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UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013

MALAYSIA COUNTRY REPORT

UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT HYDERABAD, INDIA

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inter alia. This translates to an expansion by 3 times the foreign exchange earnings. thus contributing RM3 billion (USD1 billion) revenue per week in 2020. B) INTRENATIONAL TOURIST ARRIVALS AND RECEIPTS In 2011. the 12 Entry Point Projects (EPPs) proposed under the Tourism NKEA based on the themes of affordable luxury. spa and sports. tourism has been identified as one of the national key economic areas (NKEAs) to propel this economic transformation.3% in tourist arrivals. This reflects the vitality of the tourism industry in the region. In order to tap the growth potential of tourism and to realise Malaysia’s aspiration of becoming a high-income country by 2020. Towards this end.7 million arrivals for the same period in 2011. the country registered 24. Regionally. Malaysia recorded a total of 25.03 million arrivals compared to 24. which placed Malaysia as the 9th most visited country of the UNWTO top-ten list of countries with highest tourist arrivals. family fun. nature adventure. This strategic ambition will be achieved through.71 million tourist arrivals. The growth trend is expected to continue in 2013 and beyond in line with the 3% to 4% projected under the UNWTO’s long term outlook Tourism Towards 2030. 2 . Malaysia launched the Economic Transformation Programme (ETP). the Malaysia Tourism Transformation Programme (MTTP) was formulated to achieve the targets of attracting 36 million international tourists and generating RM168 billion in terms of tourist receipts. and international events. This represents a growth of 1. business tourism. In 2012. In this regard.2 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 A) OVERVIEW The year 2012 augurs well for the tourism industry with the achievement of a major milestone of welcoming 1 billion international tourists globally. Asia and the Pacific recorded the highest growth with an increase of 7% tourist arrivals compared with the average global growth of 4%.

61 Source: Tourism Malaysia Total of Tourist Arrivals (%) 51.56 The tourist receipts for 2012 increased by 3.69 0. Australia (0.38 1.23 13.99%) in 2012.3 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 Singapore was the biggest contributor to Malaysia’s tourist arrivals with 13. The top 10 markets for inbound tourism are shown in Table 1.52 6.4 5.69 million). Malaysia’s tourism sector is anticipated to maintain its prominence as the country’s third largest foreign exchange earner to the economy. India (0.6 billion to the economy as compared to RM58.99 9.51 0.47 million).26 million) and Philippines (0. Brunei (1.25 0.03 2. Thailand (1.51 million).01 2.76 2.03 1. 3 . generating RM60.88 1.03 2.01 million (51. Table 1: Top 10 Tourist Arrivals by Country of Nationality 2012 Number of Tourists Arrivals (million) Singapore Indonesia China (including Hong Kong & Macau) Thailand Brunei India Philippines Australia Japan United Kingdom 1. The key medium-haul markets were from China (1.3 billion in 2011. United Kingdom (0.9%.05 5.47 0. The other the top ten tourist arrivals in the short-haul markets were from Indonesia (2.5 0.26 million).51 million) and Japan (0.40 million) is the only long-haul market in the top 10 list.26 1.38 million).56 million).

Table 2: Domestic Tourism Year Domestic Excursionist (mil) 42.54 34. In 2011.93 75.7 million were tourists.54 45.0 million jobs in 2011.5 million or 13.4 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 C.09 Domestic Tourist (mil) 31.71 115. EMPLOYMENT Tourism-related industries being a service industry and relatively labour intensive.73 Percentage (%) 42. Excursionists made up 65. accounted for almost 2.46 131. The employment statistics by year are shown in Table 3. The comparison of domestic tourists and excursionists is shown in Table 2.78 39. the share of employment in the related tourism industries was 16.5 million in 2010 to 131. DOMESTIC TOURISM The number of domestic visitors increased 15.6 million were from the rural areas. Employment in the tourismrelated industries registered a growth of 7. 4 .6 %.91 Total Domestic Visitors 74.0 million visitors in 2011.75 65.46 65.1 % or 85.00 2009 2010 2011 Source: Malaysia Tourism Satellite Account *Tourist: If his / her trip includes an overnight stay **Excursionist: If his / her trip takes less than 24 hours D.7 % in 2010.7% in 2011 as compared to 4.3 million of the 131. About two thirds or 88.0 million visitors. while the remaining 34.4 % compared to the previous year’s share of 15.4 % from 115.25 34.9% or 45.27 Percentage (%) 57.92 85.4 million were visitors from the urban areas while the remaining one third or 42.

3 11. Pahang recorded the highest occupancy rates at 80.7 16.554.4 10.by State/Federal Territory (F.8 12.568.4 2005 2006 2007 2008 2009 2010 2011 1.1 10. This is in tandem with the increase in international and domestic tourists.T.6 16. The Federal Territory of Kuala Lumpur and Selangor recorded the second and third highest occupancy rates of 65.0 15.1% and 63.6 10.6 1.6% in 2012.5 1.9 15.4%.7 10.9 4.659. 5 .1 15.6 1.275.842.4 10.9 0.538.0 Source: Malaysia Tourism Satellite Account. 2. The Average Hotel Occupancy Rate .7 7.9 4.511.5 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 Table 3: Employment in the Tourism-Related Industries Employment in the – tourism-related industries Year Number (‘000) Annual change Total Employment Number (‘000) Share of employment in the tourism-related industries to total employment (%) 15.123.984.5 1.776. 2005-2011 E) HOTEL OCCUPANCY RATE The overall national hotel occupancy rate for the 1st half increased by 3% to 60.897.677.1 14.6 1.8 1.045.4 .759.9 6.5% respectively.6% in 2011 compared to 57.) is shown in Table 4..

4 60.6 (%) 65.6 1. China.8 57.6 41.T PUTRAJAYA F.1 67.6 3. New Zealand.9 39.5 49.7 48.7 40.4 1.T SELANGOR PERAK PENANG KEDAH PERLIS KELANTAN TERENGGANU PAHANG JOHOR MELAKA NEGERI SEMBILAN SABAH LABUAN F.2 1.0 Source: Tourism Malaysia F) CONNECTIVITY Malaysia is well connected in terms of accessibility and flight connectivity.6 (%) 0.8 61.3 60.1 41.1 36.4 80.9 3.4 44.1 60.2 63. Japan India and many other countries across the region.T SARAWAK MALAYSIA JAN .5 3.0 75.6 45.9 62. United States.6 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 Table 4: Average Hotel Occupancy Rate by State/Federal Territory (January – June 2011 and 2012) STATE/ FEDERAL TERRITORY KUALA LUMPUR F.6 38.6 0.4 5.1 2.JUNE 2011 JAN .1 7.3 54.2 44.2 57.3 47.4 58.4 65. 6 .8 5.4 55. Europe. There are several international airports connecting Malaysia with other parts of the world such as Australia.3 0.7 60.8 51.JUNE 2012 DIFFERENCE (%) 64.6 3.4 50.8 55.4 5.2 3.8 66.8 5.

Besides that. Emirates Airlines. The growth in shopping expenditure can be attributed to a number of initiatives which included: 7 .3 billion. parks and gardens. In order to improve the comfort of tourists and cater for the expected increase in air passenger traffic. contemporary art tourism and shoe festival. Towards this end.028 inbound tourists in 2012 G) INNOVATIVE TOURISM PRODUCTS As part of the efforts to promote a dynamic and vibrant tourism industry. Towards this end. Recognising the importance of accessibility. creative tourism products are developed.7 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 There are up to 50 different foreign airlines coming to Malaysia yearly. is to increase the contribution of shopping receipts from 28% in 2009 to 35% by 2020. In 2011. Negotiations for additional landing rights and tactical promotional campaigns with airlines and tour agents were implemented to increase connectivity for scheduled flights and chartered flights. Lufthansa German Airlines. China Airlines.636 by 2020. which falls under the theme affordable luxury. These include shopping. Etihad Airways. the average tourist shopping expenditure is targeted to increase from RM631 in 2009 to RM1. Japan Airlines and Indian Airlines. a) Shopping Shopping is one of the 12 EPPs under NKEA .208 seats per week to six priority countries were generated and 436 chartered flights to Malaysia were mounted with a total of 74. Among the foreign airlines are KLM Royal Dutch Airlines. Saudi Arabian Airlines. an additional 7. Cathay Pacific. the Penang International Airport and Kota Kinabalu International Airport were upgraded. there are also chartered flights coming into Malaysia mainly from North East Asia.Tourism. measures were undertaken to enhance connectivity to Malaysia. shopping accounted for 30% of the total expenditure of RM58. homestay. The aim of this EPP.

and iv. the formation of the Bukit Bintang . KLCC-Bukit Bintang Shopping Presint Covered Walkway b) Homestay Homestay is a community-based tourism product which has the potential to rejuvenate the rural economy. ii. As a result of the above initiatives. iii. and includes elements of volunteer tourism. 8 .Kuala Lumpur Convention Centre (BB-KLCC) Shopping Precinct and BB-KLCC Tourism Association to enhance the shopping experience. In the endeavor to constantly add value. Mega sales and promotions throughout the year to provide value for money.8 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 i. Kuala Lumpur was ranked the 4th best shopping destination by CNN Travel and 2nd Best Shopping Destination in Asia-Pacific by Global Shopping Index in 2012. the Building Bridges product was introduced by incorporating Rail Tourism and Homestay Program. Construction of the covered walkway from Bukit Bintang to KLCC for the comfort and convenience of tourists. It targets young tourists. This innovative product is popular due to its offerings of a nostalgic experience where travel is done at a leisurely pace to enjoy the scenic beauty of the countryside and the opportunity to be “immersed” in local cultural experiences. abolishment of import duty for 328 items to enable Malaysia to offer duty free shopping.

UNWTO Ulysses Award Building Bridges c) Parks and Gardens Tourism The Parks & Gardens tourism product leverages on existing parks and gardens of Malaysia. The initiative not only benefits tourists. Malaysia was awarded the First Prize UNWTO Ulysses Award for Innovation in Public Policy and Governance for the Malaysia Homestay Experience Program. In recognition for the concept. among others. Malaysia participated in the Chelsea Flower Show.9 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 In 2012. This award was the result of creative ideas to market the Homestay Program through. As part of the promotional efforts. This prestigious award bears testimony to Malaysia`s potential to 9 . It offers tourists the opportunity to view the landscapes. a gold medal was awarded to Malaysia at the Chelsea Flower Show 2010. Building Bridges and Plant a Tree programs. but also provides a vital source of income and employment for local communities. e-marketing Homestay. design and uniqueness of the show garden. rare flora and vibrant culture of the Malaysian archipelago inspired by lush rainforests and idyllic kampung village gardens. With minimal infrastructure costs. especially in rural areas. parks and gardens trails can be developed and packaged as a niche tourism product.

1Malaysia Contemporary Arts Tourism Festival 10 . It aims at establishing Malaysia as the destination in the region to enjoy and acquire contemporary art. MCAT will create greater awareness on the significance of contemporary art. It will also attract more local and foreign visitors to art galleries and contemporary art exhibitions. Besides nurturing a pool of talented artists.10 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 be promoted as a parks and gardens destination based on the wealth of Malaysia’s mega biodiversity. Sabah Agricultural Park Tenom Putrajaya Botanical Garden d) 1Malaysia Contemporary Art Tourism (MCAT) The 1Malaysia Contemporary Art Tourism (MCAT) is a tourism product to increase the contribution towards the economy. It provides the platform and encourages owners of art galleries to launch new pieces by young artists. with museum-quality pieces. These measures will set the trend for the growth of contemporary art tourism.

jointly organized by the Ministry of Tourism and the Malaysian Footwear Manufacturers Association.) Jimmy Choo. namely Borobudur in Indonesia. a tourist gets to experience different cultural-mixes from three UNESCO World Heritage sites.11 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 e) 1Malaysia International Shoe Festival It is one of the signature events under the Meetings. Dato’ (Dr. Incentives. It is a consumer and businessto-business event. 1Malaysia International Shoe Festival H) JOINT PROMOTION Joint promotion is a cost-effective way to market multi-destination tourism packages. The 3-day event attracted 50. The highlight of this event is the luxury couture collection of internationally-acclaimed shoe couturier and Malaysia’s Tourism Ambassador. and Malacca and Penang in Malaysia. In this regard.000 visitors and generated RM7. enhancing the shoe industry.1 million in terms of retail sales turnover. nurturing young talents and generating new sources of growth. joint promotional efforts towards a “multi country – multi destination” were carried out through the UNESCO 1-2-3 Package initiative. Conventions and Exhibitions (MICE) segment. namely Malaysia and Indonesia. It also can help to upgrade the livelihood of the local economies through 11 . It is a package that provides an experience of visiting three heritage sites located in two countries. It is aimed at promoting shopping. With the price of one package. Prof.

cultural and heritage tourism. The packages developed are jointly marketed under the ASEAN brand – South East Asia: Feel the Warmth. the ASEAN Product Working Group (PDWG). These tourism products are collaborative efforts between at least two (2) ASEAN Member States (AMS) with at least one (1) ASEAN tourism product identified. As part of the efforts to enhance joint promotion. Ministry of Tourism Malaysia April 2013 12 . I) CONCLUSION Malaysia will continue to strive for increased collaboration in both regional and international for a to mainstream tourism as one of the key important pillars for socioeconomic development.12 UNWTO 25th CAP-CSA AND UNWTO CONFERENCE ON SUSTAINABLE TOURISM DEVELOPMENT 12-14 April 2013 sustainable tourism for both nations. Efforts will be intensified to ensure that Malaysia remains an attractive destination for tourists and to achieve the targets of MTTP. identified 130 tourism products to be promoted namely naturebased tourism. community-based tourism and cruise and river-based tourism. This collaborative initiative between Malaysia and Indonesia is a positive development for tourism in the region.