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Destination Competitiveness in Perhentian Island, Malaysia: the Role of Image, Experience and Loyalty

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Destination Competitiveness in Perhentian Island, Malaysia: the Role of Image, Experience and Loyalty Destination Competitiveness in Perhentian Island, Malaysia: The Role of Image, Experience and Loyalty. Volume 1 of 2 Submitted by Nur Shahirah Binti Mior Shariffuddin to the University of Exeter as a thesis for the degree of Doctor of Philosophy in Management Studies In February 2019 This thesis is available for library use on the understanding that it is copyright material and that no quotation from the thesis may be published without proper acknowledgement. I certify that all material in this thesis which is not my own work has been identified and that no material has previously been submitted and approved for the award of a degree by this or any other University. Signature: ...................................................................... ABSTRACT In an increasingly saturated global market, Tourism Destination Competitiveness (TDC) is fundamental for the sustained growth of tourism destinations. It is essential in shaping long-term economic growth, improving community well-being and aiding in attracting investment to the development of a destination. This, however, can be problematic to destinations like small islands, which have limited resources, are environmentally vulnerable and which are economically dependent on international trade. The development of the destination requires a crucial understanding to achieve, enhance and strengthen competitiveness. The aim of this study is to examine the relationship between TDC and other main variables such as the quality of tourism experience, Tourism Destination Image (TDI) and tourist loyalty, as well as to develop a theoretical model of destination competitiveness for island destinations based on the tourists’ and stakeholders' perspectives of Perhentian Island, Malaysia. To achieve its research aim and objectives, this study adopts a sequential, exploratory mixed methods design. Tourism related government agencies were interviewed in the first phase of the qualitative data collection, and 21 attributes of TDC were determined to provide a platform for assessing TDC in the second and third phases of the data collection. In the second phase of the qualitative data collection, semi-structured interviews were conducted with other tourism stakeholders. The stakeholders highlighted issues and gave recommendations on themes that are the basis for destination and marketing development of the island. The different perspectives, viewpoints and opinions contribute to a niche understanding of destination competitiveness for Perhentian Island. In the third phase of the quantitative data collection, 213 usable questionnaires were obtained from tourists visiting Perhentian Island. An analysis of the survey data revealed the relative importance of TDC factors in assessing the competitiveness of Perhentian Island and of competing destinations. A comparison of the relative importance of TDC factors between tourists and stakeholders shows the differing priorities set for Perhentian Island. Another statistical analysis also showed 2 dimensions of tourist characteristics namely: (1) number of overnight stays and (2) educational level, which have statistically i significant differences and relationships with the importance of quality of tourism experience and TDI respectively. The result indicates that these two variables (quality of tourism experience and TDI) together with tourist loyalty positively influenced the level of destination competitiveness. Moreover, TDC appears to have a mediating effect on the relationship between TDI and tourist loyalty. This study outcome provides several implications for the development of TDC theory, methods and application of competitiveness to small islands like Perhentian. The study also postulates managerial implications for tourism stakeholders, especially the policymakers and decision-makers, as TDC plays an important role for the development of Perhentian Island. These include the recognition of the core resources and attractors of Perhentian Island that are most appealing to the tourists to enhance destination competitiveness. The result identified attributes that would benefit the tourism stakeholders in promoting the destination. Keywords: tourism destination competitiveness, quality of tourism experience, tourism destination image, tourist loyalty ii ACKNOWLEDGEMENTS I would like to express my gratitude to: My advisors Professor Gareth Shaw and Dr. Tim Taylor for their continuous support of my PhD study and related research. In addition, their patience, motivation and immense knowledge have been a guiding light throughout my research and writing of this thesis. I could not have imagined having better advisors and mentors for my PhD study. To all the people who have in some way contributed to this research. I am grateful in particular to the research participants and survey respondents, as well as to those who have offered me advices on several aspects of the inquiry. To Heather Makin, Lora Fleming, Kate Gannon, Natalie Bartram and Charlotte for getting me through all the bureaucratic minefield at both University of Exeter and Universiti Sultan Zainal Abidin. To our Malaysian family in Cornwall Kak Zan, Abang Afiq, Nizar, Hana, Kak Haze, Abang Zul, Safraa, Haifa, Afza and baby Nufa for their encouragement and support. To my closest friends Zan Nureen, Syakie, Kak Yan and Tiya who exactly knew what I needed to find my balance between “work and play”. I find comfort knowing that when the going gets tough, they will always be there to support me. To my friends who have been there for me since day one in my PhD journey and never giving up on me; Adzim, Munira, Kak Husna and Kak Jannah. To my extended family; my grandparents, uncles, aunts, cousins, nephews and nieces who have been supporting me, patiently waiting for the day I finally come home. iii To my parents and in laws; Bak, Mak, Abah and Ibu for their love, encouragement and prayers. Their unconditional love and good examples have taught me to work hard to achieving my aspirations. They are the pillar of strength that acts as an impetus to reaching my dreams. Thank you for always believing in me since the day I was born and the day I came into my husband’s family. To the siblings; Kakak, Maryam, Sarah, Anwar, Sharah and Ziyad for supporting me spiritually throughout writing this thesis, who offered invaluable support and humour over the years. To my sweet little girl, Mushira. For accompanying me and giving me the opportunity of witnessing every step of her growing up in the first three years of her life. She is the softest point of my heart and the joy of my life. Lastly but definitely not the least, I express my gratitude to my dear husband, Muaz. I am most appreciative of his constant love, understanding and encouragement. His ability to juggle responsibilities of our small family and the added pressure of doing his PhD at the same time baffles me because he does it so competently. Honestly, I couldn’t have done it all without his guidance and support. iv TABLE OF CONTENTS Abstract i Acknowledgements iii List of Content v List of Tables x List of Figures xiii CHAPTER 1: INTRODUCTION 1 1.1 Research Background 1 1.2 Research Issues 4 1.3 Research Aim and Objectives 5 1.4 Outline of the Thesis 6 CHAPTER 2: LITERATURE REVIEW 7 2.1 Introduction 7 2.2 Definition of Destination Competitiveness 8 2.3 Detailed Review of Tourism Destination Competitiveness 11 2.3.1 Other Variables 18 2.4 Tourism Destination Competitiveness Model 19 2.5 Determinants of Tourism Destination Competitiveness 26 2.6 Marketing Perspective 32 2.6.1 Destination Management Organization 35 2.6.2 Tourism Destination Resources 36 2.6.3 Demand and Supply Perspectives 37 2.7 Tourist Profile 39 2.8 Destination Image 40 2.8.1 Destination Image and Competitiveness 42 2.9 Tourism Experience and Quality 44 2.9.1 Quality of Tourism Experience and Competitiveness 53 2.10 Tourist Loyalty 55 2.10.1 Tourist Loyalty and Competitiveness 57 2.11 Summary 58 v CHAPTER 3: TOURISM IN MALAYSIA, TERENGGANU AND 62 PERHENTIAN ISLAND 3.1 Introduction 62 3.2 Tourism Malaysia 62 3.2.1 Country Profile 62 3.2.2 Overview of Malaysian Tourism Industry 64 3.2.3 Performance of the Tourism Industry in Malaysia 64 3.2.4 The Structure of the Industry and Product Development 67 3.2.5 Niche Product: Island Focus 70 3.3 Island Destination in Terengganu 72 3.4 Perhentian Island 73 3.4.1 Overview on Tourism 73 3.4.2 Premier Ecotourism Destination 77 3.5 Summary 79 CHAPTER 4: METHODOLOGY AND RESEARCH DESIGN 81 4.1 Introduction 81 4.2 A Rationale for Mixed Methods 81 4.3 Research Design 85 4.3.1 First and Second Phase Qualitative Data Collection 87 4.3.1.1 Interview Guide Design 89 4.3.2 Third Phase Quantitative Data Collection 92 4.3.2.1 Questionnaire Design 93 4.3.3 Fourth Phase Quantitative Data Collection 97 4.4 Data Collection 98 4.4.1 Field Research 98 4.4.2 Pilot Study 100 4.4.3 Survey Population 100 4.4.4 Sample Size 101 4.4.5 Survey Setting 101 4.5 Data Analysis 103 4.5.1 Qualitative Data Management 104 4.5.2 Quantitative Data Management 104 4.5.2.1 Descriptive Analysis 105 4.5.2.2 Inferential Analysis 105 vi 4.6 Research Ethics 109 CHAPTER 5: DESTINATION DEVELOPMENT 110 5.1 Introduction 110 5.2 Organisational Background and Role 112 5.2.1 Tourism Malaysia Terengganu 113 5.2.2 Tourism Terengganu 116 5.2.3 The Village Development and Security Committee of 117 Perhentian Island 5.2.4 Department of Marine Park Malaysia 119 5.2.5 Perhentian Island Resort and Bubu Resort 121 5.3 Overview of Respondents’ Background 121 5.4 Interview Analysis 123 5.4.1 Tourism Destination
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