Purpose
To study the credibility of the to build a luxury resort on the islands, taking into consideration the impacts on tourism as well as the trends, issues and challenges that the hospitality and tourism industry may face. We are also required to come up with a proposal ensuring that responsible tourism are being practiced so that the island can continue to attract tourists through the year.

1.1 Background Information
Perhentian Island, known also as ‘Stopover Island’, is one of the two gems located in the East Coast of Malaysia. Perhentian when translated in English means, post. It is clustered off Terengganu which is located further at the Northern of Terengganu which borders the neighbouring state of Kelantan. Perhentian Island’s accessible point is through Kuala Besut. It is a small Terengganu fishing village filled with Kelantanese culture and heritage. The name Perhentian Island itself is known to have originated from fishermen who would find cover by stopping at the island, especially in times of emergency like during a thunderstorm and bad weather.

Furthermore, it is also due to the role it plays as a post for traders and fishermen back in those days. Currently, the island’s only permanent inhabitants are living in a small fishing village. The island provides innovative tours with a variety of activities with nature trekking showcasing also their culture and heritage experience.
The island has no structures taller than a two storey building with an exception of its only single mainland-communications tower. Perhentian Island’s base of economic is mainly its tourism sector which brings about a limited amount of people on the island to prevent overcrowding on the island’s nature reserve.

Perhentian Island imposes strict laws in conserving its island nature and wildlife reserve. To compensate for its incapability in providing total necessities, the island has its positive advantage. It is no other than its one and only beach. It is the island’s most perfect sheer beautiful asset.

Electricity is 24-hours especially during high season as well as its fresh waters are provided by springs. Due to this, tourists find Perhentian Island as an ‘escape’ from the fast pacing modern world. The island has no public toilets as the people there, usually do public baths as one of its facility.

1.1.1 Conservation Efforts
On most of the beaches, the waters are shallow. Rays, cuttlefish, turtles and parrotfish are some of the most common marine life creatures to be seen there. However so, due to the Island’s protection status, main tourist activities are limited and kept minimal to avoid environment impact. The island plays a huge role in turtle marine life conservation.
Due to activities, which include commercial fishing and urban development, marine turtles such as Green turtle, Hawksbill, Olive Ridley and Leatherback are declining in population. They are on the verge of extinction being an endangered marine life creature. It is a long running practice for the marine turtles to be used as market products such as, for their meat and eggs. This has further pushed them to extinction.

Egg consumption is considered a legal act in Malaysia however, in most areas, it is considered an illegal act. Even so, poaching is still carried out for human consumption.
As part of the island’s conservation act, marine turtle volunteers come to Perhentian Island to protect the nests on the beach from poachers.
For the past years, fishing has been the largest cause of marine turtle mortality whether it is intentionally or unintentionally. The threats to marine turtles are the Shrimp Trawlers as well as Gill Net fishing, as the turtles would get caught in the fishing nets causing them to drown if they are unable to resurface within 40 minutes to attain more air. Longline fishing would kill any marine creature that crosses its path. Huge parts of the oceans needs to be monitored and protected closely to give these marine turtles a chance to further increase their population and chance of survival.

1.1.2 Activities
The islands’ most popular activities which are beach related are snorkelling and scuba diving. Activities also include deep sea fishing, camping, canoeing, fishing, jungle trekking, horseback riding, parasailing. Tourists are to be able to enjoy the view of the beautiful coral reefs as well as all the different types of marine life under the sea. The perfect choice of place to go for a diving session or scuba diving would be at the northwest of Perhentian Kecil.

A group of small rocky islets can be found there. As for deep sea fishing, the amounts of fish caught are controlled so that it will not endanger the marine life. Horseback riding is an activity suitable for tourists of all ages. The young and old are sure to be able to enjoy themselves riding on the horses around the island. Parasail is an activity whereby tourists are high above the sky using a parachute while they are being flown around as they’re attached to the speed boat beneath them. All this activities are sure to be of great interest to the tourists.

1.1.3 Transportation
Transportations to Perhentian Islands are by sea, which include boat rides, taxi boats, as well as ferry. Tourists can get to Perhentian Island by flying from Kuala Lumpur to Kota Bharu, then take a bus or taxi to Kuala Besut Jetty, then take a boat to the islands. They can also board a flight for Kulau Terenggau, then take a bus or a taxi to Kuala Besut jetty, then take a boat. They can just go there by an express bus that takes them to Putra Station. From there, they can choose their mode of transport, which is either by boat rides or taxi boats.

1.1.4 Accommodation
Current accommodations available – Resorts & Chalets

1.1.4.1 Perhentian Kecil ( Small Island ) :

D'Lagoon Chalet
Moonlight Chalet
Bubu Long Beach Resort
Panorama Chalet
Matahari Chalet
Mohsin Chalet
Rock Garden Chalet
Impiani Island Resort
Pattani Beach Chalet
Mira Chalet
Senja Bay Resort
Maya Chalet
Shari-La Island Resort

1.1.4.2 Perhentian Besar ( Big Island ) :

Perhentian Island Resort- RM207- RM675

Tropical Reef Chalet- RM100- RM270
Mama's Place RM60- RM100
New Cocohut Chalet RM110-RM170
Tuna Bay Island Resort RM250- RM660
Abdul's Chalet RM60-RM200
Everfresh Chalet Rm30-Rm 70
Flora Bay Resort RM160-RM190
Fauna Beach Chalet RM35- RM170
Arwana Perhentian Eco Resort RM120-1000

The current accommodations in the Perhentian Islands are not luxurious. These accommodations only include chalets and resorts. The price range for lodging ranges between RM100-200 per night in an air conditioned chalet or RM10 and above for a bunk in the long house. Discounts for these accommodations are negotiable during off season whilst during a peak season, advance booking will be necessary. As Perhentian Kecil is more popular, it might get a bit noisy. Thus, Perhentian Besar will be a better option to enjoy the ambience.

2.1 Efforts that are made to boost tourism in Malaysia
To boost Malaysia’s economy, tourism Malaysia had came up with certain plans and projects. These projects aims to attract more tourists worldwide and also pay more special attention to those potential tourists that bound to leap Malaysia’s economy. Here are some examples.

Firstly, Malaysia’s community airline Firefly Sdn Bhd recently created a new route linking Ipoh and Singapore, also known as the Ipoh-Singapore route. This route cuts traveling time from five hours by road to only one hour twenty minutes. As this flight route is very popular among locals and Singaporeans, this flight route now operates daily since 12th July 2009. In addition, the State Health, Local Government, Consumer Affairs and Public Transportation Committee chairman Datuk Dr Mah Hang Soon said that air tickets for flights for both Ipoh-Singapore as well as Singapore-Ipoh has been 85 percent booked till November.

This overwhelming response by the members of the public proves creating this flight route will welcome more in bound as wells as out bound tourists. This in turns generates more income in the tourism industry. Hence, the Ipoh-Singapore flight route will help to boost the Malaysia’s economy.

Other efforts the tourism Malaysian had come up with to boost the economy would be the thirteen tourism programs that is going to be held from 4th July 2009 onwards. The main objective for these programs is to attract tourists to travel to Johor despite the influenza A (H1N1) pandemic as well as the global economic slowdown the past year. Since the H1N1 scare has been suppressed and the economy is picking up, it is the best time to advertise by holding such events. This also gives tourists the assurance that Johor is a safe place to be. Thus tourists worldwide will choose to go to somewhere safe instead of somewhere else more prone to H1N1. Therefore, these thirteen programs will boost Malaysia’s economy.
Developing the first Arabia Land in Asia for tourists in Melaka helps to boost Malaysia’s economy. Arab City project includes a trading centre in Kampung Jawa with a few shopping malls, Arabic themed restaurants, cafes, health spas and an Arabic artifacts museum. In addition, it also includes a five-star hotel and resort, sports clubs and a medical center for tourists.

The main aim of the project is to welcome tourists from Arab countries that spend at least ten times more that other tourists in Melaka. Since Arab tourists are the most profitable tourists among the rest, developing Arabia Land attracts even more Arab tourists over as it makes them feel more at home.

In addition, tourists from other countries as well can travel to Melaka to get a feel of Arab’s culture and lifestyle. Thus Arabia Land will attract all tourists worldwide especially tourists from Arab countries to boost Malaysia’s economy significantly.

3. Trends
3.1 Environmental Trends
Environmental trend is present as the island provides Island Discovery tour package to promote conservation to protect coral reefs and abundant marine life in the marine park. It provides quality eco-adventure tours such as jungle-trekking, birding, river-rafting as well as four-wheel-drive. It also provides information on conservation efforts done for the environment to educate the tourists and rainforest for the well-being of the local inhabitants.

With the environmental trend, the Marine Park will benefit as the ecosystem of marine life will be protected and properly maintained, rejuvenation of over-exploited zones and protection of threatened and endangered marine species. A two-water-system is used as well to save the environment which comprises of well water for showering and washing with sea water for toilet flushing. Lastly, for environmental trend, the Senja Bay Resort uses two diesel generators for electricity alternating every twelve hours. All these help to conserve the environment and upkeep the condition of the beautiful island.

Recently, two wind turbines are installed. However, it is not connected to the network as the island’s electrical power is currently provided by diesel generators. For now, a turbine is currently being built.
3.2 Measures to Prevent Further Harm towards Marine Life
In the Philippines, anti-cyanide fishing laws have been drawn by cyanide testing laboratories operated by the International Marine Life Alliance (IMA). This measure drawn was to prevent fishermen from killing corals habitats thus preserving it. By educating the people through coral awareness campaigns can reduce the prevalence of cyanide fishing in the Perhentian Islands. These campaigns can be held in school as well as in the media to educate both the young and old. Most importantly, it is crucial to educate the fishermen to use the appropriate fishing techniques. Such methods would be fine-mesh barrier nets draped over a reef section to catch aquarium size fishes or the hook-in-mouth technique to catch larger fishes.

Reef management is also important. When reefs are properly managed it can generate more economic benefits in the tourism industry. By protecting the reefs and conserving their habitats, it can attract more tourists to the Perhentian Islands. By ruling incentives to prevent cyanide fishing and blast fishing it also preserve the marine life and the corals habitat.

3.3 Technological Trends
Another trend includes the technological trend. The island has free WiFi a form of wireless internet access. Technology is so advanced now that everyone needs to have a gadget that has WiFi to go online and communicate, even when you are overseas. This is a way to keep yourself connected with your family and friends when you are away from them. Technology is one thing that we cannot live without in these days.

3.4 Social Trends
Another trend is social trend. The rooms in the resort have splendid views of the sea, and during sunset, at higher levels the view is more spectacular. The beach is peaceful and quiet which is suitable for couples, honeymoon couples, families, teambuilding and business or casual meetings. These help to strengthen the bonds among people, hence socializing is present in this area.

3.5 Trends in Luxury Travel
3.5.1 Experiences

Luxury travel is being redefined as experiences because customers are inundated with products. Travellers now want new and exciting experiences and are willing to spend top dollar to be the first, or reach the most remote, exotic place. The most mature affluent are gravitating to “steal wealth” and seek out luxury travel and products that are able to portray their personal sense of style as well as interest.

Relationships with family and friends takes centre stage as family travel is a growing tourism trend and 82% wanted high-end hotels with kids programs and another 56% travel with nannies. This shows that families enjoy travelling together and want only the best for their children. Due to this, more apartment styled hotels are up to accommodate a more ‘home’ feel even though you are abroad.

3.6.2 Time and space
Saving time is the greatest luxury among travel trends, as provided by the evidence of the number of sales for jet and private jet charter companies that serving time-starved travellers. Major airports are also becoming luxury shopping and travel destinations. Space is indeed a luxury. When it comes to first class travel, airlines are trying to outdo rivals in terms of bigger and more spacious seats and beds. Top hotels suites will get larger and pricier, appealing to the super wealthy accustomed to homes of $10K or more.

3.6.3 Service Quality and Facilities
Service is also emphasised in terms of luxury based on quality in hotels. Qualities provided for instance, Bartenders, efficient room service, helpful front desks, valet parking, helps enhance the hotels’ image as a whole as well. Another trend in luxury includes the facilities that are available to hotel guests, such as amenities like Duty Free outlets within the hotel’s premise and also relaxation and bodily needs that can be taken care of, as well as sofa in lifts and restrooms.

4. Impacts
Due to the improvements done to the island, many challenges can be faced though a majority of the changes are made to comprehend the island and make it into a better environment for tourists. Impacts of these improvements on Perhentian Island mostly affect the tourism industry of the island. These includes both positive and negative.

4.1 Economic Impact

4.1.1 Positive Impact

As the tourism industry grows, the economic state of the island will grow as well. This is as such as tourism is the base of income for Perhentian Island. However, this also means that if the tourism industry were to suffer a big loss, the economic state of the island will be facing an economic downturn.

Thus, to improve the tourism sector of the island, improvements are made to ensure that it reaches to foreigners worldwide with such attracting them. This can be done simply by adding more attractions such as activities for land and sea or also providing more accommodations for tourists. These will also increase job opportunities for not only the local inhabitants but also for foreigners. This will generate more income for the local inhabitants.

4.1.2 Negative Impacts
The negative impacts include the area in which the island is at. Being in the South East Region, the island is prone to monsoon season which is usually during the month of November till early March. With this, the tourism industry is deeply affected as tourists are sure to avoid going to the island for safety reasons and also due to the island being wet as it is raining all the time.

Decrease in tourists, results in the tourism industry being affected, resulting in an economic downturn which leads to recession. Furthermore, being an averaged sized island, the amount of space provided is also limited. Thus, the volumes of people allowed on board are limited and greatly controlled.

4.2 Cultural Impacts
4.2.1 Positive Impacts
Improvements made on the island, has an impact on the culture of Perhentian Island. Foreigners who come to the Perhentian Islands are sure to bring along their culture. Furthermore, leaving on the Perhentian Islands allows them to learn the heritage and culture of Perhentian Island inhabitants. Local inhabitants on Perhentian Island is not frequently exposed to other foreign cultures being that majority of their population are Malay Muslims. With this, they’ll be able to understand foreign cultures better. Foreigners that visit the Perhentian Islands will be able to learn and understand the Muslim customs and the different Malay cultures from the villagers.
4.2.2 Negative impacts
Local inhabitants may not like the way foreigners are as a majority of them are Muslims. Local inhabitants who are Malay may see foreign cultures as a form of disrespect to their religion thus, affecting them greatly. For instance, consumption of alcohol is encouraged to be done discreetly whereas wearing of two piece swim wear is discouraged.
Foreigners bring about foreign talents if they were to settle down and work in Perhentian Island. This may serve as a threat as they will share knowledge of their foreign county resulting in Globalization to occur. This results in a loss of culture as younger generations of the local inhabitants may not follow their religion beliefs.

4.3 Political Impacts
4.3.1 Negative Impacts
Environmental vs. political
As Malaysia is a Muslim country under the state of Terengganu, Muslim customs have to be exercised to follow Islamic customs. This includes consuming of alcohol. The tourism industry will be affected as activities involving the consumption of alcohols such as night clubs, bars and the selling of alcohols will be restricted or otherwise limited.

The Muslims will think that the foreigners are a bad influence to their people with their way of dressing, lifestyle and even beliefs. This may result in the locals not welcoming the tourists to their islands. The younger generation of Muslims may also be influenced by the foreigners’ lifestyle, which goes against their Muslim beliefs. This will amount to serious consequences like Islamic acts from the Islamic government which will lead to an increase in crime rates.

4.4 Social Impacts
4.4.1 Positive Impacts
As the tourism industry improves in the islands, more job positions will be open to both local and foreign talents. This will affect the society positively as more jobs will be available for the people thus increasing their income as well. With more jobs available for the people, locals will want to educate themselves more so that they can attain the job titles available.

There will be competition in labour and if the locals are not educated, job titles will be given to more educated foreign talents. Purpose of visit from tourists varies from relaxing to usage of the activities there and even business. With the exposure between locals and tourists, they will also be able to build relationships among each other. The locals can also learn skills and experiences from tourists and improve their local environment.
4.4.2 Negative Impacts
Tourists will fail to respect the local customs and moral values unintentionally, and locals will not like their way of behavior. There will also be an increase in crime rates when more tourists visit the islands. Increase in crime rates will also result into a decrease in tourists, which will do no good to the industry.

4.5 Environmental Impacts
4.5.1Positive Impacts
Building resorts and other amenities will beautify the islands more, giving the tourists a good impression and would make them visit the islands.

4.5.2 Negative Impacts
Overcrowding and lack of awareness will be a problem when there is an increase in tourists. Tourists will neglect the environment and will start to litter around the area.
As the islands are in the middle of the ocean, illegal fishing would be easily done for the tourists and locals. As diving is part of the tourist attractions, fish stocks in diving sites will be declining, which will affect locals that fish as a living.

With the increase in tourists, there will be both ineffective sewage treatment and solid waste disposal. This is due to more tourists using the amenities more often. Careless snorkelers or fishermen might damage corals by kicking, plucking or throwing an anchor underwater.
Tourism requires coastal development that leads to more waste pollution as well as siltation. Siltation is the consequences of shoreline development causing silt to be washed into the sea. These silts blocks pathway for sunlight into the sea. Thus this affects the growth of corals which also includes marine living organism.

Furthermore, destructive techniques use by fishermen does not only destroy the reefs but also their inhabitants. Such examples are the blast fishing and the use of sodium cyanide. Blast fishing requires the use of a bomb to stun or kill schools of fishes in order for them to collect fish easily. This act however destroys the ecosystem and their underlying habitat. Similarly, the use of sodium cyanide also stuns fishes to slow down their reaction for easy catching.
With more tourism leads to more boat traffic, hence causing traces of oil polluting the sea. It also increases the risk of oil spills which will greatly affect the corals and marine life. Other forms of pollutions also include sewage, fertilizers, industrial waste as well as oil and desludge from ships.

Recommendations for Improvements
Accommodations
Chain operated luxury hotels will attract more tourists as they are more recognized. These hotels will also attract loyalty customers and tourists as they are assured of their promised service and quality. In addition to that, the luxury hotel can also be franchised to the two islands. This would be more convenient as it gives tourists more time to spend on individual islands during their island hopping. Hence, franchising the hotels on both islands will guarantee tourists on their luxurious stay on both islands. Not to forget, chain operations are also beneficial in my aspects. These benefits include increased purchasing power, lower costs of operations, common signage and advertising.

Transportation
Transporting from shore to shore can be done in several ways. Instead of transporting by boat, cable cars can be built for the convenience of tourists. Not will it only be more efficient, it will also attract more tourists. Other means of transportations like a tram will also attract more tourists to the Perhentian Islands. Besides transporting tourists from island to island via the tram, the tram can also pass through part of the islands.

Attractions & Entertainment
The cable cars and trams are also a form of attraction to the Perhentian islands. Another possible attraction and entertainment that can be introduced is the Casino. Casino will definitely welcome more elderly tourists who would not prefer island activities. Aquariums and Zoos are also lucrative attractions that attract tourists to the islands.
Tourists can learn about the popular animals and marine life in the Perhentian Islands.

Besides that, museums can also educate tourists on the history of the Perhentian islands. These attractions and entertainments will be very helpful in attracting tourists especially during monsoon period to keep the tourism industry ongoing.

Economic Improvements
Though tourism is the largest industry in the world, there should also be other industries to ensure a stable economy in the Perhentian Islands. An example would be the manufacturing hub in the island.
This industry acts as a back up when the tourism industry are not doing too well due to some unfortunate circumstances. (Monsoon seasons, natural disasters) Besides that, an additional manufacturing hub will also generate more jobs for the locals. This would also help to boost their standard of living as the jobs there more highly paid as compared to the typical jobs done by the locals like fishing.

Political Improvements
The islands strongly encourages tourists to consume alcohol in discreet as well as discourages the wearing of immodest clothing. This is done to avoid inflicting feelings of unhappiness among the locals of Perhentian Island who are against such acts as it is against their Islamic customs.

To prevent any inhabitants from being offended, the tourists are advised to wear one piece bathing costumes. However, despite all these, no penalties have yet been imposed against any tourists who breach the local customs.

Lastly, an increase in tourism would lead to an increase in crime rates too. Locals will see the tourists as rich people and would result into stealing. With the increase in tourists in the islands’ region, it may also be a perfect target for terrorists’ attacks.

Conclusion

Thus, in conclusion,