Disaster Advances Vol. 12 (7) July (2019)

From Surviving to Thriving? Evaluating the Resilience of Rural Businesses in Disaster-Prone Area of Sabah, Malaysia Kamarudin K.H.1,2, Razak K.A.1,2, Omar Chong N.1*, Abd Wahid S.N.A.3 and Wan Mohd Rani W.N.M.1 1. Razak Faculty of Technology and Informatics, Universiti Teknologi Malaysia (UTM) Kuala Lumpur, Jalan Sultan Yahya Petra, Kuala Lumpur 54100, MALAYSIA 2. Disaster Preparedness and Prevention Centre (DPPC), Malaysia-Japan International Institute of Technology, Universiti Teknologi Malaysia (UTM) Kuala Lumpur, Jalan Sultan Yahya Petra, Kuala Lumpur 54100, MALAYSIA 3. Centre for Diploma Studies, Universiti Teknologi Malaysia (UTM) Kuala Lumpur, Jalan Sultan Yahya Petra, Kuala Lumpur 54100, MALAYSIA *[email protected]

Abstract coming due to raising concern for their safety and thus It is always fascinating to learn how tourism businesses tarnishing the village’s image as a popular tourism can persist in rural areas that are prone to disasters. destination. This study examines the enabling factors for rural Fortunately, all these notions were only half-true since many tourism resilience in a changing environment. Mesilou of the local tourism businesses did survive and were able to Village in Kundasang, Sabah was selected as a case resume their operations. In this light, local tourism business- study and 20 respondents i.e. homestays owners and people have demonstrated resilience from highly motivated operators participated in the questionnaire-guided respondents to rebuild their lives and businesses, pushing for interview conducted in October 2018. Results from this business recovery and growth. Only three years after the study indicated that there is a combination of factors disaster, Suhimin’s business is currently thriving that influence the survivability of despite all odds together with the 40 other homestay businesses in Mesilou Village, particularly after the 6.0 operators in Mesilou Village. Richter scale earthquakes struck the Ranau- Kundasang area in June 2015. It is always fascinating to learn how tourism businesses can persist in rural areas that are prone to disasters. Stories from individuals like Suhimin are the keys to figure out the These factors included; (1) strong self-belief among possible factors for business resilience and how people tourism operators that they will recover from the persist in facing and surviving market and business disaster; (2) strong kinship and family support for challenges after episodes of great adversity. business recovery; (3) respondents’ possession of suitable skills to carry out own maintenance and Keeping Rural Tourism afloat in Disaster Prone Areas: recovery works; (4) diversification of household There is no doubt that the tourism sector has become one of income to fund recovery works and (5) the low severity the major contributors to development and it is an agent of of damages suffered by the business/premise i.e. minor change for many parts of the world. The strengths of tourism to no damage. The case of Mesilou Village are described in various forms; as a tool in economic and demonstrates resilience from highly motivated physical development and as a means to enhance social and human capital development and the conservation of our respondents to rebuild their lives and businesses, natural environment3,10. In rural areas especially in pushing for business recovery and growth with an developing countries, tourism development had been eagerly important goal in mind which is to improve the quality embraced as a panacea for revitalising the rural economy4,6. of life while coping with adversity. Ever since the concept of sustainable development came into the development and conservation debate, many government Keywords: Resilience, natural disaster, tourism, homestay, agencies, particularly tourism-related bodies, have invested rural. heavily to promote more sustainable forms of tourism in rural areas2,4. Introduction The researchers met Suhimin at his Rose Homestay in The term ‘’ has come into tourism Mesilou Village in the afternoon where he was busy with the literature as an extension of the idea of sustainable construction of a new chalet, a new addition to his growing development, but with more focus on tourism needs – “a ‘Rose Bouquet’. Local tourism businesses are recovering tourism development that meets the needs of the present after the 2015 earthquake. There were only 20 homestay without compromising the ability of future generations to operators in Mesilou Village before the earthquake and meet their own needs”12. business was expected to be badly affected by the disasters and cascading geohazards (earthquake-triggered landslides The realisation that the current conventional mass tourism and debris flow) which in turn will cause tourists to stop activities may no longer be able to satisfy the principles of

41 Disaster Advances Vol. 12 (7) July (2019) sustainable tourism has led to the search for “a new, more • A high percentage of tourism revenue benefits the rural socially and ecologically benign alternative”.1 community. • Permits participation in the activities, traditions and What is Rural Tourism? At first glance, a simple answer lifestyles of the local people. can be given: rural tourism is tourism which takes place in • Provides personalized contact with the rural community. the countryside5. The reality of rural tourism, however, is more complex as many early commentators have pointed out Dynamics of Rural Tourism and Natural Hazards: on deeper consideration where a simple definition of rural According to UNEP11, there are more than 200 million tourism is inadequate for many purposes. Equally, it is people affected at a global level every year by disasters difficult to produce a more holistic definition which could be associated with natural hazards including droughts, floods, applied to all rural areas in all countries5. Researchers in cyclones, tsunamis, earthquakes and wildfires/bushfires. tourism2,4,5,9 have suggested some key elements that can be The impacts of disasters on the livelihoods of the affected used in characterising rural tourism: are greater with the issues of growing populations, environmental degradation and global warming. Such • Located in rural areas and functionally rural – built upon phenomenon posed a clear indication that the global the rural world’s special features of small-scale community is now highly vulnerable to these types of enterprise, open space, contact with nature and the disasters and therefore, finding and implementing better natural world, heritage, ‘traditional’ societies and mitigation procedures to protect the victims and the ‘traditional’ practices. environment is becoming more urgent. • Rural in scale – both in terms of buildings and settlements and therefore, usually small-scale. The sustainability of tourism destinations in rural areas is • Traditional in character – growing slowly and very much dependent on the ability of tourism players, host organically and connected with local families. It will communities and other stakeholders to gain more knowledge often be very largely locally controlled and developed to on how to effectively manage natural disasters and adapt benefit the immediate area in the long run. their planning and management practices accordingly while • The complex and varied patterns of rural environment, taking into account the impacts of climate change4. economy, history and location result in differing kinds of rural tourism.

Figure 1: Tourism and disaster relationships. Source: adapted from Kamarudin3, Bernardo5 and Banerjee7

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Since rural tourism has always been regarded as the impetus series of interviews and informal discussions with local that brings in new business opportunities and economic informants, the youth group Mesilou Volunteer Club development for various parts of the world, there are several (MEVOC) and the head of the community. Personal key factors that have impacted the sustainability of tourism observation of local tourism activities during the fieldwork businesses, both positively and negatively. One of these has also been included. factors is the emerging concern on natural disasters and climate changes that occur in tourism destinations Gender and age structure: The majority of respondents unexpectedly. Minimizing losses of life, livelihoods, tourism interviewed were the Dusun people (85%) (Table 1). Male infrastructure and property during a natural disaster are respondents were dominant comprising 80% of the generally indicators of the destination’s capacity to participation (16 persons) as compared to female adequately prepare for and effectively manage disaster respondents (4 persons or 20%). events7. For many communities, the huge challenge is to make the tourism businesses more resilient to disasters As presented in table 2, the largest sub-group of respondents through community-based initiatives. is from the age range of 31 to 40 (7 persons or 35%) followed by those within the age range of 51 to 60 at 25% and the age Survey of Homestay Operators in Mesilou Village, Sabah range of 41 to 50 at 20%. Younger respondents aged below Methodical Approach: The 20 respondents who 30 represent 15% of the total respondents. Lastly, the participated in the survey conducted on 10th October 2018 smallest age group is made up of 1 respondent with an age consisted of local stakeholders, particularly homestay range over 61 with 5%. operators, business-people and residents from within the communities who work in tourism-related sectors including As presented in table 3, the majority of respondents (i.e. in farming and non-farming activities. They were tourism operators) moved and resided in Mesilou Village interviewed to represent the opinions and perception of the (55%) as compared to the 45% who were born and raised in tourism business community in Mesilou Village regarding the village. Many of the respondents stated that they were the concept of disaster risk reduction and the resilience of attracted by Mesilou Village and moved due to work tourism businesses in disaster-prone areas. commitments (some of them are business-people and teachers from the nearby school). It is also worth noting that The survey on local stakeholders is conducted using those who moved into the village are mainly the Dusun questionnaire-guided interviews (to obtain quantitative data) people from the neighbouring towns of Ranau and Kota and it is supported by qualitative information derived from a Kinabalu.

Table 1 Respondents’ ethnic group (n=20)

Frequency Percent Valid Percent Cumulative Percent Valid Dusun 17 85.0 85.0 85.0 Malay 1 5.0 5.0 90.0 Others 2 10.0 10.0 100.0 Total 20 100.0 100.0 Source: Research fieldwork Table 2 Respondents’ age structure (n=20)

Frequency Percent Valid Percent Cumulative Percent Valid 19-25 years 2 10.0 10.0 10.0 26-30 1 5.0 5.0 15.0 31-40 7 35.0 35.0 50.0 41-50 4 20.0 20.0 70.0 51-60 5 25.0 25.0 95.0 > 61 1 5.0 5.0 100.0 Total 20 100.0 100.0 Source: Research fieldwork Table 3 Respondents’ origin (n=20)

Frequency Percent Valid Percent Cumulative Percent Valid Born and raised in this village 9 45.0 45.0 45.0 Moved and reside in this village 11 55.0 55.0 100.0 Total 20 100.0 100.0 Source: Research fieldwork

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Occupation: As presented in table 4, the majority of their own money or money from their own savings (55%). respondents are homestay operators (45%) followed by On the other hand, 20% of the respondents were reluctant to owners and/or workers in non-farming projects but to some share any information related to business capital and their extent, also support the local rural tourism development financial source for starting up their business. (40%). The remaining respondents are involved in tourism services as a or porter, a farmer and an owner of Another 15% of the respondents obtained funding via a bank a food-based small and medium enterprise (SME) loan, whereas ‘shared capital with partners’ and respectively. ‘loan/financial assistance from government’ comprise of 5% of the respondents each when asked about the source of their Profile of Rural Tourism Project in Mesilou Village: business capital (Table 6). A few respondents including Mr. Based on the survey findings in table 5, more than 55% of Suhimin, the owner of Rose Homestay stated that they have the respondents have established their businesses before the started their business in an organic manner where they 2015 Kundasang earthquake. It is also interesting to learn started small before growing into a bigger entity and along from table 6 that local tourism businesses continue to grow the way, they learned the ups and downs in business, even after the disaster. In 2016, 2 new businesses were accumulating valuable experience and skills to rejuvenate established followed by another seven new businesses their business. established in 2017. This finding can be interpreted as a positive sign of the resilience of local tourism businesses For Suhimin and other senior homestay operators, it is the after a major disaster. It also proved that a place with high norm to expand homestay units only when they have tourism potential such as Mesilou Village is not defined by sufficient cash or capital and most of the construction works the earthquake. In this instance, a major disaster event did have been carried out in-house (by the owners with the help not deter local and nearby investors to continue developing of their relatives and/or children). By doing so, they are able tourism and other economic projects in the study area. to reduce cost and avoid unnecessary loans, thus ensuring the business can survive in the long run so that it can be In terms of starting up their tourism business, the majority of passed on to their children in the future. the respondents specifically mentioned that they were using

Table 4 Type of local businesses/services (n=20)

Frequency Percent Valid Cumulative Percent Percent Valid Homestay operators 9 45.0 45.0 45.0 Tourism-related (porter/tour 1 5.0 5.0 50.0 guide) Agriculture-related (farmers, 1 5.0 5.0 55.0 machine operators) Food-based enterprises (SMEs) 1 5.0 5.0 60.0 Non-farming (transportation, 8 40.0 40.0 100.0 catering, coffee shop, mini market, pasar tamu, etc.) Total 20 100.0 100.0 Source: Research fieldwork

Table 5 Year of establishment of business (n=20)

Frequency Percent Valid Cumulative Percent Percent

Valid Early 2000 to 2010 4 20.0 20.0 20.0 2011 to 2015 (before earthquake) 7 35.0 35.0 55.0 2016 (post-earthquake) 2 10.0 10.0 65.0 2017 – Oct 2018 7 35.0 35.0 100.0 Total 20 100.0 100.0 Source: Research fieldwork

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Data Analysis and Discussion As presented in table 7, all respondents selected multiple Enablers for Rural Tourism Resilience in Disaster-Prone answers when identifying the internal factors which Areas: The majority of the respondents stated that they have contributed towards business resilience. All respondents experienced business disruptions once or twice due to incorporated ‘high self-esteem or self-belief they can disasters (80%), followed by 15% saying that their succeed in business’ as the main internal factor for business businesses were disrupted many times and the remaining 5% resilience. This showed a strong influence of the innate stated his business was spared from the disasters. Among the qualities of the individual in the business in charting the reasons given by the respondents for the low level of success of their company. Apart from individual factors, the business disruptions is many of the homestays are located at surrounding environment also posed great influence towards the centre area of the village, which is located quite far from business resilience (Figure 2). This includes the pertinent the Mesilou River, a high-risk area due to the debris flow roles of kinship and family in supporting the business, and mud flooding. The earthquake followed by debris flow particularly during difficult times by providing financial and wiped out the main bridges but most of the major moral support. infrastructures in the village were spared from any serious damages.

Table 6 Business capital (to initiate the business) (n=20)

Frequency Percent Valid Percent Cumulative Percent Valid Using own money / own savings 11 55.0 55.0 55.0 Shared capital with partners 1 5.0 5.0 60.0 Loan from bank / financial institutions 3 15.0 15.0 75.0 Loan / financial assistance from 1 5.0 5.0 80.0 government Others (not specify) 4 20.0 20.0 100.0 Total 20 100.0 100.0 Source: Research fieldwork Table 7 Internal factors enabling business resilience (n=20)

Frequency Percent Valid Cumulative Percent Percent Valid High self-esteem/self-belief that they can succeed in 4 20.0 20.0 20.0 business & Kinship/family support during difficult times (financial, workforce, morale boost) & Possess suitable skills to carry out self-maintenance /repair works & did not suffer major damage Self-esteem/Self believe can success in business & 3 15.0 15.0 35.0 Kinship/family support during difficult time (financial, workforce, morale boost) & secured income from other sources Self-esteem/Self believe can success in business & Possess 5 25.0 25.0 60.0 suitable skills to carry out self-maintenance /repair works & secured income from other sources & did not suffer major damage Self-esteem/Self believe can success in business & 2 10.0 10.0 70.0 Kinship/family support during difficult time (financial, workforce, morale boost) & Possess suitable skills to carry out self-maintenance /repair works & secured income from other sources & did not suffer major damage Self-esteem/Self believe can success in business & 6 30.0 30.0 100.0 Kinship/family support during difficult time (financial, workforce, morale boost) & Possess suitable skills to carry out self-maintenance /repair works Total 20 100.0 100.0 Source: Research fieldwork

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Other than the internal factors, the study has identified a few In terms of the length of the recovery process after the external factors that assisted business resilience (as disasters, the majority of the respondents (70%) mentioned presented in table 8). A majority of the respondents i.e. 55% that their business activities have fully recovered within a have specifically mentioned they are able to sustain their month after the disaster (Table 9). 30% of the respondents business despite growing disaster risks and uncertainties due were able to resume their business operations just within 24 to the following reasons; (1) they are not badly affected by hours after the disaster followed by 20% needing less than a the past disaster, hence were able to ‘bounce back’ and week and another 20% needing less than a month. This resume normal operations and (2) tourists’ eagerness to feedback might be related to the previous information on the return to Mesilou Village where it was observed that the business resiliency elements (Figure 2) that stated many of number of visitors started to increase only a few months after respondents did not experience major or serious damages the earthquake (Figure 2). from the disaster, hence they were able to resume business operations quickly. Table 8 External factors enabling business resilience (n=20)

Frequency Percent Valid Cumulative Percent Percent Valid Strong unity among community 4 20.0 20.0 20.0 members and tourists’ eagerness to return Suffer only small damages and tourists’ 11 55.0 55.0 75.0 eagerness to return Quick recovery works by government, 4 20.0 20.0 95.0 suffer only small damages and tourists’ eagerness to return Did not specify answers 1 5.0 5.0 100.0 Total 20 100.0 100.0 Source: Research fieldwork

Figure 2: Summary of internal and external factors for rural tourism resilient in Mesilou Village8.

Table 9 Length of business recovery prior to disasters (n=20)

Frequency Percent Valid Cumulative Percent Percent Valid Within 24 hours 6 30.0 30.0 30.0 Few days but less than a week 4 20.0 20.0 50.0 Few weeks but less than a month 4 20.0 20.0 *70.0 Few months, but less than 6 months 4 20.0 20.0 90.0 > 6 months 2 10.0 10.0 100.0 Total 20 100.0 100.0 Source: Research fieldwork

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Table 10 Implications of disaster to image and reputation of tourism destination (n=20)

Frequency Percent Valid Cumulative Percent Percent Valid More tourists visit to the village* 4 20.0 20.0 20.0 Short term negative impacts (tourists 10 50.0 50.0 70.0 coming in after a while) Only a minimum and short-term impact to 3 15.0 15.0 85.0 monthly income (reduction of income after disaster) Did not experience any negative impacts 3 15.0 15.0 100.0 (no significant reduction of income) Total 20 100.0 100.0 Source: Research fieldwork

As Mesilou Village is one of popular tourist destinations in MEVOC during the interview. Even small changes, for Sabah, the occurrence of a major disaster will inevitably instance, Mr. Suhimin’s busy schedule in constructing new impose certain implications to the image and reputation of accommodations for Rose Homestay as observed during the the business community and also the general community in field study could indicate a positive business performance. the village. In this light, the survey has identified several implications of a disaster to Mesilou’s image and reputation A summary has been drawn as to determine both internal and and the findings are presented in table 10. The majority of external factors which contributed towards rural tourism the respondents (50%) stated that disasters imposed short- resilience in Mesilou Village (Figure 2). It can be concluded term negative implications to the tourism business that the essential ingredients for business resilience in community in Mesilou Village. disaster-prone areas are closely related to the respondents’ positive attitude and in this case, high self-esteem and However, the situation will improve over a short period of internal belief that they will succeed in their tourism time where visitors return within a month to three months businesses despite facing many challenges and uncertainties after the earthquake. Furthermore, many of the respondents from time to time. agreed that safety concerns about the village and surrounding attractions have always been a priority among In order to reinforce their resilience, other influential factors visitors, as well as to the locals. Safety assurance is therefore such as kinship and family support, the possession of very important to regain tourists’ confidence. suitable skills and the ability to conduct self-maintenance of homestays are also necessary. An interesting finding is that even though the disaster brought physical and financial devastation to the village, it Through the examination of the results, many tourism had an inverse effect with tourists and instead attracted more operators also mentioned they did not experience major visitors to Mesilou Village (20%). Based on an interview damages to their premises or facilities, hence were able to with a local youth association focusing on , resume their operations without much hassle or difficulties. and mountain tourism called the Mesilou Having said that, one specific question had emerged: do the Volunteer Club (MEVOC), tourism in Mesilou Village is respondents really experience adversity? Even though their recovering (or may show a positive sign of thriving) after the village is located in a disaster-prone area, many of them were earthquake and more visitors are coming in for family spared from disaster with zero to minimal damages. Was and ecotourism activities. Since then, MEVOC has there a need for them to ‘recover’ from the disaster? If there hired more local youths to serve as tour guides or porters, is not, is it still a genuine act of community resilience when especially for Meragang Hill (2232m). the businesses bounced back quickly, or were they just very fortunate to be spared from major catastrophic and bigger Conclusion losses? Unfortunately, the data that we have at the moment This study has endeavoured to draw upon insights from the is inadequate to answer this inquiry and thus, a more detailed survey of local homestay operators in order to determine the study needs to be conducted in the future to connect the progress of rural tourism development in disaster-prone ‘missing link’. areas. Based on the evidence from the analysis, we established that in general, tourism projects in Mesilou Acknowledgement Village are recovering from the previous disaster. There is The authors would like to thank Universiti Teknologi an increase in the number of new homestays established and Malaysia (UTM) for funding this research under the in operation since 2016 until today, due to the increasing Research University Grant (GUP-Tier 2, Ref. Num. number of tourists as stated by the representative from PY/2017/01876: Q.K130000.2640.15J54).

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