CBET as an `Incubator’ for
Rural Entrepreneurship:
Case of Miso Walai Homestay
PRESENTOR:
ABDUL RASID ABDUL RAZZAQ
(UTM)
PRESENTATION OUTLINE
• Introduction
• Importance of CBET
• Why CBT Fails To Become An Incubator
For CBTE
• Purpose of Study
• How CBET Act As Incubator : Case of Miso
Walai Homestay
• Conclusion
• Q&A
INTRODUCTION
• Many definitions of “ecotourism” have
emerged since the term was coined in 1987.
In 1991, The Ecotourism Society (TES)
developed the following definition of
ecotourism: “responsible travel to natural
areas that conserves the environment and
sustains the well being of local people” (Epler
Wood 1996)
Cont’
• Ecotourism as travelling to relatively undisturbed
or uncontaminated natural areas with the
specific objectives of studying, admiring, and
enjoying the scenery and its wild plants and
animals, as well as any existing cultural
manifestations (both past and present) found in
these areas (Orams ,1995)
• Concept of Community Based Ecotourism (CBET)
is tourism that is managed, operated and owned
by the local community.
• Management decisions are made by local people
and profits directly go to the community.
IMPORTANCE OF CBT/ET
• Community-based tourism has been known to
effectively revive rural economy
• This begs “What is beyond CBT?”
• A few successful CBT in various geographical, social,
cultural, economic settings have proven that CBT can
develop into a mainstream business activity
• CBT acts as an incubator that shifts the mindset of
the local people from none-business mindedness to
being entrepreneurs.
• It is imperative that CBT becomes a SME-trigger
mechanism that will expand the local economy by
creating economic opportunities
• CBT/CBET has been recognized as a catalyst for
social economic development particularly in the
developing countries (UNWTO, 2007; Davis dan
Morais, 2004; McCool, Moisey dan Nickerson, 2001)
• Has been used as a rural development strategy
especially in dc (Hall dan Jenkins, 1998; Forstner,
2004)
• Helps local community in generating income,
diversifying the local economy, preserving culture,
conserving the environment and providing
educational opportunities.
• A tool that strengthens the ability of rural
communities to manage tourism resources while
ensuring the community’s participation.
• Poverty reduction tool
CBT/CBET FAILS TO BECOME AN
INCUBATOR FOR CBTE?
• CBT/ET has a high failure rate which prevents
CBT from being an incubator for
entrepreneurial endeavor (Denman, 2001;
Goodwin and Santiilli, 2009)
• Sylvester Clauzel (2001: 5) stated that assuming
CBT as “the accepted path to sustainable
development is also a fallacy”.
Why?
• Fail to provide the local people with tourism
related skills and knowledge or change their
outlook towards entrepreneurship
Cont’
• the tourism planners fail to recognize that
CBT is not stagnant
• weak CBT organization (Renard, 2001);
• poor planning (Mitchell and Hall, 2005);
• structural and product problem (Mitchell &
Hall, 2005)
• overcoming personal interests over
community interest (Federico, 2009; Vignati,
2009).
• lack of strategic management at various
levels; poor product presentation; lack of
knowledge of the target market; lack of
knowledge and concern on demand factors
(Jenkins & Parrott, 1997)
Cont’
• capacity building and networking
opportunities relating to community based
ventures (Moscardo, 2008,Scheyvens, 2003)
• Too depend on the government or
development agencies
• Handout mentality
…CBT as an incubator for CBTE never
materialized.
PURPOSE OF STUDY
• To understand how CBET triggered the
development and growth of local small scale
businesses and prepares the local community
to embark on new business venture
• Research Approach: Miso Walai Homestay
was chosen as a case study through
qualitative approach -where by semi structure
interview was the main instrument.
HOW CBET ACTS AS AN
INCUBATOR:
CASE OF MISO WALAI
HOMESTAY
BACKGROUND OF MISO WALAI HOMESTAY
A BRIEF CHRONOLOGY OF MISO WALAI HOMESTAY
1996
SANDAKAN
19972000
MISO WALAI HOMESTAY, MUKIM BATU
PUTEH, KINABATANGAN,SANDAKAN, SABAH
2000
 Miso-`together’ and Walai `house’
 Combination of 4 villages (Kg.Batu
Puteh, Kg. Perpaduan and
Kg.Mengaris and Paris)
 34 Participants (2012)
 Total rooms – 60
 Capacity - 120 of tourists
2002
2003
2004-Now
2012
 NGOs & Sabah Ministry of Tourism, Culture
and Environment carried out a study on
impact of Biodiversity and the potential of
tourism development in the area of Lower
Kinabatangan.
 The study was identified the readiness and
willingness of communitiy Kampung Batu
Puteh to involve in tourism sector.
 WWF Norway through WWF Malaysia
funded the initial tourism project
 MESCOT was established by local
dedicated youth with the guidance of
NGOs
 Early Stage of Implementation
 Officially establishment of Miso Walai
Homestay with 7 participants
 Started winning variety of awards at
national and international
 Established Tourism CoperativeKoperasi Pelancongan Mukim Batu
Puteh Berhad (KOPEL)
 A model for successful Community Based
Tourism (CBT) and Conservation
 Kampung Stay-21st Century Village
project
MESCOT= Model Ecologically Sustainable Community Tourism
ENTERPRENEURSHIP
EXPOSURE –PLANNING
STAGE (1997-2000)
• The development of Miso Walai started with the
establishment of MESCOT by local dedicated
youth
• Purpose: assisting the local community to
develop sustainable alternative economic
activities and to build local community capacity
to be able to manage tourism activities
• Entrepreneurship mindset was inculcated within
the young MESCOT members soon after MESCOT
was established
• business-minded has been incorporated in
MESCOT activities from the very beginning
Cont’
• Research Exposure
– Tourism inventory (nature, culture)
– Business and Market Survey
• Tourism Business exposure (Exposure Trips)
– Visit tourism destinations
– Hotel/restaurant
– Exposure to tourism activities
• Tourism Business Opportunity Talks
• Awareness and Tourism Knowledge Building
• Tourism Business Planning Process
– Tourism products& activities development
– Business and Marketing Plan
…ROLE OF NGO-GUIDANCE….
Cont’
Experience of MESCOT Members
– Small scale money-generating activities had to be
done to maintain a revolving fund because
MESCOT had little money when they started. For
example, during its planning stage (1997-200)
MESCOT members took turn to prepare local cakes
to be sold at the day markets near the village.
– It was quite challenging because they had to wake
up as early as 3 o’clock in the morning to prepare
their goods. The profits they made went into a
revolving fund used to buy stationeries, to fund
their exposure trips, to pay the bills and rental of
MESCOT base, and to reward MESCOT members
through small tokens of appreciation
5 Step
MESCOT-Tourism
Business Planning
Process
BUSINESS SKILLS
DEVELOPMENT
• MESCOT members were provided with various
training courses during the planning stage
• There were 14 training courses under `Kursus
Berdasarkan Manual Lambang’ offered by
MESCOT including business tourism courses such
as Marketing, Sales and promotion, product
development, front office, Services etc.
• each member who successfully passed those
courses will be awarded with special symbol
• Restoration activities exposed MESCOT members
to the conservation experiences and skills.
MESCOT-LEADERSHIP
EXPOSURE
• MESCOT members were exposed to the
leadership experiences as they were
appointed as a leader
• `Weekly Leader’ (ketua seminggu)-has
exposed MESCOT members with
management experiences particularly on the
aspect of planning, organizing, directing as
well as controlling
• Leadership is an important component to
ensure the success of any business activity
BUSINESS & ENTERPRENUERSHIP
EXPOSURE AT THE
IMPLEMENTATION STAGE
• Real tourism business exposure and
experience
• Initial business activities/program
– Miso Walai Homestay, Maya do Talob Boat
Service Kayaking (MESCOT Kayaking Club),
Tulon Tokon Handicraft, Culture
Performance (MCG)
• Marketing Exposure
…All activities operated under `umbrella’ of
Miso Walai Homestay Association….
…Role NGO: Assisted…
Early marketing
• Fem-trips
• Design Website
• Brochures &
Information
Back
• Promotional
Displays
ENRICH EXPERIENCE & ENHANCE
BUSINESS KNOWLEDGE THROUGH
KOPEL (BUSINESS MODEL)
• Establishment of Tourism
Cooperative (KOPEL) July
2003
• Tourism Business Activities
– Accomodation
• Miso Walai Homestay
• TREC
• Supu Rainforest Eco
Camp
• Hammock Camp
– Transportation
• Maya Do Talub Boat
Service
• Bas
– Food & Beverage
• MESCOT F&B
• Menggaris River
View Café
– Guiding
– Handicraft Outlet
– Menumpos Culture
Group (MCG)
KOPEL IS A COMMUNITY
OWNED ENTERPRISE
• KOPEL itself is an example of rural
entrepreneurship development resulted from
the CBET activities
• KOPEL is a community owned enterprise that
has a great potential to diversify to other
business activities
• Provides more than 280 jobs to the
community (permanent and part time)
• Benefit in term of dividend
ENTERPRENUERSHIP
OUTCOMES
Feedback from KOPEL members
• KOPEL provided plenty of opportunities for
its members to choose from, work and
explore the line of work that they like. It is
like opening a new window and discovering
that there are a lot more outside their
comfort zone.
• A duck farm
– selling salted egg to markets in Batu Puteh and
the neighboring towns as well as supply to
KOPEL.
Cont’
• Local Handicraft Production
– KOPEL is currently implementing strategies to
upgrade the skills of the local women and
youths involved in the production and sales of
handicrafts.
– Towards this end, it has been given the
responsibility of training the local youths in
the entire handicraft supply chain.
– Rakuno University also is now providing
training for local handicraft production to the
local youth and women.
Cont’
• Sundry Shops
• Riverside Stalls
• Other businesses that enjoy the
spillover from CBT are the village
seamstress who make cultural group
costumes etc,
• and the local suppliers who supply fresh
prawn and fish, and vegetables to
KOPEL
ESTABLISHMENT OF FAMILY
COOPERATIVE (KOPERASI KELUARGA)
• 2012 Family Cooperative (FC) has been
established by KOPEL members.
• Main business activities of FC:
– Nursery
– Fresh water fish farming, duck farming
– Other related tourism activities
• FC roles as sub con/supplier to the KOPEL
KAMPUNG STAY-MORE
BUSINESS OPPORTUNITIES
TO COMMUNITY
Strengthening Linkages with Local
Economy
CONCLUSION
Rural Community
Planning Stage (1997-2000)
Implementation Stage (2000…)
As An Incubator
Community Capacity
Building
CBET
Initiative
Bottom up Planning
Approach
Role of
NGO/Government
Dependent
Community
Owned
Business
Enterprise
Guided/Assisted
Independent
Sustainable Rural Community
Development
Rural
Entrepreneurship
ACKNOWLEDGEMENT
Long Term Research Grant Scheme 2011
[LRGS grant no:
JPT.S(BPKI)2000/09/01/015Jld.4(67)]
under Ministry of Education Malaysia