Answer to the Written Question PT5

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YANG BERHORMAT AWANG ZAINOL BIN HAJI MOHAMED

QUESTION:

YANG BERHORMAT AWANG ZAINOL BIN HAJI MOHAMED asked the MINISTER OF PRIMARY RESOURCES AND TOURISM to state the number of tourism projects that have been announced but not yet realized, and what are the main factors for the delay in implementing these projects.

YANG BERHORMAT MENTERI SUMBER-SUMBER UTAMA DAN PELANCONGAN

ANSWER:

So far, the implementation of infrastructure projects under this Ministry through the Tourism Development Department is proceeding as targeted. Continuous monitoring is carried out by this Ministry for its implementation. A total of 16 projects are being implemented under the National Development Plan RKN 12, of which 1 project has been completed.

The Ministry of Primary Resources and Tourism, through the Tourism Development Department, is also actively working to strengthen cooperation with the private sector to implement tourism projects through Public-Private Partnership (PPP).

Among the challenges in realizing tourism projects through the PPP method is the lack of large-scale investment and investors pulling out due to unexpected logistic costs of the project, which are caused by several major issues:

i. Insufficient market size or imbalance, investors may perceive the risk as failing to deliver the expected return;

ii. Initial project planning may not fully account for high and different logistic costs compared to project implementation abroad. For example, the transportation of goods or the provision of necessary raw materials. This causes investors to reassess the project's viability;

iii. The option to implement the project in phases may impact potential profits because the product or service may not be sufficient to attract interest from tourists to the tourism destination;

iv. Poorly planned additional costs also require additional time to secure extra funding, thus further delaying project progress.

Therefore, to ensure the success of Public-Private Partnership (PPP) implementation in the tourism sector, a strategic and comprehensive approach is needed. With this integrated effort, it is hoped that the cooperation between the public and private sectors can be strengthened, thereby accelerating the development of the country's tourism industry.