FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES

AM110: DIPLOMA PUBLIC ADMINISTRATION

PAD104: INTRODUCTION TO MALAYSIAN PUBLIC POLICY

TITLE: NATIONAL TOURISM POLICY (1992 – 2002)

PREPARED BY:
1. SAFINAH BINTI ABDULLAH (2021150257)
2. NOURMAYUSNIZA BINTI TALIF (20211371331)
3. SITI NUR ATIQAH BINTI YAMAN HIJAT (2021575671)
4. MUHAMMAD HAFIZ BIN ISMAIL (2021521065)
5. MUHAMMAD FIKRI BIN NAZRI (20211742621)

LECTURER’S NAME:
MISS JENIWATY BINTI MOHD JUDY

CLASS: NAMAF2A

DATE OF SUBMISSION:
23 JANUARY 2022
TABLE OF CONTENT

NO. TITLE PAGES

1.0 INTRODUCTION 1-3

2.0 POLICY PROBLEMS 4-5

3.0 MAIN OBJECTIVES AND GOALS OF THE POLICY 5-6

4.0 ACTORS IN THE CREATION OF THE POLICY 6-7

5.0 IMPLEMENTATION/ STRATEGY OF THE POLICY 8-9

6.0 EVALUATION ON THE EFFECTIVENESS OF THE POLICY

6.1.1 INTRODUCTION OF EVALUTION 9

6.1.2 COOPERATION IN NATIONAL TOURISM POLICY 10 - 13
7.0 NATIONAL TOURISM POLICY PLANNING

7.1.1 NATIONAL TOURISM POLICY (1992) 14 - 15

15 - 16
7.1.2 RURAL TOURISM MALAYSIA PLAN (2001)
8.0 THE POLICY’S STRENGTH & WEAKNESS

8.1.1 THE POLICY’S STRENGTH 17

8.1.2 THE POLICY’S WEAKNESS 17 - 18
8.1.3 THE POLICY’S OPPORTUNITIES 18 – 19
8.1.4 THE POLICY’S THREATS 19
9.0 RECOMMENDATION 20
10.0 CONCLUSION 21
11.0 REFERENCES 22
1.0 INTRODUCTION

The country consists of 14 states and is divided into two regions: Peninsular Malaysia which
consists of 11 states - Perlis, Kedah, Penang, Perak, Pahang, Selangor, Kelantan, Terengganu,
Negeri Sembilan, Melaka, Federal Territories and Johor - and East Malaysia, is located on the
island of Borneo, which consists of two other states, Sabah and Sarawak. Malaysia covers an area
of 329,758 square kilometers. As a tropical country, Malaysia's average temperature is 26 degrees
Celsius throughout the year, but some parts of the country have an average temperature of 18
degrees Celsius to 27 degrees Celsius. The total population of Malaysia in 2021 is estimated at
32.7 million compared to 32.6 million in 2020 with an annual population growth rate of 0.2
percent. The World Tourism Organization (WTO) defines tourism as people who go or stay in
places that are out of their habit for a vacation for no more than one year.

While the Islamic Tourism Center or Islamic Tourism Center under the Ministry of Tourism
Malaysia has defined Islamic tourism as a field or industry or activity related to travel to visit
places with Islamic history, know Islamic culture and heritage, and also to understand and dive
into the way of life of the Muslim community. The national tourism sector is one of the important
sectors in the national economy. The country's tourism sector was seen growing in the early 80s.
At this point the country is safe from the communist threat as well as external threats. The total
number of tourist arrivals to Malaysia of 2.25 million people in 1980 had increased to 3.22 million
people in 1985 and further increased to 3.62 million people in 1988. In 1987, the Ministry of
Culture and Tourism was established.

Then in 1990 the government upgraded the ministry to the Ministry of Culture, Arts and Tourism
Malaysia. With the establishment, it has further boosted the development of the country's tourism
industry. The development of tourism in Malaysia began in the 1960s. Many developing countries
recognize tourism as an engine of growth in their efforts to develop their national economies.

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However, the lack of a well -established, strong and credible private sector hindered the
development of tourism in the beginning. Naturally, the government must intervene, whether
directly or indirectly, to accelerate this development process. In 2002, the majority of tourist
arrivals to Malaysia were from the Southeast Asian region (73%), with tourists from Singapore
making up the largest group (57%), followed by Thailand (9%). Between 2001 and 2002, tourists
from Singapore and Thailand increased by 8.6% and 15.4% respectively but the largest increase
was recorded by arrivals from the emerging tourism markets of India and China, which increased
by 27.8% and 23%.

Another important tourism market was from the Middle East, which grew by 14.8%. The huge
increase in tourist arrivals from China and India was due to an explosion of aggressive promotions
carried out by the government while the increase in arrivals from West Asia was a direct result of
September 11 and the Iraq invasion, which diverted Middle Eastern tourists to the safe Islamic
state of Malaysia. Prior to the Visit Malaysia Year (VMY) campaign in 1990, Malaysia was often
marketed as just an element of the broader ‘tourism circuit’, including neighboring Thailand,
Singapore and Indonesia (King, 1993: 107).

At that time, Malaysia's share in the Far East Asia-Pacific tourism market was only in the range of
10% to 13%. Although the market share increased to 17.6% in the 1990 campaign year, it fell back
to around 13% in 1991 (MOCAT,). At that time, many tourists only spent part of their holidays in
Malaysia, which was the main reason Malaysia did not appear in the list of top tourism revenue.
Malaysia’s late entry presents her with the problem of choosing a distinctive tourism
product/image for the country, the way Singapore Girls are synonymous with Singapore, or
Thailand Land Smiles or Bali are all cultures.

The following except from the PATA editorial (1991 quoted in MOCAT, 1992: 1) summarizes the
vague image of Malaysian tourists at the time. Malaysia is no exception. With a booming economy,
including petroleum and gas, palm oil, rubber, sawn timber and timber production, tourism is
emphasized to further diversify the economic base. This requires strong government policies to

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drive the tourism sector. This, in turn, results in targeted policy formulation in creating a conducive
environment that enables the tourism sector to grow.

While there is evidence that the formulation of the policy has achieved its objectives such as an
increase in incoming tourist arrivals and spending, there is still room for improvement. This
decline in population growth rate is due to the low number of non -resident citizens from 3.0
million (2020) to 2.7 million (2021). This is in line with the closure of the country's border gates
and the repatriation of foreigners to their respective countries. countries in line with the Movement
Control Order (PKP) during the worldwide outbreak of Covid-19. The population growth rate
remained stable at 1.0 per cent with a population increase from 29.7 million in 2020 to 30.0 million
in 2021.

Figure 1 Tourism Area In Peninsular Malaysia Figure 2 Population in Malaysia

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2.0 POLICY PROBLEMS

The momentum for tourism development only began in the 1970s, after the 1972 Conference of
the Pacific Areas Travel Association (PATA) in Kuala Lumpur. That conference was significant
as it provided information to the government and people in Malaysia about opportunities in the
tourism industry. Following that event, the government granted more recognition to the tourism
industry by creating the Tourism Development Corporation (TDC) in 1972 and continued with the
completion of the National Tourism Master Plan in 1975 (Sirat, 1993).

Later, the Malaysia Tourism Promotion Board (MTPB) or 'Tourism Malaysia' was created in 1992
to replace the Tourism Development Corporation (TDC) and was placed under MOCAT's wing,
and it is currently under the Ministry of Tourism. MTPB has several roles and responsibilities
including implementing tourism policy and promoting tourism overseas and within Malaysia
(Sharif, 2002). MTPB is also involved in developing and coordinating tourism facilities and
amenities

However, based on his study on international tourists flow in Malaysia, Opperman (1992) claimed
that until 1990, after 15 years of implementation of the Tourism Master Plan, tourism development
was still unequally distributed amongst the region as suggested by the plan. More rapid
development occurred on the West Coast of Peninsular Malaysia than on the East Coast. Sabah
and Sarawak however were far behind Peninsular Malaysia in attracting tourists (King, 1993).
Leong (1997) claimed that the disparity of tourism development among tourist regions was caused
by lack of promotion. Din (1982) also noted that the plan only has a small reference to the NEP in
terms of suggesting how the government agencies can play their role to encourage Bumiputera s'
involvement in the tourism industry.

According to Collier (1994), the safety aspect is a state free from danger, manner of use and
equipment that can control, control or prevent accidents. Kwon (1999) asserts safety as a condition

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free from any accident. if tourists feel unsafe or threatened at a destination, the tourist concerned
will make that responsibility negative to the destination. This can have a detrimental effect on the
industry tourism due to tourist arrivals will decline sharply (Richard, 2003). Michalko (2003)
meanwhile defines security in tourism as the personal safety of tourists and property they,
including the ability to know direction in a foreign environment, understand system signals local,
social indicators and conventions as well as the safety of consumer services and shopping. The
aspects of safety and assurance in tourist destinations have been considered to be multidimensional
complex by involving a variety of components contained therein such as security politics, public
safety, health and hygiene, security of personal data, legal protection against tourists, protection
of consumer rights, security in communication, protection from natural disasters, environmental
safety, obtaining authentic information, service quality assurance and etc. (Kovari, 2010).

3.0 MAIN OBJECTIVES AND GOALS OF THE POLICY

The main objective is to promote the uniqueness of Malaysian arts, culture and heritage including
tourism products as the main catalyst for the growth of the country's tourism and culture sector.
To provide knowledgeable, skilled, creative and innovative human capital in the tourism and
culture sectors.

However, the success of tourism has been conventionally measured by tourist arrivals and
revenues, but today this is not enough to maintain competitiveness. The current challenges of
tourism development in developing countries are the tug-of-war between tourism development
plans for economic purposes and sustainable tourism plans. In most of the cases there are reciprocal
relationships between “tourism development” and “sustainability”. The context is significantly
different from country to country when the analysis is focused on economic development goals of
tourism. The economic goal of the country, private partnership, and local community involvement
together with customer’s expectations make tourism a complicated area for sustainable practices.

Another objective is to pursue tourism growth or remain competitive, in the case of mature
destinations. Whereas in new or emerging tourist destinations, common objectives adopted by the
government is to promote the destination trying to improve internal and external tourism demand.

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To achieve international tourism growth and increase foreign currency income to support the
balance of payments. To establish public institutions, national tourism administrations in terms of
WTO (1997), to stimulate tourism growth and to do so in a sustainable manner. To increase
awareness of the importance of the activity among entrepreneurships and private sector in order to
make tourism more attractive for private investment. It has also been a common practice to attract
public companies in order to have a demonstration effect. To support the right to travel and move
freely as laid out in the Universal Declaration of Human Rights. Tourism can be an instrument
stated of peace since it encourages people to become closer and means a better understanding of
other cultures.

4.0 ACTORS IN THE CREATION OF THE POLICY

Although leisure and tourism activities in Malaysia began since the colonial era, government
involvement in tourism development only started in 1953 when the Cultural Department officially
opened and in 1964, the Ministry of Cultural, Sport and Youth was muted (Mohamed, 2001). Since
that time, the tourism industry has grown considerably, but the tourism industry only captures one
aspect of the economic diversity since economic activities are still based on the traditional sector,
such as, rubber and tin (Wells, 1982). Later, the Malaysia Tourism Promotion Board (MTPB) or
'Tourism Malaysia' was created in 1992 to replace the Tourism Development Corporation (TDC)
and was placed under MOCAT's wing, and it is currently under the Ministry of Tourism. MTPB
has several roles and responsibilities including implementing tourism policy and promoting
tourism overseas and within Malaysia (Sharif, 2002). MTPB is also involved in developing and
coordinating tourism facilities and amenities. MTPB has promoted Malaysia aggressively as a
tourism destination to the overseas market. A brand of Malaysia Truly Asia was introduced and
several overseas branches of MTPB were opened such as in London, Amsterdam and Dubai.
Nevertheless, although the Ministry of Tourism controls tourism administration in Malaysia, the
implementation of tourism destination planning, and infrastructure development comes under the
Federal Government. Government involvement in tourism development. Although the First
Malaysia Plan (1966-1970) has not provided any significant policy towards tourism industry,

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major impact on the tourism industry happened during the Second Malaysia Plan (1971-1974),
especially after the Pacific Asian Travel Associations (PATA) conference in 1972. The Malaysia
Airline Company was set up by the government to provide direct communication within the
ASEAN region and other countries to attract international visitors.

Figura 3 Government involve Tourism Development in Malaysia

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5.0 IMPLEMENTATION/ STRATEGY OF THE POLICY

Currently, there is a wide range of policies and programs to support the tourism sector. Many
developing countries recognize tourism as an engine of growth in their effort to economically
develop their countries including Malaysia. In the case for Malaysia, tourism sector is one of
significant industry contribute to economic development (Khalid and Saad, 2015). Tourism
planning and policy is arguably, one of the most significant factors determine on how tourism
sector develops, benefits and impacts to stakeholders are distributed (Dredge & Jenkins, 2007).

Policy implementation is vitally important for tourism industry as many tourism policies have been
argued as not or partially successful (Krutwaysho and Bramwell, 2010; Ismet and Abuhjeeleh,
2016). This issue is reflected to the national intention and how the government role can transform
these intentions into action. Here we discuss Ninth Malaysia Plan and Tenth Malaysia Plan for
analysis the tourism development. The Ninth Malaysia Plan was adopted for 2006-2010 period.

In this plan period, dynamic efforts have been taken in the tourism industry to increase its
contribution to the economy. The major focus was to enhance Malaysia as a famous tourism
destination in the world while promoting domestic tourism. The plan had been undertaken to
coordinate in tourism resources and develop tourism infrastructure. The efforts have given
emphasize to increase facilities and innovation for tourism products and services. High concern
was placed and continued for achieving more sustainable tourism development. The Tenth
Malaysia Plan also addresses tourism development during the period for 2011-2015.

The plan gives emphasize to develop exciting and iconic tourism initiatives, to proper management
of existing tourism destinations and to focus on tourism promotional activities. Within this plan
period, Malaysia has targeted to reach in top 10 countries of the world in terms of global tourism
receipts. The plan prioritized on promotional strategies for tourism development in the country.
The Economic Transformation Program (ETP) is a comprehensive effort that will transform
Malaysia into a high-income nation by 2020.

The government has formulated this program for significant change of Malaysia’s economy like
as developed country. ETP has selected 131 entry point projects (ETP), 60 business opportunities
which ensure 92 percent private sector investment. This program will impact in gross national

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income (GNI) per capita from RM 23, 700 in 2009 to RM 48,000 and create 3 million new jobs
by 2020. The 12 National Key Economic Areas (NKEA) is at the core of the ETP. The 12 NKEAs
selected are: Oil, Gas and Energy; Palm Oil; Financial Services; Tourism; Business Services;
Electronics and Electrical; Wholesale and Retail; Education; Healthcare; Communications
Content and Infrastructure; Agriculture; and Greater Kuala Lumpur / Klang Valley.

6.0 EVALUATION ON THE EFFECTIVENESS OF THE POLICY

6.1.1 INTRODUCTION OF EVALUTION

An evaluation of the region's tourism effectiveness in the form of economic development growth
triangles, namely the Indonesia – Malaysia – Thailand (IMT – GT), Singapore – Johore – Riau
Growth Triangle (SIJORI) and the Brunei – Indonesia – Malaysia – Philippines East Asian Growth
Triangle (BIMP – EAGA) (Grundy-Warr and Perry, 2001). These growth triangles are
government-led programmes that enlist private sector participation to boost economic growth
across neighbouring countries. Although these growth triangles could be viewed as a move toward
a borderless world in theory, only the SIJORI growth triangle is making considerable progress in
practise, owing to heavy investments by Singapore-based companies in tourism projects on the
Indonesian islands of Bintan and Batam. Nonetheless, current tourism developments on
Bintan/Batam are mostly catering to a Singaporean consumer, serving as a "playground" for
islanders.

Since September 11th and the SARS pandemic, the chances for regional collaboration have taken
a back seat. To retain its decreasing market, the Malaysian tourism industry was compelled to
become more inward facing, focusing its efforts on domestic tourism promotion to mitigate the
effects of September 11 and SARS. However, the government and industry have recently shifted
their focus to specific European markets such as "soft ecotourists," "medical tourists," and
emerging markets such as China, the Middle East, and India.

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6.1.2 COOPERATION IN NATIONAL TOURISM POLICY

However, Malaysia is still lagging behind Singapore and Bangkok in terms of being a significant
tourism hub. Nonetheless, thanks to a long-term marketing plan and recent international events, it
has been able to acquire specialised niche consumers. The partial liberalisation of Asian airways,
as well as the rapid rise of low-cost carriers in the region, will have a substantial impact on cross-
country travel. The following is a quick rundown of the changes:

1. Growth of Tourist Arrivals from Mainland China

The increase in visitor arrivals from Mainland China (as well as Hong Kong and Taiwan) can be
credited to the Federal government's and certain state governments' vigorous promotional efforts,
such as Melaka's. For example, between 2001 and 2002, tourist arrivals from China increased by
23%, second only to arrivals from India (28%) in terms of growth (Tourism Malaysia,2003). It's
also worth noting that, after the capital/national hub, Kuala Lumpur, Melaka was the second most
visited destination by Chinese tourists (55 percent) (95 percent). The tourism sector in Sumatra
(Indonesia) has been keeping a careful eye on this issue. In an informal meeting with the North
Sumatra Tourist Board on June 12, 2003, the Indonesian counterpart expressed their desire to form
a tour package with the Malaysian tourism industry in order to encourage mainland Chinese
tourists to extend their visit to the Indonesian island, which is only 40 minutes away by air.
However, this type of collaboration is hampered by Indonesia's real or perceived reputation as a
dangerous destination for tourists.

2. Growth of Tourist Arrivals from The Middle East

In an informal meeting with the North Sumatra Tourist Board on June 12, 2003, the Indonesian
counterpart expressed their desire to form a tour package with the Malaysian tourism industry in
order to encourage mainland Chinese tourists to extend their visit to the Indonesian island, which
is only 40 minutes away by air. However, this type of collaboration is hampered by Indonesia's
real or perceived reputation as a dangerous destination for tourists. This is because tourist arrivals

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from the Middle East are confined to the months of June to September, i.e. the height of summer,
when the physical conditions in that region of the world are terrible. With the exception of
Indonesia, where the availability of Muslim food is a crucial condition, the potential of
neighbouring nations benefiting from this niche market is limited.

3. Expected Increase in Tourist Arrivals from India

For some time, the Indian tourism market has been a distinct target market, with extensive
advertising by the federal government in recent years. Tourist arrivals from India increased by 28
percent between 2001 and 2002, making it the only country outside of China to see a growth rate
of more than 20%. The Indian government recently announced that its airways would be liberalised
for ASEAN carriers. As a result, Malaysia Airlines, the country's primary carrier, has announced
an increase in the number of flights to Indian locations such as Chennai and Mumbai. In the end,
Malaysia is likely to be the first Asian country to be able to tap into India's massive tourism
industry.

4. Mushrooming Of Budget Airlines

The mushrooming of budget airlines operating in the Asian region is a recent but significant
phenomenal that is anticipated to have substantial repercussions for the tourism business in the
region. Budget airlines, led by Malaysia's Air Asia, are either operating or intending to launch intra
and inter regional routes at prices that are 40 percent to 50 percent lower than national carrier
tickets. Air Asia's operating hubs in Malaysia include the Kuala Lumpur International Airport
(KLIA) and the Senai Airport in Johor Bahru. As part of a joint venture with Thai telecoms giant
Shin Corp, Air Asia recently began operating regional flights from KL and Johor Bahru to
Bangkok and Phuket. Following that, KLIA, Penang, Johor Bahru, and Kota Kinabalu will serve
as operating hubs for links to Chieng Mai, Hat Yai, Vietnam, the Philippines, China, and India
(NST, 13 November 2003). Surprisingly, Air Asia's operation in Thailand only proved profitable
after two months (The Star, 17 April 2004).

Other low-cost carriers like as ValuAir and Lion Air, both based in Indonesia, have begun service
between Malaysia and Indonesia, as well as Singapore and Indonesia. Singapore Airlines recently
announced plans to start a low-cost carrier in conjunction with Tiger Airways (The Star, 15

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December 2003). In general, the low-cost airline phenomena should not be viewed as the
beginning of the end for regional national carriers. Instead, it should be seen as an opportunity to
plan, organise, and manage cross-region and multi-destination travel inside the region, using the
hubs and gateways created by air transport liberalisation. The execution of the existing growth
triangles will be facilitated and expedited in the medium and long run.

5. The Establishment of Transborder National Parks/World Heritage Sites.

Although ecotourism is still a niche business, it is growing at a fantastic rate in the Asia-Pacific
area, with yearly growth rates ranging from 10% to 25%. (Hall and Lew,1998). There has been a
definite shift in recent years toward the development of transborder tourism, particularly nature-
based tourism. While this sort of cross-border tourism is still in its infancy, it has immense promise
in terms of stimulating multi-destination travel. Perlis State Park and Thaleban National Park in
Southern Thailand are currently being planned, managed, and promoted as a transborder tourism
attraction by the Malaysian/Perlis State government.

The Federal government's nomination of two transborder natural areas in Borneo for inscription
on the World Heritage List exemplifies this tendency (Bentung Karimun in Indonesia and Lanjak
Entimau as well as Batang Air in Sarawak, Malaysia). According to Hall and Piggin (2003),
classifying a site as a World Heritage Site is a sort of branding that will certainly draw more people
to the area, especially if the sites are already popular tourist destinations. Budget airlines are
attracted to operate routes to such places from regional hubs such as Kuala Lumpur, Johor Bahru,
and Bangkok because of the economic possibilities of the World Heritage Site label.

6. Development in Cruise Industry/Tourism

The expansion of cruise tourism is critical for multi-destination travel within the region. The cruise
sector is also thriving in the region, with Star Cruises, the world's third-largest cruise ship operator,
monopolising the Malaysian market. The trip in the Straits of Melaka, which includes stops in
Singapore, Melaka, Pulau Langkawi, and Phuket Island, is currently quite popular. The expansion
of cruise tourism is proposed in the Eight Malaysia Plan, and the introduction of unique cruises
would increase the appeal of this mode of transportation even more. Melaka's state government
has recently attempted to create themed heritage paths based on Melaka's golden days as a major
commercial port or the "Emporium of the East." The State government has organised unique events

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centred on the historical link between Melaka and China to commemorate 600 years of Admiral
Zheng Ho's maiden visit to Melaka, such as An 'Admiral Zheng Ho Cruise' and similar themed
cruises might be produced, promoted, and sold as a themed cruise to complement Star Cruises'
luxury cruises. Multi-destination travel within the region could be made easier as a result, not only
by air but also by sea.

7. Development of Themed Heritage Trails

Heritage trails have been built in ancient cities such as Melaka, Penang, and Kuala Lumpur, thanks
to the focus on heritage tourism in the National Tourism Policy Study (1992). The design of
heritage trails has recently shifted toward transborder pathways based on shared themes. The Tun
Teja (female fighter during the Melaka Sultanate) route, for example, runs from Melaka to Johore,
while the Mat Kilau (nationalist during British occupation) trail begins in Teregganu and ends in
Pahang. The Melaka – Negri Sembilan – Johore transborder tourism development is now
developing historical routes including more than two states.

On a wider regional scale, the Parameswara Trail (in Indonesia) runs from Melaka to Palembang,
passing via ancient sites in the Riau Archipelago. Similarly, the Perak State government is
developing a transborder historical path to track the route of the Bunga Mas (tribute) procession
from Thailand to Perak. Although such trails now only appeal to a small segment of the population,
they have the potential to be professionally packaged and sold as dynamic tourism products.

8. Extension of Educational Tourism Programme

In 2001, MOCAT and the Ministry of Education launched an educational tourism initiative to
encourage local travel through the development of tourism clubs in schools as one of the methods
to improve domestic tourism. Students/schoolchildren are being used as a trigger to convince their
families to travel inside the country more frequently. This Pelancongan Pelajar or Student Tourism
Programme (PPP) has recently attracted tour operators as partners in the program's execution and
promotion. This concept might potentially be expanded to include educational institutions and
tourism spots in the region. In the long run, it will be able to promote more social contact, cultural
exchanges, and understanding among the region's youth.

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7.0 NATIONAL TOURISM POLICY PLANNING

7.1.1 NATIONAL TOURISM POLICY (1992)

The National Tourist Policy Study (NTPS) was published by the federal government in 1992, and
it advocated broad principles for tourism planning, development, and marketing. Because the
contents of this study are primarily outdated, it is now being reviewed. Nonetheless, the NTPS
policy objectives continue to be used as guiding principles, and they are summarized as follows:

- generate foreign policies,

- encourage equitable economic and social development,

- promote rural enterprises,

- generate employment,

- accelerate urban/rural integration and cultural exchanges,

- encourage participation in the tourism sector by all ethnic communities,

- create an improved image of Malaysia internationally and forge national unity.

The NTPS, which offers new areas for product development, shows a major deviation from the
usual sea, sand, and sun market segment:

- fly drive holidays,

- riverine tourism,

- ecotourism,

- agrotourism,

- cultural and heritage base tourism,

- MICE and special interest tourism.

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Over the last ten years, Malaysian tourist product development has mostly concentrated on
utilising the country's rich natural and cultural assets. Most state governments have adopted the
nature/culture theme; for example, Sarawak's promotional tagline is Culture, Adventure, and
Nature (CAN). Melaka and Penang, on the other hand, are putting a lot of emphasis on their
cultural heritage, particularly the unique cultural mix that is a legacy of a cosmopolitan past. The
marketing of Malaysia as a shopping destination is the sole major addition to the policies outlined
in the NTPS, as seen by the heavy investment in promoting Malaysia as a shopping paradise,
primarily through the thrice-yearly Mega Sale Carnivals.

7.1.2 RURAL TOURISM MALAYSIA PLAN (2001)

A consulting team from Ireland created the Rural Tourism Master Plan (RTMP) for MOCAT on
behalf of the United Nations Development Programme (UNDP) and the World Tourism
Organization. Over a five-year period, the RTMP Study recommends an ambitious goal of
boosting visitor expenditure in rural areas from RM 350 million to RM 1 billion. This will be
achieved through removing 'obstacles' such as poor product quality, litter, and poor service quality,
as well as capitalising on Malaysia's two key assets, its beautiful landscape and pleasant people
(RTMP, 2001:I). According to the RTMP document, the Strategic Vision for Rural Tourism seeks
to establish a "new brand of tourism experience for visitors, particularly long stay/high spend
visitors:

• providing new and improved ranges of accommodation,

• offering a smiling and friendly customer care approach,
• featuring the attractive scenery of lush tropical landscape,
• presenting activities and amenities to participate in and enjoy in safety,
• providing new and improved ranges of accommodation
• offering a smiling and friendly customer care approach (rtmp, 2001).

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Rural tourism is defined in the RTMP Study as:

Tourism that allows travelers to explore rural areas and sites, as well as experience
Malaysian culture and tradition, resulting in socio-economic advantages for local
communities. The proximity of many of these rural settlements to the jungle and rainforest
interior also allows visitors to extend their vacation and take use of those rare natural riches'
(RTMP, 2001: 22).

In Malaysia, the following definition of rural tourism distinguishes it from eco/nature-based

tourism, implying that eco/nature-based tourism should be a progressive extension of visitors'
travel itinerary. However, it also shows the difficulties of segmenting the many components of
Malaysia's tourism industry, as there is a lot of overlap between rural tourism, ecotourism, and
even coastal/island tourism, considering that most coastal locations and islands are rural in
character and outlook. As a result, the RTMP includes islands like Pulau Perhentian as prospective
rural tourist locations, despite the Terengganu State government's vigorous promotion of the island
for island tourism.

RTMP's major recommendation for transforming rural tourism in Malaysia is 'Starting Small to
Grow Big' (RTMP, 2001: III), which can be read as an incremental approach focusing on a small
number of sites at a time. A list of Priority Districts (one for each state) is also recommended, with
the Kuala Pilah District being chosen as a Pilot Model Area. RTMP advocated HRD programmes
and capacity building in addition to the necessary improvements in rural tourist infrastructure.
Over a five-year period, Rural Tourism Product Development is projected to cost RM 75 million,
while Human Resource Development will cost RM 5 million. However, due to financial
restrictions, the implementation has been postponed.

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8.0 THE POLICY’S STRENGTH & WEAKNESS

8.1.1 THE POLICY’S STRENGTH

The current value of the ringgit makes the country more attractive as a destination that has value
for money to long -distance tourism in addition to domestic tourism becomes more attractive.

the development of major infrastructure such as the second link to Singapore and the kl
international airport in Sepang which is ready to be built to further enhance the convenience of
tourists entering the country. further sports and recreational facilities such as the national sports
complex in Bukit Jalil, national theater and Suria Kuala Lumpur city center which are completed
and promote international sports and cultural events and make Malaysia a special attraction, the
organization of Kuala Lumpur 98 - XVI commonwealth sports and some sports events
international level and provide side benefits to the tourism industry until the new millennium.

Employment in the tourism industry grew at an average annual rate of 3.1 per cent to reach 135,761
in 1998. The development of human resources and the provision of quality services in the tourism
industry continued to be given priority. The NATIONAL HUMAN RESOURCE
DEVELOPMENT IN TOURISM (NTHRDC) is a body that oversees and coordinates training
development activities for the hotel industry, tourism services, tour guides, small and medium
industries as well as tourism -related activities to improve national skills standards in the tourism
industry.

8.1.2 THE POLICY’S WEAKNESS

There is increasing competition from developing countries in the Asian region such as Vietnam,
Cambodia, China and India who are trying to increase their market share in the tourism industry
such as Thailand, Hong Kong and Singapore are aggressively launching promotions to attract
tourists especially from Europe.

As the value of the won, yen, baht and rupiah currencies are also involved in the currency crisis
that has hit the region, the number of tourist arrivals from south Korea, Japan, Thailand and
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Indonesia will decline. The tourism industry has yet to benefit from the depreciation of the ringgit
which has placed Malaysia as a top value for money destination as there is a time leg difference
between promotional measures and decisions taken by tourists on their visit destinations.

Among others, tour operators experienced financial constraints due to the decline in the number
of tourist arrivals as well as the tight credit market. Feedback from the tourism industry showed
that 85 per cent of tour bookings for the period September to December 1997 had been postponed
and canceled. revenue for tourism-related companies dropped sharply 30 percent to 40 percent for
1997-1998. small travel agents that focus on ticket sales revenue and overseas travel are facing
cash flow and capitalization problem.

8.1.3 THE POLICY’S OPPORTUNITIES

During the period 1996-1998, hotel investments and tourism-related projects approved amounted
to 18.6 billion. the hospitality industry grew rapidly in the first two years. At the end of 1998, the
number of hotels increased to 1400, exceeding 1340 by 2000. Accordingly, room supply increased
by 39 per cent, amounting to 106,452 units during that period.

To complement the efforts of the private sector, the government has implemented various
development programs involving an expenditure of RM 309.7 million. the program includes the
restoration and restoration of historic sites, beautification of tourist sites, development of medium
-cost hotels as well as improving tourism facilities. Among the projects completed during the
review period are the restoration of historic places in Johor and Melaka, the improvement of rest
houses in Pahang, Selangor and Sabah as well as the provision of landscaping in tourist places.

In addition, tourism products were introduced such as educational and health tourism. the
development of education and health also provides additional opportunities for the development
of the tourism sector. parents of foreign students studying at Malaysian institutions of higher
learning take the opportunity to vacation in interesting places while visiting their children.

taking into account the success of the visit Malaysia campaign, the government launched the
welcoming to the new millennium campaign as a unique event to celebrate the arrival of the new
millennium in 2000. In that regard, the private sector and overseas tour operators will be

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encouraged to promote new millennium packages to attract more people to travel. to Malaysia.
various programs will be implemented throughout the country to celebrate the arrival of the new
century.

8.1.4 THE POLICY’S THREATS

The impact on the current economic slowdown may affect the tourism sector in terms of managing
the number of total tourist arrivals and total expenditure by locals on leisure -related activities.
Feedback from travel agencies indicated that there was a negative perception of holiday
destinations in Malaysia due to media reports. At the same time, there is increasing competition
among countries in the region to gain a larger share of the international tourism market. Intense
competition in the tourism industry, the tourist arrival target was revised and reduced to 6.5 million
by 2000. next. In addition, the economic crisis caused the eye crisis in the countries of the region
to decline resulting in the number of tourists from south Korea, Japan, Thailand and Indonesia will
decrease.

In addition, other threats foreign tourists worry about their safety while traveling in the Asian
region. It was due to the haze problem, COXSACKIE virus, cholera that hit Malaysia in 1997. In
that year, tourist arrivals to Malaysia decreased by 13 percent while revenue dropped 7 percent to
10.5 billion. In addition to the business downturn occurred to travel agencies, Malaysian airlines
and the hotel industry

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9.0 RECOMMENDATION

New and updated policy should be introduced in order to preserve the country’s tourism industry
to once again make Malaysia a preferred destination for global visitors. This can be achieved
through key approaches that include strengthening competitiveness, sustainable and inclusive
tourism sector development, as well as disaster preparedness in the future. Strong policy must be
develop based on the concepts of competitiveness, sustainability, and inclusion in order to position
Malaysia as a top ten global tourism destination in terms of both arrivals and revenues and in order
to remain competitive.

Encourages all part of system and all other actors to take advantage to promote actions at all levels,
including through international cooperation, and to support sustainable tourism as a means of
promoting and accelerating sustainable development, especially poverty eradication. Local public
participation in sustainable tourism development: Tourism development and investment projects
must take into consideration of the local viewpoints, utilize local people as much as possible, and
be profitable to the local producers and suppliers in order to actually create jobs at the local level.
Rebuild our strategies and engage with stakeholders – including tour operators, food and beverage
outlet owners, hoteliers, mall operators and media. We should also seek the support of famous
Malaysians like Tan Sri Michelle Yeoh, Datuk Lee Chong Wei, Datuk Jimmy Choo, Henry
Golding and others to be our Tourism Ambassadors since they have millions of fans worldwide.

In addition, the government should overhaul the infrastructure of historic buildings that are tourist
attractions so that they remain strong and attractive to visit. The government can also make
promotions on social media platforms by providing attractive packages and programs for locals
and foreigners. For convenience, you can also build web / apps that are easy to access at any time
to get information about the tourist places being promoted.

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10.0 CONCLUSION

Transformation is required in order to leverage Malaysia's tourist industry's competitiveness in a

more competitive and unpredictable world by growing income, attracting partnerships and
investments, strengthening local communications units, and assuring the industry's sustainability
and resilience. Despite the fact that there are several levels of government, the interaction between
MOTAC, State, and Local authorities is critical to the effectiveness of policy execution. MOTAC
has a wide role and was in charge of developing, monitoring, and providing the budget for physical
development geared toward the development of the tourism sector, while the state government
served as the body in charge of overseeing all tourism development. There are indications that
Malaysia's tourist sector is caught in a rut. Existing tourist goods are becoming unappealing as a
result of a lack of originality and innovation. In compared to our ASEAN neighbours, our inability
to harness a service culture has resulted in a real or perceived decrease in service quality.
Unsustainable physical growth and bad tourism experiences have also resulted from poor
destination management. As a result, in order to remain competitive, the industry must be re-
invented and transformed.

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11.0 REFERENCES

• Open Edition Journals (2013) (online) (Accessed 11 January 2022) <

https://journals.openedition.org/tourisme/88?lang=en>
• Acadamia Edu (2004) (online) (Accessed 11 January 2022) <
https://www.academia.edu/1646246/Policy_and_planning_of_the_tourism
_industry_in_Malaysia>
• CHAMHURI, Siwar, (2013) Research Gate, Tourism Development in
Malaysia from the Perspective of Development Plans. UKM Malaysia
• MOSBAH, Aissa (2014) Research Gate, A Review Tourism Development
in Malaysia, Malaysia
• Program Pembangunan RMK-7 (2001) (online) (Accessed 20 January
2022)
https://efaidnbmnnnibpcajpcglclefindmkaj/viewer.html?pdfurl=http%3A%2
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• Ministry of Tourism Malaysia – Motac (2022) (online) (Accessed 22 January
2022) https://www.motac.gov.my/en/
• Summary of Conclusions and Recommendation Ecotourism EGM (2013)
(online) (Accessed 22 January 2022)
https://efaidnbmnnnibpcajpcglclefindmkaj/viewer.html?pdfurl=https%3A%2
F%2Fsustainabledevelopment.un.org%2Fcontent%2Fdocuments%2F313
0Summary_of_Conclusions_and_Recommendation_Ecotourism_EGM_su
mmary_29_30Oct2013.pdf&clen=238659&chunk=true
• New Strategies Need for Malaysia – The Star (2020) (online) (Accessed 16
January 2022) < https://www.thestar.com.my/business/business-
news/2020/02/03/new-strategies-needed-for-malaysian-tourism>

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