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“Tourism planning and stakeholders’ engagements: the case of Penang Island”
A.K. Siti-Nabiha
AUTHORS
Nor Hasliza Md Saad
A.K. Siti-Nabiha and Nor Hasliza Md Saad (2015). Tourism planning and
ARTICLE INFO stakeholders’ engagements: the case of Penang Island. Problems and
Perspectives in Management, 13(2-si), 269-276
RELEASED ON Tuesday, 28 July 2015
JOURNAL "Problems and Perspectives in Management"
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© The author(s) 2022. This publication is an open access article.
businessperspectives.org
Problems and Perspectives in Management, Volume 13, Issue 2, 2015
A.K. Siti-Nabiha (Malaysia), Nor Hasliza Md Saad (Malaysia)
Tourism planning and stakeholders’ engagement: the case of Penang
Island
Abstract
Successful tourism developments are born from careful planning, and involving the government, industry, and
community stakeholders. However, actual stakeholder engagement processes are complex and problematic. While
considerable research has been conducted in developed tourist markets, this study aims to determine stakeholder
engagement in tourism planning in a developing country: the Penang Island in Malaysia. Semi-structured interviews
with governmental agencies, industry associations, and community stakeholders were conducted to look at their views
on the engagement process with the local authority (LA) and the current barriers to success. The findings revealed that
the existing engagement process with the LA is insufficient and ineffective, and the key barrier to improvement is the
unclear roles and responsibilities of the multitude of federal, state and local government entities that are involved in
tourism planning and development, and also lack of clear tourism strategy at the state and local levels. Hence, there is a
clear need to delineate the responsibilities of the parties involved, improve coordination, strengthen collaboration with
the stakeholders through improved and effective communication channels, and apply a participatory approach of early
and on-going engagement in tourism planning and development.
Keywords: tourism planning, stakeholder engagement, local authority, developing country, Penang.
JEL Classification: L83.
Introduction1 is complex, complicated and problematic (Hall,
The global tourism industry has experienced 2007). It is not surprising that the key impediments to
tremendous growth in the last decade, expanding and tourism development, as cited in the few Malaysian
studies on tourism stakeholders’ engagement, were
diversifying to become one of the largest and fastest- the lack of local participation and awareness among
growing economic sectors. This is also the case in the implementers (Hamzah, 2004; Marzuki & Hay,
Malaysia as the tourism sector is a significant 2013; Marzuki, Hay, & James, 2012). Given the
economic contributor. The country’s growth strategy, economic importance of the tourism industry to
th
outlined in the 10 Malaysia’s Plan, highlights the Malaysia, it would benefit from a better
importance of tourism sector and targets it to be understanding of the stakeholders’ perspectives of the
ranked in the global top 10 destinations in terms of LAs’ engagement on tourism planning. As
global tourism receipts (EPU, 2010). Achieving this stakeholders’ participation is expected to vary with
ranking requires Malaysia’s tourism administrators to groups’ objectives and expectations (Tosun, 2006),
plan and implement initiatives that are attractive, research which examined the views of the
sustainable, in line with the economic and social stakeholders may identify potential issues of
development objectives, and properly managed, stakeholder and LA collaboration in the formulation
promoted, and monitored (Sharpley, 2008). Success and implementation of tourism plans.
is also dependent on the private sector cooperation As such, the aim of this study is to investigate the
and partnerships at the local level (Bramwell & Lane, level of engagement with the LA from the
1999; Hall, 1994). Existing research confirms that perspective of tourism stakeholders (Federal and
collaboration and participation between local State government agencies, industry associations, and
authorities (LAs) and other stakeholders (government the community) using a case study of Penang Island,
agencies, non-government organizations, private a major Malaysian tourist destination. The data were
sector, and professional and community groups) collected through semi-structured interviews with
contribute to better tourism outcomes (Bramwell & major tourism stakeholders in Penang. The issues
Sharman, 1999; Goymen, 2000; Jamal & Getz, 1995). investigated explore stakeholders’ views on the
Consequently, participation of stakeholders in the benefits of engagement, their level of engagement,
tourism planning and development has emerged and and the factors that contribute to the barriers in the
was taken into consideration by many countries LA stakeholders’ engagement in tourism develop-
(Tosun, 2000). Despite the need for stakeholders’ ment in Penang Island.
involvement, actual engagement in tourism activities 1. Stakeholder engagement in tourism
development
A.K. Siti-Nabiha, Nor Hasliza Md Saad, 2015.
A.K. Siti-Nabiha, Associate Prof., Graduate School of Business, Effective stakeholders’ involvements are vital for a
Universiti Sains Malaysia, Malaysia. successful sustainable tourism development (Byrd,
Nor Hasliza Md Saad, Senior Lecturer, School of Management,
Universiti Sains Malaysia, Malaysia. 2007; Tosun, 2000; Waligo, Clarke, & Rebecca,
269
Problems and Perspectives in Management, Volume 13, Issue 2, 2015
2013). Empirical studies suggest that stakeholders’ authority, confused implementation responsibilities,
engagement is strengthened if they are given the and lack of communication amongst stakeholders
opportunity to participate early in the process (Gunn, which fuels mistrust and misperceptions (Ladkin &
1994), together with information sharing and Bertramini, 2002) were also identified as challenges
consultative activities (Bramwell & Sharman, 1999). to stakeholders’ participation. Marzuki et al. (2012)
Several researchers have examined how stakeholders found that the barriers to the participation process in
perceive benefits that underpin participation, and Langkawi are inefficient participation techniques and
have cited better decision making, better allocation of processes, the community’s negative attitudes, and
resources and greater improvements of the current the exclusion of some community stakeholders from
tourism practices (Jamal & Getz, 1995; Selin & the participation process.
Beason, 1991; Waddock, 1991). However, the level Waligo et al. (2013) identified the key factors which
of stakeholders’ involvement may differ; some could enable stakeholders’ engagement such as the
stakeholders are responsible for formulating policies, quality of leadership, the quality and accessibility of
others for implementing policies, and some for both information, and implementation priorities. In
formulating and implementing tourism policies addition, they identified stakeholders’ mind-sets,
(Miller & Twinning, 2005). involvement capacity, and relationships as the key
Even though various developed countries have enabling factors of stakeholders’ engagement, which
established active participation of stakeholders in is also influenced by the context and diversity of the
tourism planning and development (Tosun, 2000), stakeholders. Consequently, low levels of awareness,
there are evidences that the engagement practice is feelings of disempowerment, issues associated with
tokenistic in nature. Ruhanen’s (2012) study on the coordination and bureaucracy, fragility of common
role of the local government in sustainable tourism interests, inability to clarify goals, and unwillingness
development in Queensland provided interesting to make significant changes to current behaviour
insights. Public participation is still tokenistic due to occurred among stakeholders (e.g. Cooper, Scott, &
the strong role and power of the local government, Baggio, 2009; Dodds & Butler, 2010; Miller,
which acts as a barrier to sustainable tourism Rathouse, Scarles, Holmes, & Tribe, 2010).
development (see also Dredge, 2006). The local 2. Methods
government takes the leadership position in
facilitating tourism development due to the directive Penang Island was chosen as the case site in this
from the state and federal government. study because it is a major tourist destination in
Malaysia. Georgetown, the capital of Penang, is
Studies done in developing countries found limited listed in the UNESCO World Heritage list. There are
public participation in tourism planning. Tosun (2000) two local authorities in Penang: the Municipal
found that there are operational, structural and cultural Council of Penang that governs the island, and the
factors that limit the stakeholders’ engagement in Municipal Council of Seberang Perai for the
tourism planning in many developing countries. mainland. This study focused on the tourism planning
Marzuki et al. (2012) examined the public and stakeholders’ engagement in Penang Island. It
participation in tourism planning in Langkawi in examined the engagement between the LA of the
Malaysia and found limited public participation and island and other tourism stakeholders from the
also limited opportunities for the public to be involved perspective there of. Stakeholder is defined as “any
in development and tourism planning. Marzuki et al. group or individual who can affect or is affected by
(2012) concluded that public participation and the achievement of the organization’s objectives”
stakeholders’ engagement are problematic and face (Freeman, 1984). In this study, the stakeholders
structural and operational problems. identified are the government agencies (Federal and
There are various barriers which lead to ineffective State agencies), industry associations, and the
stakeholders’ engagement. Apart from that, mistrust community actors (clan associations) as shown in
and misperceptions amongst stakeholders due to Table 1.
insufficient communication (Ladkin & Bertramini, Table 1. Interview details – organizations, dates
2002). Moreover, political practice of a more
centralized authority sets barriers to stakeholders’ Interviewees
involvement. In addition, insufficient financial State Agency for Tourism Promotion
resources at the local level, limited expertise, Industry Association 1
experience, and competence of tourism planning Industry Association 2
authorities, and limited commitment by some State Office of Federal Ministry (SFM)
stakeholders were identified as the challenges which Clan Association 1
set barriers to stakeholders’ participation (Ladkin & Clan Association 2
Bertramini, 2002; Tosun, 2006). Unclear lines of Developmental officer, Local council
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Problems and Perspectives in Management, Volume 13, Issue 2, 2015
The primary data sources are semi-structured various literature about inter-organizational collabo-
interviews with senior management of the three ration, “communicative” approaches to planning and
different categories of the stakeholders. In addition, local participation that concern three main sets of
an officer in charge of the developmental planning at issues in the proposed framework: (1) scope of the
the Penang Municipal Council was also interviewed collaboration, (2) intensity of the collaboration, and
to gain better understanding of the matters related to (3) degree to which consensus emerges.
tourism planning in Penang since they have This study used the several concepts from the
legitimate interests in tourism development in Bramwell and Sharman (1999) that highlighted the
Penang. Semi-structured interviews were used to specific issues of local participation in tourism
encourage interviewees to share their views on the planning, such as “the extent to which relevant
issues discussed freely and openly. The interviews, stakeholders see there are positive benefits to entice
about one hour in duration, took place from April their participation under the scope of collaboration”
2013 to June 2013. The interviewees received an and “when and how often the relevant stakeholders
overview of the topic and questions beforehand to are involved and the extent to which the stakeholder
help with their preparation. Except for one, the groups receive information and are consulted about
interview sessions were recorded and transcribed for the activities of the collaboration under the intensity
data analysis. Secondary data were collected from the of collaboration.” Therefore, the specific questions
interviewees’ books and websites. The descriptions the study attempted to answer are:
of the key roles of the stakeholders are as follows:
1. State Office of the Federal Ministry (SFM). The 1. What are the stakeholders’ perspectives on the
state office of the federal agency acts as the benefits of engagement in tourism planning with
representative for the federal government in the LAs?
formulating and implementing policies related 2. At which level of engagement are the
to the growth and development of the tourism stakeholders involved in tourism planning?
industry. Previous studies (e.g., Dodds & Butler, 2010;
2. State Governmental Agency for Tourism Kimbu & Ngoasang, 2013; Ladkin & Bertramini,
Promotion. The agency is a state funded entity that 2002; Miller et al., 2010; Timur & Getz, 2009;
is set up as a company to work with key tourism Tosun, 2006) have highlighted multiple barriers and
players inside and outside of Penang, to promote challenges to the stakeholders’ engagement in
Penang to both the domestic and international tourism planning to alert that their engagement
markets. through effective communication channels and
3. Industry Association 1. The association works proper guidance plays a vital role in determining the
as the official network for the hospitality sector sustainability and development of tourism planning.
of Malaysia. It represents the voices of the As such, this study is also aimed to understand the
industry, works as one body to protect, promote, barriers that cause the breakdowns in the
and advance the interests of its registered stakeholders’ engagement.
members.
4. Industry Association 2. This association 3. The findings
coordinates and organizes tourism related courses
to produce committed and professional human This study found that the stakeholders perceive
resource in one of the tourism sectors in benefits in participating with the LAs in the tourism
Malaysia. At the same time, the association looks planning, such as improved funding decisions and
into the overall interests and welfare of its coordination between the LA and tourism operators.
members. The level of engagement between the stakeholders
5. The community – The Clans Associations. The and the LA was found to be limited and ad hoc, and
interviewed clan associations are one of the mostly focused on building regulations, permits, and
prominent ones in the area. To date, they are operational matters, such as cleanliness and
seen as one of the major stakeholders as they are licensing, but not specifically on tourism planning.
one of the major property owners in the core The interviewees cited a number of barriers to
heritage zone of George Town. effective engagement with the LA, including lack of
According to Bramwell and Sharman (1999), there focus on tourism planning and development, which
are many potential benefits when the tourism policies is exacerbated by non-existent or inadequate long
are built based on collaboration from groups of term plans for tourism development in Penang, and
stakeholders who are directly or indirectly involved a large number of governmental organizations with
in the tourism industry. An analytical framework has unclear or overlapping responsibilities for the
then developed, which incorporates the thoughts from tourism planning and development.
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