1.1 Introduction to Creative Economy

The Multimedia Super Corridor is envisaged as the leading edge of a new national strategy for Malaysia to achieve the goals described in our country's vision 2020.
(Mahathir, 1996a)

This chapter outlines the key themes of this study, and introduces the research problem and the research methodology. This is followed by background information on the development of creative economy in Malaysia, along with a brief introduction to cultural tourism and creative content industries. The final section provides a chapter outline.

According to United Nations Conference on Trade and Development (UNCTAD) (2004; 2008), creativity and innovation have reshaped the overall pattern of cultural production and trade worldwide (UNCTAD 2008, iii). In fact, all sectors of the economy now need to address these elements to stay competitive and sustainable. Countries such as the United States (US) and United Kingdom (UK) are at the forefront in these sectors, while developing nations in Asia and Africa regions are significantly behind.

With the intervention of the United Nations (UN), however, more focus has been given to developing regions. Nevertheless, data on developing nations is still problematic and considerably limited. Many countries differ in their understanding of the creative economy (UNCTAD 2008, 4) which at times has led to the use of different terms, including cultural economy, and experience economy. UNCTAD (2008) has noted the problems in defining this concept lay in its multi-disciplinary nature, situated amid economics, culture and technology.

Due to the infancy of this concept as a policy idea rather than an academic field, research on this topic has concentrated on certain countries and on a limited scope. UNCTAD (2008, 16) reported that the development of policy has been active in developed countries for the past ten years; for developing countries, however, development and recognition has been more recent. Gibson and Kong (2005) identified the uneven geographies of academic work, and the need for future study to move beyond an American or European focus. Work by Barrowclough and Kozul-Wright (2008) (Africa), Keane (2007) (China), and UNCTAD (2004; 2008) (developing nations in general), has sought to redress this imbalance by focusing on developing nations. Further research is much needed.

This study adopts the broad definition coined by UNCTAD (2008, 4) on creative economy:

...an evolving concept based on creative assets potentially generating economic growth and development; it can encourage income generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development; it embraces economic, cultural and social aspects interacting with technology, intellectual property and tourism objectives; it is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy; it is a feasible development option calling for innovative multidisciplinary policy responses and interministerial action; and at the heart of the creative economy are the creative industries.

Although a consensus on the definition of creative economy is still subject to an ongoing debate, there seems to be a common ground on the two most important/significant elements of the concept; namely, creativity and industries. In other words, creative economy is the umbrella for creative and cultural activities. Hence, this study examines the term creative economy as it is used and applied within the Malaysian context, and is illustrated by two case studies. Additionally, this study uncovers issues pertaining to the development of a creative economy. Whilst other terms used to describe aspects of the creative economy such as, content, cultural and experience industries may be used where appropriate, this research focuses on creative economy as an inclusive term with a wide international mandate.

1.4 The Development of Creative Economy in Malaysia

UNCTAD (2008) has identified Malaysia as one of the top cultural producers among developing countries such as Indonesia, Nigeria and Vietnam. The former Malaysian Information Minister, Ahmad Shabery Cheek was perhaps among the first person to mention the term creative economy in a television interview for the inaugural Creative Industries Conference in 2009 organised by the ministry:

We hope the word C-Economy (creative economy) will become a household word in the society. We will monitor the progress of the C-Economy in the country and this is a platform that we have built.
(Bernama 2009)

In Malaysia, the development of creative industries revolves around the knowledge-based economy, with special focus given on multimedia, innovation and technology areas initiated by the government. The Multimedia Super Corridor (MSC) mega-project launched in 1995 is identified as one of the core elements for the growth of technology sectors in the country. The government had invested billions of Malaysian ringgit in several projects, including: MSC, Cyberjaya City; Technology Park Malaysia; Smart Schools; and Borderless Marketing. A part of the MSC mega-project, Cyberjaya City will act as a creative activities zone, and an export processing zone for foreign multinationals and export oriented domestic firms. This development is in line with the vision set by the fourth Malaysian Prime Minister, Mahathir Mohamad to make Malaysia a developed country by the year 2020. However, compared to her neighbours in the Asian region for example; Singapore and Indonesia, Malaysia is far behind in the development of their creative industries (Vicziany & Puteh 2004).

1.5 Cultural Tourism

Cultural tourism activities are a combination of cultural and tourism sectors. The phrase cultural tourism, however, was not used until 1992 (Stebbins 1996). The White House Conference on Travel and Tourism defined cultural tourism as “travel directed toward experiencing the arts, heritage and special character of a place” (as cited by Heritage Tourism National Trust 2002). From this definition, the key idea about cultural tourism is about “experiencing” the products.

The World Tourism Organisation (WTO) (1985) defined cultural tourism as the movement of persons for essentially cultural motivations (study tours, performing arts, and cultural tours), travel to festivals and other related events. Due to the rapid changes taking place around the world, more authors seem to include experience in their definition of cultural tourism. For example, National Assembly of State Arts Agencies (2005) defines cultural tourism as the mosaic of places, traditions, art forms, celebrations and experiences that portray a nation and its people. The element of experience plays a primary role in cultural tourism, and demonstrates a close connection between cultural tourism and experience industries. In countries such as Sweden and Switzerland, cultural tourism is categorised under experience industries (Nielsen 2004, 20). In-depth discussion about this close connection will be presented below.

Cultural tourism has been a major contributor to the tourism industry for more than twenty years, and plays an important role in the economies of many developing nations (WTO 2004). Rich cultural resources in developing countries are creative assets, and their use can enable developing countries to create their own unique cultural identities and products, which can be exported globally to reap economic and social benefits and increased participation in the global economy (UNCTAD 2008, 16). Therefore, many governments worldwide are now promoting their cultural tourism assets for the immense potential contribution to their economy (Heritage Tourism National Trust 2002).

Currently, cultural tourism products like arts, handicrafts, and traditional music are becoming more innovative. A substantial gap exists in the academic literature on this topic in relation to developing nations. Some research has attempted to marry aspects of cultural tourism and creative industries, which consequently led to the conceptualization of the term creative tourism, first introduced by Richards and Raymond (2000). However, further clarification is
needed to better understand this new concept, and the relationship between the two core elements that contribute to it.

1.5.1 Creative Tourism

In a global environment where tourists demand and expect first hand delightful and memorable experiences, the tourism sector needs to improve products and ensure that they inject some creative elements in order to remain competitive and sustainable (Richards & Wilson 2006). Smith (2007, 8) also notes that many countries have limited heritage attractions to develop or promote, therefore the focus on contemporary, experiential and creative tourism becomes of pivotal importance. Richards and Raymond (2000, 18) defines creative tourism as:

...tourism which offers visitors the opportunity to develop their creative potential through active participation in courses and learning experiences which are characteristic of the holiday destination where they are undertaken.

The term creative tourism demonstrates the relationship between cultural and creative forms of tourism, and is seen as a means to sustain the competitiveness of cultural tourism products. See Table 1.5.1

1.6 Creative Industries: A Discussion

The most cited definition of creative industries is that offered by the Department for Culture, Media, and Sport (DCMS), UK (2001), which defines creative industries as “those industries that are based on individual creativity, skill and talent. They are also those that have the potential to create wealth and jobs through developing intellectual property.” The creative industries include advertising, architecture, art and antiques markets, designer fashion, film and video, music, and software (DCMS 2001). Similarly, the Sweden Knowledge Foundation in Nielsen (2004) defines experience industry as “a collective term used to describe people and businesses in creative professions whose main purpose is to create and/or supply experiences in various forms”. This term has 13 sub-categories, including architecture, design, film/photography, visual arts, literature, advertising, media, fashion, music, culinary arts and meals, performing arts, tourism and experiential learning.

UNCTAD (2004; 2008 12-13) broadly classifies creative industries into four areas:

i) Heritage – traditional cultural expressions and cultural sites
ii) Arts – visual arts and performing arts
iii) Media (not including new media) – publishing and printed media and audiovisuals, and
iv) Functional Creations – design, new media and creative services.

This classification shows the intersections between culture, tourism and creative industries sectors that guide this study’s exploration of creative sectors in developing countries, particularly in Malaysia. The creative industries comprise a whole range of often overlapping organisations, products, and disciplines (Cunningham 2004), such as art, culture, and entertainment. Cunningham shows the close connection between these three sectors, particularly in developing nations, which tend to include culture and heritage when formulation their definition of the creative industries. While it seems self-evident that culture, tourism and creative industries are inter-connected, research examining their relationship is rare in developing countries.

Most research based on developed countries has omitted cultural tourism (such as heritage tourism) from being part of their creative industry (Cunningham 2002). Developing nations may not have the creativity, innovation and technology resources offered by the developed countries; nevertheless, this lack is compensated by the abundance of rich cultural resources that can be used as a platform to develop their creative industries, and to compete with the developed countries (UNCTAD 2008). Furthermore, significant findings demonstrate that some developing countries, mainly in Asia, have started benefiting from the dynamism of the global creative economy, and are establishing tailored, cross-cutting policies that enhance their creative industries (ibid. 2008, 5). However, many authors have challenged the UNCTAD report, mainly for its very broad definition of creative industries.

1.6.1 Creative Industries and the Cultural Industries

Heated arguments persist between cultural and creative industries theorists. Some argue that creative industries are exploiting cultural products for commercialisation purposes (see O’Connor 2007); others claim that cultural products simply are part of the creative industries (Hartley 2005). Yudice (2003, 1) cautioned that even though culture is a resource, it should be treated as more than just a commodity, and offered the example of Brazil, where culture has reduced social conflicts and can lead to economic development for the community in slum areas. This research uses an anthropological definition of culture, which sees the concept as that is more value-neutral and analytic, and can be found everywhere and not just in the high arts or in western “civilisation” (Smith 2001, 2). As the central focus of this study is on the developing nations, particularly in Malaysia, this broad idea of culture is suitable for this research.

1.6.2 Creative Industries and the Experience Industries

The creative industries are also known by other terms, including: experience industries (Sweden), cultural industries (UNESCO), cultural sector and cultural industries (The European Commission), cultural industries (China), content industries (Japan), and entertainment and media industries or copyright industries in the US (Nielsen 2004, 6).

The two definitions of creative and experience industries have close similarities, but differ in their sub-categories. In creative industries, only certain cultural products are considered as core products, while the rest, including tourism, are categorised as related areas. In the experience industries, culture and tourism are considered to be core areas. To some extent, perhaps, experience industries are more appropriate for consideration by the developing countries, which normally categorised their culture and tourism activities as part of their creative industries.

The concept of experience industries is a relatively new phenomenon (Darmer & Sundbo 2008, 1). Activities such as leisure, tourism, culture, marketing, and the Internet are part of the experience industry because they demand a fee from customers for a real service, good or commodity (Pine & Gilmore 1998). According to, an experience is created when a company deliberately uses services as the stage, and goods as props, to connect individual customers in a way that creates a memorable event, and subsequently charges fees (Pine & Gilmore 1998). The bigger picture of experience industries stems from the concept of the experience economy. In simplified terms, experience economy refers to society in general, while experience industries cover a limited number of industries such as the media, advertising and computer games (Nielsen 2004, 8). O’Dell (2005, 19) argues that tourism and the experience economy are within the same formula: as a commodity of tourism, culture is constantly being packaged and sold to us in terms of such things as difference, otherness, heritage, cultural identity, song, dance, music and art (see also Bryman 2004; Baerenholdt, Haldrup & Larsen 2008). This study examines the cultural product used by the tourism industry to attract tourists to visit attractions with creativity as an added value to the attractions or also known as cultural reconversion introduced by Cancilini (1992, 32). Disney Land and Disney World in the US are examples of how tourism uses culture and creativity to attract a significant number of tourists to visit a place, and to providing a unique and distinct experience.

（Editor's Note: This is part of the content abstracted from Siti Suriawati Isa's PhD Thesis submitted to Creative Industry Faculty, Queensland University of Technology in 2012 ）