Homestay Governance in Pahang: An Exploratory Factor Analysis

Malaysia’s rural homestay initiatives have evolved into a vital component of the nation’s community-based tourism landscape. These programs not only offer visitors immersive, culturally rich experiences but also play a significant role in boosting the livelihoods of local communities. However, uneven revenue distribution across different states remains a challenge. Larger states like Sabah, Sarawak, and Pahang report notably higher income levels, while smaller regions such as Perlis lag behind, which underscores the need for more effective governance structures to promote balanced and sustainable development. This research introduces and validates a governance model anchored in four core elements: community-driven decision-making, targeted training and skill development, clear regulatory policies, and robust mechanisms for monitoring and evaluation. Drawing on data from 106 homestay operators across multiple districts in Pahang, the study adopts an institutional theory framework, utilizing quantitative surveys and factor analysis to test the reliability and integrity of these governance dimensions. The findings affirm that each of the four constructs forms a cohesive foundation for successful homestay operations. Strong community participation, continuous capacity building, well-defined regulations, and consistent performance assessments were all found to significantly enhance operational outcomes. Based on these insights, the study offers actionable recommendations for policymakers and community leaders, aiming to reinforce governance frameworks and ensure the long-term sustainability of Malaysia’s rural homestay sector.

corporate governance, rural tourism, sustainable

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