RESORT PROJECT ON ITS SURROUNDING
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1 A CASE STUDY TO ASSESS THE SOCIAL IMPACTS OF BORNEO HIGHLANDS RESORT PROJECT ON ITS SURROUNDING COMMUNITIES Dominic Chuo Kong Uh Master of Environmental Management in Development Planning 2004
2 Pusat Khidmat Maklumat Akademik UNIVERSITI MALAYSIA SARAWAK A CASE STUDY TO ASSESS THE SOCIAL IMPACTS OF BORNEO HIGHLANDS RESORT PROJECT ON ITS SURROUNDING COMMUNITIES op. LAYSý YrýNC. 7 Dominic Chuo Kong Uh Supervisor: Associate Professor Dr. Spencer Empading Sanggin A dissertat4. on submitted in partial fulfillment of the requirements for the degree of Masters in Environmental Management (Development Planning) SLUSE-M Faculty of Social Science UNIVERSITI MALAYSIA SARAWAK 2004
3 ACKNOWLEDGEMENT For the preparation of this dissertation, I would like to thank and express my gratitude and appreciation to all those who have helped, encouraged, cajoled, motivated and supported me in the final chapter of this master programme. I would like to specially thank my Supervisor, Associate Professor Dr. Spencer Empading Sanggin for his encouragement, support and confidence in me. My thanks also to Professor Dr. Peter Songan and Dr. Gabriel Tonga for their wealth of ideas and guidance. I have to also thank the CTTC - Centre for Technology Transfer and Consultancy of SLUSE program at UNIMAS for their invaluable assistance. In particular, my respect and appreciation have to be accorded to the people and communities of the three villages namely Kampung Annah Rais, Kampung Abang and Kampung Temurang. The headmen of these villages indeed displayed strong leadership and commanded admirable respect from their communities with particular reference to Mr. Dominic Yon Anak Jaok of Kampung Annah Rais, Mr. Jook Anak Jendor of Kampung Abang and Mr. Born Anak Amer of Kampung Temurang. They have assisted tremendously especially in the cooperation of the villagers to obtain feed back for the questionnaires and for their kind hospitality. My thanks also goes to Borneo Highland Resort Management especially Mr. Loh Leh Ching, Chief Operating Officer for his cooperation in providing information, drawings and maps of Borneo Highland Resort and Miss Ngu Siew Yen, the manager for her invaluable feedback. 1
4 Indeed, I must thank my fellow course-mates especially Mr. Hata Morshidi, Mr. Luk Ing Ping, Mr. Roger Juing, Mr. Richard Iboh and Mr. Jaynsen Patrick Sibat for their friendship, encouragement and comradeship which have given me much inspiration and confidence to complete this course. My love and appreciation goes to my family especially my wife Christine and my children, Celina, Darren, Charmaine, Desmond and Charlene who have given me such wonderful joy and for their constant and immense understanding and sacrifice especially of my attention and care during the tenure of this masters programme. Finally, I offer my praise and thanksgiving to God who has provided me with perseverance, faith and strength to complete this dissertation and course. ll
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6 Pusat Khidmat fmsklumat Akadernik UNIVERSITI MALAYSIA SARAWAK A Case Study to Assess the Social Impacts of Borneo Highlands Resort Project on its Surrounding Communities in Kuching Division, Sarawak TABLE OF CONTENTS ACKNOWLEDGEMENT... I TABLE OF CONTENTS... IV LIST OF TABLES... VIII LIST OF FIGURES... VIII LIST OF MAPS... IX ABBREVIATION... IX ABSTRACT... XI ABSTRAK... 1 CHAPTER 1 INTRODUCTION 1.0 Introduction Previous Studies Background of Research Borneo Highlands Resort Development Access Roads and Link Road to the Resort Problem Statements Study Objectives Significance of Study 9... CHAPTER 2 LITERATURE REVIEW 2.1 Introduction Classic Theories of Economic Development Linear-Stages-of Growth Models Structural Change Theory Neo- Classical and Free Market Counterrevolution Theories The New Growth Theory: Endogenous Growth iv
7 2.2.5 The Big Push or Balanced Growth Model Social Impact Assessment/Study Why is the Study of Social Impacts necessary? Concept of Assessment of Social Impacts Variables in Study of Social Impacts Related Studies in Social Impacts Social Change Causes of Social Change Concept of Perception and Awareness CHAPTER 3 METHODOLOGY 3.1 Introduction Methodology Steps Research Design Population and Sampling Conceptual Design of Methodology Research Instrument Data Collection Methods of Data Collection Data Entry and Processing Data Analysis CHAPTER 4 FINDINGS AND RESULTS 4.1 Introduction Findings and Discussion for the Combined Three (3) Villages Topography and Nature of Land Use Demographic and Population Structure Socio-Economic Activities Tourism Potential of the three Kampungs Use of Land Resources Historical and Cultural Significance V
8 4.2.7 Infrastructure Services Employment Opportunities General Perception of the Three Communities Summary Findings and Discussions on Individual Kampungs Kampung Annah R. ais Kampung Abang Kampung Temurang CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 5.1 Introduction Summary Conclusion Recommendations The Opportunity to Promote Bidayuh Culture and Heritage Social Integration Employment Opportunities Business Opportunities Referral and Cooperation of Tourism Business Consultation and Information of the Project Infrastructure Facilities and Services Telephone Service Electricity Services and water supply Feeder Roads and Street Lighting Community Resources Environmental Concerns Land Use Joint Venture Schemes REFERENCES: APPENDICES: Appendix A: LIST OF PLATES Appendix B: QUESTIONNAIRES SURVEY FORM vi
9 APPENDIX A LIST OF PLATES Plate 1: Aerial View of Borneo Highlands Resort Plate 2: View of Link Road Plate 3: View of Link Road Plate 4: Entrance Road to Borneo Highlands Resort Plate 5: Entrance Arch to BHR Plate 6: Entrance Arch to BHR Plate 7: Kampung Annah Rais View - of village from entrance Plate 8: Living Museum Plate 9: With Headman, Mr. Dominic Yon Ak Jaok (left) Plate 10: Sungai Sarawak Kiri Plate 11: Longhouse View...: Plate 12 Bridge across Sungai Sarawak Kiri dividing village Plate 13: Kampung Abang - Feeder Road to Village Plate 14: With Headman, Mr. Joog Ak Jendor (right) Plate 15: View of Village, Kampung Abang Plate 16: Kampung Temurang - With Headman, Mr. Born Ak Amer Plate 17: View of Community Hall and Football Field Plate 18: General View of Village, Kampung Temurang Vii
10 LIST OF TABLES Table 1: Villages surveyed represented by sample Table 2: Summary of Interviews Conducted in the Field Table 3: Any Increase of Sale of Handicrafts and souvenirs, and potential of future phases of project 61 Table 4: Perception on whether infrastru. ture services had improved Table 5: Respondents' of Kampung Annah Rais Table 6: Main occupation of Respondents of Kampung Annah Rais Table 7: Negative Impacts on Land Use Table 8: Perception on Whether Infrastructure and Services Has Improved Table 9: Infrastructure and Services That Has Improved Table 10: Advantages of Future Expansion of the Project Table 11: Respondents' (Kampung Annah Rais) Perception on Negative Impacts of the Project Table 12: Main Occupation of Respondents of Kampung Abang Table 13: Gender of Respondents of Kampung Abang Table 14: Satisfaction with compensation Table 15: Improvement of income associated with the project Table 16: Respondents' (Kampung Abang) Perception on Negative Impacts of the Project Table 17: Gender of Respondents of Kampung Temurang Table 18: Main occupation of Respondents of Kampung Temurang Table 19: Satisfaction with compensat ion Table 20: Respondents who perceived the project as generating negative impacts.. 99 Table 21: Perception on whether tourism facilities have improved in the community LIST OF FIGURES Figure 1: Respondent's Economic Activities... 60
11 LIST OF MAPS Map 1: Site Plan of Borneo Height Map 2: Study Location Map 3: Kampung Annah Rais Map 4: Kampung Abang Map 5: Kampung Temurang ABBREVIATION BHR Borneo Highlands Resort CICETE China International Centre for Economic and Technical Exchanges FELCRA Federal Land Authority IT Information Technology JKKK Village committee LCDA Land Custody Development Authority LDC Less Developed Country NCR Native Customary Right NEPA National Environmental Protection Agency NGOs Non- Government Organizations SEDC Sarawak Economic Development Cooperation SESCO Sarawak Electricity Corporation SK Sekolah Kebangsaan SMK Sekolah Menengah Kebangsaan ix
12 SRK Sekolah Rendah Kebangsaan UNDP United Nation Development Programme YB Yang Berhormat X
13 ABSTRACT,A study to evaluate the social impacts of the Borneo Highlands Resort and its link roads on the surrounding communities is carried out. Three villages namely Kpg. Annah Rais, Kpg. Abang and Kpg. Temurang were identified and selected in this study. The objectives were to find out and assess the social impacts and the perception and awareness of the communities of the project. A qualitative method was used to gather data and information by using a designed questionnaires and conducting key informant interviews and questionnaire survey. The interviewees covered the old and young and, men and women to provide a diverse range of responses from different strata of the communities) A total of 62 respondents were interviewed, 32 from Kpg. Annah Rais, 20 from pg. Abang and 10 from Kpg. Temurang, covering 25% of the population. The responses were tabulated and analysed using the computer program, Statistical Package for Social Sciences (SPSS) Version 11.0 for Windows. Descriptive statistics were evaluated and converted to graphs, tables and charts for analysis. The study revealed that the majority of the respondents viewed the project as "average" and 79% of the respondents viewed as "neutral" in terms of overall benefit. This is contrary to the general perception that the project would be regarded as "good" or "very good" by the surrounding communities. However, all the respondents agreed that the project provided better infrastructure especially roads and drains. On the negative front, a high percentage (87%) of the respondents expressed that there is environmental pollution to the air, water and soil. Generally it was revealed that there should be more health facilities such as hospitals and clinics, essential services such as telecommunications, improved employment opportunities at the resort, and better business opportunities from the resort. The leaders of the three villages expressed the aspirations of their communities in the areas of education for the children, employment and business opportunities, joint ventures schemes, involvement of the resort in their communities and contribution and cooperation in promotion of tourism products from the villages. The results showed that while the resort development clearly brought improved infrastructure, there need to be more information and involvement by the developer with the local and surrounding communities to create and enhance goodwill and to generate more positive perception and awareness of the project. xi
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15 ABSTRAK SATU KAJIAN UNTUK MENILAI IMPAK SOCIAL DARIPADA PROJEK BORNEO HIGHLANDS RESORT PROJEK KE ATAS COMMUNITI SEKELILINGNYA DI BAHAGIAN KUCHING, SARAWAK Satu kajian telah dijalankan untuk menilai kesan impak sosial daripada pembangunan Borneo Highlands Resort dan lintasan jalanrayanya ke atas penduduk persekitarannya. Tiga kampung iaitu Kpg. Annah Rais, Kpg. Abang and Kpg. Temurang telah dikenalpasti sebagai sasaran dalam kajian ini. Objektif kajian ini adalah untuk mengenalpasti dan menilai impak social serta persepsi dan kesedaran komuniti terbabit ke atas projek tersebut. Kaedah kualitatif telah digunakan dalam proses pengumpulan data dan informasi, merangkumi penggunaan soal-selidik yang tereka untuk temuramah dengan kunci-informan dan survei. Para responden adalah terdiri daripada golong tua dan muda, serta lelaki dan wanita untuk melingkungi kelpelbagaian respons dari strata yang berlainan dalam komuniti tersebut. Sejumlah 62 responden telah disoal-selidik, 32 adalah dari Kampung Annah Rais, 20 dari Kampung Abang and 10 dari Kampung Temurang, meliputi 25 peratus daripada populasi tempatan. Hasil respons telah dijadualkan dan dianalisa dengan mengunakan program komputer SPSS (Statistical Package for Social Sciences) versi 11.0 untuk Windows. Statistik diskripsi telah dianalisa dan ditukarkan dalam betuk graf, jadual dan carta untuk penerangan selanjutnya. Kajian ini mendapati bahawa majoriti daripada responden melihat projek tersebut sebagai "average" (sederhana) dan 79 peratus daripada responden melihatnya "neutral" dari segi kebaikan keselurunan. Ini bertentangan daripada persepsi umum yang menyatakan "good" (baik) atau "very good" (sangat bagus) dari komuniti sekeliling. Walau bagaimanapun, kesemuanya berpendapat projek tersebut telah menyediakan Infrastruktur yang lebih baik terutamanya dari segi jalan dan parit. Dari segi pandangan negatif pula, pencemaran alam sekitar kepada air dan tanah dinyatakan sebagai peratus yang tinggi sebanyak 87% daripada responden. Secara umumnya didapati bahawa peningkatan diperlukan dari aspekaspek termasuk kemudahan kesihatan seperti hospital dan klink, perkhidmatan utama seperti telekomunikasi, pembaikkan peluang pekerjaan di dalam resort dan peluang perniagaan yang lebih baik daripada pihak resort. Ketua-ketua dari ketigatiga kampung telah menyatakan aspirasi komumiti mereka dalam bidang pendidikan kanak-kanak, peluang pekerjaan dan perniagaan, skim usahasama, penglibatan pihak resort dalam komunitimereka dan penyumbangan dan kerjasama dalam mempromosikan produk pelancongan dari kampung mereka. Hasil kajian menunjukkan walaupun pembangunan resort membawa kepada peningkatan yang nyata dalam infrastruktur, keperluan dalam informasi dan penglibatan daripada pihak pengusaha dengan komuniti ter;: patan dan sekeliling adalah patut untuk meningkatkan pandangan dan membentuk persepsi yang positif dan kesedaran terhadap projek.
16 CHAPTER 1 INTRODUCTION 1.0 Introduction The State Government of Sarawak had always identified Penrissen Highlands as a potential international eco-tourism destination. The cool climate and lush natural vegetation provides a basis for the development of an international tourist destination. A 2300-hectare land parcel on the Penrissen Heights was identified and a 500 hectare plateau area was targeted for a highlands resort at the foothills of Gunung Penrissen (Plate 1), (Map 1). Through the Land Custody Development Authority (LCDA), the State Government in joint venture with Country Heights Bhd. (a listed company in the Kuala Lumpur Stock Exchange) proposed to set a highland resort, of good quality and of international standard to boost our tourism market domestically and internationally. A joint venture company, Borneo Heights Sdn. Bhd. was established in 1995 to specifically undertake the development of the resort on state land at Penrissen Highlands, with 30% holdings by LCDA and 70% holdings by Country Heights Group. Currently, the project in general consists of 1
17 a) the upgrading of the existing road, Jalan Padawan, which is between Kampung Puruh Garung to Kampung Padawan(yet to be tar-sealed) (an off-road at KM40 Kuching-Serian Road), a tar-sealed link-up road at Mile 11 Kuching-Serian Trunk Road (Plates 2& 3), and a new 5 km tar-sealed access road to the resort. b) Phase I of the Resort proper on the Penrissen Highlands is known as Borneo Highlands Resort which had been completed in (Plate 4) c) Future phases of the Resort over a 10-years period. In this research study, the focus is on the social impacts of the project on the population, in and around the project and the link road. 1.1 Previous Studies There were 2 studies done on the Penrissen Heights Master Plan: The Socio- economic Study and The Agricultural Development Study. Two preliminary EIA studies had also been carried out for the Borneo Heights Road Project completed in November 1997 and for the Borneo Highland Resort completed in February The above two preliminary EIA studies were carried out prior to project implementation. The results and recommendations for the social impact assessment revealed general acceptance and positive perception of the Borneo Highlands Resort and road project. It was anticipated that there would be improved employment opportunities, improved infrastructure facilities such as roads, water, electricity, schools, health facilities and other social and physical facilities as a result of this project. In this study, the post-social impact of this project on social as well as economic aspects will be looked into. The question is whether the people living in and 2
18 around the project benefits more in ;, arm of social impacts such as income, employment, health, lifestyle, happiness, retention of culture, educational levels, and so on. In other words, are the populations of the villages around the project (the link and access road and Resort) were better well off than before or has the project introduced negative impacts or effects, such as environmental degradation, social ills, lower economic status etc. 1.2 Background of Research The Resort Proper development is situated on Lot 15, Block 11, Pangkalan Ampat District, situated at the Malaysian-Indonesia border over 2300 hectares on the Penrissen Highlands. The Borneo Highlands Resort project has been in operation for the last three (3) years. The initial phase of the resort was completed in 1999/2000 and the whole project was expected to be carried out in a few phases. Generally the overall project includes the following components: a) A proposed highland township resort on the Penrissen Highlands consisting of a club house, a 18-hole golf course, town centre, residential housing types of bungalows and chalets, water sprouts, botanical garden, 4 and 5 star hotels, orchards, and even a proposed train transport around the Resort. b) Access roads to the Resort (Plates 5& 6) include the upgrading of existing road and construction of a two lane tar-sealed link road at mile 11, Kuching-Serian trunk road, Mile 40, Kuching-Serian road through 3
19 Padawan Road which is under improvement currently and a new 5, KM tar- sealed access road to the Resort. For the first phase, the upgrading of link road and new access road to the resort had been completed. Currently for the resort proper, the facilities completed are the clubhouse, 18-hole golf course, chalets administration centre, botanical garden and the necessary infrastructural facilities such as roads, power, water, telecommunication facilities. The housing lots are being developed for the construction of detached houses in and around the golf course. The whole master plan with all the facilities is to be implemented in four phases over a period of ten (10) years. The proposed development programme by Borneo Highlands Resort (which may be subjected to changes along the way) is summarized in the work schedule as shown in Appendix A Borneo Highlands Resort Development The Borneo Highlands Resort has been identified by the Sarawak State Government as a quality international tourist destination which will cater for tourists primarily from Singapore, Europe, Oceania and America. The site for the development of the 2300 hectare resort area for the Borneo Highlands Resort Development is located at about 70km south of Kuching. Bordered by the mountain ranges of the Malaysian-Indonesian border with multiple peaks such as Gunung Semadang, Gunung Siruruh (4049 ft) and Gunung Penrissen., the resort proper will be on a 500 hectare plateau. The main aim for this resort project, which is the first and only highlands resort 4
20 Pusat Khidmat Maklumat Akademik JiVIVERSITi MALAYSIA SARAWAK in Sarawak, is to enhance tourism in the state. The attraction of a- natural rainforest environment and scenic views has been a new and unique source of attraction for Kuching, the State Capital. The development caters for tourists primarily from Singapore, Europe, Oceania and America. The resort also compliment various present attractions around the city of Kuching, Damai Beach, the Sarawak Cultural Village and the löwlands of the wildlife sanctuary, Bako National Park, Kubah National Park at Matang and others. In order for the tourism industry to improve, the number of tourists must increase and these tourists must stay for longer periods of time. In general, the length of stay of tourists visiting Kuching is relatively short probably due to the limited number of attractions compared to Kuala Lumpur, for example, where many tourist attractions are within easy reach. An additional attraction to complement those already existing should increase the length of stay of tourists. This resort is aiming at attracting one million tourists per year within the next three decades Borneo Highlands Resort also provides the locals with a holiday destination which is within easy reach from Kuching. They are able to enjoy the cool climate and natural environment without having to travel outside Sarawak. Currently, the locals are patronizing the resort mainly for the golf course and weekend getaways.. Other economic benefits can include the creation of new jobs. This is particularly important for people living in the neighboring villages who 5
21 currently, are mainly engaged in shifting cultivation and small scale agriculture. The availability of jobs in the area would encourage the villagers to move away from the practice of shifting cultivation which can have a negative impact on the environment if not practiced traditionally. This would also encourage the ycanger men and women to live with their families in the villages instead of in Kuching, or other major towns where the cost of living is much higher in search of other employment opportunities. The project developer has adopted a strong environmental approach in the planning of the resort, which has been done around the theme of environmental sustainability. With this approach, the development can improve the quality of the existi-ig environment which will be one of the main attractions Access Roads and Link Road to the Resort The resort is easily accessible by Jalan Padawan, which branches off at KM40, Kuching-Serian Road (which is currently under improvement), or through the completed two-lane tar-sealed link road at Mile 11 Kuching- Serian Trunk Road to Kampung Padawan, then by the 5KM Borneo Highland Resort access road directly to the resort. In order to make this destination attractive to the tourists, availability of basic infrastructure particularly road accessibility is of utmost importance. 6
22 The improvement and construction of the link road from Mile - 11 had shortened the traveling distance to the resort, now only about 37 KM from Kota Padawan to the resort. The road further opened up the nearby areas especially the villages to other development plans such as government development projects, housing development, agriculture cultivation and public facilities like electricity and water. Apart from tourism, those who benefit from the road are the local population found along the road and within the vicinity. Considerable benefits have resulted from improved access and ease of travel for existing and future residents and visitors to the area and to Kuching City. In the long run, the population will economically benefit from this project. 1.3 Problem Statements The EIA and socio-economic studies in the mid 1990s before the project commenced revealed high expectations and hopes for the positive social economic impacts such as increased employment opportunities, increased development for the affected areas, improved business opportunities (as suppliers, and contractors), increase of land value, increased in infrastructure and public amenities. Indeed, it was the government's hope that the communities in the area will benefit from the project, thus improving their quality of life. How have the communities fare, thus far since the implementation of the project? Has the project been effective in providing the villagers with employment opportunities and alternative income sources? Has their quality of live improved? 7
23 Are the villagers enjoying the development which has taken place in their, area as a result of the development of the project? Essentially, since the site for the development of the resort and the access roads had meant loss of NCR lands for some of the villagers, has there been loss of hunting ground and land for subsistence farming, loss of income livelihood from jungle produce? As is common with a project of a magnitude such as the Borneo Highlands Resort, negative impacts are also anticipated. This study hopes to determine what these negative impacts are. Is there any increase in river and soil pollution? Is there a problem in waste disposal system in the area and there experiencing social problems such as social ills and bad influence, social and cultural change? With the development of Phase I of the Borneo Highland Resorts and upgrading and construction of new roads to the resort, how had the population in and around the vicinity of the project especially along the new roads, been affected? How have the local population benefited or suffered after the first phase of the resort development? Have there been more positive impacts than negative impacts? How have the perception and awareness changed if any over the last three to eight years since the preliminary EIA studies and the completion of Phase I of the project? 8
24 1.4 Study Objectives % The purpose of this study is to assess the impacts of Borneo Highland Resort Development on the surrounding communities. Specifically, the objectives of this study are to: i. determine the socio-economic benefits of the project to the communities ii. identify problems associated with the development of the Borneo Highland Resort based on the perception of the communities iii. determine the communities' perception and suggestions regarding the project and its future development. 1.5 Significance of Study This study aims to assess the impacts of the Borneo Highlands Resort Project on the surrounding communities. It hopes to uncover whether the communities are actually benefiting from the projects in terms of increased employment opportunities, income sources and improved quality of life. The findings of this study will serve as important source of information to the people involving in the development and implementation of the projects and also to the communities affected. The findings of this study will be able to reveal information and other aspects of the projects which the developers and proponents can take into considerations in the planning and implementation of future phases of the project. Additionally it is hoped that this study be able to reveal the communities' perception of the project and what can be done in order for the communities to embrace and have positive attitude towards the development of the project 9
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