Chapter 2 is an overview of literature and models that are related to the research problem presented in the previous chapter. Reviewing the literature help to define the perception and reflect on the value and benefits of UNESCO label and its terms and conditions. In addition, the opportunity of tourism industry to the economic growth of Malaysia and Malacca, the impact and implementation will be discuss further.
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In the early era of human being, human travels or moving from a place to another place in order to avoid from danger, hunting for foods or changing of weather. Besides that, war, trade, religion and leisure also made people to move (Ding Kay Lee, 2009). The origin of modern tourism is usually quoted as the “Grand Tour” (Kastenholz, 2002). Where after, the industrialization epoch makes travel accessible for a up rising number of people due to more revenue, idles time available, improved of technology, increase of knowledge and curiosity.
Before War World II, the growing needs of leisure are low due to bad working, hard living predicament and low standard of episteme. The increase of private business, car ownership, and improvement of the road system and the development of the airline industry after World War II help to catalyze and inspire the growth of the tourism industry (Ding Kay Lee, 2009).
Next, with the effect of increasing in industrialization development, it has brought to increasing of the demand for international tourism to urge the development of the “international tourism industry”. Nowadays, tourism almost becomes part of the basic need in the wealthiest part of the developed world, where it assists people to obtain a higher degree of physically and psychological balance (Kastenholz, 2002).
2.1 Tourism Industry
Definition of tourism industry is difficult; it is defined as a people who “travel and stay in a place beside from their staying more than twenty-four hours and not more than one year for leisure, business and other goals not related to the implement of an activity rewarded within the place visit. An integrity model of tourism is shared by Cook, Yale, and Marqua’s (1999) which spine around the tourists and divided into three large layers, which include several tourism participants and organizations of inter-dependent groups, enveloping the focus point.
The first layer of the model consists of the tourism promoters such as tour administrators, tourist’s board and traveler agents. Marketing efforts will be carrying out directly and indirectly by the administrators to the tourists. Matters pertaining on travel issue normally will be corresponded between tourists and administrators. The tourism services suppliers is the second layer of the model where provide services that are asked by tourists such as transportation and accommodation. The third layer is the environment.
Comparing other industries, the external environments, which consists of social, cultural, political, environmental, and economic forces is reveled by tourism industry. The ability of both tourism administrators and services suppliers to react regularly on forces that may range from tricky and sudden changes is necessary. (Ding Kay Lee, 2009)
Socio-cultural appearance and an economic development tool for both tourist generating and receiving countries also as an important sector of tourism. Tourism helps to create employment and business opportunity in the most visited region in personnel property. Positive effects on income will receive by both investors and employees in the industry. Effects of multiplication happen when tourists consume, government infrastructural investment and the purchasing power created by the enlargement income. In addition, foreign exchange for the receiving countries can be achieved from the exportation branch of international tourism.
Tourism Promoters
Tourism service Supplier
Enviromental
Cook, Yale, and Marqua’s (1999) tourism model
2.2 A City of Future with Listing of UNESCO
The future of Malacca’s tourism industry is well foretells with the World Heritage listing. This will bring in new businesses opportunities idle domestic or international and wishing the forwardness of cultural infrastructures.
However, tourism can be a double-edged sword. It is critical to surveillance and minimize the negative impress of tourism, assuring against inverts of destiny (tourism industry unstably influenced by perishes and fuel prices) or over-success – in case fast gentrification, hovering asset prices and living costs compel the locals.
Through the heritage trial design, the advantages of tourism could be promote for local communities and stakeholders by community groups, training and attaching them as administers, judger and retailers. A coordinated information platform could help to accelerate local initiatives such as cultural programs, home stays and small enterprises.
Thinking of to making Malacca a city of the future -an ideal location for creative throngs and ICT enterprises, or a cultural, leisure and service center for the larger Indonesia- Malaysia- Singapore Growth Triangle Region is to be transformed. Such strategies should be directed at restoring abandon buildings, not substituting presence communities.
On the other hand, economic merit could be achieved by expending the educational potential of Malacca. The Historic Cities of the Straits of Malacca should be taught in Malaysian schools on its local historic and sense.
With a little more interpretation and cultural installation, Malacca could serve as an “open museum” of its civilization and architecture, catering especially to Malaysian and ASEAN students.
As a field introduction to Asian cultures, study trips are already being organized annually by several foreign universities for undergraduate and graduate students. To go further with this idea, the existing of a prestigious university with an urban campus not only helps revive the city but also create a demand for student accommodation and local services. (Heritage Asia OCT -Dec 2008)
2.2.1 Term and Condition of UNESCO Listing
To be listed in World Heritage list, sites must be of remarkable universal value and meet at least one out of ten selection criteria. The Operational Guidelines for the Implementation of the World Heritage Convention explained the criteria which, besides for the text of Convention, it also the main processing tool on World Heritage. Regularly reformulated on the criteria are done by the Committee to reflect the developing of the World Heritage concept itself.
Until end of 2004, six basis cultural and four natural criteria were selected by World Heritage site. With revising the adoption of the Operational Guidelines for the Implementation of the World Heritage Convention, only one set of ten criteria exists. Below and the criteria’s of include in the World Heritage List: (Quoted from WOLD HERITAGE SITE, 2004)
Selection criteria:
To represent a masterpiece of human creative genius;
To exhibit an important interchange of human values, over a span of time or within a cultural area of the world, on developments in architecture or technology, monumental arts, town-planning or landscape design;
To bear a unique or at least exceptional testimony to a cultural tradition or to a civilization which is living or which has disappeared;
To be an outstanding example of a type of building, architectural or technological ensemble or landscape which illustrates (a) significant stage(s) in human history;
To be an outstanding example of a traditional human settlement, land-use, or sea-use which is representative of a culture (or cultures), or human interaction with the environment especially when it has become vulnerable under the impact of irreversible change;
To be directly or tangibly associated with events or living traditions, with ideas, or with beliefs, with artistic and literary works of outstanding universal significance. (The Committee considers that this criterion should preferably be used in conjunction with other criteria);
To contain superlative natural phenomena or areas of exceptional natural beauty and aesthetic importance;
To be outstanding examples representing major stages of earth’s history, including the record of life, significant on-going geological processes in the development of landforms, or significant geomorphic or physiographic features;
To be outstanding examples representing significant on-going ecological and biological processes in the evolution and development of terrestrial, fresh water, coastal and marine ecosystems and communities of plants and animals;
To contain the most important and significant natural habitats for in-situ conservation of biological diversity, including those containing threatened species of outstanding universal value from the point of view of science or conservation.
The protection, management, authenticity and integrity of properties are also important considerations.
2.2.2 Benefit of Heritage
As Malacca had gained a world heritage label in 2008, it had brought certain advantages or significant on Malacca Economic, state development, communities, social, education and site owners. (Little Penang Street Market, 2009)
For example, there will be:
New business opportunities generated for a host, not least deriving from the prestigious Heritage listing. A wider development of a creative economy in Malacca is to be linked, as well as to a cleaner, safer, more positive civic environment through commitment to a decent management plan.
Increased local, federal and international project funding access.
An increase in tourist arrivals, not least in cultural tourism, again leading to greater business opportunities and turnover. Cultural tourists are known to stay longer and spend more.
Potential for investment in local artisans and craftspeople, with subsidies, training and identification of new commercial opportunities.
The continuation of other development and business activities.
Greater economic returns through appreciation in value.
Improved documentation of city and state.
2.2.3 Culture Tourism
Tourism can be considered as an omnipresent appearance in modern society, but its definition is far from consensual. Normally, people think of tourism as “holidays” focusing on the pleasure motive, but neglecting other forms of travel, such as business tourism, cultural tourism, and health tourism. (Ding Kay Lee, 2009)
Cultural tourism is defined as the person’s movement for essentially cultural intentions such as study tours, performing arts and cultural tours; travel to festivals and other related events by World Tourism Organization (2001). Essentially, cultural tourism is based on the mosaic of places, traditions, art forms, celebrations and experiences that portray of host nation and its people (National Assembly of State Arts Agencies, 2005).
On other hand, following technical definition of cultural tourism: “all movements of persons to specific cultural attractions, such a heritage sites, artistic and cultural appearances, arts and drama outside their usual place of residence” are suggest by Bonink and Richards (1992).
Generally, in the point of view, travelers with high socio-economic status, high levels of education, sufficient leisure time, and often having occupations related to the cultural industries and education is likely to be compose in culture tourism (Richards, 1996).
2.3 Tourism’s Potential for Economic Growth
Tourism is one of the important sectors of Malaysian economy growth; it is third income of the economy just after mining (petroleum) and manufacturing (Pazim @ Fadzim Othman, 2009). Rapid growth of tourism industry has been identified as a key driver of growth in the services sector. The industry has strengthened the services account of the payment and continues to be a hinge of foreign exchange earner, contributing to GDP (gross domestic product) growth, investment and jobs employment. (Senior Research Officer with the Malaysian Institute of Economic Research (MIER), 2008)
Generally, other related service industries, particularly food and beverages, accommodation, transport, entertainment, shopping, foreign currency development of regions (Avi Ella, 2009) and other small and medium-sized industries will be affected by the expansions of tourism industry on its growth. Based on the Ninth Malaysia Plan 2006-2010, tourism-related activities provided 492,000 jobs for employees which representing 4.4 per cent of the total workforce in 2006.Compare with 390,600 jobs in 2000, accounting for 4.2 per cent of the total workforce, it has increase 26 per cent of the work force.
However, it is even greater in employment creation, when the strong linkages tourism with other segments of the economy, such as transportation, retail, utilities, food and beverages, as well as financial services are taking into account. (Senior Research Officer with the Malaysian Institute of Economic Research (MIER), 2008)
Moreover, tourism also plays an important role in helping low-income groups improving their livelihood and income earn through involvement in tourism-related activities, such as rural homestay program, eco- and agro-tourism tour guide activities as well as handicraft industries. Below is the statistic of homestay program in Malaysia. In April 2009, 3,150 Homestay participants had registered with Ministry of Tourism. (Tourism Malaysia, 2009)
Statistic of Homestay Visitors
Domestic Visitor
International Visitor
2007
2008
Growth (%)
2007
2008
Growth (%)
51,055
68,416
34
21,368
23,117
8.2
Receipts of Homestay
Receipts (RM)
2007
2008
Growth (%)
Jan-Mac 2009
Growth (%)
4,923,433.30
6,393,676.63
29.9
2,319,018.40
7,755,616.30
Table 1: Statistic of Malaysia Homestay from Tourism Malaysia
2.3.1 Tourism Brings Prosperity to Malacca
As a part of Heritage Worlds, Malacca is proud with its own economic performance at a macro level and is far better than the national level or that 11 other states. It holds huge potential in gaining more income for business and improves the livelihood of locals and has generated employment opportunities. (Bernama, February 20 2008). For the last 7 years, Malacca’s economic performance successfully generated a stimulating growth of economy with an average Gross Domestic Output (GPP) of 5.8 per cent with its unique and amazing of tourism contribution.
In 2008, more than 6 million people visited the historical state last year and spent RM3 billion during their stay. With the present Malacca’s tourism campaign of “Visiting Historical Malacca Means Visiting Malaysia,” 6.8 million tourists are expected with the expectation they will be spending RM3.4 billion in their journey of traveling. With the slow growth of world economy, Malacca is harvesting more on the service sector and the crops are mainly come from the tourism industry. It’s 65% of Malacca GDP in 2008. (Tourism Malacca, 2008)
To ensuring the tourism sector progresses for the benefit of the state and its people, Malacca played an important role in Malaysia’s tourism industry as a historical and safe destination and with a unique mix of modern infrastructure and nation, the state government has implement a lot of projects in this several years and investing a lot of money to protect and renew the valuable heritage cultures and architectures. Malacca is highly optimistic of the tourist numbers and extrapolations point the number will reach 8.2 million by 2010. (Tourism Malacca, 2008)
Table 2: Statistic from Tourism Melaka 2008
Adapting from Bernama report, Malacca Chief Minister Datuk Seri Mohd Ali Rustam noted that, in ensuring the benefit of the state and its people with the progress of culture tourism sector, the state is in the midst of implementing several new high impact tourism projects. Among them is the development of Sungai Malacca at a cost of RM320mil as a new growth tourism centre that will parallel San Antonio River in the United States for its beauty and cleanliness. Several value-added projects are to be established along the banks of Sungai Malacca, among others the Casa Del Rio Boutique Hotel worth RM85mil, the Customs, Immigration and Quarantine (CIQ) Complex valued at RM35mil and a marina worth RM25mil. Besides that, archaeological works on the Malacca Fort walls are being undertaken with an allocation of RM12.8mil from the Federal Government.
The Malacca government through Tourism Malaysia, the Malacca State Tourism Action Committee and relevant agencies are always working out new ideas to turn Malacca into a compelling tourism centre in the world. With the emphasis given by state government on tourism events of international expend and working closely with United Nations Education, Scientific and Cultural Organization (UNESCO) in order to promote Malacca as one of world heritage sites to international tourists. With the acknowledgement from UNESCO, Malacca will continue remain as a tourism destination of choice for local and foreign tourists.
Besides that, famous local traditional food such as nyonya food, Portugal ikan bakar, and chicken rice ball should exploit in advertisement of ICT to attract the cultural tourists to visit the state. It is important to note that such food is not only delicious but only can be found in Malacca. The art of cooking this delicious food can also be used as an attraction tool for cultural tourists. In addition, Malacca is also famous with its dessert such as baba type ais kacang, cendol, and coconut shake.
For information, accommodation is not a problem where there are 5096 hotel rooms, 2458 resort hotel rooms, 484 chalets and 136 homestay rooms. Thus Malacca’s tourism industry will continue to bringing greater prosperity to the state and its people.
2.3.2 Impact of Historical Tourism to Entrepreneurs/ Small Business in Malacca
Tourism development provides an avenue for overall economic development and a boost for local entrepreneurship or small business activities. As a result, the encouragement of entrepreneurship and sustainable tourism development has emerged as core areas for policy support and donor-assisted funding across both developed and developing world.
‘Tourism and Entrepreneurship: international perspectives’ provides an innovative, fresh approach reflecting on the most recent trends in tourism development. The central stage of the book is the role of entrepreneurship in the context of regional/local tourism development.
From what I had observed, tourism in Malacca is increasing recently after being labeled as UNESCO World Heritage. The tourists are from local such as Johor, Kuala Lumpur, Selangor and so on. While for international tourists, mostly are from Singapore as they are just the neighbors of Malaysia, others are from Japan, Taiwan and China. On the other hand, with the increasing of tourism in Malacca, it also brings the impact to the small business especially small business/ entrepreneurs in Jonker Street, such as Malacca Nyoya Laksa, chicken rice ball, cendoll and traditional handicrafts.
Beside from that, it also brings economic benefit to the small business near town such as Newton food court, Malacca Spring Tower, shopping mall such as Dataran Phalawan and Mahkota Perade. The business of tricycle at Red House Malacca also seems to be increase recently with the visit of tourists.
For hotel business, it is part of the expenditures among the traveler, there is more and more hotels are build in Malacca, there are a lot of hotel choices rating from budget hotel to 5 start hotel such as King’s Hotel, Equatorial Hotel, Star Regency Hotel and Holiday Inn. During the weekend, the room of most hotels almost fully book, it is around 80% (9th Malaysia Plan). In addition, the eco-culture tourism also becomes one of the famous visited by tourism such as zoo Malacca, butterfly farm, tropical food and bee farm. In 2 years time, there will be another tourism site near by zoo Negara. It is Malacca Mini Water Park and another hotel will be build there to overcome the needs of tourists.
In order to overcome the increase of tourists, historic Malacca will be introducing a RM272 million tram transportation system which will begin at the Plaza Tol Ayer Keroh here and cover 23 locations and a distance of 40 km to downtown in 2011.
2.4 Pro-poor Tourism
Pro-poor tourism is an approaching of tourism to the poor that increases the net benefits (Ashley et. al, 2001). Pro-poor tourism is introduce long time ago as a tourism product and purely to ensure that the poorer section of the community too will have their share of the tourism economic pie in a host. It will decrease inequality and the increasing gap between the rich and poor which result in pro- poor growth. Deteriorating income distribution is part of a concern in Malaysia where poverty is becoming more complex coupled; new approaches are required since previous ones have little impact on poverty reduction (Yeang, 2005).
2.4.1 Assessment of Pro- Poor Tourism in Melaka Historic City
Malacca is a popular tourism destination among international and domestic tourists as it is known for its historical past and rich in heritage site. Tourism is an important economic sector in Malacca and it is the second most concernment in terms of its contribution to the state’s revenue after manufacturing and mining. Malacca was able to attract 4 million international and domestic tourists in 2004, mostly concentrating in the Malacca Historic City itself. Compare with the total number of visitor in table 2, table 3 shows the number of international and domestic tourist arrivals in Malacca from 2001 to 2004. (Assoc. Prof. Dr. Zainab Khalifah, Assoc. Prof. Dr Amran Hamzah, Nor Azina Dahlan, Ahmad Tajuddin Kechik, 2008)
Table 3: Number of International and Domestic Tourist Arrivals in Malacca (2001-
2004)
Category
Year
2001
2002
2003
2004
Domestic
1.48
1.80
2.86
2.99
International
1.02
1.20
0.74
1.01
Total
2.50
3.00
3.60
4.00
2.4.2 Cities and Tourism
From what had World Tourism Organization find out, recent trends and prognosis studies signifying that cities will continue to be in high demand by tourists of all sorts especially cities with UNESCO listed such as Malacca and Penang. With Malaysia benefits from its own special location and is ideal for foreign tourists searching for new world of tourism (Pazim @ Fadzim Othman, 2009). Many culture tourists like to spend their time wondering around in the cities to see its specialties and experiencing the culture, architectures, enthusiasm of nation and not least with it historical places. However, all parties concerned must be more systematically equipped and aware with the problems connected in handling of these tourists. (World Tourism Organization, 2009)
Therefore, cities face is a double challenge. Firstly, good respondents to the expectations and needs of the growing numbers of tourists who are attracted to their rich and various ornament of cultural, business, entertainment, shopping, sports and other attractions; furthermore, in order to maintain their share in the competitive tourism market and the benefits resulting from it, continuous renovation and improve such infrastructure is needed to be construct annually. Secondly, cities have to ensure that tourism is developed and managed in such a way that it benefits the resident population, equality of development, does not contribute to the deterioration of the urban environment but rather to its enhancement, and does not become a financial burden to the local authority (AIDE MEMOIRE, 1999). There are three key dimensions of tourism in cities and urban areas:
Products – To enhance the unique appeal of Malacca tourism product and service, the state government continue to promote their state’s traditional advantages, its cultural and natural heritage with its eco- and agro- tourism. Other tourism products include theme parks, operators of events (sports, shows, and fairs), museums, hotels and also convention and exhibition (MICE) segment. (Night Malaysia Plan 2006-2010)
Information – As the relying of information in tourism sector is high, information and communication technology (ICT) contribute unlimitedly to the tourism business especially the Internet. It has substantially changed the strategy for tourism stakeholders, providing new challenges and opportunities in promoting and selling their products and services. Several campaign such as “Visiting Historical Malacca Means Visiting Malaysia,”, “Malacca International Tourism Show (MITS) 2009”, and “ZOOM MELAKA” can be spread to the worlds through ICT in form of internet, advertisement, e-commerce and news. (Senior Research Officer with the Malaysian Institute of Economic Research (MIER), 2008)
Impacts – Economic and development opportunities as well as the impact of tourism growth on sustainable development, transportation, food and entertainments, cultural, and environmental, social and economic aspects form tourism industry to the cities and its people to be benefited. (AIDE MEMOIRE, 1999)
2.4.3 Implementation of State Government to Boost up Number of Tourist Arrivals to Historical City.
With the impact of Malacca being label as UNESCO site, a number of tourism infrastructure projects have being implemented by state government in its effort to boost up the number of tourist arrivals, increasing their length of staying and to maximize revenue earn from tourism. These various tourism projects in relationship with the marginalized communities can be categorized as either circumstantial or deliberate. Circumstantial is development of tourism which is not targeted for the poor but the runoff over of the development benefits the poor. Deliberate is when the development is mainly aimed for the poor. (Assoc. Prof. Dr. Zainab Khalifah, Assoc. Prof. Dr Amran Hamzah, Nor Azina Dahlan, Ahmad Tajuddin Kechik, 2008)
Tables 4 and 5, it briefly list the various government tourism projects and special events, the agency responsible for the development, aim of the development and its benefits to the marginalized communities. A scale, ranging from 1 for low benefit to 3 for high benefit is used as an estimate to indicate the benefits received by the marginalized communities.
Table 4: Tourism Projects and its Benefit to Marginalized Communities
No
Government Tourism Projects
Agency
AIM/ Purpose
Benefits to Marginalized
Communities
1
Malacca River Rehabilitation
MOTOUR/
MBMB
To beautify & revitalize Malacca River as a tourist attraction
2
– Opportunities available but need intervention.
– Potential future benefit from boat cruise.
2
Street Improvement
Scheme along Jln. Tokong/Jln. Tukang Besi/Jln. Tukang Emas And Jln. Hang
Jebat
Ministry Of Housing And Local Government
To create safe and conducive walking environment for tourists
1
– Gentrify and revitalize inner cities
– Benefit elite businessmen
3
Development of Hang Tuah Mall based on the concept of Bukit Bintang Walk
Ministry Of
Housing And Local Government
/MBMB
Revitalize shopping precinct
2
– To provide flagship tourism product (State
icon product)
– Meant to house petty traders but the high rent
hinders their participations
4
Restoration of 18 units of shop houses along Jln Laksamana
MBMB
To visually enhance gateway to Malacca and to
attract tourist
users
2
– Still maintain previous
occupants
5
Mini museum/gallery at Portuguese Settlement/Kg.Chetti/Kg.Pali
PERZIM
To showcase and preserve Melaka’s Heritage
1
– Poor presentation Low tourist appeal
– Superficial
– No emotional attachment
– Lack Revenue capture
Mechanism
6
Conservation & restoration of historical building,
national monuments
Museum Antiquity
Department
To showcase
Cultural diversity and
Preserve Malacca heritage
3
– Allows trinkets sellers to set up stalls along popular tourist route
7
Restoration of Atlas Ice
PERZIM
– Cultural centre.
– Business incubator for handicraft.
– To supply
Genuine handicraft.
1. Low Benefit 2. Moderate Benefit 3. High Benefit
Table 5: Special Events and its Benefits to Marginalized Communities
No
Special Tourism Events
Agency
AIM/ Purpose
Benefits to Marginalized Communities
1
Jonker Walk : Involves the closures of Jalan Hang Jebat (Jonker Street) on Friday, Saturday and Sunday evenings to be turned into a ‘cultural night market’
– Jonker Walk
Committee
– Chinese Chamber
Of Commerce
To introduce night life and activities as well as the cultural ambience
2
Directly benefits food sellers within the area.
2
Seasonal/ Cultural/
Religious Events
– Portuguese Settlement
– San Pedro Fiesta
– Intrudo (Water
Festival)
– San Juang Fiesta (Light Festival)
– Christmas
– Portuguese
Committee
To preserve religious
and cultural heritage
3
– Commodification of culture and high direct benefit even though seasonal
– Extend length of festival (no of days)
3
– Kg Chetti
– Ponggol Festival
– New Year
– Deepavali
– Trustee Executive
To preserve religious
and cultural heritage
1
Fail to capitalize the
benefits of various
events
1. Low Benefit 2. Moderate Benefit 3. High Benefit
The qualitative assessments of the preliminary show that opportunities do exist for marginalized communities to benefit from tourism. However, in order to fully exploit the benefits of tourism due to their present situation, involving and assistance are required for them to make the plans and projects to success. (Assoc. Prof. Dr. Zainab Khalifah, Assoc. Prof. Dr Amran Hamzah, Nor Azina Dahlan, Ahmad Tajuddin Kechik, 2008)
2.5 ICT in Historical Tourism
As the market for tourism is highly depending on information, information and communication technology (ICT) can contribute boundlessly to the tourism business. ICT have essentially changed the method of playing for tourism stakeholders, providing new challenges and opportunities in promoting and selling their products and services,
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