Research on Tourism in Malaysia

GEOG1033 Dissertation in Environmental Science

“Research on Tourism in Malaysia” By Aravin Pillai (024814)

Abstract. This study is aimed at examining the key areas of tourism in Malaysia and the factors that contribute to this industry’s success as a National Key Economic Area (NKEA). Based on published data; medical, educational, health and cultural and eco/agro-tourism has been the most important segments of tourism in Malaysia. Understanding the economic benefits of this industry is relevant as well as the environmental impacts that come along with it. Statistical data about Malaysian tourism has been compiled over the past decade from the Ministry of Tourism and Culture Malaysia (MOTAC). This information gives insight into the necessary steps needed to be taken by the government, society and all stakeholders involved to maintain the growth of this thriving industry. Moreover, this study emphasises the need for sustainable tourism as a measure to mitigate the environmental impacts that arise due to commercial tourism. Besides, the shift from commercial forms of tourism to eco/agro-tourism has been proposed; which could potentially preserve the biodiversity of this country and minimise the environmental impacts caused by the tourism industry.

Aravin Pillai (024814)


Introduction. Forming the third largest contributor of the Malaysian economy, the tourism sector remains a formidable industry which generated RM73.3 billion to the national treasury in 2016 ("Business News | The Star Online", 2017). The total number of tourist arrivals in Malaysia last year was estimated to be 26.8 million with RM58 billion direct contribution to the country’s GDP and made up 4.7% of Malaysia’s total GDP in 2016 ("Tourism Malaysia", 2017). Since the tourism sector in Malaysia is rapidly expanding, the government has enlisted this industry as a National Key Economic Area (NKEA) as part of the 11th Malaysia Plan (2016-2020). This emphasis on the tourism sector is designed to establish Malaysia as a high income nation by 2020 with increased connectivity aided by globalisation. The Malaysian government does recognize the benefits of tourism in terms of both macro and micro economic growth and development. Tourism serves as a synergist for foreign currency exchange, generating revenue for the country and adds to the gross domestic production (GDP) whereas on a micro level, tourism does provide jobs for the people, promotes fair income distribution and sustains regional development. This leads to the tourism-led economic growth versus the economy-led tourism growth hypothesis. Based on research by (Tang & Tan, 2015), the tourism-led growth hypothesis was endorsed and suggests that inbound tourism in Malaysia can be depended upon to generate economic growth. Thus, much research needs to be done to study the climate of tourism in Malaysia and its impacts to create sustainable tourism.

Methodology. Data from the Ministry of Tourism was obtained to measure the growth in Malaysian tourism for the past decade and the arrival of tourist from different countries. In order to compile information on tourism, various journals and peer review articles was used from the Wiley database and Google Scholar. Keywords such as “Malaysian tourism”, “sustainable tourism” and “tourism ethics” was used to narrow down the scope of research.

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Statistical Evidence of Growth in Malaysian Tourism Sector. As the graph displays below, there is an overall positive growth of tourist arrivals and receipts for the past 10 years (2006-2016). 2014 recorded a peak in arrivals and receipts compared to previous years largely due to the “Visit Malaysia Year 2014” campaign and the country’s participation in various international festivals and sporting events. The projected arrival of tourists in 2017 is 31.8 million whereas the amount of tourist receipts expected is RM 118 billion ("Tourism Malaysia", 2017).

Figure 1: Trend of tourist arrivals and receipts to Malaysia (MYR) in a 10 year span. Adapted from Tourism Malaysia. (2017). Tourism.gov.my. Retrieved 1 December 2017, from http://www.tourism.gov.my/statistics.

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According to data published by the Ministry of Tourism and Culture Malaysia (MOTAC), the total number of foreign tourists to Malaysia last year was 26.8 million which is a 4.0% increase compared to the previous year. The various countries that make up the origin of foreign tourists is represented in the pie chart below.The majority of foreign tourists to Malaysia are from Singapore who usually spend a day in the country and travel back across the causeway.

Figure 2: The proportion of foreign tourists to Malaysia in 2016. Adapted from Tourism Malaysia. (2017). Tourism.gov.my. Retrieved 4 December 2017, from http://www.tourism.gov.my/media/view/malaysia-s-2016-tourist-arrivals-grow-4-0.

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Key Avenues of Tourism in Malaysia and their Potential. Although different varieties of tourism are encouraged and developed in Malaysia, a few of them can be identified as key areas in the industry as illustrated below.

Figure 3: Specific aspects of tourism that are promoted by the Malaysian government.

According to the World Tourism Organization, culture and heritage tourism can be defined as the engagement of tourists with global cultures which includes the performing arts, rituals, handicrafts and food. This form of tourism can generate positive dialogue, understanding and instills a sense of nationalistic pride among communities and most importantly, a sustainable form of tourism ("Tourism and Intangible Cultural Heritage", 2017). With an indispensable multicultural heritage and culture, Malaysia has formed a niche area in this aspect of tourism aided by the highly successful “Malaysia Truly Asia” campaign launched in 1999 which managed to significantly draw in local and foreign tourists by utilising integrated media outlets and international broadcasting networks (Othman, Wee & Hassan., 2014). Moreover, medical tourism was found to be a very promising aspect of tourism in Malaysia. According to (Sarwar.A, 2013), the reasons why medical tourism has drawn a large number of tourists particularly from the Middle East (54.9%) and Asia (28.6%), is because of increased 5



cost of healthcare in developed nations such as the US and Europe, stringent visa regulations imposed on foreigners in those countries, low labour costs in Malaysia and for the premium service with a reduced cost. The management of medical tourism is governed by The Malaysian Healthcare Travel Council (MHTC) which promotes a select group of private and corporate hospitals in Malaysia that have the potential to attract medical tourists due to its comfortable facilities which are accredited internationally. According to (Ormond, Mun & Khoon, 2014), RM335 million was invested by the government to better hospital infrastructure which is projected to accommodate 1.9 million foreign patients yearly by 2020. Thus, the significance of medical tourism can be understood by the RM 683 million generated in revenue to the Malaysian economy from this sector of tourism alone. Besides, educational tourism plays a vital role in the tourism industry. Malaysia was ranked 12th as one of the most preferred destinations for higher education in the world by UNESCO. Furthermore, with an enrollment of 100 000 international students in 2014, it is expected that Malaysia will be a target for foreign students (minimum of 250 000) by 2025 (Matahir & Tang, 2017). Several reasons why Malaysia has become a popular destination for higher education are the competition cost of higher education in public and private universities, the variety of courses available with an English medium and cultural comfort especially with students from the Middle East (30.7%) and China (11.8%) which make up the two largest groups of international students studying in Malaysia (Mosbah & Saleh, 2014). Last but not least, ecotourism can be defined as visiting natural areas that are relatively undisturbed with little or no impact to the environment whilst generating revenue and agro-tourism is based on agricultural activities in Malaysia such as homestays, orchards and animal farms. Malaysia is also listed as one of the world’s 12 highest diversity countries and has a variety of natural landscapes as well as home to a variety of flora and fauna. The government has gazetted national parks such as the one in Endau Rompin, Pahang and conservation parks throughout the country, mainly concentrated in East Malaysia such as the Danum Valley park in Sabah.

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Environmental Impacts that Arise due to Tourism. An increase in the number of tourists will cause a shift in the environmental and social climate in Malaysia. A greater demand for premium accommodation and places of interests will result in the clearance of forests and natural landscapes, which will lead to the loss of biodiversity and might potentially cause soil erosion and landslides if mitigation measures are not implemented well. Breeding sites of various megafauna in Malaysian jungles are also disrupted due to increased human activity and destruction of habitats to make way for hotels, recreational sites and other facilities. Moreover the consumption of both renewable and non-renewable energy sources will increase. This is due to the increase in public and air transportation which requires a lot of fossil fuels to operate and releases a significant amount of greenhouse gases and various air pollutants to the atmosphere. From a social aspect, the arrival of foreign tourists and their impact on local communities should be assessed. For example, commercialization of local handicrafts and heritage/culture brings detrimental effects to the youth. To illustrate, the first incidence of drug culture in Malaysia was found in Penang when hippie tourists arrived and hosted parties with drug use that involved local youths as well. Rapid modernization in those rural areas due to increased tourism activities has failed to allow local communities to assimilate well and this led to a divergence from traditional values and economies such as farming and fishing to illegal tourism related activities such as substance abuse and prostitution (Kasim, 2006). In recent times, privatisation of beaches for tourist use such as the one in Langkawi has displaced the local people from their homes and limited their access to resources that they may have previously enjoyed (Holden, 2000).

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Figure 4: A summary of positive and negative impacts of tourism in Malaysia.

Sustainable Tourism as a Mitigation Measure. Despite the negative implications of tourism in Malaysia, several measures can be implemented to sustain this important industry. According to UNWTO, sustainable tourism can be defined as an industry which considers present and future impacts from an economic, social and environmental point of view while meeting the needs of tourists, the tourism industry as a whole and the needs of all the stakeholders involved. Governmental authorities have to protect certain areas from clearing and development such as national parks and environmentally significant sites by applying for international recognition provided by UNESCO. Currently, 2017 has been called the “International Year of Sustainable Tourism for Development” by UNWTO ("Tourism Malaysia", 2017). In accordance with that, Malaysia’s 8



tourism agenda this year is to highlight the country’s four UNESCO Heritage Sites (Kinabalu National Park in Sabah, Gunung Mulu National Park in Sarawak, Malacca and Georgetown, Penang). Placing emphasis on eco and agro-tourism as a form of sustainable tourism can minimise the consumption of energy and resources that commercial tourism requires. Besides, having strict regulations on commercial tourism and having mandatory Environmental Impact Assessments (EIA) before conducting a project will allow positive dialogue between authorities regarding environmental policy and find ways to manage waste and minimise effects of pollution that arise due to tourism. The National Tourism Master Plan in 1996 outlines the principles of sustainable tourism in terms of eco and agro-tourism which can be summarised as the optimal use of natural resources while preserving biodiversity and heritage, respecting the local culture of the host community and providing employment and service to local communities that will reduce poverty (Wahid, 2008).

Conclusion. The findings of various research attributes the success of tourism in Malaysia due to the vast biodiversity and natural landscapes, affordable service and quality in the medical and educational sector, the rich heritage and culture of the Malaysian society and last but not least, good diplomatic relations with other nations by participation in international events. While the tourism industry in Malaysia generates wealth and provides income to a lot of parties, the environmental impacts caused can be mitigated by looking towards eco and agro-tourism as a source of sustainable tourism. Government legislation, protection of environmentally sensitive and valuable areas, proper development and planning of recreational areas and projects will sustain the longevity of the tourism industry in Malaysia. Policy makers should continue to review, revise and remediate the environmental and social factors that drive a steadily rising tourist population in Malaysia by improving the quality of service and hospitality in key areas of tourism, which can potentially establish Malaysia as a high income nation by 2020.

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