PPS NorHaniza

7/31/2019 PPS NorHaniza

1/40

THE APPLICATION OF

VALUE CHAIN ANALYSIS TO MEASUREECONOMIC BENEFITS

AT TANJONG PIAI, PONTIAN, JOHOR

Presenter:Nor Haniza Binti

Mohamad

10 July 2010


2/40

7/23/10

To show the importance to measure

tourism economic benefits received bylocal people

To explain the application of value

chain analysis in community basedtourism context


3/40

7/23/10

Johor


4/40

7/23/10

TanjongPiai SiteMap

TPRG UTM 2009


5/40

7/23/10


6/40

7/23/10

an ong a e comesYou


7/40

7/23/10

With itsecotourism

site


8/40

7/23/10


9/40

7/23/10


10/40

7/23/10


11/40

7/23/10

With its local products

TPRG UTM 2009


12/40

7/23/10TPRG UTM 2009


13/40

7/23/10TPRG UTM 2009


14/40

7/23/10TPRG UTM 2009


15/40

7/23/10

With its Kampung life

TPRG UTM 2009


16/40

7/23/10

Which you canexperience at

Tanjong PiaiHomestay

TPRG UTM 2009


17/40

7/23/10TPRG UTM 2009


18/40

7/23/10

Many of itspeople earn aliving throughtourism

TPRG UTM 2009


19/40

7/23/10TPRG UTM 2009


20/40

7/23/10TPRG UTM 2009


21/40

7/23/10TPRG UTM 2009


22/40

7/23/10TPRG UTM 2009


23/40

7/23/10

Number of Tourist Arrivals at TanjungPiai Homestay

Source: TPRG, UTM

(2009)


24/40

7/23/10

Gross Income of Tanjung PiaiHomestay from 2007 until

October 2009

0

2

4

6

8

10

12

Year

No. of Total Income (RM)

Source: TPRG, UTM(2009)


25/40

7/23/10

However, numbers can bedeceiving

In the end, who gets what really?

How much tourism income isreceived by the local people?


26/40

7/23/10

It is important to correctlymeasure tourism economic

benefits received by localpeople.


27/40

7/23/10

RM2

5

Tourist

Homestay

Provider

(profit

RM125)

42%

CoconutFarm

(Profit

RM13)

4%

Local People

(Profit

RM12)

4%

Bee Farm

(Profit

RM13)

4%

Seafood

Restaurant

(Profit

RM65.00)

22%

Local People(Profit

RM12)

4%

Local

Fishermen

(Profit

RM60)

20%

RM30

0

RM60

RM12

RM12

RM12

5

RM25RM17

5

Accommodation Value Chain ofTanjong Piai income distribution



28/40

7/23/10

Restaurant Value Chain

Tourist

Restaurant

(Profit

RM800)

53%

Wholesale

r (Profit

RM400.00)

27%

Kampung People

(Profit

RM300.00)

20%

RM150

0

RM70

0

RM30

0



29/40

7/23/10

Retail Value Chain

RM25

Tourist

Homestay

Provider

(profit

RM125)

42%

Coconut

Farm

(Profit

RM13)

4%

Local People

(Profit

RM12)

4%

Bee Farm

(Profit

RM13)

4%

Seafood

Restaurant

(Profit

RM65.00)

22%

Local People

(Profit

RM12)

4%

Local

Fishermen(Profit

RM60)

20%

RM30

0

RM60

RM12

RM12

RM125

RM25RM175



30/40

7/23/10

The Application of ValueChain Analysis in

Community Based TourismContext


31/40

7/23/10

Value Chain Analysis

Source: Michael Porter (1985)


32/40

7/23/10

Tourism Value Chain Analysis(including the tourist expenditure)

Source: International Finance Corporation World Bank Group (2006)


33/40

7/23/10

Tourism Activities in TanjongPiai

Category Number of

Enterprises

Total Tourist

Expenditure (RM)

(a)

PPI Total (RM)

(b)

National Park 1 447060 (1) 172800

Homestay 54 146880 (4) 61615

Lekor Piai 1 142000 (5) 52800

Seafood

Restaurant

3 211000 (2) 54000

Tanjong Piai

Resort

1 170000 (3) 42000

Total 60 1116940 383215

(c)

Source: TPRG, UTM (2009)


34/40

7/23/10

The Strength of Pro Poor Income fromTourism Activities in Tanjong Piai

Category Number of

Enterprises

Total Tourist

Expenditure

(RM)

(a)

PPI Total

(RM)

(b)

PPI Revenue

Strength (%)

(b a)

PPI Share

(%)

(b c)

National

Park

1 447060 (1) 172800 39 45

Homestay 54 146880 (4) 61615 42 16

Lekor Piai 1 142000 (5) 52800 37 14

Seafood

Restaurant

3 211000 (2) 54000 26 14

Tanjong Piai

Resort

1 170000 (3) 42000 25 11

Total 60 1116940 383215

(c)

Average

34%

100

Source: TPRG, UTM (2009)

C i f PPI R


35/40

7/23/10

Comparisons of PPI RevenueStrength and PPI Share



36/40

7/23/10

Discussion

Tanjong Piai Homestay has the strongest source of PPIrevenue strength with the highest percentage of 42 but itsPPI share is only slightly higher than Lekor Piai, SeafoodRestaurant and Tanjong Piai Resort which is 16 percent.

Possible explanation it is the nature of a homestay

programme to employ or involve a large number of localsin it operation.

Therefore, a large chunk of its income goes to the localscausing the PPI revenue strength to be high.

However, its total income is still fairly low thus causing thePPI share to be very small when compared to other sites inTanjong Piai which means strategies are needed toincrease profit.


37/40

7/23/10

Although a tourist site may be gettingsubstantial profits from tourism activitiesand seems to be having a strong PPIrevenue strength it does not necessarily

mean that the site is contributing equallysubstantially to the economy of the localpeople.

Nevertheless, a site like Tanjong PiaiHomestay should be maintained and itsproducts further developed because ofits ability and potential to significantly

return a large portion of what it earns tothe oor locals.

Discussion


38/40

7/23/10

Examine the homestay value chain tofind out which players along the valuechain have exactly benefitted the mostfrom the homestay programme.

Examine the homestay value chain tofind out which players along the valuechain have exactly benefitted the mostfrom the homestay programme.


39/40

7/23/10

Conclusion

Value Chain Analysis is an appropriatetool to use in order to measure theeconomic benefits received by the

local people. VCA also reveal weak linkages and

economic leakages.

Government and relevant authoritiesare able to craft strategic plans toincrease tourism income for the locals.


40/40

7/23/10

THANK YOU VERY MUCH

TPRG UTM (2009)

Documents

PPS NorHaniza