British-Malaysian Business and Education Partnership: Scaling New Heights Aviation and Tourism

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British-Malaysian Business and Education
Partnership Scaling New HeightsAviation and
Tourism
Dato Dr Munir Majid25th October 2007
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Opportunities in Aviation and Tourism

• Education-tourism
• Medical tourism
• MICE
• Eco-tourism
• Malaysia-My-Second-Home
• MRO
• Defence Aerospace

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Current investments/involvement

• Malaysian
• Hotels
• St Giles in Heathrow and London (IGB Corp)
• Berjaya Eden Park (Berjaya Group)
• Thistle Hotels (Hong Leong Group)
• Corus Hotels (MUI Group)
• Holiday Villa (Advance Synergy Group)
• Gaming
• Genting International operates 46 casinos
  including five of the most prestigious casinos in
  London Crockfords, The Colony Club, The Palm
  Beach, Maxims Casino Club and The Mint.
• Hong Leong Group Licensed gambling operator in
  the UK through Clermont Leisure (UK) Ltd
• Aviation
• Composite Technology Research Malaysia Sdn. Bhd.
  (CTRM) supplies five high-tech component parts to
  Goodrich Aerostructures Group for the
  International Aero Engines (IAE) V2500 aero
  engine, which has a leading market share for the
  Airbus A320 family of aircraft. (Rolls Royce is a
  principal shareholder of IAE)

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Current investments/involvement

• British
• Rolls Royce
• Involved in both civil and military aviation
  sectors. Client base include Malaysia Airlines,
  AirAsia, the Royal Malaysia Air Force, Royal
  Malaysian Navy
• British Airways
• 26 Mar 2000 to 28 Oct 2000 6x weekly flights
• 29 Oct 2000 to 24 Mar 2001 5x weekly flights
• Withdrew services effective 26 March 2001 after
  almost 50 years of service
• Virgin Group
• Recently announced 20 investment in AirAsia X
  (Malaysias Long-Haul LCC)

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Malaysia and Tourism Fast Facts

• Tourism contributed RM36.3 billion to the
  Malaysian economy in 2006, expected to increase
  to RM44.5 billion in 2007 in conjunction with
  Visit Malaysia Year 2007
• The industry provided employment to 451,000
  workers in 2005.
• Visit Malaysia Year 2007 has attracted 10.7
  million tourist arrivals up to June 07 (compared
  to 8.6 million for the same period a year before)
• The Malaysian Government has allocated RM858
  million (2008 Budget) towards the advancement of
  the tourism sector including RM22 million for the
  development of home stay programmes.
• RM200 million allocated for the development of
  ecotourism in Sabah and Sarawak.

Sources Ministry of Finance, Malaysia and Visit
Britain
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UK and Tourism Fast Facts

• Tourism is one of the largest industries in the
  UK, accounting for 3.5 of the UK economy and
  worth approximately 85 billion in 2005
• Rapid growth in intra-Asian tourism,
  significantly driven by the proliferation of
  low-cost carriers, may have negative consequences
  for Asian tourist arrivals in the UK
• However, typical air fares paid in Britain have
  risen by about 5 only in the last 9 years
  compared to other EU nations of about 20 -
  benefits from low-cost airline boom
• Main competitor destinations include France,
  Spain, USA, China and Italy
• Balance of payments deficit since 1985 in 2005,
  for every 1 spent by an overseas resident in the
  UK, a UK resident visiting overseas spends 2.25

Sources Ministry of Finance, Malaysia and Visit
Britain
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Tourist Arrivals
Forecast
Sources Tourism Malaysia and Visit Britain
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Statistics on Malaysian Visitors to the UK
2004 2005 Change year on year
Total Visits 105,000 86,000 -18
Visits Rank Outside of top 30 rankings Outside of top 30 rankings Outside of top 30 rankings
Total Spend 95m 78m -18
Spend Rank 30 Outside of top 30 rankings n/a
Average Spend per Visit (AEV) 896 899 0
AEV Rank 14 14 No change
Average Spend per Day (AED) 49 93 88
AED Rank Outside of top 30 rankings 11

• Other competitors for Malaysian outbound travel
  include Thailand, Brunei, China, Indonesia,
  Singapore, Hong Kong and Australia (UK ranks 12)

Source Visit Britain
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Sources British Council Malaysia
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MALAYSIAN STUDENTS IN THE UK Visa Statistics
2004 2006  
Source British Council
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Good connectivity between UK and Malaysia
UK
Malaysia
Malaysia Airlines flies 14 times weekly into
Heathrow and connects into 8 cities into the UK
thru code share with BMI
Starting Nov 07
Resuming soon?
In 2005, 89 of visitors from Malaysia travelled
to the UK by air, 10 by tunnel and 1 by sea
Source Visit Britain, ebookers.com
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Malaysia and Britain as Catalysts for their
respective regions
Britain Opportunity The UK as a hub for the
European region Ideas ????
London
Malaysia Opportunity Kuala Lumpur as a hub for
the Asia-Pacific region Ideas ????
Kuala Lumpur