COVID-19 Pandemic: Revisit the Challenges and Sustainability of Homestays in Malaysia
DOI:
https://doi.org/10.32890/jeth2023.3.9Keywords:
Homestay, Sustainability, Rural Tourism, Challenges, New Norm, Covid-19Abstract
The Malaysian Ministry of Arts, Tourism and Culture (MOTAC) has been promoting homestay programs among the local community as a means to enhance quality of life and facilitate sustainable development. The community's distinct characteristics and cultural significance have effectively attracted the tourism sector and aligned with the 'Truly Asia' Campaign. However, the Covid-19 pandemic has had a global impact, leading countries to implement four phases of Movement Control Orders (MCOs). The objective of this study is to examine the difficulties encountered by homestay operators in maintaining the viability of their businesses in light of the Covid-19 pandemic, as well as to propose strategies aimed at securing the long-term sustainability of Malaysia's homestay programs. This qualitative study investigates the impact of the Covid-19 outbreak on homestay operators, focusing on their struggles with limited support and income, increased operational costs, and the toll on mental health. The study reveals key challenges based on data from in-depth interviews conducted with operators in states with high Covid-19 cases. The respondents provided insights into various strategies employed to ensure the long-term viability of Malaysia's homestay programs, including diversification, business restructuring, government support, and digital marketing. This research contributes to the government's efforts to promote homestay programs in the tourism industry, shedding light on the industry's resilience during challenging times.
Downloads
References
Alagesh, T. N. (2020, April 6). Already struggling budget hotels staring at bleak future. New Straits Times. https://www.nst.com.my/news/nation/2020/04/581821/already-struggling-budget-hotels-staring-bleak-future
Allaberganov, A., Preko, A. & Mohammed, I. (2021). Government commitment to tourism and hospitality sector during Covid-19 pandemic. Tourism Critiques, 2(2), 153-169. https://doi.org/10.1108/TRC-02-2021-0004
Alonso, D. A, Kok S. K, Bressan A, O’Shea, Sakellarios, M. N, Koresis, A, … Santoni L. J (2020). Covid-19, aftermath, impacts, and hospitality firms: An international perspective. International Journal of Hospitality Management. https://doi.org/10.1016/j.ijhm.2020.102654
Amir, A.F., Ghapar, A.A., Jamal, S.A., & Ahmad, K.N. (2015). Sustainable tourism development: A study on community resilience for rural tourism in malaysia. Procedia - Social and Behavioral Sciences, 168, 116-122. https://doi.org/10.1016/j.sbspro.2014.10.217
Arana, J. E., & Leon, C. J. (2008). The impact of terrorism on tourism demand. Annals of Tourism Research, 35(2), 299-315.
Ayupp, K., Jaafar, N., & Tinggi, M. (2021). Financial Technology Awareness Among Homestay Operators in Sarawak, Malaysia. International Journal of Academic Research in Business and Social Sciences, 11(7), 497–512.
Baker, S.R., Farrokhnia, R.A., Meyer, S., Pagel, M., & Yannelis, C. (2020). How does household spending respond to an pandemic? Consumption during the 2020 Covid-19 pandemic, National Bureau of Economic Research.
Baum, T., Hai N. T, T. (2020). Hospitality, tourism, human rights and the impact of Covid-19. International Journal of Contemporary Hospitality Management, 32(7), 2397-2407.
Bernama, (2020, June 11). MOTAC launches domestic tourism recovery plan. Money Compass. https://moneycompass.com.my/2020/06/11/motac-launches-domestic-tourism-recovery-plan/
Bernama (2020, June 27). Covid-19: Malaysia's tourism industry hit with RM45 billion in losses. New Straits Times. https://www.nst.com.my/news/nation/2020/06/604012/covid-19-malaysias-tourism-industry-hit-rm45-billion-losses
Bonham, C., Edmonds, C., & Mak, J. (2006). The impact of 9/11 and other terrible global events on tourism in the United States and Hawaii. Journal of Travel Research, 45(1), 99-110.
Carvalho, M., Sivanandam, H., Rahim, R., & Tan, T. (2020, July 16). Covid-19 caused RM45bil in tourism losses. The Star. https://www.thestar.com.my/news/nation/2020/07/16/covid-19-caused-rm45bil-in-tourism-losses
Chen, M. (2010). The economy, tourism growth and corporate performance in the Taiwanese hotel industry. Tourism Management, 31(5), 665-675.
Dahles, H., & Prabawa, T. (2015). Business resilience in times of growth and crisis. Annals of Tourism Research, 5, 34-50.
Dayour, F., Adongo, C.A., Amuquandoh, F.E., & Adam, I. (2021). Managing the Covid-19 crisis: Coping and post-recovery strategies for hospitality and tourism businesses in Ghana. Journal of Hospitality and Tourism Insights, 4(4), 373-392. https://doi.org/10.1108/JHTI-08-2020-0150
Fry-McKibbin, R., Hsiao, C., & Zhang, A. (2020). Firm performance, the financial crisis and the US tourism industry. 30th Australasian Finance and Banking Conference. Firm Performance, the Financial Crisis and the US Tourism Industry. Sydney, Australia: Business School Institute of Global Finance, University of New South Wales.
Ganesan, V. (2020, April 27). Hotels face RM3.3 bil loss in first half, possibly permanent closure for some. The Edge Malaysia Weekly. https://maa.theedgemarkets.com/article/hotels-face-rm33-bil-loss-first-half-possibly-permanent-closure-some
Gossling, S., Scott, D., & Hall, C. M. (2020). Pandemics, tourism and global change: A rapid assessment of Covid-19. Journal of Sustainable Tourism. https://doi.org/10. 1080/09669582.2020.1758708
Hao, F., Xiao, Q., & Chon, K. (2020). Covid-19 and China’s Hotel Industry: Impacts, a Disaster Management Framework, and Post-Pandemic Agenda. International Journal of Hospitality Management, 90, 1-11.https://doi.org/10.1016/j.ijhm.2020.102636
Hanafiah, M. H., Balasingam, A. S., Nair, V., Jamaluddin, M. R., & Zahari, M. S. M. (2021). Implications of Covid-19 on Tourism Businesses in Malaysia: Evidence from a Preliminary Industry Survey. APJIHT Vol. 10 No. 1 March 2021 pp. 81–94
He, H., & Harris, L. (2020). The Impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116, 176-182. https://doi.org/10.1016/j.jbusres.2020.05.030
Hong, P., Huang, C., & Li, B. (2012). Crises management for SMEs: Insights from a multiple-case study. International Journal of Business Excellence, 5(5), 535-553.
Keogh-Brown, M. R., Smith, R. D., Edmunds, J. W., & Beutels, P. (2010). The macroeconomic impact of pandemic influenza: Estimates from models of the United Kingdom, France, Belgium and The Netherlands. The European Journal of Health Economics, 11(6), 543-554. https://doi.org/10.1007/s10198-009-0210-1
Korstanje, M.E. (2018). Terrorism tourism and the end of hospitality in theWest. Palgrave Macmillan.
Kravchenko, A. (2020, April 15). The future of tourism post-Covid-19. Medium. https://medium.com/@UNESCAP/the-future-of-tourism-post-covid-19-96be2fa30b96
Kutukiz, D., Oncu M. & Akcan, A. (2012). Changes on capital structure of the firms on the occasion crisis and situation of tourism companies traded on ISE. Tourismos: an international multidisciplinary journal of tourism, 7(2), 429-443.
Kuo, H., Chen, C., & Tseng W. (2008). Assessing impacts of SARS and Avian Flu on international tourism demand to Asia. Tourism Management, 29(5), 917-928.
Liang, T. W. (2020, May 13). Covid-19: SOPs for hotel subsector. SKRINE. https://www.skrine.com/Skrine/media/Assets/alert-130520-link-SOP-hotel.pdf
Lim, J. (2020, June 29). Hospitality industry shows signs of recovery, says homestay operator. The Edge Malaysia. https://theedgemalaysia.com/article/hospitality-industry-shows-signs-recovery-says-homestay-operator
Lim, I. (2020, February 27). 2020 stimulus: Malaysians to get RM1,000 tax relief, RM100 digital vouchers for domestic tourism. Malay Mail. https://www.malaymail.com/news/malaysia/2020/02/27/2020-stimulus-malaysians-to-get-rm1000-tax-relief-rm100-digital-vouchers-fo/1841537
Lock, S. (2020, August 21). Employment loss in the travel and tourism industry due to the coronavirus (Covid-19) pandemic worldwide in 2020, by region (in millions). Statistica. https://www.statista.com/statistics/1104835/coronavirus-travel-tourism-employment-loss/
Malhotra, N. K., Nunan, D., & Birks, D. F. (2012). Marketing research: an applied approached (5th ed.). Pearson: Prentice Hall Inc.
Ministry of Finance. (2020). PENJANA Tourism Financing. https://penjana.treasury.gov.my/pdf/PENJANA-Tourism-Financing-eBooklet-EN.pdf
Moa, Y., He, J., Morrison, A. M., & Coca-Stefaniak, J. A. (2020). Effects of tourism CSR on employee psychological capital in the Covid-19 crisis: from the perspective of conservation of resources theory. Current Issues in Tourism, 1-19. https://doi.org/10.1080/13683500.2020.1770706
Morgan, B. (2020, May 1). 0 10 Examples of how Covid-19 forced business transformation. The Forbes. https://www.forbes.com/sites/blakemorgan/2020/05/01/10-examples-of-how-covid-19-forced-business-transformation/?sh=2cc4c5151be3
MOTAC. (2021). MOTAC's efforts to assist the tourism sector affected by the Covid-19 pandemic feedback on the press statement by Malaysian Association of Theme Park & Family Attractions (MATFA) on Malaysian tourism industry. https://motac.gov.my/media2/siaran/motac-s-efforts-to-assist-the-tourism-sector-affected-by-the-covid-19-pandemic-feedback-on-the-press-statement-by-malaysian-association-of-theme-park-family-attractions-matfa-on-malaysian-tourism-industry
New Straits Times (2020, June 5). Penjana: Tourism sector to be revived through tax incentives [NSTTV]. https://www.nst.com.my/news/nation/2020/06/598260/penjana-tourism-sector-be-revived-through-tax-incentives-nsttv
NHO Reiseliv. (2020). Situation analysis of the Norwegian tourism industry. https://www.nhoreiseliv.no/tall-og-fakta/reiselivets-status-korona/
Ohe, Yasuo. (2020). Exploring a way forward for rural tourism after the corona pandemic. Journal of Global Tourism Research. 5(2). https://doi.org/10.37020/jgtr.5.2_105
Prime Minister’s Office. (2020). 2020 economic stimulus package – PRIHATIN. https://www.pmo. gov.my/2020/03/pakej-rangsangan-ekonomi-prihatin-rakyat-prihatin/
Russy, D. & Smith, R. (2013). The economic impact of H1N1 on Mexico’s tourist and pork sectors. Health Economics, 22(7), 824-834.
Sekaran, U., & Bougie, R. (2009). Research methods for business: A skill-building approach (5th ed.). West Sussex: John Wiley & Sons Ltd
Siu, A., & Wong, Y. R. (2004). Economic impact of SARS: The case of Hong Kong. Asian Economic Papers, 3(1), 62-83.
Teoh, P. Y. (2020, April 26). 15 per cent of hotels in Malaysia may have to close operations. New Straits Times. https://www.nst.com.my/news/nation/2020/04/587662/15-cent-hotels-malaysia-may-have-close-operations
Visit Malaysia year 2020’s campaign collapsed by pandemic. (2020, June 4). The Stringer. https://thestringernews.com/2020/06/04/visit-malaysia-year-2020s-campaign-collapsed-by-pandemic/
WTTC. (2003). Special SARS analysis: Impact of travel and tourism (Hong Kong, China, Singapore and Vietnam reports). London: World Travel and Tourism Council.
Yasmin, A., Tasneem, S., & Fatem, K. (2015). Effectiveness of digital marketing in the challenging age: An empirical study. International Journal of Management Science and Business Administration, 1(5), 69-80.
Yusof, Y., Ibrahim, Y., Muda, M. S., & Amin, W. M. (2012). Community based tourism and quality of life. Review of Integrative Business & Economics, 1(1), 336-346.
Zheng, T., Farrish, J., & Kitterlin, M. (2015). Performance trends of hotels and casino hotels through the recession: An ARIMA with intervention analysis of stock indices. Journal of Hospitality Marketing and Management, 25(1), 49-68.
Published
Issue
Section
License
Copyright (c) 2023 Journal of Event, Tourism and Hospitality Studies

This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
Research impact
Harvested 2026-09-14Counts differ between services because each indexes a different body of literature. None of them is the whole picture.



