Analysis of the Socioeconomic Impacts of Tourism in Malaysia

1. Malaysia
Leo Concepcion
Tourism Impacts Presentation
Comm 515T Global Tourism

2. Malaysia
• Official Name: Federation of Malaysia
• Capital – Kuala Lumpur
• Administrative Capital – Putrajaya
• Area – 329,758 sq km
• Population – 27.17 million
• federal constitutional monarchy in Southeast
Asia
• consists of thirteen states and three federal
territories and has a total landmass of 329,847
square kilometres (127,350 sq mi)
• Official Name: Federation of Malaysia
• Capital – Kuala Lumpur
• Administrative Capital – Putrajaya
• Area – 329,758 sq km
• Population – 27.17 million
• federal constitutional monarchy in Southeast
Asia
• consists of thirteen states and three federal
territories and has a total landmass of 329,847
square kilometres (127,350 sq mi)

3. Map of Malaysia
-13 states and 3 federal territories
-2 regions, with 11 states and two federal territories on
Peninsular Malaysia and the other two states and one federal
territory in East Malaysia

4. Tourism Offerings
• Buildings and Landmarks – Petronas
Twin Towers, KL Tower
• Amusement – Genting Highlands,
Legoland
• History – Georgetown, Melaka, St.
John’s Fort, Merdeka Square
• Shopping – BBKLCC, Central Market,
Siti Khadijah Market, Johor Premier
Outlet
• Beaches and Resorts – Langkawi
Beaches, Penang, Perhentian Islands,
Pulau Tioman, Sipadan Island
• Nature and Ecology – Mt. Kinabalu,
Gunung Mulu National Park, Taman
Negara, Cameron Highlands, Sepilok
Orangutan Rehabilitation Centre,
Tunku Abdul Rahman Marine Park

5. Tourism Offerings
• Cultural Festivals – Hari Gawai,
Thaipusam, Tadau Kaamatan
•Events – Le Tour de Langkawi, Pasir
Gudang International Kite Festival,
Sarawak Rainforest World Music
Festival, Petronas Malaysian Grand Prix
• Food and Cuisine – restaurants, food
stalls, native delicacies
Thaipusam
Pasir Gudang
World Kites Festival
Le Tour De
Langkawi
Formula 1 Pertonas
Malaysia Grand Prix
Tadau Kaamatan
Rainforest World Music
Festival

6. Emerging Niche Markets
•Medical Tourism – by Malaysia Healthcare Travel Council e.g.
Gleneagles Hospital, Kuala Lumpur, International Specialist Eye
Centre, Penang Adventist Hospital
• Migrant Tourism – Malaysia My Second Home Programme
• Education Tourism – by Ministry of Higher Education
• Golf Tourism – by Malaysia Golf Tourism Association
• MICE - meetings, incentives, conventions and exhibitions
•Adventure tourism
•Halal Tourism (Religious Tourism)
•Agri-tourism

7. Tourism Malaysia
• Established on 10 August 1972 as Tourist Development Corporation of
Malaysia; became Malaysia Tourism Promotion Board in 1992
• In an effort to diversify the economy and make Malaysia’s economy less
dependent on exports the government has pushed to increase tourism in
Malaysia.
• to make the tourism industry a prime contributor to the socio-economic
development of the nation, and aims to market Malaysia as a premier
destination of excellence in the region
• objective is to promote Malaysia as an outstanding tourist destination
• aim to showcase Malaysia's unique wonders, attractions and cultures;
develop domestic tourism and enhance Malaysia's share of the market for
meetings, incentives, conventions and exhibitions (MICE)
• ultimate goal is to increase the number of foreign tourists to Malaysia,
extend the average length of their stay and so increase Malaysia's tourism
revenue

8. Malaysia, Truly Asia
• Tourism campaign launched in
1999
• Focuses on diversity (melting pot of
Malay, Chinese and Indian race –
Asia’s major races, plus indigenous
groups) with European colonial
influences, diversity of cultures,
festivals, traditions and customs,
and biodiversity
• Malaysia’s first major effort at
developing the tourism industry
in a concerted and strategic
manner. After focusing on the
commodities, manufacturing and
industrial sectors, the services
sector including tourism had to
be developed in order for the
nation to continue to grow
• Positioning its self as a
connection into Asia

9. TV/Video Advertising
Campaign
• Multimedia –
http://www.tourism.gov.my/en/Master/Web-
Page/Footer/Resources-2/Multimedia
• Journey of Discovery (2012) -
http://www.youtube.com/watch?
v=Cv67Sm0PbN0
• The Best Time of Your Life (2012) -
http://www.youtube.com/watch?
v=OLHcgJEyl2I
• Ordinary Day (2011) -

10. Tourism Policies/Activities
• Malaysia 5 Year Plan – 5-year Malaysian government national development initiative
• National Tourism Policy
• Malaysia Tourism Transformation Plan (MTTP) – country’s targeted plan to attract 36 million tourist arrivals
and RM168 billion in receipts by 2020
• Economic Transformation Program - identified 12 National Key Economic Areas where tourism is the
fifth priority for development
• Policies and Tourism Development Strategies at State Level
• Incentives encouraging tourism operators and suppliers to provide best-in-class offerings
• Heavy promotion of tourism products and services
• Investment on new and improved infrastructures and facilities (e.g. Petronas Twin Towers, airports,
medical facilities, accommodations, ferries, air carriers)

11. Outcomes
• 9th
Most Visited Country in the World;
2nd
in Asia – UNWTO
• United Nations World Tourism
Organization (UNWTO) Ulysses Award
for Innovation in Public Policy and
Governance
• Most “Halal” friendly destination
• 10th
Friendliest Country in the World –
Forbes Online
• Best Choice for Holiday – Lonely
Planet’sTop-pick countries for 2008
• Best Ecotourism Destination –
Travelweekly (Asia) Industry Awards
2008
• Best International Tourism Destination
– Global Traveler
• Kuala Lumpur as 4th
Best Shopping
City in the World – CNN and 2nd
Best
Shopping Destination in Asia Pacific –
Globe Shopper Index

12. Tourism Statistics
Top visitors are from Asian
countries…
Tourist arrivals are on Y-on-Y growth since
1998…

13. Economic Impacts of
Tourism in Malaysia
• Employment
• Significant GDP growth contribution
• Visitor Exports
• Foreign exchange earnings
• Developed transportation and telecommunication infrastructures
– development of airports, highways, ferry piers, mobile phone
and internet services
• Development of other tourism offerings – lateral development in
an effort to provide consistent best-in-class experience
• Foreign and domestic investment – tourist destinations in
Malaysia make it attractive for investment (e.g. Johor Bahru when
Legoland was set-up)

14. Economic Impacts of
Tourism in Malaysia
• Land use conflicts – e.g. logging of
tropical forests in the Endau-Rompin
region of southern Peninsular Malaysia,
Land Use Conflicts in the Liwagu-Labuk
River Basin, Sabah, East Malaysia
• In-migration of labor from rural to urban /
tourism communities

15. Social Impacts of Tourism
in Malaysia
• Preservation of culture and
heritage
• Educational and Cultural
Exchange
• Recreation for Malaysians (social
health)
• Tolerance on Diversity
• Boost in the Malaysian national
identity

16. Social Impacts of Tourism
in Malaysia
•Misunderstanding among citizens
and the campaign message
(Pretentious harmony of different
cultures and races)
•Commodification of the Malaysian
ethnic culture
•Prostitution and human trafficking
•Rapid urbanization of tourist
destinations especially in Peninsular
Malaysia but slow development in
East Malaysia
•Migration

17. Environmental Impacts of
Tourism in Malaysia
• Environmental
Restructuring
• Waste Product Generation
• Direct environmental stress
/ Damage on the
ecosystem (coral reef
ecosystem, rainforest
degradation, etc.)
• Pollution

18. Environmental Impacts of
Tourism in Malaysia
• Conscious efforts
on environmental
preservation and
conservation
• Efforts on
educational
programs aiming
at environmental
awareness

19. Visit Malaysia Year 2014
• Malaysia is targeting to receive 28.8 million in foreign tourist arrivals
during VMY 2014. The theme of VMY 2014 is “Celebrating
1Malaysia…Truly Asia”
• The hosting of Visit Malaysia Year 2014 as well as the designating
of 2013 as a preparatory year (VMY campaign promotional year) is
timely as a means to boost arrivals in order to meet the 2020 target.

20. Discussion
• Is it good for Tourism Malaysia to develop as
many niche tourism markets as possible?
• While infrastructure development impacted
Malaysia positively, the level of development in
West Malaysia lags behind Peninsular Malaysia
despite both regions offering diverse tourism
destinations. Why do you think this happens?
• “Malaysia. Truly Asia” tag line was criticized
because it lacks character. Why do you think this
worked? Is it necessary to come up with a new
brand identity/tag line for Malaysia in preparation
for the Visit Malaysia Year 2014?

21. Terima
kasih!
Leo Concepcion
Tourism Impacts Presentation
Comm 515T Global Tourism