PRO-POOR TOURISM AND POVERTY ALLEVIATION IN SARAWAK
1,2Faculty of Economics & Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia
ABSTRACT
This paper aims to investigate the pro-poor tourism impact of the capacity building, stakeholders’ support and infrastructure development on poverty alleviation. This study focused on Malay, Iban, Bidayuh, Chinese, Kelabit, Penan, Berawan and others local communities; draws upon a sample of 520 from the Kuching and Miri division of Sarawak, Malaysia. Quantitative primary data method is used, and the data analyzed using partial least squares structural equation modeling (PLS-SEM) software. The findings showed the positive effect for capacity building on poverty alleviation (H1), stakeholders’ support on poverty alleviation (H2) and infrastructure development on poverty alleviation (H3). This study makes a significant theoretical contribution to human development theory by investigating how pro-poor tourism impact rise wage, food, education, healthcare, voice and securities in humans’ daily life. Furthermore, this study discussed several practical solutions for the local communities to benefit from pro-poor tourism. Especially on the formal and informal way of regular communication among the local government, private tourism organizations and semi-government tourism departments with local communities to increase the livelihood benefits.
Keywords:Pro-poor tourism Capacity building Stakeholders’ support Infrastructure development Poverty alleviation Tourism development Human development theory.
ARTICLE HISTORY: Received:7 June 2018. Revised:17 July 2018. Accepted:22 August 2018. Published:8 October 2018.
Contribution/ Originality:This study is one of few studies which have investigated pro-poor tourism along with Human Development theory. The empirical results show the capacity building, stakeholders’ support and infrastructure development improves the well-being of local communities.
The definition of pro-poor tourism is referred  as positioning of tourism growth to produce livelihood opportunities between  tourism and impoverished people (Mowforth and Munt,  2016 ). Pro-poor tourism is an approach and it is not a type of  tourism or product (Ashley et al., 2000 
). However, any type and size of tourism  business such as volunteer tourism, philanthropic tourism, community-based  tourism, cultural tourism, eco-tourism, rural tourism, responsible tourism,  urban tourism, sustainable tourism, homestay, bed and breakfast, an urban  hotel, tour operator, food and beverage provider, souvenir outlet and  infrastructure developer can be categorized under pro-poor tourism (Mitchell and  Ashley, 2010  
). Even though there are several types of  tourism under the pro-poor tourism approach, the only objective pro-poor  tourism has is to contribute the benefits perceived through tourism to the  local community at any tourist destination. Therefore, capacity building,  stakeholders’ support, and infrastructure development plays an important role  in increasing local peoples’ well-being.
In the 1980s, capacity building from the  development strategy is regarded as an important factor for tourism and poverty  alleviation (Tassonyi, 2005 ). Capacity building involves knowledge  delivering, in-house work or business training, generation of innovative ideas,  exploration of new skills, skill development, and new technology that  contributes to the community’s livelihood (Wu and Tsai,  2016 
). A study in Burundi has observed that training in the  tourism industry provides socio-economic enhancement (Novelli et al., 2012 
). Hence, regular training enables people  to move on to better employment and enhance prosperity (Murphy and  Halstead, 2003 
). The literature suggests that capacity  building is essential to develop human capital in poverty alleviation. Therefore,  pro-poor tourism encourages the local community to invest in training and  self-development to increase skills to escape from poverty with the help from  stakeholders (Mitchell and  Ashley, 2010 
). 
A stakeholder is  defined as one who has the capacity to participate in any trade fairs.  Stakeholders empower participation from the locals’ in pro-poor tourism  businesses, by creating links between farmers and the tourism operators so that  the farmers could supply local food produce to tourism operators to increase  household income (Manwa and Manwa, 2014 )  . The anti-poverty tourism (APT) model explains  that stakeholders, namely the impoverished, governments, private sector,  tourists, civil society and donors need equal participatory opportunities to be  involved in tourism (Khazaei et al., 2015 
). Equal participatory within stakeholder encourages the equality in  economic gain. In this study, the term stakeholder refers to the local government, private tourism organizations, semi-government tourism channels. On the other hand, the term support refers to the implementation of  new policies on poverty alleviation, promoting the local tourism products and  services, sharing tourism ideas, conveying information on infrastructure  development. 
International  aids have started funding countries on infrastructure development in the 1960s (Hawkins and Mann, 2007 ). As infrastructure development is a key development in tourism for  tourist comfort travel and contributes to the people’ livelihood (United Nations World  Tourism Organisation, 2016 
). Technology as part of infrastructure development is an important  factor of pro-poor tourism. Information and communication technology gives  opportunities to promote tourism destinations (Lemmetyinen and Go, 2009 
).
Furthermore, revenue from tourism receipts is invested in social  infrastructure such as bridges, airports, waste management, telecommunication,  public toilet, transportation system, cooking source and supports to the local  traditional farmers through giving farming materials to raise the farmers’  income (Keovilay, 2012 ). On a similar note, the Botswana Forest Reserve eco-tourism revenue  has supported infrastructure development such as electricity, clean drinking  water, tar roads, education and health-care facilities (Manwa and Manwa, 2014 
). In total, previous literature has highlighted infrastructure  development has an impact on pro-poor tourism.
The  human development theory is linked with pro-poor tourism to improve the quality  of life including  healthcare, education, infrastructure, job securities, access to the market,  engaging locals in decision-making and widening people’s choices (Sharpley and  Telfer, 2014 ). Therefore, human development theory is  significantly important in this study as part of capacity building,  stakeholders’ support and infrastructure development impact on poverty  alleviation.
 Capacity building is an investment in human  capital to improves the working skills, communication and knowledge that  significantly contributes to poverty alleviation. Capacity building is  developed through vocational education and training in businesses,  entrepreneurial activities, labor skills, leadership, and technology use (Novelli et al., 2012 ). At the same time, capacity building  increases the confidence level of local communities, thus improving the  business relations between stakeholders (Rogerson, 2012 
). Therefore, capacity building is focused  on the pro-poor tourism to increase the local communities’ well-being though  household income and job opportunities (Vanegas, 2012 
). Tourism is also an engine to mitigate  extreme poverty which helps women break the poverty cycle through capacity  building (UNWTO, 2016 
). As a result, capacity building is  positively linked to poverty. Alleviation. Based on past studies, hypothesis H1  is structured;
H1: There is a positive relationship between capacity building and poverty alleviation.
 Pro-poor tourism suggests that a variety of stakeholders’ support functions at a diverse  scale of operations to ensure that the tourism is spread broadly to help ease  poverty (Scheyvens and  Russell, 2012 ). Meanwhile, the sustainable livelihood  approach in developing countries promotes collaboration among stakeholders in  tourism projects and in identifying the causes of poverty from the perspectives  of the local people (Norton and  Foster, 2001 
). The increasing  number of  tourist arrivals and tourism receipts globally motivates stakeholders’ to be  involved in tourism and contribute to poverty alleviation policies, also help  the local communities’ generate income (Spenceley and Meyer,  2012 
). At the same time, tourism is unable to be a dominant  business in a country (Morgan et al., 2003 
). Therefore, tourism requires driving  forces, resources and skills from agriculture, manufacturing, aviation, and  construction to alleviate poverty (Sonne, 2010 
). The support of stakeholders from  various directions are essentially important in this study. Especially, the local government, private tourism organizations and semi-government  tourism businesses to implement new policies on poverty alleviation, to promote  the local tourism products and services, to share tourism ideas and convey  information on tourism planning, and development. A study in Costa Rica and the  Netherlands have concluded that tourism contributes to communities’ livelihood,  especially those with the involvement of stakeholders. The support of  stakeholders’ especially those from private sector provides an access to the  marketing facilities and linkages to international networks to build the  tourism chain worldwide (Duim and  Caalders, 2008 
). Based on past studies, hypothesis H2 is  structured;
H2: There is a positive relationship between stakeholders’ support and poverty alleviation.
Infrastructure development is by having basic  household appliances, access to the source of energy, water supply, tar roads,  bridges, airports, waste management, telecommunication, public toilet, public  transportation, cooking source, education and healthcare (UNWTO, 2016 ). Hence, infrastructure development leads  to poverty alleviation specially when the tourism of a country contributes to  building new infrastructure and improving the existing infrastructure to invest  in tourism (Richter, 1999 
). In Slovenia, Croatia, the Dominican  Republic, New Zealand, and Montenegro, a process of rebuilding, renovating and  rebranding of tourism destinations as well as building new infrastructure has  attracted foreign direct investments, foreign currency exchanges and domestic  and international economic growth (Morgan and  Pritchard, 2006 
). Meanwhile, infrastructure development  also creates entrepreneurial activity and employment to generate indirect and  dynamic income among the local communities’ (Sasidharan and  Hall, 2012 
). Moreover, the support of the private  sector is essential in pro-poor tourism as private companies contribute to  infrastructure development namely roads, public toilets, water supply,  telecommunications, school, and healthcare to improve the locals’ livelihood (Ashley et al., 2000 
). Furthermore, the consensus model is one  of the community development models in tourism which argue that providing  social infrastructure contributes to poverty alleviation among the impoverished  people (Viriya, 2009 
). As  such, hypothesis H3 is designed;
H3: There is a positive relationship between infrastructure development and poverty alleviation.
The questionnaire is used to collect data from the local communities in Kuching and Miri, Sarawak. Places such as National Park’, Sarawak Cultural Village, souvenir outlet, travel operator, food and beverage provider, homestay operator, resort and hotel are the study areas. A total of, 520 questionnaires are imposed in this study for confirmatory factor analysis using judgement and convenience sampling in selecting the respondents. The Likert scale of 1-5 and 1-7 ranging from ‘strong disagree’ to ‘strongly agree’ have used to measure the 33 indicators in the questionnaire. The 7-point scale is used to measure infrastructure development. Accompanied by, the 5-point scale is used to measure the capacity building, stakeholders’ support, and poverty alleviation.
 The SmartPLS 3.0 (M3) is used to assess the  measurement and structural model. The measurement model consists of convergent  validity (i.e., loadings, composite reliability (CR) and average variance  extracted (AVE)) and discriminant validity. Firstly, the loading values for  capacity building (0.684-0.792); stakeholders’  support (0.624-0.810);  infrastructure development (0.775-0.843) and poverty alleviation (0.711-0.742). The  loadings of the indicator are exceeded 0.5, besides for SS09 and PA09.  Secondly, the internal consistency and individual indicator reliability are  measured with CR. The threshold point for CR is 0.7 and above. The CR values  are highly reliable for capacity building (0.906);  stakeholders’ support (0.931); infrastructure  development (0.930) and poverty alleviation  (0.900). Thirdly, the AVE values explain the variance of indicators are on  average. The values for capacity building (0.548); stakeholders’ support (0.569); infrastructure development (0.657) and poverty alleviation (0.529) are above 0.5 (Hair et al., 2014 ). Therefore, the convergent validity is  achieved in this study (Henseler and  Chin, 2010 
). Refer table 1.
Table-1. Convergent Validity
| Construct | Loading | CR | AVE | Convergent Validity (AVE > 0.5) | 
| Capacity Building | 0.684-0.792 | 0.906 | 0.548 | YES | 
| Stakeholders’ Support | 0.624-0.810 | 0.931 | 0.569 | YES | 
| Infrastructure Development | 0.775-0.843 | 0.930 | 0.657 | YES | 
| Poverty Alleviation | 0.711-0.742 | 0.900 | 0.529 | YES | 
Source: Fieldwork
 Table 2 shows the comparison of the square root  values of the independent and dependent variable. The square root of AVE for  the capacity building (0.740); stakeholders’ support (0.754); infrastructure  development (0.810) and poverty alleviation (0.727) are greater than another  variable. Therefore, discriminant validity is achieved (Henseler and  Chin, 2010 ). 
Table-2. Discriminant Validity
| Capacity Building | Infrastructure Development | Poverty Alleviation | Stakeholders’ Support | |
| Capacity Building | 0.740 | |||
| Infrastructure Development | 0.493 | 0.810 | ||
| Poverty Alleviation | 0.489 | 0.594 | 0.727 | |
| Stakeholders’ Support | 0.441 | 0.574 | 0.635 | 0.754 | 
Source: Fieldwork
The structural model measures the hypotheses (t-value). Table 3 indicates that H1, H2, and H3 are significant in this study.
Figure-1. Results of the path analysis.
Source: Fieldwork
H1: There will be a positive relationship between capacity building and poverty alleviation.
 H1 states a positive relationship between  capacity building and poverty alleviation (β = 0.177, t-value = 4.030) where the t-value is  above 1.645. The finding implies that poverty  alleviation occurs in the increase of capacity building. The local communities are given knowledge about tourism updates, training in managing tourist, training to  learn English language, training on teamwork building, guidance to understand  and handle tourist’s expectations, training on skill  development (e.g., making handcraft and handing homestay) and knowledge  about the technology advances. Therefore, the statistical analysis for  hypothesis 1 indicates that capacity building is positively related to poverty alleviation.  During the data collection in Mulu National Park Miri, Ms. Jenny who is the  freelance tour guide has mentioned that there is training, and workshop organized  by the local semi-government departments, private tourism organizations,  government and NGOs in Kuching or Miri. The training and workshop shape the  local communities’ capacity building in poverty alleviation. In addition,  Mathenjwa and Mqobela in South Africa, tourism sectors have carried training  and workshop but only for permanent workers (Leur, 2013 ). As specified by Fairer-Wessels  (2017 
) capacity building is the driving force for the local  community to live out of poverty. Hence, sustainability in delivering tourism  information, knowledge, education, on-job-training, skill developing,  innovations and technology updates should be considered for poverty  alleviation. The finding is consistent with human  development theory which explains that capacity building positively improves the quality of life among the local communities’ (Sharpley and  Telfer, 2014 
). 
H2: There will be a positive relationship between stakeholders’ support and poverty alleviation.
H2 shows a positive relationship between  stakeholders’ support and poverty alleviation. The  hypothesis finding shows that stakeholders’ support is positively significant  on poverty alleviation (β = 0.397, t-value = 7.747). The result clearly shows that  tourism contributes to the communities’ livelihood, especially with the  involvement of the local semi-government, private tourism organizations,  government, and NGOs. The finding is supported with human development theory which  describes that stakeholders’ support positively improves communities’  well-being through engaging the communities in the decision-making process (Sharpley and  Telfer, 2014 ). The positive finding of the study  further supported by Khazaei et al. (2015 
) who mentioned that the stakeholders’  closeness bond among the impoverished people contributes to poverty  alleviation. Another study on community-based enterprises has indicated that  various partnerships are needed to interact with the communities to provide  trust. Partnerships also create commitment among the stakeholders within the  structured process in developing the communities’ livelihood (Manwa and Manwa,  2014 
). This study agrees that  stakeholders’ support contributes to promoting Sarawak tourism. For instance,  the implementation of tourism tax in Sarawak is channeled straight to the state  government to gain benefit in promoting Sarawak tourism. This tax policy  implementation is exempted for homestay, bed and breakfast, the three-star  hotel and below. Therefore, the stakeholders’ support involving the local  people in the context of pro-poor tourism retain the revenue (Ezeuduji, 2017 
).Stakeholder empowers  the participation of the communities in adding values to the local tourism  products (e.g., handcraft, pottery, and edible local product) and services for  socio-economic development. In addition, stakeholder also has regulatory  interventions for the development of new tourism ventures and product  innovations to pursue the long-term pro-poor tourism benefits. Hence, H3 is  supported. 
H3: There will be a positive relationship between infrastructure development and poverty alleviation.
H3 tests the positive relationship between  infrastructure development and poverty alleviation. The statistical analysis  specifies that infrastructure development is positively significant in  alleviating poverty (β = 0.278, t-value =  6.403). The finding undeniably supports that the  infrastructure development leads to poverty alleviation especially when the  tourism contributes to the economic development (UNWTO, 2016 ). Economic development supports the  infrastructure development of airports, technology, ports, and roads to attract  tourist, whereas, in households, the infrastructure development includes  providing energy, treated water, waste management, hospital, school and cooking  source for the impoverished people (Mensah, 2017 
). This finding  agrees with human development theory for other livelihood benefits such as  access to electricity, water, road, school, voice and health care (Sharpley and  Telfer, 2014 
). This study  confirms that tourism contributes to a concrete bridge at Annah Rais village, a  road at Darul Islam Belimbing village and a jetty at Telaga Air Fishing Village  through the homestay project to meet the needs and standards of tourists’  arrivals. A phone conversation with Ms. Cr Isabell Julau Ak Mejat who  previously the Bidayuh homestay operator of Benuk village, Padawan, Kuching  revealed that the homestay operation has closed. According to Isabell, most  operators are an older entrepreneur and unable to handle the homestay  operations. This study indicates a worrying concern on the younger generation. The  younger generation shall handle the homestay operation to preserve the traditional  lifestyle of the Bidayuh community. Homestays, bed and breakfast and  community-based tourism able to increase the well-being of local communities’  directly rather than luxury hotels and resorts in Kuching. The construction of  four to five-star hotels and resorts may cause flood, erosion landslides and  natural resources deterioration in Kuching and Miri. According to Senah Rayang  homestay operator, the village was destroyed by the flash flood which pushed  the local community to extreme poverty. This result agrees with De Lange and  Dodds (2017 
) who have said that tourism projects able  to apply ecologically responsible decisions to prevent nature deterioration. In  brief, tourism helps to enhance the state government policy in improving the  efficiency of infrastructure development as a factor of poverty alleviation in  Sarawak. 
Table-3. Hypothesis Testing
| Hypothesis | Relationship | Beta | t-value | Result | 
| H1 | Capacity Building → Poverty alleviation | 0.177 | 4.030** | Yes | 
| H2 | Stakeholders’ Support → Poverty alleviation | 0.397 | 7.747** | Yes | 
| H3 | Infrastructure Development → Poverty alleviation | 0.278 | 6.403** | Yes | 
*p<0.05, t-value greater than 1.645-2.32 (1 tailed) **p<0.01, t-value greater than 2.33 (1 tailed)
Source: Fieldwork
The study concludes that pro-poor tourism of capacity building, stakeholders’ support, and infrastructure development have positively influence poverty alleviation in Sarawak. However, this study suggests that monetary contribution to raising the capacity building to alleviate poverty by local government, private tourism organizations, and semi-government tourism channels is necessary.
The respondents also agreed that regular meetings and discussions among various stakeholders enhance the livelihood improvement of the local communities. Therefore, this study has selected human development theory to explain pro-poor tourism in the context of Sarawak and the H1, H2, and H3 findings are supported by the theory. A longitudinal study can be considered on poverty alleviation among the local people in tourism. However, a longitudinal study is required more time; but through using the same conceptual framework and results from this study as a baseline, the future researcher can further conduct a longitudinal study that able to monitor on poverty alleviation in Kuching and Miri.
| Funding: This work was supported by Ministry of Higher Education and Universiti Malaysia Sarawak (UNIMAS) [grant numbers NRGS/1091/2013(05) JPT.S (BPKI) 2000/04/07/03]. | 
| Competing Interests: The authors declare that they have no competing interests. | 
| Contributors/Acknowledgement: Both authors contributed equally to the conception and design of the study. | 
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