Journal of Sustainability Science and Management eISSN: 2672-7226 Volume 15 Number 1, January 2020: 148-161 © Penerbit UMT

THE SUSTAINABILITY OF NAUTICAL SPORTS TOURISM IN USING A COST BENEFIT ANALYSIS

NOORUL SHAIFUL FITRI ABDUL RAHMAN*1, NUR HANIS BAZARUDDIN2, SYED FAIZAL SHAH SYED JOHARI SHAH1, MOHD HAFIZI SAID2 AND MOHAMMAD KHAIRUDDIN OTHMAN1

1Department of Logistics Management, International Maritime Collage Oman, Sohar, Oman. 2Faculty of Maritime Studies, Universiti Malaysia Terengganu, 20130 Kuala Nerus, Terengganu, Malaysia.

*Corresponding author: [email protected]

Abstract: Monsoon Cup is the flagship of nautical sport tourism that listed in the annual event on the Match Racing World Championship tour calendar. The fifth Prime Minister of Malaysia initiated this sport since 2005 and the event then reserved at Pulau Duyong, for attracting sailors and tourists to visit Terengganu during the monsoon season in November every year. The significant contribution of this sport was the total tourist visited Terengganu has gradually increased from 3.16 million tourists (2011) to 3.37 million (2012), 4.03 million (2013) and 4.51 million (2014). Thus, it creates more advantages to Terengganu State Government and community in several aspects especially on tourism industry and economic opportunities (for instance, hotels, food supplies, souvenirs, etc). However, in 2015, the Monsoon Cup venue has been relocated to Bharu as the Johor State Government became the new organiser. Due to this situation, Terengganu expects to lose several tourists together with business opportunities. Therefore, the objective of this paper is to select the most potential nautical sports tourism that can be proposed to the state government with the purpose of boosting both tourism and economy sustainability. A Cost Benefit Analysis (CBA) will be used in order to determine the relationship between the demand and supply of the examined nautical sports. CBA is actually a method that compares the costs and benefits of a sequence of action and can range from informal weighing of qualitatively described pros and cons to highly formal and technical method. On other hands, CBA also employs sophisticated mathematical and is grounded in economic theory. As a finding, there are six new potential nautical sports have been determined and the top three are ranked as follows: 1) parasailing, 2) flyboarding and 3) sailing activities. This paper contributes in suggesting new potential nautical sports to the state government which is in line with the state policy to enhance the tourism industry.

Keywords: Tourism industry, nautical sports, tourism sustainability, cost benefit analysis, marine tourism.

Introduction In Mexico, nautical tourism is defined as Nautical tourism is a term that often used a tourist product related with entertainment throughout the recent years when relates with activities in contact with bodies of water, where some water sport activities. Generally, there is many different nautical activities can take place no specific definition to define the term nautical and the main characteristic of nautical tourism tourism that has been used internationally is an ocean activity as its main product being (Marušic, et al., 2015). However, such term is offered to tourist (Tourism Shell Harbour, often associated with several tourism activities 2008). However, in some literatures, the term such as marina tourism, yachting tourism, nautical tourism and marine tourism are likely sailing tourism and leisure boating of varying considered to bring the similar meaning. But scope (Ministry of the Sea, Transport and some authors were disagreed with the opinions Infrastructure, Croatia, and Ministry of Tourism, as they defined nautical tourism as the activities Croatia, 2008). that is for recreation, entertainment and sports THE SUSTAINABILITY OF NAUTICAL SPORTS TOURISM IN TERENGGANU 149 purposes in which involve boaters to stay in or island such as Kapas Island, Bidong, Redang, out of nautical sports (Luković, 2012). Perhentian and Lang Tengah Islands. Although, Besides, nautical tourism is also believed the district of Kuala Terengganu is smaller as a form of tourism attraction where instead area in terms of size, it has the largest number of recreational navigation with accommodation of populations in Terengganu with population on board, it may include other activities such as of 250,000 peoples in year 2000. Due to this ocean and river cruising, water sports, surfing, reason, the demand and supply for water-based fishing and squid jigging (Pavel-musteata & activities are relatively high and it is one of the Simon, 2013). For example, in Croatia, nautical main factors in order to propose these nautical tourism is promoted as a type of tourism where sport events in Terengganu. the tourists can navigate using privately owned or Previously, Monsoon Cup is one of the rented vessel, which included overnight stay on flagships of nautical sport tourism that is located board the vessel as the accommodation (Ministry at Pulau Duyung, Terengganu since 2005 until of the Sea, Transport and Infrastructure, Croatia, 2014. By organising this event, enormous and Ministry of Tourism, Croatia, 2008). benefits obtained by the local communities in Nautical tourism is a rapid growing sector terms of tourism and business opportunities especially in European country such as Croatia, for boosting their personal/family economy as Italy, Portugal and Spain. The growth of nautical one of alternative incomes during the monsoon tourism has been expanding within recent years season every year. and very profitable sector. For example, in 2012, However, in year 2015, the Monsoon Cup the cruise tourism alone had generated a direct event officially relocated to Johor as the main turnover of €15.5 billion and employed 330,000 nautical sport organiser. Due to this situation, people in the European waters to support the Terengganu expected to lose several tourists sector (European Commission, 2014). together with business opportunities (Abdullah In accordance to the success of nautical et al., 2015). This situation is troubling all tourism activities in several foreign countries, parties especially the state government in order the idea of implementing the nautical tourism to sustain the tourism industry and to make activities has arisen in Malaysia due to Terengganu as one of the most interesting places uniqueness of its places. For instance, in to visit by local and international tourists. Table Terengganu, Malaysia, a high potential location 1 shows the total number of tourists arrivals to to promote the nautical tourism activities due Terengganu from 2011 until 2015. The relocated to its strategic geographical location on the of Monsoon Cup to Johor caused the increment east coast of Peninsular Malaysia and has high total number of tourist decrease drastically from potential to be one of tourist's attraction places 11.90% to 4.74%. Hence, the state government in Malaysia. needs to solve this issue in order to sustain the tourism industry in Terengganu. In addition, due to the long stretch of beaches alongside the area of Terengganu, it is very Therefore, the objective of this paper is suitable for water-based activities especially in to select the most potential nautical sports for Kuala Terengganu which surrounded by nearby Monsoon Cup replacement in order to sustain

Table 1: Number of tourist arrivals to Terengganu Source: Unit Perancangan Ekonomi Negeri Terengganu (UPEN), 2016

Journal of Sustainability Science and Management Volume 15 Number 1, January 2020: 148-161 Noorul Shaiful Fitri Abdul Rahman et al. 150 the nautical sport tourism in Terengganu. Six means an activity in which a flyboard is powered possible nautical sport activities are identified in by a Personal Watercraft (PWC) through a hose order to replace the Monsoon Cup by comparing connected and an instructor to create thrust to the nautical sport activities in other regions propel the flyboard through and out of the water (Europe and Asia) that have high potential controls it. This type of nautical activity has a of nautical sport activities organizers with great potential activity because the tourist can Malaysia based on a few elements. The outcome feel like a superhero when they area fly through from this study will contribute to Terengganu and out of the water. state government by proposing the awareness Sailing activity is the third highest potential of this replacement. In addition, it also enhances after the parasailing and flyboarding. Sailing the tourism industry by attracting the local and refers to the sport of using wind to power the international participants to join nautical sport sails and moving the boat forward rather than tourism activities in Terengganu. using the engine (MPORA, 2016). There are two According to the findings, the top three types of sailing, which are racing and cruising. nautical sport activities are identified based The Monsoon Cup was racing-based sailing. on the Net Present Value (NPV) which are Even though the Monsoon Cup had relocated to parasailing, flyboarding and sailing. Johor, but it still becomes one of the potential Parasailing also known as parascending, is activities to be held in Terengganu. The state an activity where one person is towed behind government in hosting the sailing activity in a boat while attached with special design of a Terengganu where the state government could parachute (ABZ Travel, 2017). The boat then promote the cruising-based sailing can make a drives off, carrying the parascender for 10 to 12 little change. Such activity is more relax and minutes into the air. The number of persons to be attracts more tourists to engage with the activity carried can be two or three persons depending as the event allows the tourists to learn the basic on the power of the boat. Moreover, parasailing technique of sailing using proper sailing boats offers the tourist a breath-taking bird’s eye of the instead of just watching the event run. beautiful lagoon, island and beaches, making it At the end of this study, all these identified one of the best things to do during vacations. In nautical sport tourism activities will be proposed addition, apart from solo parasailing trips, group to Terengganu state government to replace parasailing trips can also become the best to be Monsoon Cup as an annual nautical sport event in undertaken (Sahni, 2016). Today, parasailing order to assist the state government for boosting becomes one of the most popular activities both tourism and economy sustainability in across the globe. For instance, according to Terengganu. Sahni (2016), this type of water sports can be found in Copacabana (Rio de Janerio, Brazil), Nautical Sport Tourism Miami (Florida, USA), Cape Town (South Africa), Sydney Harbour (Australia), Hawaii The United Nations World Tourism (USA), Phuket (Thailand), Key West (Florida, Organization (2012) describes that tourism USA), Kerala (India), Great Lakes (Michigan industry becomes an important industry in and Wisconsin, USA) and Bali (Indonesia). United Kingdom. It is important to sustain this industry in order to increase the long-term The second most potential nautical benefits to local communities. To sustain the activity is the flyboarding. Flyboarding is an tourism industry, some critical components in innovative and unique water sports that allows local, regional and national economy need to the participant to fly over the water (Jetpack be comprised. It is significant in order to create Adventures, 2016). It used special equipment employment, increase domestic products and known as the hydro flight device, which supplies foreign exchange earnings (Abdul Halim, propulsion to drive the flyboard into the air. 2012). In addition, the sustainable of tourism According to Kinley (2014), flyboard operation Journal of Sustainability Science and Management Volume 15 Number 1, January 2020: 148-161 THE SUSTAINABILITY OF NAUTICAL SPORTS TOURISM IN TERENGGANU 151 industry can lead to the management of all According to Abdul Halim (2012), among resources in a way that economic and social need. all the states in Malaysia, Terengganu also The term sustainable tourism covered the factors is one of the important states that act as the of ecotourism, green travel, environmentally biggest income generator in the tourism sector. and culturally responsible tourism fair trade and For example, in 2014, tourism industry in ethical travel. Terengganu have contributed of about RM4.52 In order to sustain the tourism industry in billion to the national Gross Domestic Product Terengganu, several potential nautical sport (GDP) and the Terengganu state government has tourism activities are identified by considering put lot of effort in promoting Terengganu as one both Europe continent and ASEAN main of the national tourism hub (Hassan, 2015). In tourism cities as benchmark (Table 1). It seems addition, as stated by Menteri Besar Terengganu, that there are few similar activities suitable to Datuk Seri Ahmad Razif, the tourism sector be conducted in Terengganu as new potential will soon replace the oil and gas industry as the nautical sports tourism for instance, the biggest contributor to Terengganu’s economy. recreational, cruising, water sports events such The main purpose of this matter is to reduce the as sailing championship and regatta that become dependencies on the oil and gas sector for state’s annual activities for every region. This shows economy (Bernama, 2017). that Kuala Terengganu have a potential like The focusing of Terengganu state in other places. enhancing the tourism industry is due to the The reason why Terengganu becomes the uniqueness of Terengganu with full of traditional place that has high potential to be a nautical cultural heritage, beautiful nature such as islands, activities venue is because it has of about 244 waterfall, hot springs, unpolluted beaches and kilometres (km) stretch of unpolluted and Monsoon Cup as one of the international nautical panoramic beach that extend from the district of sport events that totally change the figure of Besut in the north to the district of Kemaman in tourism industry in Terengganu (Terengganu the south (Terengganu Tourism, 2014). Due to Tourism, 2014). the long stretch of beaches alongside the area of However, Monsoon Cup events are now Terengganu, it is very suitable for water-based officially moved to Johor since 2015 and Johor activities or nautical activities. On the other becomes the new main organizer for this event hands, Terengganu also surrounded by a few (Iskandar Online, 2016). All the international and beautiful islands such as Perhentian, Redang, local participants that also become of the main Lang Tengah, Bidong and Kapas Island which contributors of tourism industry in Terengganu are famous for its water-based activities such move to Johor. There is a slightly decreasing of as diving, snorkelling, kayak, fishing, jigging total number of tourists and this situation will and sailing. Due to these reasons, Terengganu give bad impact to the sustainability of tourism is one of the best places to conduct water-based industry in Terengganu (Abdullah et al., 2015). activities with high potential to become main In order to strengthen the tourism industry contributor for tourism industry in Malaysia. in Terengganu, the contribution of this study is to Terengganu has several sources of incomes select the most beneficial nautical sports activity such as trading, service, tourism and culture, using Cost Benefit Analysis (CBA) technique oil and gas, mineral and other sectors. Due to that can be recommended to the Terengganu this reason, Terengganu became one of the main state government in order to replace the contributors in Malaysia GDP with 3.1% value Monsoon Cup event as an annual event. In this that made up from five main economic sectors study, six potential nautical sports are identified such as agriculture, manufacturing, construction, in order to replace Monsoon Cup events. All services, mining and quarrying (Department of these six nautical sports are determined by Statistics Malaysia (2016). comparing all the nautical activities that exist in

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Table 2: Comparison of type of nautical activities

Journal of Sustainability Science and Management Volume 15 Number 1, January 2020: 148-161 THE SUSTAINABILITY OF NAUTICAL SPORTS TOURISM IN TERENGGANU 153 other regions in the world that has high potential Net Present Value (NPV) by using discount rates to be the most interesting place to visit due to of 3%, 7% and 10%. The calculated NPV will their nautical activities. Through this study, Cost rank the potential nautical activities by giving Benefit Analysis (CBA) technique is used in the highest value of NPV. The Net Present Value the study in order to select and propose the new (NPV) of each potential nautical activity is nautical sport activities that have high potential calculated based on Equation 1: to replace Monsoon Cup in order to sustain the tourism industry in Terengganu. The detail (1) on fundamental of CBA will be explained in Where

Section 3 (Methodology). Bt = the benefit at time t

Ct = the cost at time t R = the discount rate Methodology t = the year Cost Benefit Analysis (CBA) is a methodical T = number of years over which and logical approach that is widely used in the future costs or benefits are evaluating economic, which offers a rigorous expected to occur. approach in assessing the economic viability of In general, Equation 1 can be translated into investment proposals. It is used in various types a simple form as shown in Equation 2: of projects across several sectors and assists the decision-makers to justify investment choices NPV= PV (B)-PV(C) (2) (Building Queensland, 2016). In addition, this method is a common business planning tools Where, that compare the likely costs and benefits of PV (B) = the present value of benefits potential projects in order to choose the most PV (C) = the present value of costs suitable projects that generate the greatest net benefit (Hamel, 2017). Hence, in this study this Based on Equation 2, this method represents method will identify the most suitable nautical differences between total discounted benefits sport with high potential to replace the Monsoon minus total discounted costs, which gives the Net Cup Events by comparing which activities have Present Value of a project. Projects with positive the greatest net benefits to State of Terengganu. net benefits consider as viable and a project with According to Brussel (2014), CBA is a higher NPV compared with another project based on a set of predetermined project with a lower NPV, which measured to be less objectives, giving a monetary value the lucrative. In other words, the higher the NPV, entire positive (benefits) and negative (costs) the greater the calculated benefits of the project welfare effects of the intervention. The overall (PAHO, 2017). monetary performance is measured by the In this study, CBA helps to guide the decision indicators namely Net Present Value (NPV). makers to measure the cost and benefit of the All these values will make the CBA to allow investment’s impacts on the development of in comparability and ranking for competing nautical tourism sector in Terengganu. It is also projects or alternatives in order to determine the a valuable method as it produces comprehensive projects are worth to be done or not. results (Henrichson & Rinaldi, 2014). Further The main purpose of using CBA is to detailed information of CBA can be found in the identify the most beneficial potential nautical following literature surveys, Doraszelski (2001), activities which possibly can replace the Boardman (2006), Park (2014) and Ross (1995). Monsoon Cup event since it is already been Cost criterion contains of four elements, relocated to Johor. Finally, the potential nautical which are: 1) Fixed Cost (FC), 2) Indirect Cost activities are identified based on the calculated (IC), Variable Cost (VC) and Direct Cost (DC).

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Each of element has a minimum number of two to organize the nautical sports events (Lohrey, and a maximum number of five sub-elements. 2017). Meanwhile, benefit criterion contains of five elements, which are: 1) event, 2) lesson, 3) Step 3: Data Analysis membership, 4) rental and 5) ticket pass. The The data collected are analyzed by using the description of all costs can be referred to table 3. cost and benefit analysis in order to find out Table 3: Cost description the most potential nautical tourism activities in Category Details Terengganu. After collecting the raw data for • Insurance this particular nautical sport, the data analysis • Labour was conducted by considering all the cost such Fixed Cost (FC) • Lease (Office and Storage) as Fixed Cost (FC), indirect cost, Variable Cost • License • Tax (VC) and direct cost together with benefit that • Advertising include the entire potential future occurrence • Computing when conducting the activities. The net benefit Indirect Cost • Maintenance was gained by differences of the benefits and (IC) • Security costs (Benefit – Cost = Net Benefit). In order • Supervision to be emphasis in the calculation process, the • Energy Usage changes of cost and benefits in each year are • Labour Variable Cost assessed by using the discount rates of 3%, • Production (VC) • Recruitment 7% and 10%. Afterward, the Net Present Value • Training (NPV) is computed for each identified potential Direct Cost • Assets nautical sport activities. (DC) • Equipment Finding Generic Methodology The potential nautical activities are obtained Step 1: Determine the Goal by comparing the current nautical activities The goal of this study is to select the most available in other nautical countries in European potential nautical tourism activities in waters such as France, Italy and Spain with Kuala Terengganu, Malaysia that can boost both Terengganu (refer Table 1). These comparisons tourism and economic sustainability for are based on the similarity of nautical activities replacing the Monsoon Cup event. in all these countries to verify the suitability of activities to be operated in Kuala Terengganu. Step 2: Data Collection All the data used in this stage are obtained directly from analytical data. An analytical data has been used for this study. The value for the total cost and benefits A case study in selecting the most potential are obtained from the price of market trends, nautical tourism activities is conducted using the provided by the organization that supply all cost and benefit analysis. To ensure the equality the required equipments (expert's opinion) across the year, monetary values are described in in Malaysia to carry out these activities. For the present value terms. Hence, the realistic cost instance, the total cost can be categorized as and benefits are evaluated with the consultation operational cost including the labour, license, of market trends and industrial surveys from the equipment, maintenance, security and etc. All service providers in the nautical tourism events the total cost are listed for each type of activities. in Malaysia (Plowman, 2014). Meanwhile, the total benefits include the fees, Table 4 until 9 show the summarized membership, lesson class, etc. All listed cost results of the Net Present Value calculated using and benefits are linked to the process efficiency equation as shown in Section 3 (Methodology).

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Table 4 describes the total value of NPV seems that the highest NPV for this activity is for flyboarding activities. It shows that by giving RM 2,550,113.88 by giving 3% discount rate, a discount rate in 3%, flyboarding activities followed by 7% and 10% discount rates, which can possibly become a potential activity to be have the values of NPV RM2,306,409.09 and proposed in Terengganu due to the highest NPV RM2,145,844.44 respectively. RM 1,914,153.49 compared to 7% and 10% Table 7 describes that, among these three discount rates. NPV for sailing activity, the value in 3% discount Table 5 shows that Net Present Value rate is the highest with RM1,090,195.47, (NPV) for kitesurfing activity which comes followed by 7% and 10% with RM971,045.51 out with three different values based on three and RM892,543.68 and all the value of NPV different discount rate. It shows that the highest is positive value, which means that all these NPV is RM246,743.12 by discount rate of 3%. activities are beneficial activities and worth. Possibly, organizing of kitesurfing activity by Table 8 shows the calculated NPV for 3% discount rate giving by the services provider the wakeboarding activity. The results based are the most potential activity among 7% and on CBA, the NPV for 3% discount rate is the 10% discount rate. highest compared to the others, which has the Table 6 shows that the results of CBA for value of NPV RM684,823.98, followed by 7% parasailing activities for five different years. It Table 4: Flyboarding Net Present Value

Table 5: Kitesurfing Net Present Value

Journal of Sustainability Science and Management Volume 15 Number 1, January 2020: 148-161 Noorul Shaiful Fitri Abdul Rahman et al. 156 and 10% discount rates with RM612,813.57 and followed by 7% and 10% discount rates with RM565,369.59. RM88,217.44 and RM76,053.03. This shows Table 9 shows the calculated NPV for that windsurfing activity with 3% discount rate windsurfing activity. The highest NPV are is the most potential activities to be organized in in 3% discount rate with RM106,680.56, Terengganu for this category.

Table 6: Parasailing Net Present Value

Table 7: Sailing Net Present Value

Table 8: Wakeboarding Net Present Value

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Table 9: Windsurfing Net Present Value

Figure 1 summarizes the NPV of all the six rate. By considering the future benefit that can potential nautical sport activities in Terengganu. be obtained by operating these activities, the According to the CBA calculation, parasailing prospect for these activities deemed to be highly becomes the most suitable nautical sport potential. tourism in Terengganu that can be proposed to Figure 2 shows the rank of potential the state government for boosting tourism and nautical sport activities from the highest to the economy sustainability as well as replacing the lowest profits is as follows: 1) parasailing, 2) Monsoon Cup event. The discount rates used flyboarding, 3) sailing, 4) wakeboarding, 5) in this calculation are 3%, 7% and 10%. Each kitesurfing and 6) windsurfing. It is found that of the potential activity is calculated up to four parasailing activity possessed the highest profit years of operating and the NPV for each year is margin RM678,852 compared to the other calculated respectively. The highest estimation activities followed by flyboarding activities with NPV is RM2,550,113.88 for 3% discount rate, profit of RM507,820. They both surpassed the followed by RM2,306,409.09 for 7% discount other by significant margin. Although kitesurfing rate and RM2,145,844.44 for 10% discount and windsurfing activities has the least cost to rate. Even the smallest costs activity such as operate, the profit margin for these two activities kitesurfing has the NPV of RM197,330.17 are the least compared to the other activities. for 10% discount rate, RM216,955.63 for 7% The profit/revenue is gained by subtracted of discount rate and RM246,743.12 for 3% discount cost from the benefits.

Figure 1: The comparison of NPV between all potential nautical activities in Terengganu

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Figure 2: Cost benefit comparison of each identified activities for year 0 Hence, based on the calculated cost and possibly can replace the Monsoon Cup events benefit as well as NPV, it shows parasailing are identified. activity is the most beneficial nautical sport Figure 3 shows that the arrangement of all tourism to be proposed and conducted in the potential nautical activities and the list are Terengganu compared to the others. Thus, the made based on its calculated Net Present Value goal of this study has achieved accordingly. (NPV) from the most potential until the least potential nautical activities. The most potential Discussion nautical activity is parasailing. Since the Monsoon Cup has been officially Based on the results, these three nautical moved to Johor, causes the total number of activities are the top potential nautical activities tourists in Terengganu clearly decreased, to be held in Terengganu as they provide relevant the government needs to take an alternative opportunities to the state in order to sustain the to replace this attraction event to another tourism industry. By organising these potential potential event that possibly will increase the activities, it expects to attract not only the tourist in Terengganu. Based on the findings, tourists, but also the international water sport the parasailing is the most potential nautical associations to join such as The Water Sports activities with profit RM678,852 respectively Industry Association (WSIA), The Sailing that can replace the Monsoon Cup due to its and Cruising Association, Dinghy Cruising capability to generate an outcome to the service Association, Canadian Fly Board Association, provider and to the government. Besides, based International Fly Board Association, etc. By on the results, the most potential activities that participations of all those associations, it

Figure 3: The arrangement from the most potential until the least potential of nautical activities

Journal of Sustainability Science and Management Volume 15 Number 1, January 2020: 148-161 THE SUSTAINABILITY OF NAUTICAL SPORTS TOURISM IN TERENGGANU 159 could possibly increase the total number of on the findings, it is established that parasailing, tourists to Terengganu, both international and flyboarding and sailing activities have the local, just like organizing the previous annual highest benefit among those potential activities Monsoon Cup event. Those potential activities based on the CBA and calculated NPV. All these can be proposed to the state government as activities give a high impact to the community the alternatives to boost or sustain the tourism and social in Terengganu. The implication of industry in Terengganu as those activities not these activities will possibly increase the total only could increase the total numbers of local number of local and foreign tourist and can or foreign tourists, but also can increase the generate higher income for the government. The contribution of tourism industry in Terengganu total employment also will be increased when to the national GDP of Malaysia. there are so much activities in this industry and In comparison to other studies conducted, add special values to Terengganu which known this study provides the alternatives for the as a nautical tourism states in the world. state government to improve and empower the nautical sports activities in which can contribute Acknowledgements to the local economy especially to the state of Authors would like to give a huge appreciation Terengganu, Malaysia. The result of this study to Universiti Malaysia Terengganu for providing can contribute an insight to the decision makers the research facilities. and organisers to have a future planning in holding an annual nautical sports event to attract more tourists and participants to join. The References comparison made between each nautical sport Abdul Halim, M. A. S., Zakaria, Z., Hasnan, activities listed using the CBA help to indicate M. T., & Muda, S. (2012). The Direction the potential activity that can be considered in of Terengganu Tourism Industry in sustaining the nautical tourism economy of the Sustaining Business Growth: A Conceptual State. Framework. International Journal of Academic Research in Business and Social Conclusion Science, 2(4). Terengganu is a popular state for tourist Abdullah, N. M., Patterson, I., & Pegg, S. destination in Malaysia. Visitor usually visit (2015). Organisers’ and Residents’ Views any places emphasized on the aspects of safety, about the Benefits and Costs: The Case of comfort, reasonable cost for any interesting Monsoon Cup International Sailing Regatta, activities and the availability of facilities Malaysia. International Journal of Sport Management, Recreation and Tourism (Othman, Mohamed & Khairi, 2012). In addition, th Terengganu also is one of the states in Malaysia [online]. Retrieved on 5 April 2017 from that actively promote tourism either to the local http://www.ijsmart.eu/onlinepic/vol17_d_ and foreign tourist (Hamid, 2016). The state Nawal%20Hanim%20Abdullah.pdf government is promoting a diversity of tourism ABZ Travel. (2017). Mauritius Attractions: product in order to give the variety of activities to Parasailing [online]. Retrieved on 21st April the tourist. In this regard, the identified potential 2017 from https://mauritiusattractions.com/ nautical activities possibly meet the needs of the parasailing-p-123.html visitors. It is recommended to organize all these Bernama, (2017, September 22). Terengganu activities due to replacing the Monsoon Cup that Targets Sector to Become Main Contributor already located to Johor in order to sustain the to State’s Economy. The Star Online. tourism industry in Terengganu and encourage Retrieved from https://www.thestar.com. more tourist either from local or foreign my/metro-news/2 countries to come to visit Terengganu. Based

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