POLICY AND PLANNING OF TOURISM INDUSTRY

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• POLICY AND PLANNING OF TOURISM INDUSTRY
• IN MALAYSIA
• by
• Amran Hamzah
• Tourism Planning and Research Group (TPRG),
• Faculty of Built Environment,
• Universiti Teknologi Malaysia
• Skudai, Johor
• MALAYSIA

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CONTENT

• General background of Malaysian tourism industry
• Overview of tourism policy planning
• Regional cooperation in tourism and prospects for
  multi-destination travel

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GROWTH OF TOURISM IN MALAYSIA

• Up to 1990 Malaysia regarded as just an element
  of wider tourist circuit
• Visit Malaysia Year I (1990) and II (1994)
  propelled Malaysia into the big league
• Up to the late 1990s, Malaysia did not have a
  clear tourist image changing Beautiful Malaysia
  to Only Malaysia to Fascinating Malaysia
• Currently its a more confident Malaysia-Truly
  Asia

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TOURIST ARRIVALS

• Majority from ASEAN region (73), of which
  Singaporeans form largest group (57)
• Emerging markets China, India and Middle East
• 13.2 m. tourists in 2002 but down to 10.5 m. in
  2003 (due to Iraq war, SARS)

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TOURIST RECEIPTS

• In 1996 tourist receipts breached RM 1b and RM 2b
  in 2001
• Tourist receipt in 2002 was RM2.6b
• USD 1 RM 3.8

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TOURISM ORGANISATION

• TOURISM PLANNING INFLUENCED
• BY 3 TIER GOVERNMENT
• Federal
• State
• Local

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NATIONAL TOURISM ORGANISATION (NTO)

• TOURISM IS FEDERAL RESPONSIBILITY AGENCIES
• DIRECTLY RESPONSIBLE
• MOCAT (now Ministry of Tourism) (policy planning)
• Tourism Malaysia (marketing/promotion)
• AGENCIES INDIRECTLY INVOLVED
• Dept. of Agriculture (agrotourism)
• Dept. of Forestry (ecotourism)
• Dept. of Fisheries (coastal tourism)
• Dept.of Wildlife and National Parks (ecotourism)
• Dept. of Abroginies Affairs (ethnic tourism)
• Dept. of Museums and Antiquties
  (heritage/cultural tourism)

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STATE TOURISM ORGANISATION

• STATES POWERFUL AS LAND IS STATE MATTER
• State Economic Planning Unit (SEPUs) formulates
  tourism strategies/policies
• State Tourism Action Council (STAC) set up by
  MOCAT to assist states in product planning and
  marketing
• But all 13 states competing for the same niche
  market segments e.g. ecotourists, cultural
  tourists, medical tourists, MICE

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LOCAL AUTHORITIES

• Tourism not part of core business
• Lack of manpower and financial resources but
  directed to Think Tourism
• Resulting in standard formula e.g. street
  improvement programmes within inner city areas to
  be transformed into living heritage attractions.

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TOURISM POLICY PLANNING

• Included in countrys Five Year Economic Plans
  esp. 6th.Malaysia Plan, 7MP and 8MP
• 6MP (1991-95) recommended a more distinct tourist
  image i.e Malaysian way of life
• 7MP (1996-2000) focussed on rural/community-based
  and nature-based tourism

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TOURISM POLICY PLANNING (cont.)

• 8MP attempts to transform Malaysia into a major
  tourism destination by establishing Kuala Lumpur
  International Airport (KLIA) as regional hub
• 8Mp also focussed on cruise tourism/yatching/fly-d
  rive packages

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TOURISM POLICY PLANNING (cont.)

• Malaysia Tourism Policy Study (MTPS) (1992)
  provides long-term vision
• MTPS recommended fly-drive holidays, riverine
  tourism, ecotourism, agrotourism,
  cultural/heritage-based tourism, MICE,
  special-interest tourism
• MTPS is dated and currently being reviewed
• Latest innovation/focus medical tourism,
  shopping carnivals, youth tourism and emerging
  markets (China, India and Middle East)

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OTHER TOURISM POLICIES/PLANS

• National Ecotourism Plan (1996)
• Rural Tourism Master Plan (2001)
• Second National Tourism Policy (2003 2010)
• MAIN FOCUS
• Transforming low yield to high yield tourism
• Regional cooperation

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EXISTING COLLABORATION WITH NEIGHBOURS

• Well established e.g. Indonesia-Malaysia Growth
  Triangle (IMT-GT) and Singapore-Johore-Riau
  Growth Triangle (SIJORI) and Brunei-Indonesia-Mala
  ysia-Philippines East Asian Growth Triangle
  (BIMP-EAGA)
• But lacking in implementation with the exception
  of Bintan and Batam in Indonesia (Singaporean
  investors)

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FUTURE PROSPECTS FOR REGIONAL COOPERATION

• GROWTH IN TOURIST ARRIVALS
• FROM MAINLAND CHINA
• Aggressive promotion
• Strong cultural ties
• KLIA as gateway

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FUTURE PROSPECTS (cont.)

• GROWTH IN TOURIST ARRIVALS
• FROM MIDDLE EAST
• Since September 11
• Malaysia seen as safe destination for Muslims
• But significant arrivals only from July
  September (intolerable summer heat)

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FUTURE PROSPECTS (cont.)

• EXPECTED INCREASE IN TOURISTS FROM
• INDIA
• Tourists from India increased from 70, 000 in
  2000 to 145, 000 in 2001 to 187, 000 in 2002
• Liberalisation of Indian airways for ASEAN
  carriers
• Subsequent increase in number of flights to
  Indian destinations e.g. Chennai and Mumbai
• Malaysia expected to be among the first Asian
  countries to tap large Indian market

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FUTURE PROSPECTS (cont.)

• MUSHROOMING OF BUDGET AIRLINES
• AirAsia/Valuair/ Lion Air/Ked Air, etc. and
  partners (Shin Corp/Tiger Airways)
• AirAsia will fly to Bangkok, Phuket, Chiengmai,
  Hat Yai, Vietnam, the Philippines, China,
  Surabaya, Jakarta, Medan etc.
• New opportunities for multi-destination travel
  within Asia in very near future

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• NOW EVERYONE CAN FLY!

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FUTURE PROSPECTS (cont.)

• ESTABLISHMENT OF TRANSBORDER NATIONAL
• PARKS/WORLD HERITAGE SITES
• Annual increase of ecotourism between 10-25 in
  Asia Pacific region
• Transborder national parks e.g. Bujang
  Valley(Kedah)/Thaleban (Thailand)/Perlis State
  Park (Malaysia) will improve critical mass
• Nominated transborder World Heritage Site i.e.
  Bentung Karimun (Indonesia)/Lanjak Entimau
  (Sarawak) can exploit WHS branding to attract
  more tourists

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FUTURE PROSPECTS (cont.)

• DEVT. OF CRUISE INDUSTRY/TOURISM
• Malaysia-based Star Cruises currently 3rd.
  largest cruise company in the world
• Stopover itineraries e.g. at Melaka, Penang,
  Pulau Langkawi not fully developed
• Potential of incorporating themed cruises e.g.
  Admiral Zheng Ho Cruise into mainstream itinerary

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STAR CRUISE ITINENARY
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FUTURE PROSPECTS (cont.)

• DEVELOPMENT OF THEMED
• HERITAGE TRAILS
• Recent devt. of heritage trails in Malaysia are
  transborder trails e.g. Tun Teja Trail, Mat Kilau
  Trail (interstate), Paraweswara Trail
  (Malaysia/Indonesia), Bunga Mas trail
  (Malaysia/Thailand)
• Currently available only to niche market

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FUTURE PROSPECTS (cont.)

• EXTENSION OF EDUCATION
• TOURISM PROGRAMME
• Program Pelancongan Pelajar (Student Tourism
  Prgramme) created to encourage local travel by
  students
• Programme has potential to be extended to whole
  region taking advantage of cheap fares on budget
  airlines
• Programme will encourage cultural exchange
  between youths in the region

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FUTURE PROSPECTS (cont.)

• TRANS-ASIA LINK FROM SINGAPORE TO
• KUNMING, CHINA
• Long term project to construct 5,500 km. rail
  link from Sinapore to China passing through
  Malaysia, Thailand, Vietnam and Laos
• Will offer another exiting transportation mode to
  encourage multi-destination visitation
• But bogged down by financial problems

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IMPLICATIONS OF MULTI-DESTINATION VISITATION

• Mushrooming of budget airlines will facilitate
  implementation of multi-destination tour packages
  through devt. growth triangles e.g. IMT-GT and
  SIJORI
• Creation of specialised hubs e.g. KLIA and
  Senai for specific market segments e.g. Muslim
  tourists, Indian tourists
• Better integration between cruise tourism and
  themed heritage trails
• Budget airlines will boost youth travel within
  region

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Fig. 1 MALAYSIAS TOURISM POLICIES IN THE
CONTEXT OF REGIONAL
COOPERATION
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RECOMMENDATIONS

• SHORT TERM (1-3 years)
• Removing obstacles hindering seamless travel
• Study on implications of budget airlines
• MEDIUM TERM (3 5 years)
• Transborder tour packages (PATA/ATF) based on
  themed heritage trails/transborder Heritage Sites
• PPP extended to cover region
• LONG TERM (5 10 years)
• Consolidation through AFTA
• Creation of Asian brand (hotels/SMEs)

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CONCLUSION

• Regional cooperation/multi destination visitation
  should not be solely aimed at maximising economic
  benefits but also promote ASIAN COHESION

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TERIMA KASIH