Tan Kok Liang; Chan, Jenni e Kim Lian
A icle
The impac o he Co id-19 pandemic on he li e cycle o
ou is des ina ions om ou ope a o s and ho elie s'
pe spec i es
Global Business & Finance Re iew (GBFR)
P o ided in Coope a ion wi h:
People & Global Business Associa ion (P&GBA), Seoul
Sugges ed Ci a ion: Tan Kok Liang; Chan, Jenni e Kim Lian (2024) : The impac o he Co id-19
pandemic on he li e cycle o ou is des ina ions om ou ope a o s and ho elie s' pe spec i es,
Global Business & Finance Re iew (GBFR), ISSN 2384-1648, People & Global Business Associa ion
(P&GBA), Seoul, Vol. 29, Iss. 4, pp. 179-190,
h ps://doi.o g/10.17549/gb .2024.29.4.179
This Ve sion is a ailable a :
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I. In oduc ion
The COVID-19 pandemic is an unp eceden ed
phenomenon ha has signi ican ly a ec ed he ou ism
indus y wo ldwide, igge ing immense des uc ion
Recei ed: Feb. 4, 2024; Re ised: Feb. 26, 2024; Accep ed: Ma . 11, 2024
† Co esponding au ho : Jenni e Chan Kim Lian
E-mail: jenni e [email protected]
o he global economy (Isaa and Daukinb, 2022) due
o widesp ead business dis up ions and lockdowns
en o ced o comply wi h social-dis ancing measu es
(Abushammala, 2022). Res ic ed mobili y has os e ed
eelings o insecu i y, including ea s o con agion
and heal h- ela ed conce ns, leading o a eluc ance
among ou is s and po en ial a ele s o emba k on
jou neys. As a esul , ou s and a els ha e
plumme ed by 80-90% in majo global ou ism ci ies
(UNWTO, May 2020).I has a ec ed a ious sec o s
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 179-190
pISSN 1088-6931 / eISSN 2384-1648 H ps://doi.o g/10.17549/gb .2024.29.4.∣179
ⓒ2024 People and Global Business Associa ion
GLOBAL BUSINESS & FINANCE REVIEW
www.gb jou nal.o g
o inancial sus ainabili y and people-cen e ed global business1)
The Impac o he Co id-19 Pandemic on he Li e Cycle o Tou is
Des ina ions om Tou Ope a o s and Ho elie s' Pe spec i es
Tan Kok Liang, Jenni e Chan Kim Lian
†
F
acul y o Business, Economics and Accoun ancy, Uni e si i Malaysia Sabah
A
B S T R A C T
Pu pose: This s udy explo es he COVID-19 pandemic on he ou ism sec o and ou is des ina ions by expanding
he Tou ism A ea Li e Cycle (TALC) model, hus p o iding a mo e comp ehensi e unde s anding o he pandemic's
in luence on des ina ion and insigh s o de eloping e ec i e e i aliza ion s a egies o ou ism des ina ions.
Design/me hodology/app oach: Employing a quali a i e esea ch app oach, he s udy u ilizes he TALC model
o conduc quali a i e in e iews wi h ou ope a o s and ho elie s, aiming o ga he nuanced insigh s in o he im-
pac s o he pandemic on ou ism des ina ions. Nine ou ope a o s and ou ho elie s pa icipa ed in he online
in e iews. Da a analysis was d i en by he in e iew esponses, and hema ic analysis was guided by concep s
o he COVID-19 pandemic impac s and he six s ages o Bu le 's TALC model.
Findings: Se e e impac o he pandemic on ou ism businesses, encompassing a decline in ou is a i als, business
closu es, and subs an ial job and income loss. Tou is des ina ion impac s can be classi ied in o ou dis inc s ages―
s agna ion, explo a ion, in ol emen , de elopmen , and consolida ion p o iding a s uc u ed amewo k o in e ―-
p e ing he e ol ing dynamics o ou ism des ina ions. Con ex ual issues and di e se app oaches a e sugges ed
o e i alize ou is des ina ions in o de emain a ac i e, compe i i e, and sus ainable.
Resea ch limi a ions/implica ions: The es ic ion o he sample size o only wo ou ism sec o s and gene alizing
indings due o he explo a o y and quali a i e na u e o he esea ch.
O iginali y/ alue: I p o ides insigh ul o pandemic impac s on ou is des ina ion and ele an s a egies, d awing
upon Bu le 's heo y. The p ac ical implica ions o des ina ion managemen and s akeholde engagemen a e in-
s umen al in shaping he de elopmen o e ec i e des ina ion managemen s a egies.
Keywo ds: Tou ism A ea Li e Cycles, COVID-19 Pandemic, Malaysia, Tou ism Des ina ion, Rebuilding S a egies
Copy igh : The Au ho (s). This is an Open Access jou nal dis ibu ed unde he e ms o he C ea i e Commons A ibu ion
ⓒ
N
on-Comme cial License (h ps://c ea i ecommons.o g/licenses/by-nc/4.0/) which pe mi s un es ic ed non-comme cial use, dis ibu ion
,
and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed.
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 179-190
180
o ou ism businesses a di e en magni udes.
Resea che s wo ldwide ha e conduc ed in-dep h
s udies on he e ec o COVID-19 on ou ism sec o s
(e.g., Sigala, 2020). Such s udies ha e been conduc ed
in he Malaysian con ex (Ka im e al., 2020; Foo
e al., 2021; Hamid e al., 2021; Chan e al., 2022;
Chan, 2021). This li e a u e indica es se e al ebuilding
ou ism s a egies. No ably, open communica ion is
key, and go e nmen -sponso ed loans a e c ucial o
he ou ism indus y's su i al (Yeh, 2021). Ralinas
e al. (2022) iden i ied h ee eco e y s a egies o
ou ism businesses: imp o ing hygiene and heal h
s anda ds, in ensi ying p omo ion, and con olling
ope a ional cos s. Ne e heless, impac s udies on
ou is des ina ions a e insu icien , especially ega ding
des ina ion li e cycles. Using he decline in ou is
a i als as he co e indica o o impac le el is
inadequa e o unde s anding des ina ion scena ios
and de eloping e i aliza ion s a egies. The pandemic
has led o a decline in ou is a i als, impac ing
ou ism businesses and consequen ly a ec ing he
g ow h and sus ainabili y o he des ina ion's li e cycle
s age. The TALC model is deemed ele an o
unde s and pandemic phenomenon, acili a ing
s a egies o ebuilding and e i aliza ion ou ism
des ina ion. Sound s a egies can be p oposed wi h
he iden i ied s ages o he li e cycle and a e key
o ebuilding and e i alizing he ou ism des ina ion.
Bu le 's model p o ides a use ul amewo k and
desc ip i e ool ega ding he des ina ion's e olu ion
and i s ma ke s (Coope & Jackson, 1989). The model
has success ully been applied o mo e han hi y
coun y cases, o example Pa k (2006) in es iga ed
he ma ke ing s a egies o Jeju Island o ex end
he li e cycle o each ou ism segmen ; assess he
p og ess and decline o eco ou ism des ina ions in
Wes e n Canada (Boyd & Bu le , 2006), China's
Zhangjiajie Na ional Fo es Pa k (Zhong e al., 2008),
Niaga a Falls (Ge z, 1992) and des ina ions wi h
mul iple ea u es (Ho inen, 2002).
While ime and empo al conside a ions a e in eg al
componen s in he model o de e mining changes
o s ages in des ina ion de elopmen , i posi s ha
he pandemic has eshaped and ans o med ou is
des ina ions a a ying magni udes. Indeed, Bu le
(2022) u ilizes he TALC model as a amewo k o
comp ehend how he e ec s o he pandemic may
mani es ac oss di e en s ages o des ina ion
de elopmen . E iden ly, he magni udes and signi icance
o hese impac s on des ina ions depend on he
pa icula s age o he de elopmen cycle eached
by each des ina ion. This unde sco es he alue o
he TALC model in comp ehending he s ages o
ou is des ina ion de elopmen , aiding ou ism planning
s akeholde s in assessing and de i ing lessons om
p e ious s a egies. Addi ionally, he model enables
p edic ions o a des ina ion's u u e ajec o y h ough
a ious o ecas ing me hods, empowe ing des ina ion
manage s o mi iga e declines. Undoub edly, TALC
esea ch con ibu es o a deepe unde s anding o
ou is des ina ion de elopmen s ages and assis s
s akeholde s in e alua ing and lea ning om pas
s a egies, especially in he pos -pandemic e a.
Hence, he pape sugges s ha he TALC model
is a ele an and use ul amewo k o unde s anding
he pandemic's e ec s on ou ism des ina ions and
eco e y planning. I is especially impo an o
conside he unique challenges and oppo uni ies
p esen ed by he pos -COVID e a and o p io i ize
sus ainabili y and esilience in eco e y s a egies.
I highligh s he impo ance o balancing economic
de elopmen wi h sus ainabili y, p o iding essen ial
de ails abou he ou is des ina ion's g ow h and
unde lining he need o des ina ions o adap o
changing ma ke condi ions. In addi ion, he TALC
heo y o e s a aluable amewo k o elucida ing he
consequences o pandemics on des ina ion landscapes,
pa icula ly in e ms o he decline in ou is a i als
om he pe spec i e o indus y p ac i ione s. This
app oach p o ides an insigh ul pe spec i e on
cha ac e izing he e ol ing ou is des ina ion landscape,
mo ing beyond a me e ocus on empo al ac o s
and ime amewo ks.
Thus, he pape examines he pandemic's impac
by using he TALC model o desc ibe he s ages
o he ou ism des ina ion om he ou ope a o s
and ho elie s' pe spec i es. This unde s anding is
essen ial o pos -pandemic de elopmen o he
Tan Kok Liang, Jenni e Chan Kim Lian
181
ou ism indus y in ela ion o he des ina ion's s ages
o de elopmen o Malaysian as ou ism des ina ion
and p oposing e i aliza ion s a egies.
A. Resea ch Objec i es
1) To explo es he impac s o COVID-19 pandemic
on he ou ism business and ou is des ina ion
s ages by ex ending he Tou ism A ea Li e Cycle
(TALC) model om he ou ope a o s and
ho elie s' pe spec i es.
2) To p opose ebuilding s a egies ailo ed o he
iden i ied s ages o ou is des ina ions, which
a e de i ed om an analysis u ilizing he TALC
model.
II. Li e a u e Re iew
A. Impac s o he COVID-19 Pandemic on
he Tou ism Indus y
The ou ism indus y has been one o he mos
di ec ly a ec ed and ha des hi sec o s wo ldwide
in he COVID-19 pandemic. This unp eceden ed
e en led o socio-poli ical, economic, and ou ism
demand c ises (Beh & Lin, 2021). I has b ough
signi ican impac on he communi y and ou ism
ac i i ies (No din e al., 2023); and de eloped a 'new
no ms' o wo kplace (Rahman e al., 2023) and o
ou is des ina ion. Tou is des ina ions a e endu ing
mos o he consequences; he unknown du a ion o
he pandemic, a el es ic ions and po en ial global
economic ecession ha e become majo challenges.
This p ocess may a y in e m o du a ion, as i is
in luenced by se e al ac o s. Thus, i has signi ican ly
a ec ed ci y ou ism des ina ions' economy, communi y
li es yle and des ina ion en i onmen , which impac s
des ina ion sus ainabili y. Wi hou good planning and
con ols, ou is des ina ions end o decline o e ime
in he quali y o isi o expe ience (Plog, 2004). A
ou ism des ina ion o e s a ious business and leisu e
ac i i ies o ca e o ou is needs. I has a complex
ela ionship wi h he socie y, he economy, and he
en i onmen . These dimensions a e impo an o he
des ina ion's sus ainable g ow h; each con ibu es
di e en ly o he ou ism business and economic
landscape, which has been signi ican ly ad e sely
in luenced by he pandemic in Malaysia (Chan e
al., 2022). Tou is des ina ions can be concep ualized
ha ing di e en li e cycles - bi h, ea ly g ow h,
eenage yea s, ma u i y, and decline. This p ocess
may a y in e m o du a ion, as i is in luenced
by se e al ac o s. The con ex o a ou is des ina ion
is c i ical, as i in luences he pos -pandemic eco e y
s a egies o ebuild he ou ism indus y.
B. Tou ism Re i aliza ion and Resilience
S a egies
The pandemic has had a p o ound impac on he
ou ism indus y in Malaysia, esul ing in signi ican
declines in ou is a i als, ou ism e enue and job
losses. The impac s ha e d i en changes wi hin
des ina ions, hus in luencing hei 'e olu ion.' As a
esul , ou is des ina ions and business ha e had o
e hink hei s a egies o ebuilding and eco e y.
Emb acing holis ic and adap i e s a egies is
pa amoun o ou ism o ganiza ions o h i e amids
apid en i onmen al changes, as emphasized by
Mohammad e al. (2022). The s a egies implemen ed
in ol ed a combina ion o heal h and sa e y measu es,
di e si ica ion, inno a ion, and collabo a ion o adap
o he 'new no mal' and egain a elle con idence.
The pos -pandemic si ua ion emains unce ain o
many ou ism businesses. Thus, i is essen ial o
de elop immedia e, sho - e m, and long- e m esponses.
Na ional Tou ism's de elopmen plan sough o boos
ou is a i als o Malaysia. Reco e y s a egies
should a end o segmen a ion and planning, in eg a ing
ou ism in o sus ainable de elopmen and conside ing
unde lying causes (Goh, 2021). Open communica ion
is key o success ully comba ing he pandemic, and
go e nmen -sponso ed loans a e c ucial o he ou ism
indus y's su i al (Yeh, 2021). Th ee s a egies a e
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 179-190
182
imp o ing hygiene and heal h s anda ds, in ensi ying
p omo ions, and con olling ope a ional cos s (Ralinas
e al., 2022). The ou ism indus y can adjus o he
'new no mal' ollowing he pandemic by adop ing
such s a egies (Assa & Scude i, 2020). Va ious
p ac ical measu es ha e been conside ed o s imula e
ou ism demand and acili a e des ina ion capaci ies
o mee expec a ions (Van Huynh e al., 2022).
Dis up i e echnological applica ions (e.g., a el
apps) help ou is s ailo a sa e a el plan.
A ou is des ina ion is a geog aphical loca ion
ha a ac s isi o s. The key componen s o a ou is
des ina ion a e a ac ions, in as uc u es, hospi ali y
businesses, accessibili y, ameni ies, sa e y, secu i y,
and en i onmen . The magni ude o he pandemic's
nega i e impac can be obse ed in he s eep d op
in ou is a i als, ou ism eceip s and business
closu es as a esul o a el bans, bo de closu es and
sa e y measu es. Resea ch in es iga ing he pandemic's
impac s on ou is des ina ions is impo an o
de eloping eco e y measu es and s a egies (Ška e
e al., 2021). Des ina ion de elopmen p ocesses a e
in luenced by many ac o s, including ou is a i als,
ou ism esou ces and he des ina ion's condi ion.
Tou is des ina ions, as he p oduc , unde go an
e olu iona y p ocess in esponse o changes no only
in demand and supply bu also o c i ical ac o s
such as heal h and sa e y issues. I hus sugges s
ha a new pa e n is possible. Indeed, he li e cycle
concep is a use ul analy ical ool o des ina ion
s ages (Choy, 1992). The pos -pandemic eco e y
o he ou ism indus y equi es insigh in o he s ages
o a des ina ion; he TALC model is hus ele an .
C. Bu le 's Tou ism A ea Li e Cycle and
Tou is Des ina ions
Bu le (1980) in oduced TALC o unde s and he
how ou is des ina ions e ol e and de elop. I maps
empo al changes in ou ism des ina ions (Go e e
al., 2021) and is hus a use ul ool o ou ism planne s
and de elope s o unde s and how ou is des ina ions
can ans o m o e ime in esponse o he changing
demands o he ou is indus y. I is one o he mos
obus and widely used concep ual and manage ial
amewo ks employed in ou ism (Baum, 1998) and
widely esea ched model in he ou ism li e a u e.
The model desc ibes he dis inc s ages ha ou is
des ina ions may go h ough in hei de elopmen
o e ime. The model has an 'S' shaped cu e and
is di ided in o six s ages: explo a ion, in ol emen ,
de elopmen , consolida ion, s agna ion and decline
o eju ena ion. Bu le (1980) poin ed ou ha each
s age is cha ac e ized by ce ain ends and challenges,
p o iding a amewo k o unde s anding how a
des ina ion may e ol e o e ime.
Explo a ion is he i s s age o he li e cycle,
cha ac e ized by small numbe s o isi o s who a e
a ac ed by he des ina ion. The main challenge in
his s age is o c ea e awa eness o he des ina ion
and a ac mo e isi o s. In ol emen is he second
s age, cha ac e ized by inc easing numbe s o isi o s
and he de elopmen o basic ou ism in as uc u e,
including accommoda ion, es au an s, and anspo a ion.
The main challenge in his s age is o ensu e ha
he g ow h o ou ism is sus ainable and does no ha m
he na u al en i onmen . De elopmen is he hi d
s age, cha ac e ized by apid g ow h in isi o s and
de elopmen o mo e sophis ica ed ou ism in as uc u es,
including luxu y ho els, heme pa ks and o he
a ac ions. The main challenge is o manage he
ou ism g ow h, ensu ing ha he des ina ion emains
a ac i e o isi o s. Essen ially, ou ism s abilises
du ing he consolida ion s age; des ina ion manage s
can p olong he consolida ion phase by de eloping
be e ou is acili ies. The de elopmen s age could be
s a egically planned so ha he bene i s can be equally
sha ed by he local communi y and he ou is s.
Consolida ion is he ou h s age, wi h a ma u e
indus y wi h well-es ablished in as uc u e and a
s eady low o isi o s. I ocuses on main aining
and imp o ing quali y. The des ina ion may ace
challenges (e.g., o e capaci y), add ess nega i e impac s
and p omo e sus ainable ou ism. S agna ion is he
i h s age; he des ina ion may expe ience a decline
due o ac o s such as changing a el pa e ns o
compe i ion. The des ina ion may need o adap and
Tan Kok Liang, Jenni e Chan Kim Lian
183
di e si y o a ac new isi o s. This s age is
cha ac e ized by educed popula i y, as economic,
social, and cul u al p oblems c op up. A e his s age,
he des ina ion may decline, eju ena e, o eposi ion
i sel by in oducing a new ma ke segmen o new
ou ism p oduc . S agna ion is he i h s age; he
des ina ion may expe ience a decline due o ac o s
such as changing a el pa e ns o compe i ion. The
des ina ion may need o adap and di e si y o a ac
new isi o s. This s age is cha ac e ized by educed
popula i y, as economic, social, and cul u al p oblems
c op up. A e his s age, he des ina ion may decline,
eju ena e, o eposi ion i sel by in oducing a new
ma ke segmen o new ou ism p oduc . Decline o
eju ena ion is he inal s age. The des ina ion may
con inue o decline o unde go eju ena ion o e i alize
he ou ism indus y. This may in ol e eb anding,
de eloping new a ac ions o imp o ing in as uc u e.
III. Me hods
This pape uses explo a o y quali a i e esea ch
o examine ou ism des ina ion de elopmen s ages
and he pandemic's impac s om ou ope a o s' and
ho elie s' pe spec i es. The quali a i e induc i e
app oach helps unde s and indi idual pe spec i es
ega ding he subjec i e, indi idualized, and con ex ual
aspec s o he pandemic's impac s. The esponden s'
opinions we e collec ed h ough semi-s uc u ed
in e iews held online using Zoom; pa icipan s ga e
pe mission o be eco ded du ing he in e iew
session. Each in e iew las ed 60-90 minu es. Da a
collec ion was ca ied ou wi h nine ou ope a o s
and ou ho elie s in Malaysia om Augus 2021
o Ma ch 2022; and he du a ion on he impac s o
he pandemic on ou is des ina ions spanned om
Janua y 2020 o Ma ch 2022. A con enience sampling
echnique using lis s o ou ope a o s and ou ho els
egis e ed unde he Malaysia T a el and Tou
Associa ion. Tou ope a o s we e chosen based on
hei p esence in he op i e ou is s a es (Sabah,
Sa awak, Penang, Kuala Lumpu , and Selango ), wi h
a p e equisi e o a leas 10 yea s in inbound
ope a ions. Simila ly, he selec ion o ho elie s was
de e mined by conside ing he op i e loca ions and
a minimum o a ou -s a a ing, coupled wi h a
equi emen o a leas 10 yea s in ope a ions. Key
ques ions asked included he impac s o he
COVID-19 pandemic on he ou business, s a egies
o e i alize ou ism as well as hei pe cep ion on
he s ages o Malaysia as a ou ism des ina ion based
on
Bu le 's Tou ism A ea Li e Cycle (TALC). A copy
o TALC
model was sha ed and clea explana ion
o all he esponden s abou six s ages. Responden s
we e asked o indica e he ele an s age/s based
on you p o essional inpu s and expe iences in ou ism
indus y. Da a analysis was d i en by he in e iew
esponses, and hema ic analysis was guided by
concep s o he COVID-19 pandemic and he six
s ages o Bu le 's TALC model. Table 1 p esen s
he esponden p o ile.
Demog aphics Ca ego ies Numbe o
esponden s
Tou
Ope a o s
Gende Male
Female
9
4
Age ange
20-30
31-40
41-50
51-60
Abo e 60
0
2
2
5
4
Type o ou
business
Inbound
Inbound and icke ing
All h ee (inbound, ou bound,
and icke ing)
Ho el business
4
1
4
4
Loca ion
Sabah
Kuala Lumpu
Selango
Sa awak
Pulau Pinang
4
3
2
2
2
Yea s in
ope a ion
1 o 10
11 o 20
21 o 30
31 o 40
41 o 50
51 o 60
1
3
1
2
3
3
Table 1. Responden p o ile
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 179-190
184
IV. P o ile o Responden s
Nine ou ope a o s and ou ho elie s pa icipa ed
in he online in e iews. The a e age age is 51-60
yea s and olde . The majo i y a e male. The a e age
leng h o ou ism business ope a ion is 21-30 yea s.
These ou ism ope a o s a e om Sabah, Kuala
Lumpu , Selango , and Sa awak ollowed by Pulau
Penang. Fou esponden s ope a e inbound ou ism
business, ou a e in ol ed in inbound, ou bound
and icke ing businesses and one is in inbound and
icke ing business.
V. Findings and Discussion
A. Impac s o he Pandemic on Tou ism
Businesses
Table 2 p esen s he ou main hemes ha eme ged
om he in e iew esponses on impac s o he
pandemic on ou ism businesses: se e i y, business
ope a ions, inancial losses and educ ion in s a ing
and compensa ion.
The esponses in Table 2 show ha he pandemic
was an unp eceden ed e en ha se e ely impac ed
ou ism. The bo de closing mean ha he e we e
no a i als, which a ec ed he businesses' e enues
No.
Themes on he
pandemic's impac s on
ou ism businesses
In e iew esponses and esponden s'
explana ion o hemes (TO:Tou Ope a o , H: ho elie )
1
Ve y se e e,
unp eceden ed,
unexpec ed
TO1: We do no know how long he pandemic will las , e y unce ain.
TO2: The impac s a e e y, e y se e e, wo se as compa ed o he Asian inancial
c isis in 1997-1998 one.
TO3: No su e how eco e y would look like.
TO6: Unexpec ed and unp eceden ed
H1: Unp eceden ed, ou o no mal ime.
H2: Ve y damaging and e y badly hi .
2
Business ope a ions
a ec ed: bo de closu e,
ze o business, no a i als,
new no mal,
wo k om home.
TO4: Bo de s we e closed, i was ze o business, business d op o ze o.
TO2: All going down o ze o; s op ope a ion.
TO3: Ze o business since he pandemic.
TO6: No business and is exceedingly di icul o main ain ou ope a ion.
TO7: Ou booking au oma ically wen o ze o as he e we e no a i als.
TO8: I a new change o ope a ion, e e yone wo ks om home using echnology;
emb ace echnology.
TO9: Shu ing down business ope a ion o he 27 mon hs, bo de close, so no hing
as we depend hea ily on long haul business.
H2: Bo de is close, no ou is .
H3: Tempo a y close on he i e ho els.
H4 Many small ho els shu down; di e en impac s o di e en s a a ing ho els.
3
Financial impac s:
e enue, cash low, cos
o main enance, expenses
TO7: Main impac o cou se would be on ou inancial s a us and o ou s a ing i sel
and no e enue coming.
TO1: Huge inancial losses, mo e han h ee million (RM)
TO3: Impac ed on ou inancial unbelie ably bad and on ou cash low.
TO4: I is di icul o co e he expenses.
TO8: Re enue was down om 70 o 80%.
H2: No sales, no inancial, no cash low, and hen i hi ou loans.
H3: immedia ely in oduce sala y deduc ion o hal pay ac oss he boa d.
4
Human esou ces:
educed s a ing, unpaid
lea e, e aining key s a .
TO1: Dismissed ou s a , pay a a less 50% o sala y o hose pos c i ical posi ions.
TO3: Keeping only co e s a wi h unpaid lea e o cou se.
TO7: Reduce ou s a ing i sel .
H3: Re enchmen in 2021, le go 200 s a .
H2: Sala ies cu and s a educ io.
Table 2. Themes ega ding he pandemic's impac on ou ism businesses
Tan Kok Liang, Jenni e Chan Kim Lian
185
and p o i s. They we e o ced o downsize o close.
Bo h he ou ope a o s and ho elie s su e ed
signi ican inancial losses, aced cash low p oblems
and we e unable o sus ain main enance cos s and
business expenses. F om hei pe spec i es, he
pandemic was ex emely de imen al o he indus y
in Malaysia and wo ldwide. Impac s o COVID-19
can be associa es wi h a disas e and an unp eceden ed
e en . The ho elie s a e e y badly hi du ing he
pandemic since hey we e no ou is o isi o s coming
in he coun y as he bo de s we e closed. I is also
e y damaging, which has lead o di e en le els
o inancial impac s and ope a ional impac s. Some
belie e ha he business we e almos down o co up .
The esul ing massi e inancial losses led o
downsizing in s a ing and a new wo k en i onmen :
wo king om home (see Assa & Scude i, 2020).
Because COVID-19 is heal h haza d, i has changed
he way ou ism businesses ope a e. The consequen
'new no mal' equi es adap abili y. As TO8 s a ed, he
'new no mal' ela es o he applica ion o digi iza ion.
Responden s' dependen on echnology a e o una e
enough o wo k om home and sus ain hei business.
Howe e , ou companies depending on long-haul
business we e a ec ed se iously due o in e na ional
bo de closu es, as TO9 poin ed ou . Fo he ho el
sec o , sala ies we e o cu o , s a educ ion,
empo a y closu e, we e among he ac ions aken
o s ay a loa in he business. H4 belie es ha he e
is a di e en impac owa ds di e en ho el s a a ing
sys em.
These indings co espond well o pas s udies on
he pandemic's impac s on he ou ism indus y
wo ldwide, which documen declines in ou is
a i als in ou ism-dependen coun ies and ad e se
e ec s on e enue, p o i abili y, and sus ainabili y.
Chan e al. (2022) show ha he pandemic esul ed
in business in e up ions and e enue losses o
ou ism indus y se ice p o ide s. Foo e al. (2021)
also con i med ha he pandemic signi ican ly
impac ed ou ism business pe sonnel.
B. The Impac s o he Pandemic on Malaysia's
Des ina ion Li e Cycle
Table 3 p esen s he in e iew esponses on he
ou ou is des ina ion s ages o s agna ion, explo a ion,
in ol emen , and de elopmen .
The esponses e eal ha ou ope a o s pe cei ed
Malaysia as a ou ism des ina ion as being in he
s agna ion s age, ollowed by in ol emen , explo a ion,
and de elopmen . Howe e , he ho elie s pe cei ed
ou ism des ina ion as being in s agna ion, in ol emen ,
and consolida ion. The s agna ion s age is based on
he decline o ou is a i als due o bo de closu es,
mo emen con ol o de s and heal h and sa e y issues.
The in ol emen s age implies he need o ou ism
s akeholde s and go e nmen agencies o ebuild he
indus y, especially o inc ease ou is a i als wi h
adequa e in as uc u es. Responden s belie e ha
Malaysia as ou is des ina ion is in he in ol emen
s age because ou ism eco e y is slow, equi ing
in ol emen om bo h p i a e and public sec o s;
ou ism s akeholde in ol emen and coope a ion a e
c ucial in he ea ly s age o eco e y o ebuild. The
nume ous subsec o s o ou ism businesses mus be
in ol ed o e i e he ou ism des ina ion, inc easing
isi o s, and de eloping basic ou ism in as uc u e.
Responden s also desc ibed Malaysia ou is
des ina ion as in he explo a ion s age, as he pandemic
has c ea ed a new ou ism business landscape and
en i onmen . Wo k and a el beha iou s will be
di e en ; he e is unce ain y in he exis ing ma ke
segmen s. Hence, he des ina ion will need o explo e
new a ac ions and ma ke segmen s, c ea ing
awa eness o he des ina ion o a ac mo e isi o s.
Simply, he pandemic has d as ically ans o med he
ou ism business landscape. Inno a i e app oaches
a e hus equi ed o e i e ou ism, especially ega ding
he coun y's in as uc u e. TO3 used Sabah as an
example o a ou ism loca ion ha p io i izes he
en i onmen bu has inadequa e in as uc u e. The
exis ing in as uc u e canno accommoda e la ge
numbe s o ou is s and lacks su icien access o
clean wa e , elec ici y, and was e disposal. TO4 and
TO9 pe cei ed Malaysia as in bo h he explo a ion
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 179-190
186
and de elopmen s age, esul ing om he pandemic.
They exp essed he need o explo e no el app oaches
o c ea e appealing ou ism p oduc s o di e en
a ge ed ma ke segmen s, ensu ing ha Malaysia
emains a popula des ina ion o bo h domes ic and
in e na ional isi o s; ou ism associa ions should
collabo a e wi h he go e nmen o de elop new
p oduc s and p omo e des ina ions in Malaysia.
Many o he ou ope a o s and ho elie s ega ded
Malaysia as a ou is des ina ion a he s agna ion
s age, wi h a high possibili y o egene a ion.
Malaysia's ou is a i al pe o mance is a below
hose o neighbou ing coun ies such as Thailand,
Singapo e, and Indonesia, especially in e e ence o
Malaysia's pe o mance be o e he pandemic. The e
is a lack o clea di ec ion o b ing Malaysia as a
ou is des ina ion o g ea e heigh s, which is why
he e is s agna ion in e ms o compe i ion and
ma ke s. The s agna ion s age indica es ew o no
ou is a i als due o he pandemic, wi h compe i ion
leading o he des ina ion alling behind neighbou ing
des ina ions. The in ol emen s age e e s o
s akeholde s and go e nmen agencies ebuilding he
ou is des ina ion, especially su icien in as uc u e.
The explo a ion s age implies ha he des ina ion
aces ecen changes due o he pandemic. Thus, ou ism
s akeholde s mus explo e inno a i e app oaches and
c ea e appealing p oduc s o di e en ma ke
segmen s. The de elopmen s age implies ha he
des ina ion will e en ually mo e owa ds sus ainable
g ow h, so i is i al o ensu e ha i emains a ac i e
o isi o s and expe iences sus ainable g ow h while
bene i ing he local communi y.
In e es ingly, he indings om ho elie s show ha
Themes: TALC s ages In e iew esponses / esponden s'
explana ion o hemes
P oposed app oaches o e i alize he
des ina ion li e cycle
S agna ion
TO2: Malaysia has eached a s agna ion le el, come
o a dec ease in e ms o pe o mance.
TO5: Malaysia is a ma u ed des ina ion, people know
Malaysia.
TO6: We canno s ay in he s agnan s age o decline
s age
H1: In he s agnan s age.
- Reju ena e o eposi ion he des ina ion by
in oducing a new ma ke segmen and new
ou ism p oduc s.
- Inc ease he ou is a i als and di e si y
ou is a ac ions.
- De elop inno a i e ma ke ing and p omo ion
s a egies.
In ol emen
TO1: we a e somewhe e he e in in ol emen ; eco e
y
is slow and need o do p omo ion.
TO3: We a e a in ol emen s age; an inc edibly
ea ly s age.
TO4: We need o in ol e and o ge hings eady,
enough in as uc u e o ou is a i als.
TO5: Go e nmen in ol emen is essen ial.
H2: We should be in he in ol emen .
- Inc ease awa eness o des ina ion a ac ions.
- All ou ism playe s and ela ed go e nmen
agencies need o ge in ol ed o ebuild he
ou ism indus y and ensu e ha he g ow h
o ou ism is sus ainable and does no ha m
he na u al en i onmen .
Explo a ion
TO3: A explo a ion s age, ime o es a his whole
hing, e-look in o my in as uc u e, di e en
p oduc , and segmen .
TO4: Should be explo a ion and o explo e. Unce ain
and keep changing.
TO9: Need o explo e new ma ke s as he mass
ma ke coun ies a e ye o no eopen; a
explo a ion s age in his new no mal wi h
unce ain y en i onmen c ea ed by pandemic.
- C ea e awa eness o he des ina ion and
a ac mo e isi o s.
- Explo e new ma ke s and eb and he
des ina ion.
De elopmen
TO4: A he de elopmen s age as we canno s op
and need o ge hings eady.
TO9: De elopmen s age as we a e no eady ye
- Manage he g ow h o ou ism and ensu e
ha he des ina ion emains a ac i e o
isi o s.
Consolida ion H3: i 's s ill unde consolida ion.
H4: we eally need o consolida e hings.
N
eed o engage all ou ism playe s oge he ,
canno be a one pe son mo ing o wa d.
Table 3. Themes ega ding Malaysia's TALC s ages
