Chapter 10 Malaysia Tourism 2020

Topics: Tourism, Cruise ship, Shopping mall Pages: 44 (14207 words) Published: September 3, 2011



Economic Transformation Programme 317 A Roadmap For Malaysia

Chapter 10: Revving Up the Tourism Industry
“The tourism sector will continue to be in the forefront of Malaysia’s economic development. This sustainable and high-yield sector will continue to drive Malaysia’s economy, providing income and job opportunities to the Rakyat. Malaysia has a strong global tourism position today. We are the 9th most visited country in the world and we receive RM1 billion receipts per week from foreign visitors. Realising the advantage and strong position we possess in the tourism industry globally, the Government is committed to further develop this sector together with the private sector for the benefit of the Rakyat. We have set sight on the target of 2020:36:168. That is in the year 2020, Malaysia will receive 36 million tourist arrivals and RM168 billion tourist receipts. This would mean the industry will grow by 3 times and tourism will contribute RM3 billion receipts per week to the country in 2020. This strategic ambition will be achieved through the 12 initiatives proposed under the Tourism National Key Economic Areas (NKEA). As the Minister of Tourism, I look forward to the successful delivery and implementation of the Tourism NKEA. I seek the support of all Malaysians to work together with the Ministry of Tourism to ensure the success of this important national agenda.”

YB Dato’ Sri Dr. Ng Yen Yen


alaysia is recognised globally as one of the leading tourism destinations, ranking in the top 10 in arrivals and top 15 in global receipts. The tourism industry is also an important contributor to our economy, generating RM36.9 billion in gross national income (GNI) in 2009. This makes

tourism the fifth largest industry in our economy after Oil, Gas and Energy, Financial Services, Wholesale and Retail, and Palm Oil. By 2020, the tourism industry will contribute RM103.6 billion in GNI, with arrivals increasing from 24 million in 2009 to 36 million in 2020.

Tourism refers to both leisure and business tourism and includes the following subsectors: accommodation, shopping, tourism products (i.e. eco-tourism, cruise tourism and other related activities such as spa and wellness) and food and beverage as well as inbound and domestic transportation.


Chapter 10 Revving Up the Tourism Industry

Two key tourism subsectors – education tourism and medical tourism – are not included in this NKEA, as they are addressed in other NKEA Labs . 1

Malaysia has a solid starting position to propel itself into a key tourism destination. The industry is already large (RM53 billion in receipts in 2009), has been consistently fast growing (14 percent per annum for the past ten years and 12 percent growth per annum from 2004 to 2009) and has a strong global competitive position. This good foundation can be leveraged to enhance the sector’s contribution to our economy. Globally, there are several megatrends that affect the tourism industry. Megatrends represent inexorable growth, cut across industries and are structural shifts that will be relevant to the business world in the next five to ten years. The four megatrends that are both relevant and important for the future of our tourism industry are: • Trading up and trading down: This refers to consumers selectively spending above or below their income level for selected goods. A consumer may choose to splurge on one item, while deciding to economise on others. An example of this behaviour would be a consumer who flies on a budget airline to Malaysia to reduce cost, but then stays in a five-star resort to enjoy an exclusive luxury experience; • Creation of global elite: This refers to the increasing number of high-income or high net worth consumers around the globe. This group is characterised by having homogenous demands and has high expectations about product and service quality. For example, a...
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