Abstract

Perhentian Islands' Cost of Environment: Estimating the Loss of Revenue from Tourism Impact

Highlights

  • Tourism is a key industry for many countries, especially in supporting employment, infrastructure development and as a significant contributor to the GDP

  • The Site Perhentian Islands which comprised of two islands, namely Perhentian Kecil and Besar are located at the northeastern coast of Terengganu state

  • Tourism Revenue Using visitor spending information gathered from respondents of the study, which consists of 402 domestic and 527 international, it is estimated that revenue derived from accommodations were RM31,368,988.00; food & beverages RM23,374,245.81; transportation RM28,787,757.63; entertainment & recreation RM35,087,164.81 and retail RM14,924, 146.60

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Summary

Introduction

Tourism is a key industry for many countries, especially in supporting employment, infrastructure development and as a significant contributor to the GDP. Various works of literature have documented negative impacts of tourism activities, namely degradation of natural capital (Gil, Renfro, Figueroa-Zavala, Penié, & Dunton, 2015; Xiaojiang, 2008) and pollution of the seas and coastlines (El Sherbiny, Sherif, & Hassan, 2006; Wilson & Verlis, 2017). These types of impact caused significant concerns, especially for island destinations, since they are ecologically fragile and have limited resources (Balzan, Potschin-Young, & Haines-Young, 2018). Rhodes Island in Greece, for example, is experiencing environmental degradation in some of its saturated area of crowded beaches (Vandarakis et al, 2018)

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