Marketing Assignment Essay Writing Analysis Review on Tourism: Malaysian Hotel & Tourism Industry

Tourism Planning & strategies Question??

Develop the tourism industry in Malaysia

Answer the Essay Frame is::

Malaysia as a tourist destination

In comparison to other sectors of Industry, the tourism industry is well developed at Malaysia. This industry effects in a positive manner in giving a boost to the Malaysian economy with a rapid increase in the earnings, of foreign exchange along with good employment opportunities. In the year 2005, it was declared by the World Tourism Organization that Malaysia stands 14th in the overall ranking based on the international tourism arrivals. Among the 53 different common wealth countries Malaysia ranks 3rd next to Britain and Canada. A wide increase in the foreign revenue generation was noticed in the year 2006 and the tourism sector generated about US$18.1 billion through export revenue, which is almost 10% of the total foreign revenue earned by the country. Different efforts were taken by the government of Malaysia, to make the country more developed and a prime place of attraction for tourist from all parts of Asia and world. You can notice a huge infrastructure and physical development was given due priority by the government of Malaysia along with the established projects of tourism with good attraction of tourism for the prospect of the country (Jamil. J, 2007). After the independence of Malaysia, the Malaysian people put their concern on the western influences on the tourism development (Din, 1982). The tourism development continued its journey with a vision for the national development, the civilization of Islam, with a great progress in the parallel with the teachings of Islam (Islam,H, 2005). Out of the world’s 57 Muslim countries, only four countries manage to earn 17.5 million tourists in 2004. The countries are Malaysia, Morocco, Egypt, and Turkey (Islamic countries Seek Bigger Piece of Tourism Pie, 2005).

 The tourism policy and its implementation in Malaysia

As per as the overall development of Malaysia is concerned, NEP directly influenced it from 1971 to 1990. In later part NEP was replaced with the introduction of New Development Policy from the period 1991 to 2000. Several objectives of NEP were included in New Development Policy. Like various other industries and sectors of the economy of Malaysia, focus was also given towards the development of tourism industry by NEP. Depending on that, a federal form of constitution was adopted by Malaysia. Under this constitution come all the thirteen states and all the federal territory. The central government of Malaysia designed the policies keeping in mind a linear path with regard to their implementation on the state level.

 But in real terms it seemed like quite difficult to centralize the flow of the process, particularly due to the involvement of each state with own legislative style. Many of the state participated in the argument to oppose some of the policies of tourism as they feel that goes against the local norms of the state.

Institutionalization of the industry of tourism in Malaysia

The year 1995, marked the beginning of tourism as a new force of the economic sector of Malaysia with the setting up of the Department of Tourism under the Ministry of Trade of Malaysia. It clearly justifies that the industry of tourism is a late arriver in comparison to any other sector of industries in Malaysia (Tan, W.H 1991). The involvement of Malaysian government was in a slow pace towards the tourism industry, while most of the developing countries concentrate on the tourism industry to follow the path of growth in the economic front. A sudden fall in the commodity prices inspired Malaysian government to give new life to the industry of tourism, in order to sustain the growth of economy principle objectives of tourism, was included in the tourism master plan of Malaysia, which was the country’s 2nd Malaysia Plan 1971-75, marked the new beginning of the tourism sector as the contributing force  for the economic development of Malaysia. In the year 1972, a dedicated agency was established known as the Tourist Development Corporation by the parliament of Malaysia. It is established with the mission to promote tourism of Malaysia. A new phase is marked with the involvement of the government in this sector. An international bench mark was achieved by the tourism industry in the year 1972 when Malaysia hosted the Pacific Area Travel Association (PATA) 21st conference, which resulted in the gradual increase in the number and percentage of the international tourist into Malaysia. A rapid increase is noticed also in the number of inbound tourist with the availability of the facility of regional airports and that too of an international standard.

 In the year 1986, the PATA 35th conference was held at Malaysia, which enhances the tourist attraction of the place in the subsequent years with the highlighting of the facilities and services offered to the delegates (Tan,W.H, 1991).A grand event was organized in the year 1990 on tourism . The event was named the Visit Malaysia Year 1990. In that very year a record visit of almost seven million international tourists was marked, which is a growth of almost 53.6% from the previous year. The grand success of this event gave a targeted increase of almost 10% for each coming year.

The Ministry of Culture, Arts and Tourism was introduced in the year 1992 to coordinate and plan the  tourism activities of the country with close monitoring of the activities too. The inceptions of the Malaysia Tourism Promotion Board (MTPB), in the same year establish Malaysian tourism as one of the major force of the economic sectors of Malaysia. Malaysia Tourism Promotion Board took the initiative to promote Malaysia as the world tourism destination in order to enhance the socio economic well being of the country of Malaysia. On the other hand the Ministry of Culture, Arts and Tourism were entrusted with the responsibility to formulate the policies for tourism industry of the country.

 MTPB get the advantage to promote Malaysia on the international level with about 29 offices on worldwide basis. The domestic destinations were marked and then it was matched with various selected international markets. Keeping this concept of promotion eight destinations were marked with another four additional sites in each subsequent year. The destinations of Sabah, Langkawi, and Sarawak were promoted in high level especially to the European market, especially due to the appeal of the nature along with the sand and beaches.

 The development authority of the Langkawi targets the tourist from the Western Europe, area as the tourist from there do possess the capacity to avail and enjoy the facilities of  the four to five star hotels located on the Langkawi Island.

 The above discussion on the Institutionalization  of the industry of tourism in Malaysia clearly depicts how the development of the tourism industry take place in different stages  to establish the country as one of the attractive destination for the tourist specially on the international level.

Hotel and tourism industry investment

Almost 24 projects get approved for a total investment of RM1.9 billion in the hotels and tourism subsector in 2011. The domestic investment amounts to RM1.8 billion (94.7%), and the foreign investments made counts to RM63.1 million (5.3%). If a comparison is made on the investments made on the hotels and tourism industry of Malaysia in the year 2010, of about RM2.5 billion, the maximum of them are the domestic investments.

 The different categories of Malaysian tourism industry

 The Malaysian tourism industry is an important sector of the country’s economy and plays a leading role in the growth of the economy with its contribution. One of the important sources of revenue for the overall development of the economy is this industry of tourism. Wide improvement has been noticed in the development of the tourism industry. The industry of tourism can be classified into seven specific categories.

  • Education-tourism
  • Domestic tourism
  • Shopping tourism
  • Medic-tourism
  • Eco-tourism
  • Agro-Tourism
  • Sports tourism

The promotion of Tourism Transportation on the social cultural environment

The social and cultural impact of the tourism industry mentions the specific ways by which the tourism contributes to the overall value system along with family structure and relationships, with lifestyle, traditional ceremonies and community organizations (Fox, M,1977). In other words it can be said that the impact of the tourism is created on people with interaction with the tourist either directly or indirectly (Wolf,C.P, 1977).

The effects of the impact are both positive and negative. The positive impact is that it helps in the development of better understanding between the people of different nations, culture and creed. This impact is highly accepted and widely acclaimed (Holloway & Taylor, JC & N,2006). The concept of tourism as a promoter of peace was mentioned in the 1980 World Tourism Conference at Manila.

Moving on to the effect of negative impact:

  • Chances of criminal activities  increase in these tourist places where there is the visit of wealthy tourists (Harper, H, 2001; Chesney-Lind & Lind, CL,1986)
  • Increase of criminal activities like illegal prostitution, especially in the destination of Thailand (Cohen, C,1988) and Cambodia (Leung, L,2003)
  • The demonstration effect is an area of concern as local residents tries to copy standard of living and also the type of life style of the wealthy tourist.
  • The high demand of the airport art give rise to the mass production of artificial form of the art and artifacts’ of Malaysia, which in turn brings the culture of the nation in danger making it commercialized (Wall &Mathieson, G & A, 2006; Holloway & Taylor, JC & N,2006).

 The tourist visiting Malaysia always prefers to get the cultural taste of the place. The cultural performances are displayed in a condensed form to give the tourist the flavor of typical culture and the values of the nation.

 The socio economic environment is one of the most important factors of tourism industry, and transportation (Inskeep, E,1987) gives accessibility as well as creates linkage between different destinations and connects the people with each other, creating the development of the industry of tourism. The public infrastructure plays the key role for the development of destination along with the development of small tourism enterprises.

 In order to promote more the industry of tourism at Malaysia, improvement of public infrastructure is a must. The major part of tourism is related with travelling so the need of a good system of transport cannot be ignored. The contribution of the country towards the improvement of transportation has expanded the tourism industry in Malaysia (Ayala, H,1996). Importance also needs to be given to the roles which are actively played by the various stakeholders (Cheuk,S, 2009) and the development of the interpersonal relationship in between them.

 Sustainability of Tourism in Malaysia

 A poor management along with ill managed tourism development along with detrimental environment may result in the havoc decrease of the share of market in this industry (APEC,

1996).A nation should work in an efficient manner for a sustainable tourism development. Three prime components form the base of a sustainable tourism development.

  • The environmental, culture
  • The economic culture
  • The social culture

 It is defined by UNEP (2001) as:

 “Sustainable tourism development meets the needs of the present tourist and host regions while protecting and enhancing the opportunity for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic need can be fulfilled, while maintaining cultural integrity, essential

Ecological processes, biological diversity and life support systems”, (WTO) (UNEP, 2001)

 Depending on the feature of the tourism industry a sustainable tourism development with good quality coordinated activities between the different sectors which are linked to this industry. Regular monitoring of the effects and impact of tourism is of ultimate need with the use of preventive as well as corrective measures. Sustainability of the industry can be improved with active and meaningful stakeholders of multi quality from different areas of the host community are critically required for help and support to the industry.

 It can be well noticed that the Malaysian government is working actively to promote sustainable tourism with the existing legal and institutional framework. In the year 1992, the formulation of the Malaysian Tourism Policy, enhance the speed of the development of the industry of tourism. The effect of the policy was first noticed with the identification of ecotourism as an advanced form of tourism which needs to be sustained and also expanded. Specific national ecotourism plan get enforced three years later. The drafting of the National Ecotourism Master Plan was done in the year 1995 and the same get accepted a year later in 1996. The plan provided the frame work to support the government in the development of ecotourism potential of the country.

 The eco tourism can be defined as a responsible travel along with visualization of undisturbed natural areas to motivate the enjoyment and appreciation of nature, which conserves the environment along with sustainable well being of the people of local area.

 Couple of tourist destination in Malaysia are marked as terrestrial or marine protected areas like forest Reserves, sanctuaries, marine parks, wildlife reserves and wetlands. To mark the success of the plans of eco-tourism, an effort is made jointly by the different levels of the government, Local communities and also the private sector towards giving the positive impact on the economic, socio-cultural and environmental benefits. Emphasis and importance is given towards the preservation of the natural attraction of Malaysia, to promote eco tourism. The preservation of the historical heritage tourism is also taken care of. Apart from this various value added activities were also included in the agro tourism along with the home stay programs.

 Many experts of the tourism industry believes that sustainable tourism should not be left idle in the hand market mechanism but it need to be supported by well designed and framed policies and legislations. Thus it is clearly understood that the sustainable tourism always need to be backed by the environmental policies and legislations.

 Conclusion:

 Malaysia established itself from being a pretty unrecognized player to a sector which can take care of the economic wellbeing of Malaysia. Besides this the government of the country played an active and multi channel role for the development of tourism industry of the country. NEP gave a new direction to the industry. The implementation of the policies and legislation never over shadowed the potential of the tourism industry. The continuous effort of the individual state level government along with the central government worked together to manifest new dimension to the tourism industry of the country. There are numerous evidences which depict how the industry passed through various obstacles to attain the pillar of success in the competitive world and established as one of the noticeable destination for tourists. The tourism industry of the country of Malaysia developed itself as a sophisticated destination for the travelers of the world.

 MF75

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