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I. Identification
Malaysia is a land of fascinating sights and attractions. Rich in colour and contrasts, her
multi-faceted charm provides intriguing images that leave visitors to the country in awe. The
natural warmth of Malaysia is legendary, wherever on egoes, the friendliness and hospitality
of the people would prove to be very special experience. Malaysia is a paradise. Its sun-drenched beaches, enchanting islands, diverse flora and fauna, forest retreats and magnificient mountains are among the best in the region. Many visitors have also discovered Malaysia's other attraction, a shopping haven, an incentive destination, an adventure land and much more. This is mostly found in Langkawi Island.
The legendary Isle of Langkawi is located in Kedah, northwest of Peninsular Malaysia.
Comprising a group of 104 islands, the biggest being Langkawi, it is a place for those
seeking tranquility and refuge from the hustle and bustle of city life. So powerful is
its charm on visitors that many have returned to the island time and again.
One of the most famous island in Malaysia is Langkawi Island. Langkawi Island is the main
island are richly blessed with a heritage of fabolous myths and legends. As a natural paradise,
the island are perhaps unmatched anywhere alse in Southeast Asia. The rustic beauty of the island is in itself a compelling attraction.
2. Description
The Islands of Legends
But what make Langkawi so alluring are the many legends that surround it. The legend of a
beautiful maiden falsely accused and condemned. The legend of valiant warriors.The legend
of true love between two spiritual beings. And many others handed down from generation to
generation. A popular local myth of Langkawi is a tale about a petty maiden named Mahsuri
who lived some 200 years ago.
Shopping is an added attraction here since the island's port is d esignated a duty-free
port. Here you can pick up just about anything - from household electrical appliances to
a grand variety of world-famous designer apparel. Perfumes to sporting equipment. All at
duty-free prices, which are significantly, lower than normal retail prices.
The island is also expanding as one of SouthEast Asia's premier meeting and
exhibition destinations. The hosting of two successful Lima (Langkawi International Maritime and Aerospace Exhibitions is
a perfect example.
Langkawi holds the promise of a legendary holiday. Come experience it for yourself
Why Langkawi?
Langkawi, deriving its name from the words 'helang' (eagle) and 'kawi' (old Malay term
for "strong"), is a cluster of 99 islands in high tide and more than 104 islands in low tide,
making it a haven for some of the world's most beautiful, marine and coral reef life.
On the islands themselves, countless, exotic species of flora and fauna make it a must for
nature lovers who may wish to trek through the virgin, rain forests to discover a landscape
of mysterious lakes, mountains and waterfalls.
Folk-lore claims that Langkawi was the habitation of spirits, while classical Malay literature
(Hikayat Merong Maha Wangsa) relates that Garuda, the famed giant eagle rested in
these islands.
Located off the north-western coast of Peninsular Malaysia, the main island, (which is much
larger in area to Penang Island further down south), is steeped in traditional folk-lore and
legends one of which has emerged suddenly to become the startling truth about this island-the
legend of the beautiful Mahsuri and the lifting of her 'curse' on the island 'after seven
generations'. Its Duty-Free status, International Airport, Convention and Exhibition Facilities
plus a variety of hotels , its natural, environmental assets, its gentle culture and legends alongside the launch of Internet by the Telecommunications Authorities of Malaysia in September 1996, all make Langkawi the ideal choice as a holiday or business-holiday destination.
So, Selamat datang ke Langkawi, as the local would say - Welcome to Langkawi.
Background
The Tourist Development Corporation (TDC) was established in 1972 (Parliament Act No.72 of 1972)to promote tourism in Malaysia. In 1974,TDC completed a tourism development study entitled Malaysia Tourism Development Plan, which presented a broad approach for development and recommended measures to enhance and reinforce existing tourist center as well as to identify additional areas for development. Among the many areas identified and evaluated, the development plan analyzed the Langkawi Islands and concluded that the islands contained the physical potential for development as a resort destination are. In early 1976, the Federal government asked TDC to prepare a master plan for the visitor development of the Langkawi Islands. This action was reportedly taken with the view that the development of tourism on Langkawi could improve the economics of both the Langkawi Islands and those of the surrounding states of Perlis and Kedah. TDC engaged a consulting team headed by Peat, Marwick, Mitchell & Co.(PMM&CO.)in November 1976 to conduct a master plan study for the development of the Langkawi Islands into a visitor destination area. As a part of the study, the consulting team also was asked to assess on the market and financial prospects of the Langkawi Country Club, a resort hotel located on Langkawi which was purchased by the Federal Government from Federal Hotels in January 1977.
Culture
Cultural and Social Impact
Langkawi is primarily an agricultural community based on rice production and subsistence
agriculture. Unlike the east coast of Malaysia, the community has not developed a high level
of handicraft and art work. Although the fishing villages and rice villages, known as Kampongs,
are picturesque and attractive and features a distinctive, wooden house style, it is not
expected that the social resources of the community will be one of the primary attractions of
the island.
Langkawi is surrounded with numerous legends that could be utilized in the marketing of the
island. One legend is about a Malay princess said to be involved in court intrigue and accused
of adultery. When executed, her blood turned white, indicating her innocence. Currently, the
tomb of this princess still on the island and is considered a shrine.
In addition to the natural and social resources, Langkawi has several other resources that
could be developed into visitor attractions. These include the rubber fields and factories,
the fishing villages and the Hindu temples. In particular, the mosque located at Kuah could
become a major visitor attraction as it has a distinctive architectural style and is situated
in a grove of coconut trees.
Environment
DEVELOPMENT POTENTIAL OF LANGKAWI FOR ECONOMIC EXPANSION
Natural Environment
Current tourists are enhanced by the lure of a natural environment with scenic views and a
culturally interesting atmosphere. The urban environment is becoming a less attractive,
especially international tourist from North America, Europe and Japan. Summer retreats
for these travelers must offer enjoyment and the experience of a new culture combined
with relaxation and recreational activities.
Langkawi is a group of islands, which can offer gentle beauty and peace. The land is
blessed with an unspoiled beautiful environment and an outstanding natural landscape.
Among Langkawi’s assets are the existence of green tropical rainforests on the highlands
which not only create spectacular vistas but also are considered to be unique in the world.
Additionally, excellent white sandy beaches provide continuous constant beauty and
enjoyment to all area visitors. The islets that form the archipelago can be developed with
provisions for accommodation facilities. These islands provide a serene environment for
activities such as yachting, scuba diving, snorkeling and other related sea-sports.
Langkawi, has also been assigned the task overseeing the preservation of the natural
environment during development. In relation to those objectives, the State Government
of Kedah has adopted the Langkawi Structure Plan 1990-2005. As a planning document,
it stresses the preservation of the natural environment and landscape, keeping in line with the
Langkawi Declaration on Environment to transform the island into a “nature paradise”. The
Langkawi Structure Plan was prepared for encouraging, controlling and guiding
development in Langkawi. Primary concerns are the established framework for planning
tourism, land use patterns, environmental improvement measures, public facilities and
utilities as well as transportation up to the year 2005.
ENVIRONMENT FOR TOURISM DEVELOPMENT
The Langkawi Island consists of 99 islands totaling 204 square miles in size, of which the
main island, Pulau Langkawi, is the largest and is the population center of the group. The
Langkawi Islands are situated approximately 56 nautical miles north of Penang and approximately
18 miles west of Peninsular Malaysia. Kuah, the main town on Pulau Langkawi is the commercial
and administrative center of the islands.
The Langkawi Islands are thinly populated, with almost all of the approximately 27,400
inhabitants living on Pulau Langkawi. The population of the Pulau Langkawi is predominately
Malay with those Chinese and Indian origins and quarrying of marble the population.
Langkawi is primarily an agricultural community. Rice and rubber are the main agricultural
products on the island, with subsistence cropping providing a supplement to the main
agricultural products. Fishing is a fairly developed industry with the major products being
salted fish and prawns. Minor economic activities include timbering and quarrying of marble
on the island of Dayang Bunting.
The primary visitor resources of Langkawi are the excellent climate during peak European
travel season, the many sandy beaches of the islands and the attractive coastline and rich
landscaping of the islands. The charm of the islands lies in their remoteness and physical
beauty rather than the presence of commercial activities. Langkawi offers a tropical island
setting in which visitors could discover the Malaysian life-style of the isolated villages,
as well as enjoy the beaches and related recreational facilities. In this regard, Langkawi
could offer a distinctive travel experience to visitors, based on the opportunity of discovering
the islands and experiencing the life-style of an island community, rather than visiting a
more developed or commercial resort area such as Penang or Pattaya Beach. On the hands,
deforestation occurs in order to build more hotels and centers, which attract more tourist,
travel to Langkawi Islands.
Trade
ECONOMIC CRISIS PULLS DOWN MALAYSIA TOURISM RANKING
Malaysia was ranked 21st among the world's top tourists destinations last year but now at 31st
position in terms of earnings because of the economic crisis in the region. According to WTO,
destinations in East Asia and the Pacific were hardest hit, with tourists arrival down by 1,2%
and revenues having follow by US$2.8 million. Vollatility in the world's financial markets
as the result of the fallent from Asia's financial crisis also caused changes in holiday habits,
is a sharp rise in late bookings and cutbacks in spending.
Last year Malaysia had 6.85% arrivals, 10.4% more than in 1997 but down from 19th posittion in
1995 and 15th in 1990.In terms of receipts, Malaysia earned US$3.36 billion up 24.6% over 1997,
but down from its 26th position in 1995 and 31st in 1990. On the whole international tourists
arrivals grew by a solid 2.4% worldwide in 1998 to 625 million people, earning US$444.7 billion
in receipts, an increase of 2%. The rise in receipts was more a reflection of the strong
appreciation of the dollars against the currencies of a major tourism source markets than a
real decrease in tourism spending.(Star Publication:25 March,1999)
LANGKAWI AIMS TO BE A "MUST VISIT" TOURIST SPOT
Langkawi aims to entire more tourist this year with upbeat plans and objective tourism schemes,
said Langkawi Development Authority (LADA), datuk Abdul Halil Mutalib. the legeadary islands
would be turned into a "Must Visit" destination and added that the various activities planned
be estimated 1.5 million tourists. In 1997, there aere 1.7 million tourists visited Langkawi.
Some of the activities held yearly to attract visiotrs to the holidays idlands include the Le
Tour De Langkawi, on international cycling event anf the Langkawi International Maritime
Aerospace (LIMA) exhibition to be held at the end of that year. Such activities could have an
immediate effecte in luring foreign and local tourist to visit the island.
To promote the islands, LADA spent RM2 million each year, including taking part in overseas
exhibition as well as displaying advertisement on buses in London. LADA is currently promoting
the island on a large scale in major cities in britain such as Glasgow, Manchester, Birmingham
and others. it is also trying to attract tourist from China and other potential countries.(Star Publication: 21 February,1999)
LANGKAWI ASSOCIATION SETS SIGHTS ON NEW MARKETS
The Langkawi association will help government agencies scout for new markets. This follows the
drop in tourists arrivals last year owing to the region economics crisis. attention will swing
towards new markets such as Finland South africa and France to ensure a steady steam of
tourists.
More joint promotion to revive tourism. more also can be done to penetrate emerging markets in
Europe besides redoubting efforts in the traditional market segments such as Japan, Taiwan,
singapore, the Us and Britain.
Langkawi suffered a drop in vititors last year, especially with local tourists, despite concerted
promotional efforts by the private and public sector. More promotions are needed to help business
which are dependent on the local markat, such as shopping centres and town hotels.
ECONOMIC BASE
Agriculture still remains the primary economic activity of the loyal population in Langkawi.
The arable agriculture land use is only 35% of the total land area. The main crop is rubber
which utilize up to 40% of agriculture land. This is followed by paddy, 30%, coconut 10%, and
mixed crops 20%. Although the principal economic activity of the local population is
agriculture, such yields are low, especially those paddy cultivation. This is attributable to
the small size of land owned by an individual or multiple ownership for cultivation, inadequate
irrigation facilities, use of traditional method of farming and the fact that such small scale
agriculture is usually for self consumption.
Langkawi is one of the main fishing areas in Kedah. In fact, Langkawi is the largest producer
of ikan bilis (anchovies) in Peninsular Malaysia. Agriculture is practiced in small scale for
cage culture, fresh water and brackish water ponds, and cockle production.
REGIONAL DEVELOPMENT: A Case Study of Langkawi
It was only in the early 1980s that the Federal Government of Malaysia started to pay serious
attention to developing the tourism industry in Malaysia. In the Mid-term Review of the Fourth
Malaysia Plan, 1981-1985, an additional allocation was provided for the promotion of the
tourism industry. This particular industry had been identified as one of the primary strategies
for reducing regional disparities and accelerating growth in underdeveloped regions. It was
believed that the tourism industry would create job opportunities and would attract investment
form public and private sector. Thus, this strategy focused on greater diversification of the
economic base and the promotion of value added activities.
The government recognized that the tourism industry had the potential to expand and become one
of the main resources for increasing national income. In 1990, the Malaysian Government
launched a large-scale promotion in conjunction with the “Visit Malaysia Year” campaign to sell
Malaysia as a tourist destination. This campaign was promoted in such countries as those in
North America, Europe and East Asia. The second “Visit Malaysia Year” campaign was held in
1994, with similar intention but on a grander scale.
In 1984, the first announcement was made that Langkawi was to be developed as a major tourist
center of the country. A local conglomerate, Promet Bhd, signed agreements of commitment with
ten local and foreign investors to develop seven hotels with an expected total of 2,500 rooms.
The State Government of Kedah leased out 1,000 acres of land in Tanjung Rhu, Langkawi to Promet
for the proposed development. That project was shelved in the mid 1980s due to a recession and
has since been sold to Idris Hydraulic Bhd. Idris Hydrailic then sold it to TRI, a public
listed company controlled by Tan Sri Tajuddin Ramli. The company has submitted new proposals
for the development of the Tanjung Rhu resort and is now awaiting approvals from the relevant
authorities.
In relation to the Federal policy to turn Langkawi into a major island resort, the Federal
Government proclaimed that , effective January 1,1987, Langkawi be declared a free port by
virtue of the Financial Act (No. 2) of 1986. This decision by the Federal Government was to
support efforts to transform Langkawi’s economic base from one highly dependent on agriculture
and fisheries to one of an expanding international tourist destination. Langkawi, with its free
port status, enjoys freedom form excise duty and services taxes. As a free port, it implies
that all goods imported into Langkawi from foreign countries are free form custom duties and
sales tax with the exception of petroleum and petroleum products, cement, marble, chovies and
rubber.
The Federal Government’s direct involvement in accelerating the growth of the tourism industry
and the socioeconomic development of Langkawi has been demonstrated by the establishment of the
Langkawi Development authority (LADA) under the chairmanship of Tun Daim Zainuddin, the former
Finance Minister and Economic Adviser to the Malaysian Government. LADA was incorporated by an
Act of Parliament on January1 1990. Section 4 of that Act expressly stated that the functions
of the Authority shall be:-
1. To promote, stimulate, facilities and undertake economic and social development in the Kawasan Lembaga Pembangunan Langkawi (Area within Langkawi Development Authority).
2. To promote and stimulate the Kawasan Lembaga Pembangunan Langkawi as a tourist destination and duty-free areas.
3. To promote, stimulate, facilities and undertake the development of tourism and infrastructure as well as residential, agriculture, industrial and commercial development in the Kawasan Lembaga Pembangunan Langkawi; and
4. To co-ordinate the performance, in the Kawasan Lembaga Pembangunan Langkawi, of the activities mentioned in the three previous paragraphs.
PROPOSED DEVELOPMENT IMPLEMENTATION STRUCTURE
To successfully implement a visitor development program of the proposed a high level of
coordination and cooperation is required among the various government agencies at the District,
State and Federal levels also between private enterprise and the residents of Langkawi. It is
proposed that a Langkawi authority and a Development Corporation be established to overseas
implementation of the master plan program.
Langkawi Authority
A Langkawi Authority is proposed to be established to ensure that all future developments on
Langkawi complement the proposed master plan program. This authority would have the
responsibility of implementing land use and building code controls to guide the orderly growth
of the island. Further, this authority would also review all proposed developments for the
island in respect to the potential impacts on the resort facilities overall attractiveness of
Langkawi as a visitor destination area.
Langkawi Development Corporation
The Langkawi development Corporation is envisioned to be a public entity charged with the
responsibility of implementing the proposed master plan and developing the proposed resort
areas. In this regard it would acquire the necessary land for development, coordinate with the
Public Water Department for the provision of the necessary infrastructure facilities, develop,
and if necessary, operate resort recreational facilities and maintain public areas. The entity
would also be responsible for attracting private investors to develop the hotel facilities.
The Development Corporation is proposed to be part of the overall TDC organization to take
advantage of the resources of TDC as well as to provide the necessary level of coordination
between the Langkawi Development and other resort development undertaken or sponsored by TDC.
The entity is proposed to be a wholly owned subsidiary of TDC similar to that of Pempena Sdn.
Bhd.
Economic Impact Assessment
The potential economic impact of the program is significant in terms of expenditures,
employment and foreign exchange generated. In addition to the expenditure of approximately
M$133.1 million for the construction of the facilities, visitor expenditures on the island are
estimated to increase from M$40.8 million in 1982 to M$114.3 million to 1986. These
expenditures are estimated to create approximately 11,120 full time jobs over the period 1980
to 1986. Of the amount, 3,920and 2,400 job would be related to construction, 4,800 jobs would
be related to the hotel operation, visitor mix, foreign exchange generated, excluding the
attraction of foreign capital to develop the hotel facilities, is estimated to amount to
approximately 80% of total visitor expenditures or M$91.4 million by 1986. As the current
economic activities on Langkawi are considered to have limited growth potential, the proposed
visitor development program could serve as an important catalyst in the economic growth of the
islands.
LANGKAWI THE CONTEXT OF THE NORTHERN GROWTH TRIANGLE DEVELOPMENT PROJECT
The Northern Growth Triangle Development Project, or the Indonesia, Malaysia, Thailand Growth
Triangle (IMT-GT), is a newly proposed area for regional economic co-operation among three of
the seven members of the ASEAN countries, namely, Indonesia, Malaysia and Thailand. This
project proposes a growth triangle compassing northern Sumatra in Indonesia, the four
northern western states of Peninsular Malaysia (Perak, Penang, Kedah and Perlis) and Southern
Thailand.
Langkawi, located between Sumatra and Western Thailand, is the most likely to become regional
hub of the Northern Growth Triangle Development Project. The status of Langkawi as
international resort destination and a free port will enhance its position as a growth center
for the proposed region. The Northern Growth triangle promotes its aspiration by focusing on
its efforts on eight areas of economic co-operation, namely, agriculture, fishing, livestock,
tourism, trade and commerce, industry, infrastructure and human resources (Duthie, 1993). The
Northern Growth Triangle Development Project also intends to back a proposal conferring
preferential domestic status on any investor from Indonesia, Malaysia or Thailand seeking
to invest anywhere within the Triangle. Regions in the countries participating in the Northern
Growth Triangle are more or less on an equal footing. The most important forces, which will
influence the realization of a regional economic co-operation within the Northern Growth
triangle, are a shared common race, religion and culture.
Migration
In the past, the young and educated from Langkawi had traditionally migrated to the mainland
for better jobs and prospects. The majority of these young people were within the age group of
15 and 30 years. The pattern of migration shows that 27.4% of these young people migrated
to Pahang to participate in land development and resettlement, 22.2% went to Penang, 17.9%
to the Federal Territory of Kuala Lumpur, and 16.4% to Selangor. The varieties of low skill
job opportunities are numerous in these states, especially those of factory workers.
With evidence of increasing job opportunities now, many people are being lured back to
Langkawi. The author has spoken with a few people who currently working in the hotel industry
there. They disclosed that they are from Langkawi and were working in other states before.
Rapid development in Langkawi has triggered migration from the mainland because of attractive
and diversified employment opportunities. The fact is that now many jobs seekers from any
other states, who have skills not available locally, are coming to fill the avoid.
Unemployment
In 1980, the unemployment rate in Langkawi was 9.7%. this figure was higher than that of
the state of Peninsular Malaysia, which were recorded at 7.2% and 6.1% respectively. The higher
rate unemployment is best explained by the lack of employment opportunities. The labor force
was immobile and did not have the required skills or college education to qualify for
positions in the more productive sectors. The district of Bohor and Padang Masirat had the
highest unemployment rate at 15.3& and 13.1& respectively. Both district are situated along,
the coastal areas and characterized by agricultural and fishery activities. Traditionally,
these sectors are independent and small scale in future.
Langkawi International Airport
The first international flight, a B757 commenced operations November 2 1988. Further
improvements to the terminal building, parking apron and taxiway were made in 1991 to
enable the island to be the venue for the biennial International Maritime and Aerospace
Exhibition (LIMA).
Major renovations costing RM90 million were completed in 1995 to cater to the large
number travelers. Airport users now enjoy a foyer four times larger than previously, more
comfortable arrival and departure halls, a selection of 22 duty free concessionaires including
a restaurant and a fast food outlet and a car park which can accommodate 500 cars as
compared to just 100 previously.
The renovation of the airport was justified based in the rapid increase of passenger movement
from 17,359 to 888,291 over a 8 years period. This airport can now cater to 1,000 pph
(passenger peak hour) two ways as compared to just 400 pph previously.
Langkawi Airport was the first that was built and budgeted by Malaysia Airports Berhad.
Currently, the KLIA Sepang is being constructed based on the same infrastructural
concept as Langkawi Airport.
II. Legal Clusters III. Geographic Clustersa. Geographic Domain: Asia
b. Geographic Site: East Asia
c. Geographic Impact: Malaysia
IV. Trade Clustersa. Directly Related to Product: Yes
b. Indirectly Related to Product: Yes
c. Not Related to Product: Yes
d. Related to Process: Yes, changing the whole environment or habitat of Langkawi
Tourism is becoming highly competitive in Southeast Asia with many of the countries in the process of developing or planning visiotr destination areas. The Langkawi Islands are well suited to such a visitor destination development as a result of many attractive beaches on the main and surrounding islands, the lust vegetation and many point of interest.
V. Environment ClustersName: Not Applicable
Type: Not Applicable
Diversity: Not Applicable
VI. Other Factors