Factors Determining the Success of Cooperatives as a Business Model in Driving the Sustainability of Community-Based Ecotourism in The Iskandar Region of Malaysia

Abstract

Currently in Malaysia, cooperatives are seen as a suitable business model in the implementation of rural transformation. However, even after several years of Community-Based Ecotourism (CBET) cooperatives in Iskandar Malaysia have been established, they are still faced with various challenges to remain sustainable. This study was conducted to explore and understand the problems and challenges faced by Community-based Ecotourism cooperatives (CBET) as well as the factors that affect the effectiveness of the cooperative’s business model towards the sustainability of CBET in Iskandar Malaysia Region (WIM). A qualitative research design with case study and interview methods was used in this study. Semi-structured interviews were conducted with 12 research participants who were involved in CBET activities and the selected cooperatives, namely Koperasi Penduduk Kg. Sg. Melayu Berhad, Koperasi Aami Johor Berhad, and Koperasi Sri Sekawan Kulai Berhad which are located in WIM. The findings of the study show that cooperatives play an important role in making CBET successful in Iskandar Malaysia, especially from the aspect of socio-economic improvement and environmental conservation as well as biological diversity protection. Cooperatives are established and administered by the local community by working with various parties such as government agencies, NGOs, and educational institutions to ensure the sustainability of CBET. It has goals and roles to ensure environmental conservation, socio-economic development, and empowerment of CBET. However, among the challenges identified to ensure the sustainability of CBET at WIM are sustainable financial management, balancing conservation, and tourism development, ensuring active involvement from the community, as well as ensuring an effective marketing and promotion strategy. CBET’s sustainability success factors identified are effective leadership, good collaboration and partnership strategies, diverse capacity building and training programs, ensuring a balance of conservation and tourism development, as well as good marketing and promotion strategies.