The Application of the Micro Cluster Concept in the National Ecotourism Plan 2016-2025

By: INTRODUCTION AMRAN HAMZAH Professor and Director Centre For Innovative Planning and Development Universiti Teknologi

RRPG 7th International Conference & Field Study in Malaysia Universiti Teknologi Malaysia 15-16 August 2016 CONTENTS

1 The need for game changers in Malaysia’s ecotourism industry

2 The cluster approach as a tourism planning tool

The application of the cluster approach 3 in Malaysia’ s National Ecotourism Plan CONTEMPORARY CHALLENGES

. ‘Tired’ ecotourism products . Lack of innovation . Poor story telling . Growing competition from ASEAN neighbours . Managing irresponsible tourist behaviour due to influx of domestic tourists to national parks . Changing social construct of national parks from wilderness/tranquility to a ‘good place for merriment with family and friends’ . Developing resilience in the face of climate change THE NEED FOR GAME CHANGERS

• Expanding the market • Attracting investments in an increasingly competitive world • Unlocking the economic potential of ecotourism • Harnessing synergy between ecotourism and conservation • Optimising economies of scope through the cluster approach WHERE DOES ECOTOURISM TAKE PLACE?

• In Protected Areas especially IUCN Category II – National Parks

• In rural and often remote areas

• At the urban fringe (urban ecotourism) PORTER’S DIAMOND

• Porter’s Diamond as a tool to analyse national/regional competitiveness • introduced by Michael Porter in 1999 • Used in macro/regional planning • Descriptive rather than prescriptive MICRO CLUSTERS

• Micro clusters and networks applied in rural tourism planning from mid 2000 (Michael, 2007) • More appropriate for ecotourism planning • In rural and remote destinations ISSUES DEFINITION OF TOURISM CLUSTER • High cost of providing infrastructure “a critical mass of • Lack of economies of competitive (and/or scale complementary) • Lack of local tourism products capacity including one or more major attractions in a concentrated geographical area” CLUSTER APPROACH AS A PLANNING TOOL CLUSTER APPROACH IN PRACTICE

In Australia, the cluster approach used in formulating the Tourism Strategy for Tasmania with the different clusters being linked by themed touring routes.

1 a potential cluster; (four) 2 an embryonic cluster; (one) 15 3 an emerging cluster; (four) a cluster comprised of a single iconic attraction with Distinct 4 second tier additional resources/attractions; (two) clusters mature cluster with multiple well developed 5 resources (four).

9 CLUSTERING AS A PROCESS

Co-location Clustering

INCREASING ECONOMIES OF SCALE AND SCOPE

Pooled market Common strategies Common tactics

Co-Operation & networking

Co-location to clustering – a continuum (Michael, 2007) THREE TYPES OF CLUSTERING

Characteristic: Involves operators in a similar stage of the value chain co-locating in the same geographical area

1 HorizontalClustering Characteristic: Occurs when operators at different stages in the tourism industry’s supply chain co-locate in a geographic area to form an integrated linkage between the different components of the tourism supply and the tourist experience 2 VerticalClustering

Characteristic: Involves operators in a similar stage of the value chain co-locating in the same geographical area 3 DiagonalClustering

11 Horizontal Clustering Example of Horizontal Clustering: Eco-Adventure Cluster Horizontal clustering

involves operators in a To similar stage of the value Gopeng Razil Adeline a Villa Resor Homestay t chain co-locating in the Gopeng 1 1 2 URL 3 Razila Lodg Resort e6 4 Sg. Kampar . 7 5 same geographical area D’ Nomad Hobbit Adv. Murni 2 Raflesia/But Dimal Camp terflies Chalet

Cycling Operators benefit from Trail

Gua sharing the costs of Tempurung 3 LEGEND: E2 PLUS Highway Rafting operator providing infrastructure, Supporting product Kampar River To Kuala Main road labour supply, Lumpur marketing/promotion • Pioneer operator started pooling thus increasing resort offering white water the potential customer rafting in the 1990s base and total sales. • Currently more than 10 resorts Vertical Clustering Fresh flowers industry at Vertical clustering Cameron Highlands. occurs when operators at different stages in Operators in this highland tourism destination have developed specialised the tourism industry’s roles: supply chain co-locate Fresh in a geographic area to Flower Operators form an integrated linkage between the different components of the tourism supply and the tourist supply orchids transporting providing displaying and to hotels them to outside storage selling them to experience. markets facilities tourists.

13 Diagonal Clustering Case Study: Micro Cluster The integration of products and services provided by different operators but promoted and sold to tourists as a single item Ki

Kundasang Town e.g. accommodation, But no outlet offering transportation, eateries, foot massage and reflexology at service eco-adventure activities, town for weary climbers souvenirs and other descending Mount services Kinabalu SUCCESS STORY IN HORIZONTAL AND DIAGONAL CLUSTERING Muang Village Tourism Cluster, Phuket, Thailand

Housing . In the case of Muang Village in Phuket, the setting up of the TIGER MUAY THAI Tiger Muaythai Training Center TRAINING CENTRE initially triggered 1 Taxi Station horizontal Farm Pharmacy clustering in the Housing Medical Services form of similar MMA ATM Farm Blue Motel DRAGON MUAY THAI TRAINING training centres in Traditional Massage Shops 2 CENTRE the small village. Money Changer . This was followed by Healthy Food Restaurants Happy Cottage Housing diagonal clustering Nature House Lodge TOP TEAM MUAY THAI All Days Laundry exemplified by the Souvenir Shop TRAINING CENTRE TIC/Travel Agent 3 mushrooming of massage Studio 77 Hotel centres, outlets selling healthy TITAN MUAY THAI food and supplements, laundry, 4 TRAINING CENTRE souvenir shops and medical Housing services, etc.

15 CRUCIAL ROLE OF Case Study: ACCELERATORS Accelerator: Terrapuri Heritage Resort

. Outside investors accelerate the clustering process . Spread economic

Skilled benefits to rural River cruise carpenters operators communities . Establish strong Demand for Homevisit to cultural partnerships with Homestay Rhu performances Sepuluh (cooking class, handicraft etc) Visiting Penarik cottage CBET Industries Case Study 2: Case Study 3: Accelerator: Pasir Belanda Accelerator: Min House Camp

.Accelerators created optimisation in diagonal clustering .Through specialisation by local operators and artisans 17 NETWORKS AND NETWORKING

.Networks and TYPE OF CLUSTER NETWORK networking crucial to FORMAL INFORMAL clustering

process Established by Established by Association Association/ PA agencies local established by cooperative .A network could authorities tourism established by operator local be formal or communities

informal . Mulu Special . Majlis . Kuala Tahan . Kunita Tourism Operator Parks Perbandaran . Pewanis Association .Elements of Committee Taiping . Kopel . Kinabatangan- . PILA Tourism Corridor of Life communicative Committee Tourism Operator Association planning

Scope

Product Self help Joint Conflict development promotion resolution 18 THE DYNAMICS OF CLUSTERING

Cluster Management & Support 1 2 3 4

The role of Access to Local tourism Expanding the outside capital and cooperatives as market and size Investors in micro credit ‘network within of economic pie creating facilities a network’ accelerator effects

19 INTERVENTIONS

• Create pro-business environment for investors • Scale up tourism SMEs through better access to micro credit • Capacity building • Destination management • Integrated marketing and promotion MALAYSIA’S NATIONAL ECOTOURISM PLAN 2016-2025

60 Ecotourism Clusters in Malaysia

Perlis 1 cluster 3 clusters Saraw clusters 2 (1) ak (3) clusters 4 Kedah (3) 4 clusters Penang (2) (7) (8) Melaka 3 clusters N. Sembilan 4 clusters Perak (4)

Johor 6 clusters (6) clusters Pahang 6 Selangor (4) Kelantan 3 clusters (9) (4) Terengganu 7 clusters Melaka (3)

Sarawak 9 clusters (6) Sabah 8 clusters

21 Proposed Ecotourism 60 Clusters

Divided into 2 types of clusters

Proposed Proposed DETAILED CLUSTERS CONCEPTUAL CLUSTERS (Action Plans)

Ecotourism Ecotourism 6 Clusters 54 Clusters

Content Content

Keystone Keystone

Supporting Product Supporting Product Tourist Flow Tourist Flows Market Market Issue/Gap

Prospect

Action Plan CLUSTER Product Development Destination TOOLKIT Management Human Resource . Design (base map, boundary, etc.) . Populate . Database (revenue, arrival, inventory etc.) Marketing . Issues/gaps identification . Etc. Infrastructure Development Example of Ecotourism Clusters: N Tasik Kenyir-Ajil Ecotourism Cluster 1:10,000

Kuala Terengganu

Gateway (Kota Baru, Besut,Setiu) Key Stone: Existing Market: ① Tasik Kenyir . Family Leisure Groups Main Activities: . Special interest (birding, 3 Kenyir Elephant Jeneris . Island hoping anglers) Village . Angling . Student groups Pengkalan Kg. . Trekking Kenyir Sanctuary Gawi Basung Resort . Wildlife watching 1 Lake Kenyir Resort Kenyir . Boating Water Park

Elephant 1 Ajil Supporting Products: Rehabilitation Tasik Existing Market: Centre Kenyir . Kenyir Water Park . Local families (selfdrive) 4 Uncle John Chalet . Kenyir Elephant Village . School students 2 Main Gateway . Elephant Rehabilitation . Special interest (birders, Kenyir Duty (Kuantan, Klang Free Zone Sekayu Centre researchers) Sungai Valley) . Kelah Sanctuary . Small MICE Deka Tg. Tg. Mentong Resort 5 Mentong Petang Island Resort . Duty Free Zone 6 . Sekayu Gua Bewah Gateway . Gua Bewah (Ipoh, Gua Musang)

LPT Expressway Tourist Flow : E8 . Pengkalan Gawi as ‘gateway and ‘honey pot’’

Local Community Participation : . Kg. Basung (boatmen, food stall operators, etc)

Themes/USP: TAMAN NEGARA . Lake side soft ecotourism

Lagend: Main Town Key Stone Product Supporting Product Accomodation Main Road Tourist Flow Gateway to Cluster Pengkalan Gelap Keystone Main activity Setiu Wetlands 1 . Setiu Wetlands . Boating 3 . Fishing Mangrove . Researching Reserve Supporting Product 14 Fikri Fishing Village Fikri Eco-Adventure/ Recreational Terrapuri Heritage Resort 7 . Setiu River Safari . Bird watching . Turtle Sanctuary & River . Researching Traditional Fishing Village (Kg. Mangkuk) . Treking 6 Terappin . Boating Turtle Sanctuary . Pengkalan Gelap Mangrove . Visiting 2 Reserve Penarik Cottage Industries . Bukit Bidong 11

Setiu River Safari 1 Penarik

Traditional Cultural/Food Massage . Homestay Rhu 10 Homestay Rhu 10 . Visiting 8 . Kg. Mangkuk Traditional Fishing . Demonstation 5 . Cycling Nelayan Inn Village Pandan Laut Chalet . Kg. Fikri Fishing Villgae Penarik Recreational Beach . Handicraft Pengkalan Gelap 9 . Terrapuri Resort Seafood stalls . Traditional Massage 10 . Ikan/Sotong Celup Tepung . Kerepok

Cluster USP/Theme

. Cradle of traditional Malay way of life

Telaga Papan Aryani Resort Kembara Resort Suria Beach Sutra Beach Resort

Gula Melaka Making 12 13 Charcoal Kiln To Merang Permaisuri

4 Bukit Bidong Example of Ecotourism Clusters: To Kuala Merang-Penarik Ecotourism Cluster Terengganu

Lagend: Main Town Key Stones Supporting Product Main Road Boundary Example of Ecotourism Clusters: Taiping--Anak Kurau-Bukit Merah Ecotourism Cluster  1: 5,000M To Penang

Keystone Main activity . Matang Mangrove Reserve . Firefly watching . Boating E2 . Researching . Team building . Visiting Orang Utan 9 Island Supporting Product To Buntar Eco-Adventure/ Recreational . Kuala Gula . Bird watching . . Researching . Batu Kurau . Treking . Boating . Kg. Dew Firefly . Visiting . Lake Garden Anak . ATV Park Batu Kurau Kurau . Equine Park 2 . Zoo Taiping . Orang Utan Island . Kolam Air Panas Trong A100 . Ethno Valley Kuala Gula Bird Santuary 1 Bukit Larut-Kurau Treking Trail

Kg.Dew Heritage 4 . . Visiting . Charcoal Factory . Shopping . Port Weld Equine . Pekan Ahad Heritage 6 ATV Town 7 Bukit Taiping 3 Culture (Local community) Matang Larut Pekan Ahad Mangrove 8 5 Lake . Homestay . Visiting 15 Zoo Port Weld 1 Garden . Kg. Anak Kurau . Angling 12 11 18 Ckt. Jering . Kuala Sepetang Fishing Village . Dolphin watching Charcoal Mee Taiping Heritage Trail Dolphin Watching Factory Udang 14 16 Ethno Valley 10 Kota Ngah Bukit Gantang Ibrahim 13 Homesaty Theme Park Kolam Air Panas . Bukit Merah Lake Town . Visiting 17 Trong Resort

Cluster USP/Theme E2 . Urban ecotourism destination To Ipoh

Lagend: Main Town Key Stones Supporting Product Main Road Boundary FOCUS AREAS ①Investment in Ecotourism ②Tourism Concessions 5 ③Synergy between Ecotourism & Conservation ④Ecotourism Marketing ⑤Ecotourism Clusters 18 84

STRATEGIES ACTIONS NATIONAL ECOTOURISM PLAN 2016-2025

FOCUS AREA 1: Investment in Ecotourism

• Two prong approach • Strategies and actions aimed at creating a conducive environment to 3 12 attract international and local investors • Enhancing existing facilitation STRATEGIES ACTIONS system and process to scale up small-scale ecotourism operators FOCUS AREA 2: Tourism Concessions

. A national protocol for tourism 2 9 concessions . Creation of a sustainable

STRATEGIES ACTIONS financing system for protected areas (esp. national parks) . Public private sector partnerships FOCUS AREA 3: Synergy Between Ecotourism & Conservation

. Mainstreaming Community 6 32 Based Ecotourism . Setting up of a Malaysian CBT

STRATEGIES ACTIONS Network . Strengthening resilience of ecotourism industry FOCUS AREA 4: Ecotourism Marketing

. Customising ecotourism 6 26 experiences . Targeted marketing STRATEGIES ACTIONS . Use of social media and the technology as promotion tools FOCUS AREA 5: Ecotourism Clusters

. Tool for (eco) tourism planning 1 5 . Clusters as basis for developing thematic

STRATEGIES ACTIONS circuits/corridors . Self drive route planning . Creation of Destination Management Organisations (DMOs) K.Kangsar--Royal Belum Ecotourism Cluster Resources, Products and Patterns Temenggor Raflesia Rainforest Lake . Consists of 12 main tourism products . Royal Belum State Park as the primary product supported by Lenggong Biodiversity Research Archaeological Valley and Royal Town Centre . dan Penang as the main gateways Tourism Facilities: 1 Accomodation . Existing informal scenic route between Kuala Kangsar to Royal . Major tourist flow is from Kuala Lumpur – Penang – Royal Belum, with a small Food Belum Transportation State number of tourists travelling from KL – Kuala Kangsar – Lenggong – Gerik – Banking Park Royal Belum.

Key Stone:

Touris Royal Belum State Park Main t Banding Gatewa Products: Main Experiences: Facilities: ①Rainforest Activities: ①Soft – hard eco ①Accommodation y Tourism Facilitiy: Gerik Accomodation ②Temenggor ①Trekking adventure ②Jetty 4 Lata Kekabu Lake ②Boating ②Nature ③Camp Site ③Orang Asli Penang 3 Ulu Lawin ③Team educational ④Team building ④Biodiversity building ③Leisure centre Dear Farm 5 ④Bird ⑤Research centre watching Tourism Services: Existing Scenic Tour Operators: Lenggong Road Supporting Product: . Asia Overland Archeologic 6 Archeological Lenggong Valley Transportation al Valley Sites Archeological Products: Main Experiences: Facilities: 7 Museum ①Archaeological Activities: ①Educational ①R&R Lenggong Tourism Facilitiy: Accomodation sites ①Visiting ②Leisure ②Accomodation Town R&R ②Tasik Raban ②Researchin 8 Tasik Raban ③Homestay g ④Handicraft 9 Homestay Kg. Ben ⑤SMEs ⑥Waterfall 10 SME / Handicrafts Tourism Facilitiy: Kuala Kangsar Royal Town Kuala Accomodation 11 R&R Products: Main Experiences: Facilities: Kangsar ①Historical Activities: ①Educational ①Accommodation Labu buildings ①Visiting ②Leisure ②R&R 12 Tourism Services: / ②Handicraft ③Banking Legend: Tour Operators Tekad Transportation workshops Main Town ③Food Tourism Product Gateway to Cluster Existing Market Segment Tourism Services: Main Road Tour Operators . Family Leisure Groups Existing Scenic Road Transportation . Special interest (birding, anglers, history buffs) Tourist Flow Main Ipoh Gateway . Student groups D. Small MICE R A F T (KL/Ipoh) Existing Plans and Proposals VISIO National Level N National Tourism Policy National Ecotourism Plan 2014 . Develop Kuala Kangsar- Lenggong-Royal Belum tourism . Provision of infrastructure and . To transform Royal Belum cluster facilities to support existing into a biodiversity hub in . Transform Gerik into service town ecotourism development and the region by 2020 and gateway to Royal Belum activities . Enhance interpretation at Lenggong Archeological Museum MOTAC, 2012 (Perak Man) MOTAC, 2014 . Develop ‘royal tours’ at Kuala Kangsar Royal Town Regional Level

NCIA Master Plan . To transform Royal Belum as the top ecotourism . Transform Gerik into service town destination in Malaysia and gateway to Royal Belum . Enhance interpretation at Lenggong Archeological Museum (Perak Man) . Develop ‘royal tours’ at Kuala NCIA, 2010 Kangsar Royal Town State Level Perak Tourism Strategic Action Plan D R A F . Organise hallmark events at . Royal Belum as one of the Royal Belum State’s Icon and as a . Market Royal Belum to catalyst for the local international tourists economy . Encourage local participation in ecotourism UPEN Perak, 2010 T Local Level Lenggong Special Area Plan Integrated Master Plan For Belum Temengor Tropical Rainforest . Develop Lenggong Valley . Proposed thematic . Re-brand Royal Belum as a National Edu- archaeotourism trail destination Archaeotourism . Proposed to develop . Proposed infrastructure and Destination archaeological research center facilities development . Revitalise existing exhibition . Enhance existing activities to . To lift up Royal Belum as center create the depth of tourist a must visit ecotourism experience attraction in the region . Proposed efficiency of Malaysia Heritage connectivity to Royal Belum Dept. 2013 Stakeholder Views Product Destination Local CommunityMarketing Human Development Management Participation & Promotion Resource

. Need to provide more family . Need to establish an advisory . Engage local youths to . Need to target mainstream . Engage institutions with good fun based attractions within unit for “hand holding” of local participate in tourism tourists for the cluster to create track records to be master the cluster to attract entrepreneurs development through special critical mass (MOTAC Perak) trainers for front liners mainstream tourists (UPEN . Need to utilise digital incentives (YDP Gerik) . Avoid conventional marketing (Persatuan Bot Tasik Banding) Perak), especially from the information such as mobile . Lack of opportunities given to and promotion tools to reach . Assist local entrepreneurs family market segment apps, GPS, etc. to provide locals (YDP Lenggong) target markets (TM, Perak) with obtaining micro credit tourism information within the . Need to focus on targeted . Need to take into account cluster (Yayasan MK) market segments traditional medical within the . Provide tourist information cluster as one of the centre at Sg. Perak R&R supporting products (Perak . Need to set up a Royal Belum State Park) Tourism Committee

. Need to include Lenggong traditional food within the existing tour packages

Infrastructure Development

. Expedite redevelopment process at Tasik Raban R&R . Provide clear signposting D R A F T along the Lenggong to Royal Belum route Rainforest Iconic Issues & Opportunities biotourism Rafflesia attraction Issues/Impediment Opportunities/Initiatives Service Town: Temenggor Accomodation Lake Food . Difficulty in preventing moon light . High willingness and readiness Transportation activities at Royal Belum due to of the local community including Banking Royal Orang Asli to be involved in Belum lack of resources for monitoring State . Slow approval of permission tourism services Park entry permits to Royal Belum . Rich Perak traditional food . Lack of supporting infrastructure . Committed development by such as proper R&Rs NCIA to revitalise Tasik Raban . Bad impression to tourists due to . Committed development for the Main Banding logging activities along the road upgrading of Baling-Gerik federal road Gatewa heading to Royal Belum from Gerik . Financial donation from Yayasan y Gerik Service . Low readiness of the Orang Asli MK to commence tourism Town local community at Kg. Temiang educational programme for Penang locals. Lenggong to be involved in tourism as Cultural Tourism guides Lenggong Corridor Tourism Services: Archeological Transportation hub Valley Tour packages Archeological (UNESCO WHL) Sites Archeological Perak Traditional Museum Food Complex Tasik Raban as a Edu and Tasik Raban family fun and Archaeotourism Trail water sport tourism attraction Homestay Kg. Ben D R A F T Tourism Facilitiy: Royal Accomodation 11 Town R&R Iconic handicraft making (Tekat & Legend: Labu Sayong Main Town Tourism Product

Gateway to Cluster Tourism Services: Tour Operators Main Road Transportation Tourism Corridor Main Tourist Flow Ipoh Gateway (KL/Ipoh) CONCLUSIONS

• The cluster approach facilitates consultative planning (Healy, 1997) • Spatial rural/ecotourism planning decided by strategies developed via participatory process • No one size that fits all • Clusters devoid of a strong network will fail • Clusters do not produce magic results • They provide the platform for integration and reduce working in solo