DISCUSS THE POSITIVE AND NEGATIVE IMPACT OF TOURISM MALAYSIA ECONOMIC
DEVELOPMENT
Foreign exchange earnings
This all figure it means that the tourism is very important for economic, it helps the global
economic gain strength in financial crisis and makes it more stable. International tourism
economic gain strength in financial crisis and makes it more stable. International tourism
can become a major foreign exchange earner for many low income countries like Cambodia,
Indonesia, India and Africa. Many countries are trying to develop tourism sector and
increase the number of incoming visitors because international tourism brings a lot of
increase the number of incoming visitors because international tourism brings a lot of
foreign exchange to the host country.
Job opportunities
In Malaysia, tourism was important to economic, it creates around 1,331,000 jobs in 2010,
and it helps Malaysia’s job opportunities increasing and the tourism investment brings
and it helps Malaysia’s job opportunities increasing and the tourism investment brings
around RM 19.9 billion revenue in 2010 , its should reach RM 49.8 billion in 2020. The
economic impacts of tourism usually focus on the related tourism sectors that change in
sales, income and employment.
Increase in government revenues
Expenditure of improving access and facilities for tourist arrivals, upgrade and maintaining
the public and on some marketing campaigns in major source markets and tourist
the public and on some marketing campaigns in major source markets and tourist
infrastructure such as roads, sewage, public transport, electricity and communications.
NEGATIVE
There are many hidden costs to tourism, which can have unfavorable economic effects on the
host community. Often rich countries are better able to profit from tourism than poor ones. Whereas the least developed countries have the most urgent need for income, employment
host community. Often rich countries are better able to profit from tourism than poor ones. Whereas the least developed countries have the most urgent need for income, employment
and general rise of the standard of living by means of tourism, they are least able to realize
these benefits. Among the reasons for this are large-scale transfer of tourism revenues
out of the host country and exclusion of local businesses and products.
these benefits. Among the reasons for this are large-scale transfer of tourism revenues
out of the host country and exclusion of local businesses and products.
Leakage
The direct income for an area is the amount of tourist expenditure that remains locally
after taxes, profits, and wages are paid outside the area and after imports are purchased;
these subtracted amounts are called leakage. In most all-inclusive package tours, about
80% of travelers' expenditures go to the airlines, hotels and other international companies
(who often have their headquarters in the travelers' home countries), and not to local
these subtracted amounts are called leakage. In most all-inclusive package tours, about
80% of travelers' expenditures go to the airlines, hotels and other international companies
(who often have their headquarters in the travelers' home countries), and not to local
businesses or workers. In addition, significant amounts of income actually retained at
destination level can leave again through leakage.
Infrastructure cost
Tourism development can cost the local government and local taxpayers a great deal of
money. Developers may want the government to improve the airport, roads and other
infrastructure, and possibly to provide tax breaks and other financial advantages, which
are costly activities for the government. Public resources spent on subsidized infrastructure
or tax breaks may reduce government investment in other critical areas such as education
and health.
and health.
Economic dependence of the local community on tourism
Diversification in an economy is a sign of health, however if a country or region becomes
dependent for its economic survival upon one industry, it can put major stress upon this
industry as well as the people involved to perform well. Many countries, especially
developing countries with little ability to explore other resources, have embraced tourism as a way to boost the economy.
dependent for its economic survival upon one industry, it can put major stress upon this
industry as well as the people involved to perform well. Many countries, especially
developing countries with little ability to explore other resources, have embraced tourism as a way to boost the economy.
Seasonal character of jobs
The seasonal character of the tourism industry creates economic problems for destinations
that are heavily dependent on it. Problems that seasonal workers face include job
that are heavily dependent on it. Problems that seasonal workers face include job
(and therefore income) insecurity, usually with no guarantee of employment from one
season to the next, difficulties in getting training, employment-related medical benefits,
and recognition of their experience, and unsatisfactory housing and working conditions.
and recognition of their experience, and unsatisfactory housing and working conditions.
NUMBER OF VISITS AND TOURISM RECEIPT IN MALAYSIA
According to 2005 data from World Tourism Organization (WTO), Malaysia places 14th in
the ranking of counties either by international tourism arrivals. International tourism
arrivals in Malaysia increased from 7.9 million in 1999 to 23.6 million in 2009, representing
an average annual growth about 15.7 million and the growth of tourist receipts has been
arrivals in Malaysia increased from 7.9 million in 1999 to 23.6 million in 2009, representing
an average annual growth about 15.7 million and the growth of tourist receipts has been
even more spectacular, rising from RM 12.3 billion in 1999 to RM 53.4 billion in 2009 with
an annual growth about RM 41.1 billion (Malaysia Tourism Statistics, 2010).
an annual growth about RM 41.1 billion (Malaysia Tourism Statistics, 2010).
In 2010, Malaysia’s tourism is expected to generate RM 98 billion of economic activity. The
industry’s direct and indirect effect of travel and tourism in Malaysia in 2010 was expected
industry’s direct and indirect effect of travel and tourism in Malaysia in 2010 was expected
to account for 37 billion of GDP (equivalent to 5.1% of total GDP) and 597,000 jobs
(5.3% of total employment). However, since the tourism touches all the sectors of
the economy, it bring a real impact is even greater. The travel and tourism sector generated
RM 98 billion in economy GDP (equivalent to 13.4 of total GDP), export revenue, services
and merchandise representing RM 89 billion (equivalent to 12.7% of total exports), economy
and merchandise representing RM 89 billion (equivalent to 12.7% of total exports), economy
employment representing 1,331,000 jobs (11.9% of total employment) and it making
tourism in Malaysia is the second largest contributor of foreign exchange earnings to the
country after the manufacturing sector.
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WORKFORCE DISTRIBUTION IN TOURISM INDUSTRY
One thing is certain about the tourism industry: it is fast, growing and infinite in
opportunities, variety and possibilities. A unique and individual employment path exists for
anybody considering a tourism career. For those who are drawn to people, places and
opportunities, the tourism sector provides everything you've ever desired in a profession.
Whether you prefer to work indoors or in the wilderness, for a large resort or your own small business, you will find accomplishment in your efforts, contributions and enthusiasm to
exceeding each and every guest experience Five unique industry groups comprise the
tourism sector as a whole, with job skills and experiences that are transferable between each.How you carve out your career path is limited only by where you apply your interests and
how far you want to grow professionally.
CONTRIBUTION OF ACCOMMODATION SECTOR IN MALAYSIA
A country that managed to manipulate the panorama of the beautiful surroundings , the
remains of history , unique culture , economic development , education and treatment , and
organizing international events will attract a high rate of tourist arrivals from around the
world are . The tourism sector not only emerged as a major contributor to the national
income , but also generates a large multiplier effect in the economy . Employment and
research in the field of tourism can also be expanded more aggressively. With the
convenience of online services , cost effectiveness in terms of tourism marketing can be
optimized .
Traditionally, the tour focused on the natural beauty of God's creation that persona. Local
and foreign tourists enjoy the peaceful views of the soul, to be displaced from the course of
therapy and life is so odd . Malaysia is rich with the greatest tourist destinations such as
Langkawi , Penang , Terengganu coast , Belum Forest and National Park in Pahang , Sabah
and Sarawak . Lush tropical forest, the wind whistling breeze are on the beach and
adventure in places like resorts make Malaysia an earthly paradise beckon tourists .
Adventure and leisure tourism concept as mentioned has led to the development of the
service sector , as well as small and medium enterprises . Registered travel agencies ,
accommodation providers , transport operators , meals , souvenirs , handicrafts and
independent tour guides did not win a hand in serving the needs of travelers. Licensing
applied to tourism industry players aim to enhance professionalism and quality of service
offered. More colleges and universities offering tourism courses to doctorate level for players
to complete the tourism industry more competitive and respected. Services will be
conducted on a regular basis to give an image boost the country's tourism sector .
Malaysia also has a history of nation building is very unique . Cultural and ethnic diversity
either West or East Malaysia land became very valuable capital to that sector. Malacca is just an example of quiet and sleepy town at one time . Conservation of historic buildings such as
the A Farmosa , a row of red paint remnants Netherlands premises and location
independence declaration in Bandar Hilir and many more have been put Malacca on the
world tourism map , even more so with the status of a world heritage site by Unesco
awarded . Historical monuments together with the information provided to make Malaysia
more than worth a visit.
In Sabah and Sarawak , the arts and fabric manipulation Kadazan and Iban has been
promoted as effective . Home life and home long stakes ( water areas ) are also being
contemplated as a very special travel experience . Fresh air and comfortable without
pollution into a symbol of the value-added of a calm and sober life . International tourists ,
especially from developed countries consider our country as a cheap holiday destination
as an attractive foreign exchange rates . The tourism sector can contribute to the size of the
larger foreign reserves .
Foreign investors , consultants and employees of multinational companies who deal in this
country will be drawn to the country's rapid economic progress . Klang Valley has long been a focus because there is the headquarters of the international financial institutions and
high-tech companies . Similarly, the development of offshore financial center of Labuan and
Iskandar Malaysia in Johor . With the promotion and offer attractive tour packages , foreign ekspetariat would bring family members to travel to Nagara , other stories and word of
mouth virtual network like facebook and twitter about wonderful experience to visit
Malaysia .
Malaysia also has developed tertiary sector and private specialty hospitals . Aggressive
overseas promotion has made as a tourist destination for the purpose of education and health. International student exchange program will have a positive impact in the long run to the
tourism sector . The arrival of the patient and the family to seek treatment with a
competitive cost contributed to the demands of local goods and services by foreigners . The
opening of the Johns Hopkins medical campus recently showed the world 's leading
universities beliefs about the prospects of the treatment field in Malaysia . Thus , foreign
students and tourists arrivals expected to increase drastically health .
World -class sporting events and international conferences also put Malaysia on the map of
sports tourism and forums. F1 motor racing event , the Monsoon Cup golf tournament and
the Malaysian Open tennis , and Le Tour de Langkawi, for example, were supporters entice
international sports stars to Malaysia . Sports travel expenses to purchase tickets , food ,
lodging and souvenirs, as well as advertising and broadcast rights to generate revenue worth billion dollars . Once a sports tourists captivated by the beauty of nature and courtesy of the Malaysian society , they'll come again . Similarly, the construction of the convention center as the Kuala Lumpur Convention Centre ( KLCC ) , Putrajaya International Convention Centre ( PICC ) and conference hall has five-star hotels like boost tourist arrivals join high level talks as well as international corporate events . Opportunity to promote the country's
tourism destinations for all participants and their supporters will contribute to the
proliferation of the tourism sector in the long term .
In conclusion, the perspective of the tourism sector in Malaysia has reached out segment
attraction natural beauty . Different segments of the tourism attraction strategy
advantageous to Malaysia to offer tourism products more competitive. The contribution of
tourism to national income will continue to rise. Economic status , political , social and good
security guarantee that the country will be the preferred choice of foreign tourists . Coming
of nearly 30 million foreign tourists each year proves that Malaysia has a very brilliant
future in tourism
ECONOMIC MULTIPLYING EFFECTS OF TOURISM
ENTREPRENEURIAL OPPORTUNITIES IN TOURISM INDUSTRY
ECONOMIC MULTIPLYING EFFECTS OF TOURISM
Tourism has a variety of economic impacts. Tourists contribute to sales, profits, jobs, tax
revenues, and income in an area. The most direct effects occur within the primary tourism
sectors such as lodging, restaurants, transportation, amusements, and retail trade . Throughsecondary effects, tourism affects most sectors of the economy. An economic impact analysis of tourism activity normally focuses on changes in sales, income, and employment in a region resulting from tourism activity. A simple tourism impact scenario illustrates. Let’s say
region attracts an additional 100 tourists, each spending RM100 per day. That’s RM10,000
in new spending per day in the area. If sustained over a 100 day season, the region would
accumulate a million dollars in new sales. The million dollars in spending would be distributedto lodging, restaurant, amusement and retail trade sectors in proportion to how the visitor
spends the RM100. Perhaps 30% of the million dollars would leak out of the region
immediately to cover the costs of goods purchased by tourists that are not made in the local area (only the retail margins for such items should normally be included as direct sales
effects).
The remaining RM700,000 in direct sales might yield RM350,000 in income within tourism industries and support 20 direct tourism jobs. Tourism industries are labor and income
intensive, translating a high proportion of sales into income and corresponding jobs.The
tourism industry, in turn, buys goods and services from other businesses in the area, and
pays out most of the RM350,000 in income as wages and salaries to its employees. This
creates secondary economic effects in the region. The study might use a sales multiplier of
2.0 to indicate that each dollar of direct sales generates another dollar in secondary sales in this region. Through multiplier effects, the RM700,000 in direct sales produces RM1.4 millionin total sales. These secondary sales create additional income and employment, resulting in a total impact on the region of RM1.4 million in sales, RM650,000 in income and 35 jobs. Whilehypothetical, the numbers used here are fairly typical of what one might find in a tourism
economic impact study. A more complete study might identify which sectors receive the
direct and secondary effects and possibly identify differences in spending and impacts of
distinct subgroups of tourists (market segments). One can also estimate the tax effects of
this spending by applying local tax rates to the appropriate changes in sales or income.
Instead of focusing on visitor spending, one could also estimate impacts of construction or government activity associated with tourism. There are several other categories of economic
impacts that are not typically covered in economic impact assessments, at least not directly.
For example:
· Changes in prices -- tourism can sometimes inflate the cost of housing and retail prices in the area, frequently
on a seasonal basis.
· Changes in the quality and quantity of goods and services – - tourism may lead to a wider array of goods and services available in an area
(of either higher or lower quality than without tourism).
· Changes in property and other taxes –
- taxes to cover the cost of local services may be higher or lower in the presence of tourism
activity. In some cases, taxes collected directly or indirectly from tourists may yield
reduced local taxes for schools, roads, etc. In other cases, locals may be taxed more heavily
to cover the added infrastructure and service costs. The impacts of tourism on local
government costs and revenues are addressed more fully in a fiscal impact analysis.
· Economic dimensions of “social” and “environmental” impacts -
- there are also economic consequences of most social and environmental impacts that
are not usually addressed in an economic impact analysis. These can be positive or
negative. For example, traffic congestion will increase costs of moving around for both
households and businesses. Improved amenities that attract tourists may also
encourage retirees or other kinds of businesses to locate in the area.
ENTREPRENEURIAL OPPORTUNITIES IN TOURISM INDUSTRY
Entrepreneurship defined
It is the innovatory process involved in the creation of an economic enterprise based on a
new product or service which differs significantly from products or services in the way its
production is organized, or in its marketing.
What is an Entrepreneur?
One who creates a new business
Ø in the face of risk & uncertainty
Ø for the purpose of achieving profit & growth
Ø by identifying opportunities and assembling the necessary resources to capitalize on
them.
Varieties of Entrepreneurs
¢ Founder (“Pure” Entrepreneur)
§ A person who brings a new firm into existence.
¢ Administrative Entrepreneur
§ An entrepreneur who oversees the operations of an ongoing business
¢ Franchisee
§ An entrepreneur whose power is limited by the contractual relationship with
a franchising organization.
a franchising organization.
¢ Entrepreneurial Team
§ Two or more people who work together as entrepreneurs.
Other Industry Segments
Lodging Operations
§ All Suit Hotels
§ Casino Hotels
§ Conference Centers
§ Full Service Hotels
§ Limited Service Hotels
§ Resorts
§ Retirement Communities
Food Service Operations
§ Commercial Cafeterias
§ Education Food Service
§ Employee Food Service
§ Full - Service Restaurants
§ Health Care Institutions
§ Lodging Food Services
§ Quick Service Restaurants
§ Recreational Food Services
§ Social Caterers
Other Operations
Ø Airlines
Ø Campgrounds
Ø City Clubs
Ø Country Clubs
Ø Cruise ships
Ø National Parks
Ø Event Management Organizations
Travel Related Businesses and Entrepereneurship Opportunities
§ Marketing Representative/Agent
§ Travel Agent
§ Recreation Specialist
§ Incentive Travel Specialist
§ Policy Analyst
§ E-tourism Expert/Specialist
§ Destination Development Specialist
§ Tourism Investment Projects Consultant
§ Tour Wholesaler
§ Tour Broker
§ Travel Counselor
§ Meeting/Conference Planner
§ Advertising Agency
§ Entertainer/Animator
§ Health Specialist (Health SPA etc.)
§ Small Business Owner (Guest House, Hotel, Restaurant, Souvenir shop etc.)
Doing Business in Tourism Industry
v Tourism and travel Industry has the reputation of being a relatively clean and
pleasant industry in which to invest
v Requires relatively low start up capital
v Setting up in the industry is often seen as simple and requiring few skills other than
the off-claimed ability to get along with people
v It is therefore attractive to those leaving from other jobs and investments or do not
enjoy them, to buy into a bar, guest house or travel business for example.
v Provides opportunities for those who would like to use individual skills in a beautiful
environment. i.e., a chef may happily work in pleasant resort and a tour guide/travel
agent use his/her talents in the related field
v Provides new business opportunities, such as event management.
MAJOR TOURIST-GENERATING AREAS IN MALAYSIA
Island
1. Pulau Tioman, Pahang.
·Tioman Island (locally known as Gunung Daik Bercabang Tiga) is a small island located
32 km off the east coast of Peninsular Malaysia in the state of Pahang, and is some 39 km
long and 12 km wide.
· It has eight main villages, the largest and most populous being Kampung Tekek in the
north. The densely forested island is sparsely inhabited, and is surrounded by numerous
coral reefs, making it a popular scuba diving spot.
· There are also a lot of resorts and chalets around the island which has duty free status.
2. Pulau Perhentian, Terengganu
· The Perhentian Islands are two islands named Pulau Perhentian Kecil
(Small Perhentian Island) and Pulau Perhentian Besar (Large Perhentian Island).
· The Malay name Perhentian is translated as “place to stop” and this is exactly what
these two islands were for traders travelling between Malaysia and Bangkok in years
gone by.
· These islands are still a gorgeous place to stop and rest today, albeit for tourists
disconnecting from the stress and routine of everyday life and not for weary seafaring
traders.
3. Pulau Sipadan, Sabah
· Sipadan is the only oceanic island in Malaysia, rising 600 metres (2,000 ft) from the
seabed. It is located in the Celebes Sea off the east coast of Sabah, East Malaysia
(which is on the island of Borneo).
· It was formed by living corals growing on top of an extinct volcanic cone that took
thousands of years to develop. Sipadan is located at the heart of the
Indo-Pacific basin , the centre of one of the richest marine habitats in the world. More
than 3,000 species of fish and hundreds of coral species have been classified in this
ecosystem.
· Sipadan has been rated by many dive journals as one of the top destinations for diving
in the world.
Highland
1. Genting Highland, Pahang
· The hill resort is at an average elevation of 1740 meters above sea level (5708 feet)
within the Titiwangsa Mountains on the border between the states of Pahang and
Selangor of Malaysia.
· Resorts World Genting is operated by Genting Malaysia Berhad (formerly known as
Resorts World Bhd), which also operates Awana chain of resorts & hotels.
· It is accessible by car from Kuala Lumpur in one hour, or also accessible by a cable car
called Genting Skyway (3.38 kilometres (2.10 mi) which at its opening used to be the
world's fastest and South East Asia's longest gondola lift.
2. Cameron Highland, Pahang
· The Cameron Highlands is one of Malaysia’s most extensive hill station. The size
of Singapore, it occupies an area of 712 square kilometres (275 sq mi) in the Titiwangsa
· To the north, its boundary touches that of Kelantan to the west, it shares part of its
border with Perak.
· Situated at the northwestern tip of Pahang, the “Camerons” is approximately 90
kilometres (56 mi) from Ipoh or about 200 kilometres (120 mi) from Kuala Lumpur.
It is the smallest constituency in Pahang.
3. Bukit Tinggi, Pahang
· Bukit tinggi (Indonesian for "high hill") is one of the larger cities in West Sumatra,
Indiana, with a population of over 91,000 people and an area of 25.24 km².
· It is in the Minangkabau Highlands, 90 km by road from the West Sumatran capital
city of Padang. The whole area is directly adjacent to the city of Agam Regency.
· It is located at 0'18'20"S 100'22'9"E, near the volcanoes Mount Singgalang (inactive) and Mount Marapi (still active). At 930 m above sea level, the city has a cool climate with temperatures between 16.1° to 24.9°C.
Historical
1. Perigi Hang Tuah, Melaka
· The story of the ultimate Malacca warrior, Hang Tuah, is the stuff of legends.
Faithfully serving Sultan Mansur back in the 15th century,
· This infamous historical figure had an exemplary record of achievements, which
include successfully warding off advances from Siam and Acheh, and a winning
duel with Taming Sari, a warrior from the court of Majapahit.
2. Makam Mahsuri, Langkawi
· Mahsuri was the daughter of a Malay couple who moved from their native
Phuket to the island of Langkawi in search of a better life.
· As was required of him, her husband had to go to war, leaving Mahsuri behind
to fend for herself. It was during this time that Mahsuri befriended a young man
named Deraman.
· The village chief's wife was jealous of Mahsuri's beauty. She spread a rumour
that Mahsuri was unfaithful and was having an affair with Deraman in the
absence of Wan Darus.
· Eventually the rumours grew strong enough that the villagers openly accused
her of adultery. Mahsuri pleaded her innocence, but no one believed her.
3. Bandar Hilir, Melaka
· In 1511, a Portuguese fleet arrived under the command of Afonso de Albuquerque. His
forces attacked and defeated the armies of the Malacca Sultanate.
· Moving quickly to consolidate his gains, Albuquerque had the fortress built around a
natural hill near the sea. Albuquerque believed that Malacca would become an important
port linking Portugal to the Spice Route in China.
· At this time other Portuguese were establishing outposts in such places as Macau, China
and Goa, India in order to create a string of friendly ports for ships heading to China and
returning home to Portugal.