Langkawi Development Blueprint Part1

Langkawi holds a special place in the hearts of many Malaysians and tourists from across the world.

Since its initial development in the late 1980s, it has transformed into a popular tourist destination,

culminating in Langkawi being awarded Geopark status by UNESCO in 2007. This Blueprint will

further propel Langkawi into the ranks of a leading global island destination.

The success identifi ed in this Blueprint, however, can only be achieved through effective

implementation of the underlying initiatives. New talent will be introduced into LADA and funding

has been allocated. The road ahead will not always be smooth but I am confi dent that, with hard

work and perseverance, the full potential of Langkawi will be unleashed.

I hope that the public and private sector will come together and bring this Blueprint to fruition.

The benefi ts to the people and economy of Langkawi – and also that of Kedah and Malaysia – are

enormous. God willing, we will be successful.

1Malaysia “People First, Performance Now”

Dato’ Sri Mohd Najib bin Tun Abdul Razak

MSG027_SquareA4_inlay.indd 3MSG027_SquareA4_inlay.indd 3 2011-12-01 17:332011-12-01 17:33

Langkawi has and always will be the “Jewel of Kedah”. Its natural beauty, its thriving economy as

a tourist destination and its passionate people make it a special place and a source of pride for

Kedah. I am therefore very pleased that this Blueprint has been developed to chart its future – at

least for the next 5 years – to unleash its potential to be amongst the best locations in the World.

This Blueprint is distinctive in several regards. It is an excellent example of effective collaboration

between Federal and State agencies and also between the public and private sector. In addition to

the initiatives to enhance the tourism economy, there are initiatives to build the skills and raise the

incomes of Langakwians and Kedahans. Lastly, the initiatives are supported by detailed action and

funding plans.

For any Blueprint to be effective, leadership commitment and a disciplined approach to implementation

is critical. On behalf of the Kedah State Government, we commit to the vision of this Blueprint and

to supporting its implementation to the best of our ability.

Datuk Seri Ustaz Azizan Abdul Razak


Tourism is an important component to Malaysia’s Economic Transformation Programme and our

aspiration of achieving Vision 2020. Langkawi has delighted millions of tourists from across the

world with its natural beauty, its myths, its unique fl ora and fauna and the warm hospitality of its

people. To enable the tourism sector in Malaysia to move to the next higher level, Langkawi’s

potential as one of the best tourist destinations in the world must also be unleashed.

Clear targets, strategic planning and effective implementation are critical ingredients for Langkawi

to be able to fulfi ll its potential. In so doing, economic and growth cannot be the only objective

for Langkawi. Environmental protection, sustainable development and talent development are also

paramount and I am pleased to see these elements incorporated into this Blueprint. Ultimately, the

success of Langkawi should not only benefi t Malaysia economically but also advance the lives of

Langkawians and Kedahans.

To respond to the quick pace and intense competition of global tourism, results must be delivered

quickly. As a sign of commitment of the Federal Government, signifi cant funding was allocated to

support this Blueprint. Similarly key agencies will continuously be upgraded to ensure the capabilities

to follow through on the initiatives in this Blueprint. With the joint commitment of Federal and State

agencies – and in partnership with the private sector – Langkawi’s position on the world map can

be secured.

Tan Sri Nor Mohamed Yakcop


With its world-class natural assets of enchanting islands, pristine

beaches, and rich biodiversity, Langkawi has grown in leaps

and bounds since the 1990s when the fi rst concerted effort was

made to develop the island as a tourism destination. However,

Langkawi is falling behind its peers in terms of tourists length

of stay, spend and seasonality. Further as with any ecologically

sensitive environment, development has put Langkawi’s unique

assets at risk. The time is ripe to revisit what Langkawi stands

for, and map out where it needs to be within the next 5 years.

I. Executive summary

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2015 –

TOP 10 ISLAND AND

ECO-TOURISM DESTINATION

In 2015, Langkawi offers tourists a multitude of

attractions, makes it easy and enjoyable for them to

get here and to get around the island, tempts luxury

seekers with many ways to be pampered and offers

pristine environments for fun, relaxation, dining and

shopping.

From the moment visitors set foot on our island, they

experience Langkawi’s gracious hospitality through

efficient welcome services and cost-effective safe

ground transport to and from hotels and attractions.

Visitors have many ways to better appreciate our

natural beauty. Nature activities such as birdwatching

on Gunung Raya and touring Kilim’s mangrove

forest attract eco-tourists and expose others to the

breadth of our natural bounty. Attractions meet the

high standard of the upgraded Panorama Langkawi

Sky Cab that gives visitors an eagle’s eye view of

the island’s jungle, Gunung Machincang’s waterfalls

and the turquoise sea. Authentic attractions tempt

visitors to extend their stay, such as the Geosite

Interpretive Centre, the living museums at Laman

Padi and Makam Mahsuri as well as the newly

revitalised Pantai Cenang waterfront.

Tourists arriving from new long-haul points of origin

frequent luxury accommodation on the exclusive

north west shore. Famil ies travel l ing on more

moderate budgets stay in newly upgraded Cenang.

One of the hallmarks of Langkawi is exemplary

standards and practices to protect the environment

and culture. We set the national benchmark – if not

the international benchmark – for both conservation

and preservation.

In short, the Langkawi of 2015 hosts more

tourists from more countries by offering them an

exceptional experience – exceptional hospitality,

services, attractions and accommodation. Besides

considerable pride in being in the ranks of the

global top 10 islands – joining the likes of Bali and

the Maldives – Langkawians benefit economically.

By 2015, we can expect Langkawi’s tourism and

tourism-related GNI to double from RM0.8 bn in 2010

to RM1.9 bn in 2015 on the back of a doubling of

tourism receipts over the same period from RM1.9 bn

to RM3.8 bn. With more hotels, more luxury hotels

with high ratios of staff to guests and new attractions

offering high quality service, we can expect 4,200

more jobs to be created.

Langkawi will be better – better for tourists and

better for the locals.

Langkawi is an island paradise with pristine beaches, secluded islands and nature sanctuaries known

for exotic wildlife, tropical plants and rock formations as old as the Earth. Yet its true potential has not

been fully unleashed. We believe, however, that Langkawi has the potential to ascend to the global

top 10 list of island and eco-destinations by 2015.

I. Executive summary

ourists a

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TODAY –

STRONG TOURISM BASE

Langkawi already has a strong tourism base, with

steady year-on-year growth in line with peers. In 2010,

more than 2 million people visited Langkawi, half of

whom were international tourists, producing estimated

tourism revenue of RM1.9 bn. This revenue accounted

for over 11% of Kedah’s overall GDP, and directly and

indirectly tourism provided work for 60% of the island’s

population. From 2000 to 2009, Langkawi’s tourism

grew by 3.6% annually, in line with popular island

destinations like the Seychelles and Mauritius.

Despite these strong numbers, on measures of spend

per day, length of stay and seasonality, Langkawi falls

behind regional island destinations such as Bali and

Phuket and international destinations such as Hawaii,

Mauritius and the Seychelles. Tourists to Langkawi

spend less, much less – average spend is RM200 less

per day than our competitors. And our visitors stay for

much shorter periods – 5.3 fewer days on average.

These two fi gures compound into a huge shortfall in

potential revenue, which is further aggravated by a

misconception of seasonal bad weather, which results

in a season of low tourist numbers.

Our infrastructure can easily sustain controlled growth

of tourism numbers – we have suffi cient capacity of

land, electricity, water and sewage treatment. We

have room to grow, but we need to overcome our

limitations in the areas of planning and cross agency

and sector coordination and our weak enforcement of

existing planning and conservation regulations. Efforts

in these areas will help to focus Langkawi’s growth

on tourism that is sustainable both economically and

environmentally. These form part of our Blueprint for

Growth.

2011 TO 2015 –

THE BLUEPRINT FOR GROWTH

The growth of an existing tourism industry is complex

and will require many initiatives across three themes.

Products describe the touch points for every

tourist – from the essentials of accommodation and

restaurants to the fun and entertainment of attractions.

Seven initiatives are presented here to create iconic

must-see attractions, enhance the quality of supporting

products and raise baseline standards. Infrastructure

describes how tourists experience Langkawi from

point of arrival to point of departure. Four initiatives

embrace the creation of a seamless experience so

that tourists discover as much of Langkawi as they

desire. Enablers encompass three initiatives to lay

strong foundations for the industry via community

development and marketing.

Compelling attractions and luxurious

accommodation

Langkawi needs to create a handful of truly world-class

attractions and raise the overall baseline for iconic

attraction and supporting products.

Iconic attractions would include world-class nature

sanctuaries (e.g., Kilim, Machinchang, Dayang

Bunting) helmed by experiential Interpretive Centres

that serve both as hubs for tourist activities as well as

for conservation work. These would be supplemented

by two revamped living museums (i.e., Laman Padi and

Makam Mahsuri) that bring to life Langkawi’s culture

and myths. And a revitalised Pantai Cenang, to serve

as the primary public beach for family fun on the island,

complete with new dining, retail, entertainment and

accommodation options. Similar to the star-ratings

used for hotels, a rating and endorsement system for

attractions would serve to inform tourists and help set

their expectations.

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These new and improved tourism products would

be supported by the development of more luxury

accommodation options from boutique resorts to villa

rentals and indeed a new commercial zone with retail,

dining and entertainment options in the north western

part of Langkawi targeted at higher spending tourists.

Given the development or redevelopment of compelling

attractions and more accommodation, the island

could support a year-round MICE calendar targeted at

small-to-mid-sized events and focused on core value

propositions of nature and ecotourism.

Better infrastructure and smoother transportation links

With better infrastructure, more tourists could enjoy

more of Langkawi. Expanded air connectivity into

Langkawi from prime international destinations via

charter fl ights and new scheduled routes would be a

fi rst step to increasing the number of tourists to the

island. Similarly, the entry experience by ferry will

be improved. Targeted initiatives at key touch points

could create a magical arrival experience that could

be extended through enhanced ground mobility, from

connector shuttles to regulated taxi fares. These

would allow tourists to travel in comfort and give them

increased fl exibility to see the island. Essential for the

island’s pristine image, we would improve systems for

garbage collection and public toilet maintenance. A

new park ranger force will be established to support

enforcement and conservation activities. Over time,

we will increase the use of green technology and other

sustainable green practices across the island.

Targeted tourism and higher non-tourism incomes

The success of the Blueprint is dependent on

other successful initiatives outside of products

and infrastructure. The first is the development

of a Langkawi-specifi c branding and marketing

campaign anchored on core value propositions and

differentiated by priority markets. A tourism academy

driven by public-private partnership would produce

fit-for-industry graduates to meet the demand of the

industry. Beyond the tourism industry, it is important

for Langkawi to have diversifi cation. Thus we propose

to introduce contract farming schemes in farming and

fi shing to raise incomes of local people not involved in

tourism and to help those in agrarian sectors diversify

their activities in support of tourism.

MAKING IT HAPPEN –

STRONGER GOVERNANCE

AND MONITORING

With world-class natural assets of enchanting

islands, pristine beaches and rich biodiversity,

Langkawi has g rown in l eaps and bounds

since the 1990s when the first concerted effort

was made to develop the island as a tourism

destination. However, as with any ecologically

sensitive environment, development has not

come without its challenges. Today, the very

assets that made Langkawi unique are at risk.

Without some intervention, Langkawi’s tourism

industry wil l most l ikely decline.

Langkawi has set high goals for 2015, which

can be achieved with this Blueprint. To ensure

prompt de l i ve ry, the owner o f each in i t i a t i ve

has been ident i f i ed responsible for delivering

on a set of key performance indicators and

targets. Overall coordination wil l be effected

by a Delivery Management Office within LADA,

which wil l monitor progress, troubleshoot with

initiative owners when there are delays and

report to LADA on a monthly basis.

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Langkawi’s rich natural endowments make it a popular

destination for foreign and domestic tourists. The archipelago

remains relatively pristine, with most of its 99 islands protected

from major development. Langkawi is also home to a rich array

of fl ora and fauna, in addition to unique geological formations.

The island’s landscape is dotted with picturesque paddy fi elds

and seaside fi shing villages, evoking memories of a small,

self-suffi cient fi shing and farming community.

II. Stocktake:Langkawi’s strengths and challenges

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More than that, Langkawi offers a wide range of

attractions for tourists, as illustrated by Exhibit 1.

Product offerings range from the exciting cable car

ride up Mount Machinchang, with sweeping views of

the surrounding forest covered terrain, to family fun

activities like Underwater World, to major events like

the Langkawi International Maritime and Aerospace

Exhibition (LIMA). During their stay, tourists can enjoy

a range of shopping and dining experiences, from

Kompleks Kraftangan and duty free shopping in Kuah

to the numerous restaurants at Pantai Cenang and

Perdana Quay.

Langkawi is accessible via air or sea. The Langkawi

International Airport welcomes about 20 fl ights per day

from Kuala Lumpur, Subang, Penang and Singapore.

Charter fl ights arrive from Finland and Hong Kong

during their respective peak holiday periods. For

travellers by sea, there are four regular ferry routes

from Kuala Perlis, Kuala Kedah, Penang and Satun

(Thailand). Tourists also arrive at Langkawi via cruise

ships or private yachts, many of which berth at Royal

Langkawi Yacht Club in Kuah or Telaga Harbour near

Pantai Kok.

In 2010 these product and infrastructure assets

enabled Langkawi to generate RM1.9 bn in tourism

receipts and attract ~2.5 million visitors (consisting of

~2 mn tourists and ~0.5 mn day trippers). The majority

of tourists are from Europe and Asia, with the top fi ve

sources being the UK, Australia, Saudi Arabia, China

and India.

The profi le of visitors to Langkawi is as diverse as its

product range. As Exhibit 2 illustrates, tourists range

from high net worth retirees to budget day trippers.

Arrivals have grown steadily at a rate of 3.6% annually

(between 2000 and 2009), in line with destinations like

Mauritius and Seychelles, but faster than more mature

island destinations like Hawaii and Phuket (Exhibit 3).

Today, Langkawi’s tourism industry contributes to

~11% of Kedah’s overall GDP and directly employs

~30% of Langkawi’s workforce. The majority of these

workers are employed at the numerous hotels, motels

and chalets that dot the island. Another 30% of the

island’s population is estimated to be employed in

tourism related businesses or professions such as

restaurants, transportation providers, tour guides, and

retail outlets.

Langkawi’s rich natural endowments make it a popular destination for foreign and domestic tourists. The

archipelago remains relatively pristine, with most of its 99 islands protected from major development.

Langkawi is also home to a rich array of fl ora and fauna, in addition to unique geological formations.

The island’s landscape is dotted with picturesque paddy fi elds and seaside fi shing villages, evoking

memories of a small, self-suffi cient fi shing and farming community.

II. Stocktake:Langkawi’s strengths and challenges

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Relative to peers, Langkawi experiences lower

yield per tourist and greater seasonality impact

While growth in arrivals is comparable to other

destinations, Langkawi falls behind other island

destinations on two key metrics, average length of

stay and average daily spend, as shown in Exhibit 4.

The resulting impact is that Langkawi’s tourist yield is

signifi cantly lower than other island destinations.

As accommodation is universally the main component

of tourist spending, Langkawi’s lower tourist spend

can be attributed to our lower proportion of 4- and

5-star rooms (and hence lower average room rates)

relative to peers. As shown in Exhibit 5, while there

are more than 8,000 rooms in Langkawi, only 35%

of accommodation is in the 4- and 5-star categories,

compared with 55% in Hawaii, 48% in Mauritius and

44% in Bali.

Island destinations often face seasonality in arrivals,

mainly driven by weather, as tourists avoid certain

destinations during periods of monsoon or extreme

temperatures. In this respect, Langkawi is favourably

protected – its location in the Andaman Sea shelters it

from heavy monsoons. Yet when comparing Langkawi’s

peak and low season traffi c (as measured by visitor

arrivals), the seasonal swings are more drastic than

peers such as Bali, Seychelles and Hawaii, with the

low season drawing less than 50% of the peak season

traffi c, as shown in Exhibit 6.

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Lower value

Higher value

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

Average length of stay Days

Average spend per dayRM

11.010.510.09.59.08.58.07.57.06.56.05.55.04.54.03.53.02.52.01.51.00.50

Maldives (0.7)

Langkawi’s yields are lower than peers on two key metrics, resulting in lower revenues per visitor

1 Average spend per day for Bali based on Indonesia's average 2 Langkawi’s average based on estimates of visitor spend weighted by segments

SOURCE: LADA, MAH, Tourism Authority of Thailand, Seychelles National Bureau of Statistics, Ministry of Tourism, Leisure & External Comm. (Mauritius), Hawaii's Department of Business Economic Development & Tourism, Ministry of Culture & Tourism (Indonesia)

Annual arrival, Millions

Phuket(3.4)

Bali1

(4.7)

Hawaii (6.4)

Jamaica(1.8)

Bahamas (1.3)

Mauritius(0.9)

Langkawi2

(2.5)Seychelles (0.2)

British Virgin Islands (0.3)

EXHIBIT 4

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There is suffi cient capacity for Langkawi to

grow further, but several barriers will fi rst need

to be addressed

Langkawi is in a favourable position for growth. In

terms of land, we still have room for further expansion.

Public utilities capacity in Langkawi (electricity, water

and sewage) is also suffi cient to support potential

growth, at least until 2015. Existing electricity capacity

is able to cover 100% growth in consumer demand.

Water usage capacity is currently at 66%, and will allow

for up to 7% annual consumption growth to 2017.

As for sewage, there is suffi cient capacity to support

further growth as the current usage level is 13%.

The challenge lies more in the execution of any

development plan, than in the actual concept

itself. Exhibit 7 illustrates the top 10 barriers to the

development of the tourism industry identifi ed by

the Langkawi Tourism Lab. Three barriers are worth

particular attention due to the frequency with which

they cropped up in ongoing stakeholder discussions.

To begin, limited planning, cross-sector and agency

coordination, and enforcement of existing plan and

conservation regulations were consistently identifi ed

as the biggest barriers to effective growth. The key

issues identified include limited coordination and

planning on development and land use as well as the

lack of enforcement against errant offenders (such as

illegal taxis and car rentals).

Another challenge includes the paucity of conservation

efforts to ensure that Langkawi’s natural environment

remains pristine and protected. The deteriorating

environmental quality of major sites such as Kilim and

Cenang, due to erosion and pollution respectively, were

highlighted as warning signs of a prevailing lackadaisical

attitude towards conservation and preservation.

A third major concern was voiced regarding

the occurrence of unbalanced local community

development. Stakeholders were clear on the need to

build local capabilities so that a larger section of the

community would be able to participate in and benefi t

from the tourism industry.

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III. Vision:Langkawi in 2015

Imagine a destination where stunning beaches, untouched islands

and nature sanctuaries form the backdrop for an unforgettable

getaway. Imagine a destination where there are ample, high

quality activities for those who wish to rejuvenate from the bustle

of modern life, to those who wish to challenge their physical

limits. Imagine the best of island living where warm hospitality,

rich Malay culture and a relaxed pace of life comes together the

comforts of modernity. Imagine, that this is Langkawi in 2015:

a top 10 island and eco-destination.

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Our aspirations are high: to deliver one-of-a-kind

experiences, from product to infrastructure. Delivering

on this aspiration will require several shifts in how

Langkawi currently positions itself and operates.

We will need to transform from an island with no

distinct brand to one synonymous with a tropical

island paradise blessed with breathtaking fl ora, fauna

and geological formations. This is not simply a matter

of better marketing, but a focused effort to better

showcase Langkawi’s most important asset.

As nature takes centre stage, we envision the

creation of Interpretive Centres that serve as hubs for

fun, experiential tourist activities as well as research

and conservation work. We envision a force of Park

Rangers that will bring both knowledge and passion

to their role of educating others and protecting the

environment.

We will need to go from a highly variable product

portfolio to one where there is a high minimum

standard and a handful of truly iconic, world-class

attractions. These attractions should help defi ne what

it means to visit Langkawi, and will be anchored around

the island’s natural beauty and distinctive heritage of

myths and Malay culture.

In addition to the nature sanctuaries, we envision

redeveloping Pantai Cenang, so that it serves as a

focal point for family entertainment, its vibrancy a

counterpoint to the more secluded beaches around the

island. We envision turning Makam Mahsuri into a living

museum that recreates kampung life as it was more

than a 100 years, with a rich cast of villagers plying their

traditional trades. We envision a revamped Laman Padi

that offers an interactive way to learn about anything

rice-related, from paddy planting to cooking classes.

III. Vision:Langkawi in 2015Imagine a destination where stunning beaches, untouched islands and nature sanctuaries form the

backdrop for an unforgettable getaway. Imagine a destination where there are ample, high quality

activities for those who wish to rejuvenate from the bustle of modern life, to those who wish to

challenge their physical limits. Imagine the best of island living where warm hospitality, rich Malay

culture and a relaxed pace of life comes together the comforts of modernity. Imagine, that this is

Langkawi in 2015: a top 10 island and eco-destination.

- 24 -

We will need to address gaps in infrastructure

standards, ranging from poorly maintained public

toilets and illegal taxi operators to a shortage of direct

international flights from priority markets. Here our

aspiration is to ensure that every possible amenity or

service a tourist could need are consistently delivered

to a high quality, so that the tourist can easily enjoy

all Langkawi has to offer.

We intend to move from a tourist market focused

on mass and middle market travellers to one that

increasingly targets the higher-spending tourists

who form the affl uent and luxury market. To that end

we envision a Langkawi with a wider range of luxury

accommodation options, from boutique resorts to villa

rentals. We envision a new commercial hub in the north

western part of the island that offers retail, dining and

entertainment options targeted at this market. At the

same time, we envision the upgrading of mid-range

hotels and commercial zones to ensure that Langkawi

is still accessible to middle income families.

Finally, we need to transform our delivery and

monitoring mechanisms. The development of the

tourism sector in Langkawi has historically been

characterised by a record of ad-hoc planning,

haphazard implementation and limited enforcement.

Our aspiration here is thus simply, to execute all of

the above with a close attention to detail, a relentless

focus on software rather than hardware, and a

commitment to follow through, regardless of how

tough the journey ahead may be. We hope that in the

years to come, Langkawi will serve as an exemplary

standard for Malaysia on what it takes to protect and

regenerate our environment and culture, as well as to

deliver on our promises to the people.

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IV. Blueprint and delivery plans:Three themes to realise our vision

To help us deliver on this aspiration, we have developed a portfolio

of 14 initiatives across three themes – product, infrastructure

and enablers. These initiatives adhere to fi ve guiding principles.

First, they support a cohesive vision of Langkawi as a nature

and eco destination. Second, they build on Langkawi’s existing

strengths with an eye towards becoming truly world class, so as

to maximise the island’s competitive advantage vis-à-vis other

island destinations. In line with this, all of the initiatives underline

a shift towards developing content rather than developing

infrastructure. These initiatives also aim to improve the living

standards of Langkawians, in terms of their income levels and

quality of life. Finally, the Blueprint has paid close attention to the

issue of implementation as we recognise that a plan is only as

good as its execution.

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Documents

Langkawi Development Blueprint Part1