1.

INTRODUCTION/EXECUTIVE SUMMARY

1.1 Executive Summary

1.2 Introduction Tourism has been a part of the political agenda in Malaysia since 1987 when the Federal Government decided to develop tourism into a major economic sector. A main objective of this policy is to achieve economic growth and employment in the rural areas through development of tourism industry. In this process, nature tourism has been forwarded as one of the main focus areas in the tourism policy of the Sabah State Government (Ministry of Tourism Development, Environment, Science and Technology 1996). Homestay is a term with specific cultural association. Homestay is a program for tourism or foreign students that allows them to rent a room in a local family to better learn the local lifestyle and culture. It is a traditional project in many countries, such as Britain, Australia and North America. In 1932, Dr. Donald Watt established the Experiment in International Living which is the pioneer of homestay. It is a form of operating accommodation and still focus on provide tourism service. Bed and breakfast is also a name of homestay, widely use in Europe and America. These guests often reside in the family home for an extended period of time, usually months rather than days. It is the the most direct way to in touch with local lifestyle. The association private homes, interaction with host / family and sharing space which thereby becomes public is also important for the homestay. Homestay is one of a main project in culture tourism, the tourism activities were organized in community sites to study lifestyle, culture and manufacture of locality. The activities provided for serving the touristss need, simple way of life as rural society which tourists interesting in. Actually, homestay is an alternative in local market which was not a competitor of hotel and resort. This project also helps local family earn some additional and needed income. Besides that, its can help to prevent the history of local culture.

1.3 Research Objective The objective of study is to: i. ii. iii. To study about the cultural tourism in homestay To understand the project of homestay To identifying what are the major problem that have at the homestay and think of what are the ways that can be solve the problem.

1.4 Scope of Study The scope of study is to study about the homestay program and identifying what are the major problem that face to the homestay and how to solve it. Our destination is Sungai Labu Homestay, W.P Labuan. Besides that, the literature review of study is about characteristic of tourism beyond the homestay.

2.0

LITERATURE REVIEW

Nowadays, many place that are actively with the developing of cultural resort to increase the tourism market place in globalization level. According to The Creative Nation document, cultural tourism is embracing the full range of experiences visitors can undertake to learn what makes a destination distinctive - its lifestyle, its heritage, its arts, its people - and the business of providing and interpreting that culture to visitors. According to OECD ( 2009), cultural asset can enhance attractiveness of local territories, contribute to the national tourism improvement in terms of the provision of cultural richness, diversity and differentiation of tourism resources, and suggest for best public-private partnership. Its mean that the culture tourism can be develop to attract the tourist. According to Hjulmand L.G (2003) the tourism is a one of development strategy that can be develop in the rural place and its can attract more of tourist to come base on the pure culture, environment and others. So, its mean that, the homestay are related to the tourism through the rural area and it can generated more of benefit. It can explores the economic, social and ecological viability of nature tourism development in the rural areas and Analyses of the potential market for nature-related tourism and the tourism interests and perceptions among the communities here were carried.

3.0

LIMITATION OF STUDY

This section contains the problem that we face during we make a research at the homestay. Language This language is the main problem that was happen when we make a research to interview the society around the homestay, they only know to speak in Malay. So, its difficult for us to make a research because our group/ partner have a international student from china and they only knows speak in English and china.

Time Its take a long time for make this research because there have many part need to be done. This research takes at least three month for make it done.

Cost We need spend more of cost to make this research. For example, cost for stay in the homestay, cost for transport, and others.

4.0

BACKGROUND

5.0

RESEARCH METHODOLOGY

In this chapter, the discussion is about the method that utilized for data collection to conduct this research. There are few sections in this chapter which are research design, and collection method. 5.1 Research Design Primary Data The data that we collect are primary data because it is acquired from our interview session during in the homestay. Data Collection Method As for our data collection method, we have chosen the convenience sampling which are we ask the host of the homestay at the Sungai Labu Homestay, W.P Labuan. This method is quick and cheap. Survey method Approach most suited for gathering descriptive information. There are two type of survey (structured surveys and unstructured surveys). Structured surveys use formal list of questions asked of all respondents in the same way meanwhile unstructured surveys let the interviewer probe respondents and guide the interview according to their answer. Survey research may be direct or indirect. For our group, we use unstructured surveys. When we get our temporarily parents, we ask their questions regarding our assignment needs at home. Observation We make the observation by ourself that is we going around the village and others place then the homestay. We also observed the homestay by ourself, such as see around the homestay, what going around about the homestay, and after that we make evaluation with anything was happened in the homestay, such as their activities, what the homestay do, what their procedures, facilities and etc. Besides that, Commonly used in behavioural sciences. It is the gathering of primary data by investigators own direct observation of relevant people, actions and situations without asking from the respondent. Observation can

yield information which people are normally unwilling or unable to provide. For example, we observe the facility, any access tool that we can use while stay at homestay Sungai Labu.

Contact method Contact method information may be collected by email, telephone and personal interview. For our group also, besides observation and survey, we use personal interview according to the situation. It is very flexible and can be used to collect large amounts of information. Trained interviewers are can hold the respondents attention and are available to clarify difficult questions. They can guide interviews, explore issues, and probe as the situation requires. Personal interview can be used in any type of questionnaire and can be conducted fairly quickly. Interviewers can also show actual products, advertisements, packages and observe and record their reactions and behavior.

Focus Group Interviewing We make an interviewing directly to the person who in charge the homestay. Its easy for to make the research because we directly came and see the owner and the organizer for the homestay, we directly ask them and after that we also directly get all the homestay. We also have make an interviewing with a few of person around the homesstay for the some information or respond how satisfied are they about the homestay.It is rapidly becoming one of the major research tool to understand peoples thoughts and feelings. It is usually conducted by inviting six to ten people to gather for a few hours with a trained moderator to talk about a product, service or organization. The meeting is held in a pleasant place, and refreshments are served to create a relaxed environment. The moderator needs objectivity, knowledge of the subject and industry, and some understanding of group and consumer behavior. The moderator starts with a broad question before moving to more specific issues, encouraging open and easy discussion to bring out true feelings and thoughts. At the same time, the interviewer focuses the discussion, hence the name focus group interviewing. For

example, ketua Kg homestay Sungai Labu give a talk to all students and at the same time we can ask them any questions.

Internet research method Internet becomes more advance and important tool to people to gather early information. Whatever necessary information we can get from internet because most people nowadays use internet as communication hub to interact and spread information or news. Before go to Homestay Sungai Labu, our group also do some research in internet so that we can gathers more valuable information before conduct our research at Sungai Labu.

6.0

MARKET ANALYSIS

(INTRO ABOUT MARKET ANALYSIS)

Industry Trends Now days, the trend for home stay is quite famous through Malaysia. In Sabah also the trend for people to come to stay in Home stay is gaining popularity among tourist. Other categories of group such as students, non-government organization, private organization, government sector also come to use the facilities and amenities at this home stay. Among the tourist that comes to stay would be most from foreign tourist. They come to stay for few days before moving to other location as they prefer to sigh and seeing during their holiday trip. We choose Kampung Sungai Labu as the most strategic place as it more closely related to the village community. As home stay now is the current trend for customer to stay for either holiday experience or community activity by students. The reason of opening home stay programme is to promote the cultural heritage. The home stay is being supported by the Tourism of Malaysia. The owner of the home stays who manage and operate say that the main reason is to promote cultural heritage to the people. It gains popularity as not only the people are close to the village community and learn the traditional culture, food and others. The demand for home stay mostly from group tour which are from school students, university students and also group tourist who come to enjoy part of the traditional village which are not found in their country. As Malaysia are known to many traditional cultural heritage home stay is a new kind of attraction to the industry that will attract them not only to stay but to learn the culture of the village people of Kampung Sungai Labu. As you can see in Labuan Federal Territories there are two more home stay which are Kampung Bukit Kuda and home stay Kampung Patau-patau. While for the rest are hotel and resort which are located near to the city centre of the Labuan. Private home stay also being built but are more near to the city centre. For these three home stay are initiated by the Ministry of Tourism to promote traditional cultural heritage to the people and trying to preserve the culture from generation to the younger generation not to forget about it.

Other accommodation such as hotel and resort will require much land and resources to built compare to home stay which already have the place. That is why a lot of home stays starts to emerge in Labuan Island either private or public. The public owned home stay is more to preserving cultural heritage to be shown to the public to experience and gain knowledge. Even though there are private but more to profit rather than exposing traditional culture to the customer.

Area Characteristic Among the area characteristic that can be notice such as nearby to its village community make its more interesting to create a home stay environment. Tourist either from outside of Malaysia and our local will have an experience staying in a village area. Furthermore, various activities can be held it this area because it has the facilities needed to use when such event held. Kampung Sungai Labu location is consider had the basic facility need to held a community activity either for school children, university student and also for tourist purpose. Among the facility that is being built such as mosque, open hall, library and open ground space. Most of the characteristic that Kampung Sungai Labu had manage to get an approval from the Ministry of Tourism to start and home stay at this village. Ministry of Tourism will only approve if the place of Kampung Sungai Labu has the characteristic that can be fulfill to become a home stay location based on its facilities and amenities at Kampung Sungai Labu. It is easy access by road to Kampung Sungai Labu either by bus or by car. It takes about 20minutes drives from Labuan city centre to the village. The road access is simple to follow until they reach the destination without any worry. Signboard stated where is the home stay Kampung Sungai Labu is located along the journey. Recreation and interesting place is within range from Kampung Sungai Labu such as Peace Park, Surrender point, Labuan Bird Park, The chimney and Coal Mining Area. This entire interesting place is without several minutes from Kampung Sungai Labu. Most of this are takes less than 20minutes to reach from the home stay location. It is a suitable place for people who stay at the home stay able to take their time to visit this site. Kampung Sungai Labu also is nearby to education place such as University of Malaysia Sabah International Campus, Labuan Matriculation and several schools nearby to the home

stay located. Most of the student will organize a community village activity with the home stay located nearby to them. Furthermore, the facilities and amenities at home stay Kampung Sungai Labu is enough to support any activity being held by the students.

Location and Facility Kampung Sungai Labu is a very quiet and peaceful coastal village that lies on the west coast of Labuan Island. This picturesque village fringes pristine beach cove and white sandy beaches. It spreads across 872 acres of fertile lowlands and gentle hill locks. The quaint village houses with their distinctive architecture and beautiful curtain-laced windows sit spaciously apart amidst tall coconut trees and facing the South China Sea. This is the heartland of the Kedayan people who make up just about half of Labuan's Muslim population. A community steeped in tradition and local customs. The Kedayan are known for their intimate knowledge of medical plants. They grow plants which are used to treat a wide range of ailments and antidotes. Kampung Sungai Labu is situated on the west coast of Labuan Island. It is 12KM from Labuan Town center and 11KM from Labuan Airport. The location of Kampung Sungai Labu is very strategic because that place nearby the Memorial Park, Matrikulasi, Jabatan Bomba dan Penyelamat, and Universiti Malaysia Sabah Kampus Antarabangsa Labuan. So that, it easy for tourist to visit that place by walking, or using transportation which car rental, motorcycle and use public transortaion. While the facility in Homestay Kampung Sungai Labu which is Traditional food making (RM10 per person), Ambuyat (a Kedayan Brunei sago delicacy) making (RM5 per person), Shore fishing with fishing rod or fishing net (RM10 per person), Cycling around the village (RM 6 per person), Kedayan Traditional Show "Berpapat Jambol" (RM15 per person). All their facility that provide will be chargeable to people who use it. For tourist or customer who stays here, the public transport is available at any time of the day and takes 20 minutes to reach the village. Their no problem for any tourist to go any place that their want to go because have are public transportation. Sometimes, the owner of homestays will provide transportation which is motorcycle without charge. Why I say like that, the evidence is some of my friends who going the fieldtrip at Kampung Sungai Labu their get free transportation with some owner that their stay which is motorcycle. This is the special services that the Kampung Sungai Labu give to any tourist who has stay at Homestay Kampung Sungai Labu.

Competition. The competitor for Homestay Kampung Sungai Labu is the different homestay and hotel such as Homestay Kampung Kuda, Homestay Patau-patau, Grand Dorset Hotel, and Tiara Hotel. So that, its make the management of Homestay Kampung Sungai Labu be work hardly to provide the best services and products. The management of Homestay Kampung Sungai Labu takes the initiative which is registered with the Ministry of Tourism. The Ministry of Tourism will help them in term of marketing because the ministry of tourism will directly give any latest information either our homestay or tourist information. Why the homestay registered to the Ministry of Tourism? Because it will give them good benefit which is can sustain their business. Also the ministry will put Homestay Kampung Sungai Labu at their website. So that, it will increase their market and get more profit. This is how the management of Homestay Kampung Sungai Labu to compete with other competitior. Sometimes, the Ministry of Tourism will be advisor in term of giving motivation, evaluation level of services and products. In the other word, to compete with them we should build or create more activities like games and entertainments which is show them how to make traditional foods and playing sukaneka such as tarik tali, berjalan menggunakan tempurung kelapa and other activities. After that, we should never say no if any tourist request anything from our homestay as long as it is not inconsistent with the objective of homestay. According to the reference entitled The best service is no service by Bill Price and David

Jaffe; if the customer get good services and product he will suggest their friend to visit that
place.

Knowing your customer It is important to know and to analyze the type of travelers and how you might serve this visitor. Kampung Sungai Labu Homestay image, location, size, prices, amenities and service should be designed to fit the type of customer they want to attract. There are different types of traveler that we have out there and each one of them has their own different reason to travel. From our interview with the local people and the manager of kampung sungai labu homestay, we found out that leisure travelers are by far the largest segment of visitors to the homestay. Local and foreign visitors are coming to Kampung Sungai Labu homestay as a leisure traveler. Leisure travelers travel to fulfill and individuals needs for catharsis,

independence, understanding, affiliation and getting along with others away from routine cares. It is also known as escape activity or vacation. There are a lot of tourist come into this homestay. They are visitors from sabah, Sarawak, Malaysia peninsular, Indonesia and all over the world. From what we experience staying two days and one night there, Kg. Sungai Labu provided many activities for the visitors to enjoy. Among the activities when the tourist came to this village are such as traditional games, making traditional food, and several others. They still preserved the Kadayan culture to promote to visitors. A welcome ceremony with a kompang and bunga manggar is one of their preserved cultured. Visitors can have an experience of making and eating kuih Cincin which is the local famous traditional food. The amenities provided include basic sanitary facilities, electricity and water supply, grocery stores, playground and a football field. It is a perfect environment for the visitors to experience village living. The standard two days and one night stay is Rm 65 per person which is suitable for an average income family. It is also include a standard room, welcome drink and all three meals. Additional activities will be charged according to what type of activity visitor want to experience. Additional activity include traditional food making ( rm 10 per person), ambuyat ( a kadayan delicacy, rm 5 per person), shore fishing with fishing rod or fishing net (rm 10 per person), cycling around the village (Rm 6 per person) and berpapat jambul (Rm 15 per person). The average customer would be middle- class couples and families. These people will spend between Rm 250 and Rm 1,500 per year for getaway weekends and vacations. Group travellers also spotted where there is a high chance that it comes from school activity which is considered as leisure group travelers. Several local universities including from Malaysia peninsular are visiting Kg. Sungai Labu Homestay due to the marketing boost from Tourism Malaysia. They may have records of the numbers and names from the website that Tourism Malaysia has provide to promote Kg. Sungai Labu Homestay. However, it is difficult to have business group traveler because conference, board meetings and seminars usually being held at the hotel. A potential new customer predicted based on discussion and interviews with potential guests and manager or the homestay. Their behavior (choosing this homestay) might look like this: individual or couple decided to getaway for a few days as a result of a need for a change of place or vacations. Usually the need comes when there is a time of f from their work but it can arise anytime year around. They investigate homestay servives via relative, friend, or

social group. If they are new to the areas ( foreigner), he/she would look in the websites for advertising(Provided by Malaysian Tourism). Acting on the advice of friend or their own knowledge, they will call to decide if this is the best place for them. They will look for amenities, reputation, and pricing. Based on that, they will make a reservation. With these model, they can take advantage of making marketing strategies and creating satisfaction through interacting with the future or present guests.

Project Of Sales This project of sales we can refer to the rate of every activities that they provided during we at the homestay. but before that, we have to know a little bit about the 4ps on the homestay. The 4ps is about prices, place, promotion and product. In this topic, we focus on the price and the promotion because its related to the topic (project and sales). Talking about the prices, actually this homestay give the price that its available for all the customers, its cheap than others homestay. it is also available in the charge of others activities that there provided to us, such us meals, rooms, recreation, charge for travelling and many more. this charge of the homestay we can look at the schedule that shown. No. 1. 2. 3. 5. Room Meals performance Others activities total Item Charge (RM) Rm60/night x 1 person RM5/meals x 1 person x 3 RM5/person RM15/person x 2 activities RM110

That schedule shown is about the overview of rates for one person at the homestay. But in this situation, the organizer have a tolerance that give a discount for us because of we came within large number of participant, so they give us a discount. beside of that, they also give another ways that we can give the payment. They also provided the bundle of service or services package. The services package that we can see is about the homestay provided all the activities to us with only one price that is we at there for 3 days 1 night only for RM100. That give some benefit to us as a student.

Talking about the promotion, actually the make some promotion about their homestay to attract the customer/guest to come to the homestay. One of the promotion that they have been done is by the website. Actually the make the website about their homestay for make it easily for the customer to get the information. Besides that, there have the government website of tourism website, that is at this website, its included all the information such as the homestay, the centre of tourism and many more. So, its easily for the guest to know about this homestay. And besides that, they also make the promotion by ask the guest who was came to the homestay to tell other peoples the invate them to come to this homestay. But, the problem that was happened on this topic is, they only too dependent on this promotion only, not make some of innovation of promotion like make some flyers, some posters, or make an advertising on the media such as on the television, radio because with this promotion, they can increase their market.