Tourism

Tourism

Malaysia is one of the world's top destinations, in the top 10 in arrivals and top 15 in global receipts.

Tourism is our fifth largest industry, generating RM37 billion in GNI in 2009. The industry is expected to continue growing with arrivals rising from 24 million in 2009 to 36 million in 2020.

 
List of EPPs
Tourism
NoEPPs2020 GNI (millions)JobsLocationStatus
1.0Tourism - EPP 1: Positioning Malaysia as a duty free shopping destination7,838.364,294Nationwide Operational 
2.0Tourism - EPP 2: Bukit Bintang - Kuala Lumpur City Centre Shopping Precinct1,159.214,546Kuala Lumpur Work In Progress 
3.0Tourism - EPP 3: Establishing Premium Outlets in Malaysia875.21,500Nationwide Work In Progress 
4.0Tourism - EPP 4: Malaysia Mega Biodiversity Hub (MMBH)1,486.92,919Nationwide Work In Progress 
5.0Tourism - EPP 5: Developing an eco-nature integrated resort in Sabah706.67,733Sabah Work In Progress 
6.0Tourism - EPP 6: Cruise Tourism1,758.29,713Nationwide Work In Progress 
7.0Tourism - EPP 7: Targeting more international events426.78,036Nationwide Work In Progress 
8.0Tourism - EPP 8: Designated Entertainment Zones (DEZ)740.45,614Nationwide Work In Progress 
9.0Tourism - EPP 9a: Developing local expertise & better regulating the spa industry666.25,644Nationwide Work In Progress 
9.0Tourism - EPP 9b: Golf Tourism666.25,644Nationwide Work In Progress 
10.0Tourism - EPP 10: Establishing Malaysia as a leading business tourism destination3,94716,720Nationwide Work In Progress 
11.0Tourism - EPP 11: Enhancing connectivity3,310.513,402Nationwide Work In Progress 
12.0Tourism - EPP 12: Improving rates, mix & quality of hotels5,528.764,424Nationwide Work In Progress 

Business Opportunities

In addition to the 12 high-impact EPPs, we have also identifed three business opportunities which will support the growth of the tourism industry. The three business opportunities are focused on (1) food and beverage outlets; (2) local transportation; and (3) tour operators.

Business Opportunity 1: Food and Beverage Outlets

Food and beverages represents one of the core components of tourist spend. Given the increase in arrivals as well as the shift towards high-yield tourists, there is an opportunity to increase GNI from food and beverage outlets by RM3.6 billion in 2020. This will be achieved through an increase in the number of food and beverage outlets which will be driven by additional demand arising from growth in the number of tourist arrivals. We estimate the food and beverage segments will require approximately RM1.4 billion in capital expenditure. An estimated 9,600 job opportunities will also be generated due to this business opportunity, though these will predominantly be positions for lower-wage service workers given the nature of the industry.

Business Opportunity 2: Local Transportation

Tourists spend about 10 percent of total expenditure (about RM230 per visit) on local transportation. A signifcant portion of that is spent on taxis, which has contributed to the 5 percent growth in the number of taxis from 2007 to 2009. Additional taxis to support further growth will be required not only in the Klang Valley, but also in the other tourism clusters in the North (Penang), South (Melaka and Johor), Sabah (Kota Kinabalu) and Sarawak (Kuching), that are being developed through EPPs such as the Integrated Resort and Cruise Tourism. Specifc EPPs, such as the Global Biodiversity Hub, which promote development of tourism sites away from traditional city centres, will also increase the need for local transportation and taxis.

Overall, the GNI impact is expected to be RM0.7 billion with 45,000 jobs generated by 2020. Total capital expenditure required is estimated to be RM1.2 billion.

Business Opportunity 3: Tour Operator Segment

Given the increase in arrivals, there is an opportunity to increase GNI from the tour operator segment by RM0.9 billion in 2020. This will be accomplished through an increase in the number of travel agents, an improvement in the productivity of travel agents and an increase in the number of tour guides to serve more inbound tourists to Malaysia. Additional capital expenditure of RM1.1 billion will be required and it is expected that this will generate 7,450 additional jobs, including 2,300 additional tour guides.

2012/03/05
Status:
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