Copyright © 2018 Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. International Journal of Engineering & Technology, 7 (2.29) (2018) 210-214 International Journal of Engineering & Technology Website: www.sciencepubco.com/index.php/IJET Research paper Sustainability of a beach resort: A case study Mazlina Mustapha 1 *, Khairil Wahidin Awang 2 1 Faculty of Economics and Management, Universiti Putra Malaysia 2 Faculty of Hospitality, Tourism and Wellness, Universiti Malaysia Kelantan *Corresponding author E-mail: mazlina05@gmail.com Abstract In Malaysian Eleventh Plan 2016-2020, tourism is one of the service sectors given priority by the government. It is claimed that the in- crease in tourist arrivals help to support the deficit reduction in service sector by contributing to the growth of the nation. Furthermore, the quick growth of tourism in Southeast Asia, as a result of amongst others attractive sandy beaches and nature, beach resorts have been on the receiving end of attention and focus by the tourists. However, prior studies claimed that these resorts were not properly managed and further actions need to be taken to ensure its sustainability. Thus, this case study aims to examine performance management of a beach resort in ensuring its sustainability. Specifically, this study explores the cost saving strategies adopted by this resort through its 25 years of operation. This resort is located on an island in Terengganu. The resort owner and employees were interviewed. The interview results appear to indicate that various strategies were implemented by the resort to manage their performance and ensure its sustainability in the business. Family members hold important positions in the resort to ensure the smooth running of the operation. Cost saving activi- ties and smart business arrangements were made with suppliers to reduce its outflows. Keywords: Beach resort; Performance management; Sustainability; Tourism industry. 1. Introduction The tourism industry has continued to be a significant contributor to Malaysia’s economic growth (1). The industry recently achieved to become a major foreign exchange earner second to be exact after manufacturing in 2013. It is Malaysia’s sixth biggest sector in 2013, edging one spot up from the year 2012 contrib- uting RM51.5 billion to Gross National Income (GNI) (2). The government also gives priority to tourism in the Malaysian Elev- enth Plan 2016-2020 (3). Statistics for 2014 also show that tour- ism as an industry contributed RM72 billion, a 27.4% increase from the year 2010 at RM56.5 billion. This significant contribu- tion further resulted in tourism being listed as one of the National Key Economic Areas (NKEAs). As one of the NKEAs, it is fore- casted to contribute about RM168 billion by the year 2020 with 36 million tourist arrivals (4, 5). Contributions come in many forms and one of them is via the tourism industry’s accommodation sec- tor. Beach resort is a popular accommodation type offered to both, Malaysian and foreign tourist alike. Smith (6) notes that beach resorts evolve naturally through the expansion of accommodation sector plus other recreational functions. Malaysia has attractive beaches that offer beautiful scenery and crystal clear water. Wong (7) supported this notion whereby he claimed that basic natural resources which Malaysia is rich for like islands, sandy beaches and coral reefs necessitates and helps in the development of beach resorts. In parallel, Smith (8) posited that demand for beach holi- days was high, particularly within Asia Pacific. Similarly it is reported that Malaysia’s beach resorts has increased steadily in numbers, especially those located on islands. The in- creasing number of resorts creates stiff competition among them- selves. They would need to continuously be relevant in today’s market, providing space to stay as well as attracting the tourists and locals. In addition, these island or beach resorts also need to find ways to survive as their operating days are shorten by natural element. The monsoon season which lashes the islands resulted in resorts operating less than all year round. It is reported that mon- soon season faced by beach resorts forced the management to temporarily close their businesses during certain months of the year (9). It is also claimed that the number of tourists who patron- ized the islands during the monsoon, which happens every year from November until March the following year reduce to a paltry number. It is reported that the east coast islands of Malaysia are closed during this season due to heavy rain and rolling seas. Thus, it is very crucial for the resorts to manage their performance and sustain in the business. Harris and Mongiello (10) stated that with increase in competition, and unfavorable seasonal climate sur- rounding the resorts, the resorts must ensure effective operations and business decision-making tasks are in place. Smith (6) posits too that beach resort development especially in Asia Pacific usually starts off well but ends with detrimental fea- tures and impacts. He stated that beach resorts in the region had underwent deterioration of quality as time flew by particularly when the scale of physical development increased myriad with increased congestion and pollution. Hence, beach-related recrea- tional quality deteriorate. Agarwal (11) claimed that beach resorts will have to continuously re-orientate and rejuvenate their prod- ucts and facilities in order to keep up with similar type destina- tions which keep on attracting tourists. Moreover, it is also claimed that with the rapid growth of tropical beach resorts (6), it is claimed that all tourism stakeholders should play a role in helping sustainability to be achieved (12). Prior stud- ies posited that the ideal situation for achieving what is desired would be to get everyone to move in the same direction and it can be done through the management of the organization via perfor-