large interval, island region is ready to be conceptualized. Figure 2 shows a flow of the process that begins at a collective number of homestay communities in14states of Malaysia.
Table 2. Categorization of Non-Island Homestay and Island Homestay Concepts in Kedah Regions Homestay Communities Districts Percentage of Operators Percentage of Rooms Incomes (MYR) Non-Island Homestay
Desa KEDA Ulu Legong (35 operators) Kampung Jeruju (19 operators) Kampung Relau (29 operators) Kampung Raga (26 operators) Sg. Badak (17 operators) D’ Belimbing (17 operators) Desa KEDA Lahar Tunjung (19 operators) Kampung Pulau Pisang (16 operators) Kampung Sg. Sedim (11 operators) Kampung Pantai Jamai (10 operators) Baling KubangPasu Bandar Baharu Yan Kuala Muda Padang Terap Pendang KubangPasu Kulim Kota Setar 59.93% (199 operators) 56.41% (242 rooms) 893,323.00 (80.72%) Island Homestay Kampung Wang Tok Rendong (69 operators) Kampung Pulau Tuba (28 operators) Kampung Sg. Itau (19 operators) Kampung Bukit Tangga (10 operators) Kampung Padang Langkawi 40.07% (133 operators) 43.59% (187 rooms) 213,366.00 (19.28%)
Lalang (7 operators)
Note: Data as of December 2016.
Figure 2. Flow of conceptualizing for island homestay
Consequently, it leads to a study to investigate issues that occur in the sample of study which is Langkawi. To proceed with the study, island homestay has been conceptualized and due to the small income revenue attained from this island region.
5.2. The Popularity of Langkawi Island
The second document analysis was conducted pertaining Langkawi information and features. As analyzed, Langkawi Island has been identified as one of the positive impacts to the tourism industry in terms of job opportunities and development of infrastructure like Penang Island (Din, 1989). This island has been planned by the Malaysian government since the 1990s to become among the best islands in Southeast Asia as Bali Island and Phuket Island (Emalgalfta, Hasan, & Ku Hassan, 2009). In order to achieve the plan, the government intends to develop Langkawi Island to the ultimate level and be among the best in the world as stressed by the former Malaysian Prime Minister, Datuk Seri Najib Tun Razak (Bernama, 2013).
Langkawi Island is well-known as an island with gorgeous white sandy beaches, lush natural beauty, rich of ancient legends and myths, and has interesting physical development (Ministry of Information, Communications and Culture, 2011). Besides that, the variety of biodiversity around the island offers opportunities for tourists to enjoy the attractions and bring beneficial advantages to the local communities (Sanchez & Jaranillo-Hurtado, 2010). This island has been re-branded as Langkawi Geopark by the United Nations Educational, Scientific and Cultural Organization (UNESCO) on 2007 (Malaysia Central, 2013).
5.3. Preliminary Study
Based on the document analysis of the island region, a preliminary study with homestay coordinators and homestay operators was conducted to confirm the raising issues toward homestays in Langkawi. It was conducted to gather data among operating homestay communities in the island region.
5.4. Sampling
20 respondents were selected among registered homestays that operate on Langkawi Island. They were selected from five different communities and the number of the respondents was suggested by the homestay
coordinators. The respondents must be the most active operating homestays in the communities. Table 3 shows the number of respondents representing each homestay community on Langkawi Island.
Table 3. Number of Respondents for Homestay Communities on Langkawi Island
No. Community Names Number of Respondents
1. Wang Tok Rendong 6
2. Pulau Tuba 4
3. Sungai Itau 4
4. Bukit Tangga 4
5. Padang Lalang 2
Total 20
The number of sample size was conveniently determined from each community based on the number of operating homestays. Based on the data and statistics (see Table 2), Kampung Wang Tok Rendong community was depicted as the largest homestay community on Langkawi Island, thus the number of respondents was higher than the other four communities. An interview session was conducted with the 20 respondents. The sessions were divided into structured and unstructured interviews. During the sessions, researcher asked both close and open-ended questions. The sessions have been conducted systematically in order to ensure all the questions are completely answered to obtain accurate data. The questions were about any issues faced by the homestay operators in operating their business.
6. Findings
There are 20 respondents, 18 are self-employed and two respondents are working in the government and private sectors respectively. The factor of being self-employed has encouraged 18 respondents of 20 respondents to participate in the island homestay business. Being self-employed is an advantage for them as the island homestay operators because they have adequate time to manage homestay activities more efficiently. Hence, they could provide better services and upgrade their homestays if necessary.
Although they can focus on the homestay business, their income remains an issue since the first day they participated in this industry. It is because they did not achieve the targeted income as they expected. As shown in Table 4, 12 respondents obtain monthly homestay income of less than RM500 (< 500). Only one of the homestay operators has earned between RM1500 to RM2000 (1500 > 2000).
Table 4. Respondents’ Monthly Income Rates
No. Income Rates (RM) Frequency Percentage
(%) 1. 2. 3. 4. 5. < 500 500 > 1000 1000 > 1500 1500 > 2000 >2000 Total 12 6 1 1 0 20 60 30 5 5 0 100%
Furthermore, 12 respondents of 20 homestay operators have set their target income and the remaining eight respondents have not. From the 12 respondents who have set a target income, only four respondents are satisfied with their achievement and the other eight respondents are not satisfied with their income achievement. Figure 3 displays the percentage of respondents’ satisfaction with their target incomes.
Respondents were asked about the causes of the unsatisfied income achievement. They claimed that,this circumstance occurred due to the lack of promotion by them. They also added that the impact of the lack of promotion proved that tourists are not aware of existing island homestays. Because of that, many tourists prefermotel, chalet, guest house and others as their holiday accommodation rather than homestay. Figure 4 illustrates that 95% of respondents agree and 5% disagree regarding the lack of promotion affecting their income performance.
Figure 4. Percentage of lack of promotion 7. Significant of the Study
The island homestay business promises a good opportunity for the local people to generate income. It is due to a large number of tourist arrivals and existing environment of sophisticated tourism establishments on island region like Langkawi. All interesting features of Langkawi Island have captivated both the domestic and foreign tourists to visit the island. This brings a good opportunity for the island people to build homestay business as a supplementary income source. In addition, this opportunity is in line with the Malaysian government’s agenda to expand the development of local community to other less-developing areas in order to improve the island’s economic and infrastructure (Selamat, 2003). Due to these beneficial opportunities, local people scramble to build this type of lodging-based business. However, the income performance as found in this study has become a problematic issue that needs to be addressed. It becomes a pathway to find solutions regarding marketing and advertising strategies.
8. Conclusion
Homestay business in Malaysia brings a lot of benefits to the local people and communities in term of income revenue, job opportunities and poverty rate reduction. At the same time, the homestay business helps the Malaysia government in creating a tourism product like the Homestay Program to attract more tourists to visit Malaysia. By using all the resources available in the certain area like an island, homestay operators can improve their business to meet the demand of tourists. Thus, they need to struggle to provide comfortable facilities, good services, interesting tourism packages and other strategies to improve income performance and future to sustain island homestay business.
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