Langkawi Tourism Development Blueprint Part 1

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 identified 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 confident 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 benefits 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
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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
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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 flora 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 fulfill 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 benefit 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, significant 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
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I. Executive summary
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 first 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.
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I. Executive summary
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.
2015 –
TOP 10 ISLAND AND
ECO-TOURISM DESTINATION
Tourists arriving from new long-haul points of origin
frequent luxury accommodation on the exclusive
north west shore. Families travelling on more
moderate budgets stay in newly upgraded Cenang.
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.
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.
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.
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
ourists a
and
better for the locals.
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TODAY –
STRONG TOURISM BASE
2011 TO 2015 –
THE BLUEPRINT FOR GROWTH
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.
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.
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 figures 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 sufficient 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.
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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.
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 flights and new scheduled routes would be a
first 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 flexibility 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-specific 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 diversification. Thus we propose
to introduce contract farming schemes in farming and
fishing 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 grown in leaps 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 will most likely decline.
Langkawi has set high goals for 2015, which
can be achieved with this Blueprint. To ensure
p ro m p t d e l i v e r y, t h e o w n e r o f e a c h i n i t i a t i v e
h a s b e e n i d e n t i f i e d responsible for delivering
on a set of key performance indicators and
targets. Overall coordination will be effected
by a Delivery Management Office within LADA,
which will monitor progress, troubleshoot with
initiative owners when there are delays and
report to LADA on a monthly basis.
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II. Stocktake:
Langkawi’s strengths and challenges
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 flora and fauna, in addition to unique geological formations.
The island’s landscape is dotted with picturesque paddy fields
and seaside fishing villages, evoking memories of a small,
self-sufficient fishing and farming community.
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II. Stocktake:
Langkawi’s strengths and challenges
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 flora and fauna, in addition to unique geological formations.
The island’s landscape is dotted with picturesque paddy fields and seaside fishing villages, evoking
memories of a small, self-sufficient fishing and farming community.
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.
of tourists are from Europe and Asia, with the top five
sources being the UK, Australia, Saudi Arabia, China
and India.
Langkawi is accessible via air or sea. The Langkawi
International Airport welcomes about 20 flights per day
from Kuala Lumpur, Subang, Penang and Singapore.
Charter flights 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.
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.
The profile 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).
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
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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
significantly 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 traffic (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
traffic, as shown in Exhibit 6.
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EXHIBIT 4
Langkawi’s yields are lower than peers on two key metrics, resulting
in lower revenues per visitor
Average spend per day
RM
Annual arrival, Millions
1,400
1,300
1,200
1,100
1,000
Bahamas
(1.3)
900
H
er
h
g
i
lu
va
e
Mauritius
(0.9)
British Virgin
Islands (0.3)
800
700
600
500
Bali1
(4.7)
400
Phuket
(3.4)
300
200
w
Lo
100
er
lu
va
e
Hawaii
(6.4)
Jamaica
(1.8)
Maldives
(0.7)
Langkawi2
(2.5)
Seychelles
(0.2)
0
0
0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 11.0
Average length of stay
Days
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)
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There is sufficient capacity for Langkawi to
grow further, but several barriers will first 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 sufficient 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 sufficient 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 identified by
the Langkawi Tourism Lab. Three barriers are worth
particular attention due to the frequency with which
they cropped up in ongoing stakeholder discussions.
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 benefit
from the tourism industry.
To begin, limited planning, cross-sector and agency
coordination, and enforcement of existing plan and
conservation regulations were consistently identified
as the biggest barriers to effective growth. The key
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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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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.
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.
attractions. These attractions should help define what
it means to visit Langkawi, and will be anchored around
the island’s natural beauty and distinctive heritage of
myths and Malay culture.
We will need to transform from an island with no
distinct brand to one synonymous with a tropical
island paradise blessed with breathtaking flora, 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.
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.
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
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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 affluent 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.
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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.
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 five 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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