Chapter 1 Introduction to

tourism industry in Malaysia

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© 2012 John Wiley and Sons, Inc.

All Rights Reserved
 Learning Objectives
•Understand what tourism is and its many definitions.
•Learn the components of tourism and tourism management.
•Examine the various approaches to studying tourism.
•Appreciate how important this industry is to the economy of the world
and of many countries.
•Know the benefits and costs of tourism.
Definition of Tourism
Tourism may be defined as the processes, activities,
and outcomes arising from the relationships and the
interactions among tourists, tourism suppliers, host
governments, host communities, and surrounding
environments that are involved in the attracting and
hosting of visitors.
UNWTO Definition of
Tourism
Tourism comprises the activities of persons traveling to and staying in
places outside their usual environment for not more than one
consecutive year for leisure, business and other purposes.

Source: UNWTO
Visitor
A “visitor” is defined as those persons who travel to a
country other than that in which they have their usual
residence but outside their usual environment for a
period not exceeding twelve months and whose main
purpose of visit is other than the exercise of an activity
remunerated from within the place visited.
 Classification of
Travelers

(1) Tourists in international technical definitions.

(2) Excursionists in international technical definitions.
(3) Travelers whose trips are shorter than those that qualify for travel and tourism; e.g., under 50 miles (80 km)
from home.
(4) Students traveling between home and school only -- other travel of students is within scope of travel and
tourism.
(5) All persons moving to a new place of residence including all one-way travelers, such as emigrants,
immigrants, refugees, domestic migrants, and nomads.
The Tourism Phenomenon:
Components of tourism and tourism
management

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Welcome to You, the Future
Hospitality Industry Leaders!
◦ The hospitality industry is one of the most fascinating, fun,
and stimulating to work in, plus you get paid quite well and
have excellent advancement opportunities.
◦ The hospitality industry is one in which it does not take long
before advancement opportunities come along.
◦ A degree plus experience enables almost anyone with the
service spirit to enjoy success.
◦ The National Restaurant Association (NRA) forecasts a need
for thousands of supervisors and managers in the hospitality
and tourism industry.

continued on next slide

The Pineapple Tradition
◦ The pineapple is a symbol of welcome,
friendship, and hospitality.
◦ Imported from the West Indies,
pineapples were often served to royal
families and the elite.

This Photo by Unknown Author is licensed under

CC BY-NC-ND
The Interrelated Nature of
Hospitality and Tourism
◦ The hospitality and tourism industry is the largest and
fastest growing industry in the world.
◦ An exciting aspect is that the industry comprises so many
different professions.
◦ Whether in direct contact with a guest (front of the house)
or working behind the scenes (back of the house), the
most challenging aspect of working in the industry is
creating powerful impressions that have the ability to
affect the human experience.
◦ Restaurants fill the biological need to eat, as well as the
need to socialize and to be entertained.
◦ In managed services, food services are provided to
institutional clients, meeting the needs of the guests as
well as the client.

continued on next slide

The Interrelated Nature of
Hospitality and Tourism
◦ Studies show that as many as 57% of consumers now use
the Internet to book their travel.
◦ In fact, technology could be the thin line between a
successful business and bankruptcy for many organizations.
◦ Restaurants use more than 30 different technology
applications to provide faster, more cost-efficient, and
productive business operations for guests and staff.
◦ Many studies already showed that high-speed Internet is one
of the most important in-room amenities that enables guest
satisfaction in a hotel.

continued on next slide

Characteristics of the
Hospitality Industry
◦ Open 365 days a year, twenty-four hours a day, the
hospitality industry tends to work longer hours than most
other industries.
◦ Those in senior positions can expect to work 10-12 hours a
day regardless of the time or day.
◦ Due to the industry running twenty-four hours a day, it relies
heavily on shift work.
◦ Essentially there are four shifts, including 11 p.m. to 7:30
a.m., known as the graveyard shift.
◦ The hospitality industry is in the business of providing guest
satisfaction at a price.

continued on next slide

Characteristics of the
Hospitality Industry
The difficulty here is that the product is intangible; that
is, the consumption and production occur at the same
time, making them inseparable.
This helps to explain why the product is also perishable;
that is, a room or meal not sold tonight cannot be saved
and sold tomorrow.

continued on next slide

Characteristics of the
Hospitality Industry
◦ The other unique characteristic of this industry is the
perishability of our product.
◦ For example, we have 1,400 guest rooms in inventory that are
available to sell, but we only sell 1,200 rooms.
◦ What happens with the 200 unsold guest rooms? Nothing!
◦ We have permanently lost the revenue from these rooms.
◦ One other unique characteristic of the hospitality industry to
consider is the variability inherent within those who produce
and consume.

continued on next slide

Characteristics of the
Hospitality Industry
In the hospitality industry, we are in business to make a
return on investment for owners and/or shareholders
and society.
People invest money for us to run a business, and they
expect a fair return on their investment.
 Travel and Tourism -
World’s Largest Industry
• In 2015, Travel & Tourism in total contributed US$7.2 trillion to world GDP, representing 9.8%
of global GDP.
• The sector supported 284 million jobs, or 1 in 11 jobs in the world.
• Travel & Tourism grew by 3.1% in 2015 - the 6th consecutive year of positive growth for the
sector. • The sector’s contribution to GDP is forecast to grow by 3.3% in 2016.
• Travel & Tourism will outperform the global economy throughout the next decade, growing by
an expected 4% on average annually over the next ten years.
• All major components of Travel & Tourism are expected to record faster growth in 2016 than in
2015.
• Investment is forecast to grow by 4.7% in 2016, while domestic and international Travel &
Tourism spending are forecast to grow by 3.3% and 3.0% respectively.
• Domestic Travel & Tourism spending growth is again expected to buck the longer-term trend by
outpacing international spending in 2016, before international spending growth will again
exceed domestic spending growth from 2018.
Source: WTTC
 Travel and Tourism Can
Grow by 4.2% per year
•Travel and Tourism will continue to expand faster than the economy as
a whole and faster than comparable industries.
•By 2026 Travel & Tourism is expected to account for:
• USD3,469.1bn (3.4% of GDP)
• 370 million jobs

•Growth depends on enlightened government policy

Source: WTTC
 World’s Top 10 Tourism
Destinations 2016
1. France
Tourist arrival: 86.3 million (estimate), up 3 per cent.
2. United States
Tourist arrivals: 77.9 million (estimate), up 3.9 per cent.
3. Spain
Tourist arrivals: 68.1 million (estimate), up 4.8 per cent.
4. China.
Tourist arrivals: 56.9 million (confirmed), up 2.3 per cent.
5. Italy
Tourist arrivals: 50.8 million (estimate), up 4.6 per cent.
6. Turkey
Tourist arrivals: 39.3 million (estimate), down 0.9 per cent.
7. Germany
Tourist arrivals: 35 million (estimate), up 6.1 per cent.
8. United Kingdom
Tourist arrivals: 33.9 million (estimate), up 4 per cent.
9. Mexico
Tourist arrivals: 32.1 million (estimate), up 9.6 per cent.
10. Russia
Tourist arrivals: 31.6 million (estimate), up 6.2 per cent.
International tourist arrival and
receipts in 2016
Cont.

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http://www.e-unwto.org/doi/pdf/10.18111/9789284418145
Leading destination in Asia
and Pacific

Leading destinations in Asia and the Pacific China is the top destination
in Asia and the Pacific and number four worldwide ranked by tourist
arrivals volume (57 million in 2015).
Thailand is the 2nd largest in Asia Pacific (30 million arrivals), followed
by Hong Kong (China) (27 million), Malaysia (26 million), and Japan (20
million).
In 2015, intraregional tourism in Asia and the Pacific accounted for
some 225 million international tourist arrivals, or 80% of the region’s
total. Arrivals from other regions represented 20%, or about 53 million.
Interregional flows are dominated by European markets, which
generated 12% of arrivals from outside Asia (32 million arrivals),
followed by the Americas with 16 million, or 6%.

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Cont.
Despite slower growth than in previous years,
Europe continues to be the main interregional
source of travel to Asia and the Pacific. European
arrivals are most significant in South Asia, where
they account for 34% of the total arrivals and but
also in Oceania (16%) and South-East Asia (13%).

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 MODE OF TRANSPORT PURPOSE OF VISIT

Mode of transport Airline travel travel related to ‘leisure,

remains the dominant mode of recreation and holidays’ generates
transport for tourists travelling to the highest share of arrivals in Asia
Asia and the Pacific, accounting for and the Pacific (53%) – well above
61% of all arrivals in 2015. other categories such as ‘visiting
friends and relatives (VFR), trips
The share of air travel has
for health, religious and other’
increased in the last few years,
reasons (23%), or ‘business and
largely due to the boom in low-cost
carrier (LCC) services, while travel professional’ travel (12%).
by land has been steadily declining. For an additional 11% of trips, the
The proportion of sea travel has purpose is not specified.
declined over the past couple of
decades – from around 9% in 1995
to only 6% in 2015, although it has
grown faster in recent years.

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Outbound tourism
Outbound tourism In 2015, outbound travel from Asia and the Pacific –
measured by the arrivals generated in different destinations worldwide
– reached a total of 290 million, or 7% more than in the previous year.
This is a continuation of robust growth rates since 2010 – the year of
travel and tourism’s recovery after the economic crisis, which had
dented demand for travel abroad.
Intraregional travel (within the region) accounted for 78% of outbound
flows from Asia Pacific markets and increased by 6% in 2015, while
interregional travel (outside the region) accounted for 22% and was up
8%.

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Demand exceed expectation
Tourism contribute to
GDP