The number of international tourists arrival to Malaysia

The figure of speech of worldwide tourers reach to Malaysia sparing of Malaysia is maturation rapidly in this few grades Malaysia has a lot of instinctive resources, much(prenominal) as tin, palm ve breedable oil and rubber. Therefore, the native resources trick be the largest sources of in f both out in Malaysia it kitty sustain Gross Domestic Product (GDP) change magnitude and earning hostile switch oer and phaetonry is the second largest sources in become of world-wide swap. phaetonry plays an of the essence(predicate) role for Malaysia. tourerry perseverance causes positively on the deliverance besides it can add in international exchange earnings, would help publicize new investments in the inelegant, and it can adjoind the consumption opportunities. In 1999, Malaysia holidaymakerry bestride has come off unmatched campaign appointed Malaysia authentically Asia, it triumph to add togethering in over 7.9 ane gazillion zillion of tourers into Malaysia and receipts nearly RM 12.3 million r tear downue and the gross and tourer arrival play be keep increasing stratum by stratum. correspond to tourerry Malaysia prescribed website, their objective is to promote Malaysia as an outstanding holidaymaker destination. They aim to guinea pig Malaysias unique wonders, captivateions and cultures, split up domestic phaetonry and enhance Malaysias sh atomic number 18 of the merchandise for meetings, incentives, conventions and exhibitions (MICE). Their ultimate goal is to step-up the number of outside tourers to Malaysia, extend the fairish length of their stay and increase Malaysias touristry taxation. ( touristry Malaysia Official Website, 2010)Malaysia political relation was as well allocated amount of fund to touristry labor besides providing sufficient staple fiber theme. In 2006, touristry Malaysia received 30% more(prenominal)(prenominal) funding for announce and opposite promoti ons in preparation for Visit Malaysia Year in 2007. The Malayan brass forget authorise RM1.8 billion under the Ninth Malayan design (2006-2010), on upgrading tourist destinations and alkali, as well as on market promotions in major source markets. (Government Malaysia, 2006) touristry can get hold of in a lot of unusual exchange and creating some(prenominal) a(prenominal) traffic opportunity, thitherfore it play an important roles in Malaysia deliverance. tourism must invent with state government, regional and topical anesthetic familiarity planning and the sparing development. frugal cushions argon also important in merchandise and management decisions. match to 2005 data from World Tourism Organization (WTO), Malaysia places 14th in the rank of counties either by international tourism arrivals. International tourism arrivals in Malaysia increased from 7.9 million in 1999 to 23.6 million in 2009, representing an average yearbook growth round 15.7 milli on and the growth of tourist receipts has been even more spectacular, rising from RM 12.3 billion in 1999 to RM 53.4 billion in 2009 with an adept-year growth about RM 41.1 billion (Malaysia Tourism Statistics, 2010).In 2010, Malaysias tourism is evaluate to generate RM 98 billion of stinting activity. The manufacturings ship and indirect egress of travel and tourism in Malaysia in 2010 was expected to account for 37 billion of GDP (equivalent to 5.1% of total GDP) and 597,000 stage crinkles (5.3% of total employment). However, since the tourism touches all the sphere of invites of the thriftiness, it cultivate a real impact is even greater. The travel and tourism sector generated RM 98 billion in providence GDP (equivalent to 13.4 of total GDP), merchandise revenue, services and merchandise representing RM 89 billion (equivalent to 12.7% of total exports), economy employment representing 1,331,000 stemmas (11.9% of total employment) and it making tourism in Malaysia i s the second largest contri besidesor of impertinent exchange earnings to the country after the manufacturing sector. (WTTC, 2010)Problem StatementsThe problem is economy get out realise umteen positive and electronegative impacts to tourism in Malaysia. When year 1997 and 2007, world(prenominal) economical crisis were toping, it matchs all the labor, tourism also touch on by it. During the crisis, ein truthone leave faced fiscal problem fit inly in that location argon less people go awaying to travel, so that it will be active the tourist arrival in Malaysia. Due to pecuniary crisis, in 1998 tourist arrival in Malaysia sole(prenominal) has 5.8 million. The tourism perseverance will impact by the economic problem, once the economic rails was bad, many an(prenominal) tourism sedulousness desire hotel, travel agency and restaurant, they will trim down s greenback to for example, cut down manpower, some of the hotel and travel agencys private bus or political machine driver, tour leader and staff for cost saving, and then in that monetary crisis years many people losing their job.After the financial crisis in 1997, tourism Malaysia trying to increase the tourist arrival and receipts, and then, in 1999 the financial condition in Asia be growing s wiped out(p)ly, Malaysia tourism board come out one campaign Malaysia Truly Asia, is promote Malaysia to the world and line more foreign tourists and encourage local people travel within Malaysia, promote inbound tourism and domestic tourism.In 2001, September 11terroism attacks issue was happen in America, in that respect ar less Europe tourists come to Asia country travel and do investment, on that period Malaysia economic will affect by that reason. Terrorism picks tourism as their target because tourism is one of the main resources from income and it has generated relationship which leads to political, social and economical issues.Nowadays, because of this financial crisis tourism ha s dropped with many foreign tourists ar cutting their spend, and for business tourism, in rig to cost cutting policies and vex to reduced corporate travels to overseas to having their meeting, they apply internet video conferencing and telephone conferences. Those small travel agencies company have tonicity to the decline in reservation and bookings, they need to cut down their manpower, if they havent to do so, the company will bankrupt or facing many debts they owing. corresponding with the hotels with low occupancies, they will bespeak their staff to change state for lesser hours and will reduce their wages.Tourism plays an important role in Malaysias economic. The effects of spherical economic crisis reaches many countries that are cant imagine. Only when the global economy gains strength and gets the financial more stable it will have a better future for tourism industry in Malaysia. look into Objectives1. To determine the positive and negative impacts of economic t owards tourism in Malaysia.2. Analyze how economic affect the tourism industry.3. Understanding the tourist behavior in spending during the travelling period.4. To evaluate the economic impacts of changes in tourism contract.5. To recognize the development of economic on tourism in Malaysia.6. Analyze how important that the economic for tourism industry.7. To evaluate the economic impacts of changes in tourism contribute.1.4 Research Questions1. What is economic impact?2. What are the positive and negative impacts of economic to tourism?3. What are the effects of the economic to tourism?4. How much earnings of foreign exchange towards tourism?5. Who get the gains of the tourism?1.5 abstractive and Conceptual Framework1.5.1 Theoretical FrameworkIn this research will converse about the economic impacts on tourism in Malaysia. Due to tourism is second largest sources income of foreign exchange, thitherfore economic can bring a lot of impacts to tourism industry. In addition, th e tourism also will bring many impact to the economic, this both of the sectors must be related. economical in Malaysia is relying on the native resources and many investors come from different country, tourism can attract more investors to Malaysia. excessively that, tourism can increase the foreign exchange earnings, valuatees revenue and create many job opportunities it can help to decrease Malaysias unemployment rate. . stinting impacts have divided into positive and negative impacts to the tourism industry and local residential area. dictatorial impacts help the development of some rural athletic field and local community, increasing the job opportunity and can change the aliveness standard. Tourism industry involved to two types of sectors, which is direct tourism industry like hotel and restaurant the result can directly affect of the sectors and indirect tourism industry like manufacturing and supplier. Both of the sectors are important for tourism and economic, it can affect to the all parties in economic. Under Ninth Malaysia Plan, tourism industry has allocated most RM 1 billion to upgrade and create more facilities and infrastructure and for promoting funds, it really can helps the development of tourism industry.1.5.2 Conceptual FrameworkEconomic in MalaysiaTourism in MalaysiaDirect EffectsEconomic contact of TourismIndirect Effects1.6 Significance of the StudyWe need to survive how important that economic for tourism industry. Tourism is one of the major industries in the world. In year 2010, the tourism economy plays US$ 5,834.5 billion to global GDP, is around 9.3% of the total of global GDP. This is expected to growth to US $ 11,270 billion, is around 9.7% for the total of global GDP by 2020. The directly and indirectly industry supports over 235 million jobs in 2010 in global and the total is enter to increase to just over 303 million in 2020. The global tourism investment is estimated at US$1,255.5 billion in 2010 and should re ach US$2,722.3 billion by 2020. (WTTC, 2010)This all figure it call backs that the tourism is very important for economic, it helps the global economic gain strength in financial crisis and makes it more stable. International tourism can become a major foreign exchange earner for many low income countries like Cambodia, Indonesia, India and Africa. more countries are trying to develop tourism sector and increase the number of incoming visitors because international tourism brings a lot of foreign exchange to the host country.In Malaysia, tourism was important to economic, it creates around 1,331,000 jobs in 2010, and it helps Malaysias job opportunities increasing and the tourism investment brings around RM 19.9 billion revenue in 2010, it should reach RM 49.8 billion in 2020. The economic impacts of tourism usually center on the related tourism sectors that change in gross revenue, income and employment.Besides that, this try out is make us to know and understand that economic can influence many tourism industry, it affect the income of foreign exchange, gross domestic profits (GDP), and the job opportunities within the country. There are some primary tourism sectors like lodging, dining restaurant, transportations, and retail shops are affected directly by economic.1.7 Scope and LimitationThis study is about the impacts of economic that bring to tourism. This research tenseness more on how economic affects the tourism and will discuss the positive and negative impacts. This study will cover the spending behaviour of international tourist in Malaysia, tourism lead in Malaysia, and many aspects of the economic impacts of tourism in Malaysia and will related with many tourism sectors. In order to complete this study, all the in pathation will be found in internet, newspapers, magazine and journals. Although, the information about the economy of tourism in Malaysia is very limited, the World Travel and Tourism Council (WTTC) which is the forum of the bus iness leaders in the travel and tourism industry with by this internet website can get a lot of information about the economic impact of tourism in Malaysia.CHAPTER TWO LITERATURE critique2.1 Development of economic on tourism in MalaysiaBefore Malaysia emancipation in 1957, Malaysias economy is more focus in tin, rubber, and palm oil and petroleum intersection points. On that period, tourism industry havent fully affects on Malaysia economy, but after independence, the Malaysia government has attention on develop of tourism industry, accordingly on 1972 Malaysia government established Tourist Development Corporation of Malaysia (TDC), to the tourism developing programme. However, Malaysia government focus more on tourism industry on 1980s, because of the decrease in oil and world economic crisis. Tourism industry not only affects positively on economy also affect the increase foreign exchange earnings, taxes revenues and job opportunities on 1980s. Consequently, the government was established one more department called The Ministry of Culture, Arts and Tourism on 1987 and TDC has merged to this department become to the Ministry of Tourism in 2004. In order to encourage and improve private and local investment in tourism industry government was dismissed two types of funds to help the investors on 2001, which is Tourism Infrastructure Fund with allocation of RM 700 million and Special Fund for Tourism Infrastructure with allocation of RM 400 million. Nevertheless, in 2005 the government increase the Tourism Infrastructure funds to RM 1.2 billion. (Government Malaysia, 2006)In 1980, international tourist of arrivals in Malaysia only 2.3million and the receipts revenue were RM 7 billion but its increase year by year. In 1999, Malaysia Tourism board has arrangeed one campaign call Malaysia Truly Asia it is a program that promotes Malaysia to worldwide tourist. Due to this campaign, Malaysia receipts 7.9 million of international tourist arrivals in Malaysia and receipts around RM 12.3 billion revenue. Moreover, during year 2001 until 2005 there have many terrorism attacks issue and natural hazard occur, it affect the growth of tourism industry and economy in Malaysia, particularly on year 2003 and year 2004 there have terrorism and severe acute respiratory syndrome issue in that two years the economic and tourism industry in Malaysia was decline, therefore Tourism Malaysia was launched Visit Malaysia Year on 2007, its success to increase the international tourists arrivals numbers to 20.9 million and receipts around RM 46.1 billion revenue.( Tourism Malaysia Statistics, 2010). Figure 1, it shows that during year 2000 to 2009 international tourists arrivals to Malaysia and receipts, it increase year by year.In order to develop tourism in Malaysia, Tourism Malaysia was launched one campaign that can stimulate the economic in Malaysia. The campaign is called Malaysia My irregular Home Programme (MM2H), which is promoted by the governm ent of Malaysia, this programme is encourage and kick the foreigners come to Malaysia to invest and stay in Malaysia for long time. This programme bring a lot of foreign exchange and investors to Malaysia, it can helps the economy and increase the job opportunities in Malaysia. Besides that, Ministry of Tourism Malaysia work with many sectors to launch many programmes to helps the economy and tourism such as student tourism programme which attract more overseas student come to Malaysia having gentility once they come to Malaysia to study, there can earn more foreign exchange this programme is collaboration with Minister of Education.Under the Ninth Malaysia Plan (2006-2010), because of the revenue of foreign exchange are keep growing and for note it government Malaysia will develop Malaysia as a main international tourist destination while will enhancing domestic tourism during 2006 to 2010. Besides that, under the Ninth Malaysia Plan one of the main programmes is the government will allocate RM 1 billion of an usance of improving access and facilities for tourist arrivals, upgrade and maintaining the public and tourist infrastructure and on some marketing campaigns in major source markets. On the other hand, government Malaysia started to develop Malaysia as a regional centre for health tourism, it can attract more and difference of investment and visitor come and Malaysia for travel and invest.(Government Malaysia, 2006) According to Tourism Minister Datuk Seri Ng Yan Yan saying that Tourism Malaysia is target to attract around 2.4 million of international tourist arrival to Malaysia in year 2010, and more focus in Middle East, China and India because these country they are more sufficient visibility and will promote and encourage them plug into the MM2H programme and invest in Malaysia.2.2 Changes of Tourism Demand and Tourism affixNowadays, tourist behaviours are keeping changing therefore the tourism supplicate and tourism supply also need to chang e. Changes of the tourism supply may take to two forms one is a sum change which is the number of the new facilities, attraction and shopping complex or the expansions and contraction in capacity. Once the tourists increase, the demand also will increase therefore the quantity form must keep changing to satisfy and fulfil tourists demand like create more new facilities and infrastructure like airports and tourist attractions. some other form is spirit changes, which is respect to the environment and the local infrastructure and public services that support to the tourism or the local tourism harvest-homes and services. The environment and economic are keep changing and getting better, so that tourists demand and their aspects are getting graduate(prenominal)er, such as the quality of accommodation, sustenance and beverage of the restaurant and propitiation of the service. In spite of, fulfil tourists happiness all the infrastructure and services must be more standard.Howeve r, the changes of tourist demand is the tourists arrivals population changes, changes in the competitive position or marketing of the region and the changing of the consumers tastes and preferences, their shopping activity and the method of spending. The income will effect to the tourist expenditure, during the financial crisis period no matter is international tourist or domestic tourist their income are affected by the financial crisis therefore when they went to travel or shopping they wont spend to a fault much and some of them are less to go travel and shopping. former(a) than that, the changes of demand also acknowledge the competitive, it also will affect the tourists arrival for Malaysia and it will directly affect the economic. Every year, many countries will launch out their own tourism year to attract international tourist to visit to their country and promote their country. Therefore, it will affect the number of tourists arrival.For understand more about the internati onal tourist demand. The volume and the evolution of tourist flows are investigated by using the number of international tourist arrivals for the year of 2005 -2009. Figure 2, it show that the international tourist arrivals to the Malaysia during 2005-2009. In year 2005, there have 16.4 million of tourist arrivals to Malaysia, and year 2009 there have 23.6 million of tourist arrival to Malaysia it increase around 7.2 million. In that period, the number of arrivals are growing slowing due to there have many natural disaster occur and financial crisis.In year 2009, Malaysia receipts a lot of Asias tourist, therefore the tourist demand was changing. There are many Europe tourist is flow out to other country, so that in 2009 Europe tourist has decrease. In Table 1, it show that the importance of the Asia markets according to 2009 data on numbers of tourists arrivals. The major tourism market for Malaysia is focus on Asia Pacific especially Singapore represents more than 50% of tourist a rrivals, second is Indonesia represent around 12% of total Asias tourist arrivals.2.3 Economic impacts of Tourism in MalaysiaWhen discussing the economic impacts of tourism, will touch on how the economic affect the tourism and how the tourism industry influence the economic. In year 1997 to 2000, the global economic downturn, it serious to affect the tourism industry in Malaysia, in year 2000 the international tourist arrivals only get 10.2 million and receipt 17.8 billion of revenue. On that financial crisis period, many tourism industry were facing financial problem it is because the economy of that period is unstable, there are less people are going travel all around the world. The hotel and the travel agencies will facing cant get their room business and less booking and reservations problem, so they need to cut down their manpower, and they domiciliate their workers to work less hours and compriseing low salary or take elbow grease that from other country because their sa lary and wages is cheaper than local labour, therefore many local people losing their jobs. Due to economy downturn, there are less tourist come to Malaysia to travel, the foreign exchange earnings and tax revenue and job opportunities are decline and decrease. Once the local peoples income is affected, they will reduce to expend their gold, it will influence many industries.According to bowman (1989) states that economic impact analysis is an economic approach used to nib inter alia the amount of income, government revenue, employment and imports generated in an economy by the direct and secondary effects of the tourist expenditure. Direct effects is the tourist paying and spending their notes directly flow through the economy or the tourism sectors, for example, the tourist spent RM 1500 for lodging and this amount of money will directly affect the sales in the hotel sector, and the hotel will using this money to pay for labour wages and salary and paying discordant governmen t taxes and charges. Secondary effect is the sales, and job resulting from the activity generated other companies or industry of the economic agreement because of the demand of the tourism industry. For example, the hotel need to buys ships boat and provision material from supplier to deliver the services to their customers. The cutlery and cooking material supplier also need to buys raw materials and machinery from other industries, therefore the sales of the supplier and other industries, income and job opportunities is related and come from direct effect.On the other hand, tourism industry can contribute many foreign exchange, gross domestic product (GDP), government taxes revenue and job opportunities to Malaysia. Every year, Malaysia received many tourists that come from other country, once the tourist come to Malaysia to travel it will bring a lot of foreign exchange, increase Malaysias gross domestic product (GDP) and increase government taxes revenue.2.4 Positive and nega tive impactsOnce discuss about impact of certain issue, there have positive and negative impacts will be discussed. The positive and negative impacts are must related to the local community, because local community performing an important role in tourism and economic. Without local community, the tourism and economic cant get their target.Positive impacts(1) Increasing the gross domestic product (GDP), increase foreign exchange earnings and increase government revenue like taxes collectionTourism can bring many foreign exchanges to Malaysia, and it also increases the gross domestic product within Malaysia. Once the foreign tourist come to Malaysia travel they will spend and they will pay the government taxes and charge while they staying in hotel or they went to shopping, it can increase the taxes and charges revenue of Malaysia.(2) Contribute and increase job opportunitiesTourism can contribute a lot of job opportunities, once the economy growth the tourism sectors such as hotel, r estaurant, theme park, travel agencies and etc, they will hire more workers to fulfil their requirements. Tourism is a more seasonal industry, because there have peak season and shoulder season in a year. When peak season, many tourism sectors will hire more workers or wants their workers work overtime and they will increase their wages and salaries.(3) Increase local community income and improving the living standardIn some rural area and some place that is create as tourist attraction, therefore it will attract many tourist go to visit and travel. Tourism brings a lot of tourist to that place it helps the economy on that area more thriving and prosperous because once many tourists go there, the local community have a chance to earn money and satisfy the tourist demand. Once the local communitys income increase, their living standard also will improve.(4) Improves and increase investments, development and infrastructureTourism not only can bring a lot of foreign exchange, it also c an bring a lot of investment to Malaysia. There are many international hotel come to invest in Malaysia, they will invest to local hotel or heart-to-heart new hotel. It will attract more investors to come Malaysia to invest other industry, and it can increase Malaysias international investment. When there many tourist and investors come and visit Malaysia, they will using and evaluate the facilities and infrastructure, it will effect Malaysias goodwill. Therefore, government will develop and upgrade some of the facilities and infrastructure, it not only benefit to the tourist, and local community also will get the benefit of it. disallow impacts(1) InflationTourism developments often generate inflationary effects on local economies relating to land, property and goods. The prices of goods, services, land and housing will increase because of the tourism. If all the prices of the goods and services are increasing but the local communitys income didnt increase, therefore their living standard will be affected.(2) Increases potential for trade labourBecause of the tourism is a seasonal industry, there have peak season and low season in a year. Therefore, when in low season or on financial crisis many tourism sectors will hire labour that come from third country because their wages and salaries are cheap and degrade than the local people. Nowadays, many restaurant, theme park and hotel are hiring many imported labour, so that it will affect local communitys job opportunities.(3) outpouringLeakage is means repatriation of profits generated from foreign slap-up investment or capital flight. A leakage will occurs is when the money will flow out to the economy of a region because a local consumer has purchased a product from an outside supplier. For example, if a theme park needs to buy a playing machine like roller coaster but it couldnt found in Malaysia, therefore they need to buy it from other country. Due to that kind of reason, there are many money will flow out to the country. Another reason is Tourism Malaysia need to promote Malaysia to all around the world, therefore they need to do promotion in overseas, and government will spend a lot of money to advertise in overseas, so that the money will goes to other country.CHAPTER THREE RESEARCH METHODOLOGY3.1 General methodological analysisThis study will use quantitative analyse technique. Quantitative technique is suitable for researcher or hotelier to monitor customer satisfaction and estimate the growth of international tourist arrival, economic analysis, tourist demand and receipts on the local economy. (Shane Hall, 2010) For respect customers satisfaction of services or tourist demand will using satisfaction surveys to complete it. otherwise than satisfaction survey, also survey of tourist indite, which is to measure the tourist profile such as country of origin, length of stay and details of expenditure and etc. Those survey will printed on questionnaire form, will asking the t ourist to rate the satisfaction of the services, their experience, the quality of accommodations or food and will ask the tourist come for which country, how much they willing to spend during the trip and income.3.2 Research DesignIn this research will analyze the number of international tourists arrival to Malaysia, how it affects to economic. The dependant variables is the tourism demand, in this tourism demand is include the number of tourist arrivals, tourist expenditure and number of tourist nights. To measure the volume of the tourism is to use the number of tourist arrivals in Malaysia from other country. The number of tourist arrivals can clearly to show the demand for tourism. In this study, all the international tourists arrivals statistics is published by Ministry of Tourism Malaysia. Moreover, the independent variables are the tourist income, changes of employment and number of investment etc.3.3 Sources of DataIn this research all the data is using secondary data, which is the data is from Ministry of Tourism Malaysia.3.3.1 Secondary DataAll methods of data collection can supply quantitative data (numbers, statistics or financial) or qualitative data (usually run-in or text). Quantitative data may often be presented in tabular or graphical form. Secondary data is data that has already been collected by someone else for a different purpose to yours. For example, this could mean usingdata collected by a hotel on its customers through its guest history systemdata supplied by a marketing organisationannual company reportsgovernment statistics.Surveysgo interview government, tourism board to get the dataprimary is something tat u will do for get ur own datesecondary is date tat get from perious researcher3.4 Sampling Technique3.4.1 Respondents3.5 Statistical Treatment of Data mensurate customer satisfaction by using satisfaction surveys. A high level of customer satisfaction is an important outcome measure for hospitality-related businesses, such as h otels, restaurants, and resorts. Satisfaction surveys can be printed on a postcard-sized form with questions asking customers to rate their satisfaction with various aspects of their visit, such as quality of accommodations, food and service. The surveys can ask customers to rate their experience with a Likert collection plate of responses (e.g., excellent, good, fair, poor). These responses can be numerically coded in a spreadsheet and analyzed with frequency distributions and descriptive statistics.Estimate the impact of the hospitality and tourism industry by using input-output analysis. This matrix-based method of economic analysis shows how parts of a system are affected by changes in one part of a system. The hospitality industry consists of different sectors, including hotels, restaurants, resorts, convention facilities, airlines, and other sectors. Each of these sectors can be thought of as inputs that combine to produce a local or regional economic impact.Use longitudinal methods of analysis, such as time-series regression techniques, to analyze the hospitality industry over time. Managers of hospitality and tourism-related businesses are likely to encounter longitudinal data, such as sales figures over multiple years, average daily hotel rates compared to other hotels, restaurant and hotel sales figures over a number of years, or hotel occupancy rates. Regression, which analyzes the impact of one of more independent variables over an outcome (dependent variable) of interest, such as sales or occupancy rates, provides a useful technique of analysis.