Strategic Planning of Sentosa

Travel and Tourism

Tourism in Malaysia: A Comprehensive Overview

Malaysia like the United States of America is often referred to as a "melting pot" of people from many different countries, including Chinese an many other Asian cultures as well as other ethnicities, living together happily. While Malaysia is often cited for its multiculturalism, there are many also reasons this country is often known as a utopian paradise for tourism and travel. There are dozens of reasons to travel and tour Malaysian, including the people who are warm and lovely, eager to welcome and delight the millions of people that come exploring each year. Malaysia encompasses 13 states which are also home to 3 federally held territories. These are separated by the South China Sea, where 11 states lay and the territories of Kuala Lumpur and Putrajaya rest in Peninsular Malaysia and the one remaining federal territory Labuan in East Malaysia exists with the two remaining states.

Malaysia has an infrastructure that is notable, as it is more developed than some of the other areas in Asia; it has a large technology park that attracts many visitors. It has fresh water that is available to a majority of the population. The road and travel systems are well built, and the airline systems provide international and domestic service. There are also light rail and railway systems as well as an extensive highway system that extends to just less than 500 miles.

Kuala Lumpur is home to the capital city of Malaysia, and the federal government resides in Putrajaya. There are just under 28 million people residing in Malaysia, although that number is expected to grow. The flag is much like that of the United States, with red and white stripes and a blue square, into which a crescent moon and star reside. Malaysia first became a union in 1946, and following some restructuring, eventually achieved independence in August of 1957. The country has one of the more notable economic records with a growing GDP. Among the reasons for the strong economic performance include tourism and medical tourism. For this reason the country is worthy of exploration. Yang di-Pertuan Agong serves as monarch, followed by the Prime Minister who heads the government.

There are many different types of species, plant life and wildlife within the land of Malaysia. Many state the most exotic attraction to Malaysia is the diverse selection of mountains and beaches. These compare interestingly with the homes in which people live and work, which include rather plain wooden houses that sit on stilts, which one can compare to the large and magnanimous hotels built for tourism, and skyscrapers and other large buildings built for businesses that scatter across the peninsula. There are plenty of different people and cultures to enjoy while traveling.

Literature Review

*Overview

Malaysia has been a hot bed for tourism for many years. As stated, tourism and medical tourism have generated a large portion of revenues for roughly a decade now. One of the reasons people visit Malaysia for tourism is the vast beauty of the region. Malaysia also has an outstanding reputation for medical tourism, with dozens of certified, high-quality hospitals that offer services at more than 60% less than the cost one might pay in a Western country. For this reason tourism continues to explode in this country. Despite economic declines in many other countries, tourism within Malaysia continues to grow. This is not to say however, that financial crises and natural disasters have not impacted the tourism industry, even in Malaysia. It is vital government agencies consider the impact crises have on tourism, and for this reason financial crises is examined thoroughly, as are other factors impacting tourism in Malaysia.

*The Effects of Crises on Tourism

One important and relevant factor to consider is the effect of crises on tourism. As King (2008) notes, tourism in hugely affected by economic and natural disasters throughout the world; as the economy continues to collapse and sickness and natural disasters strike including tsunami's and earthquakes, it is important for governments to consider how they will respond to such crises (p. 40). Coordination among foreign investors, regional collaboration, better communication strategies and the development of new markets are vital to the success of the industry (King, 2008 p. 40; Cochrane on Sri Lanka, pp. 77-91).

Among the possibilities include developing new areas of tourism including promoting longer term residency among tourists, medical tourism, romance and wedding tourism, religious tourism including journeys that are spiritual and sacred, medical tourism, backpacker tourism and cultural or heritage tourism (Winter, 2007, p. 40). Malaysia is one of few countries that have taken advantage of many of these, including medical tourism, spiritual and sacred tourism, and cultural tourism as the country is indeed rich in cultural tradition.

*Globalization and National Policies

All countries, regardless of the business consideration, must consider the process of globalization. This is nothing more than extending their services worldwide. Tourism naturally is a process that can occur domestically, but one that must occur globally or internationally. Therefore a government, when considering how best to expand the tourism industry, must think about globalization. This process may entail examining tourism in other countries to assess what works, and what does not, and then comparing other processes to its own.

Cross-border connections, globalization, international and national policies all have an influence on the tourism industries in particular in Asia including in Malaysia. Cross national and international cooperation especially related to tourism have a very significant effect on tourism, especially in countries including Malaysia. If one country succeeds, all other have the possibility to do so. Often tourism is considered competitively, but it is important for countries to consider what they can offer independently as well as what they can offer as a whole. Very often there are complementary services countries in the Asian sector can offer, particularly countries like Malaysia, so that competition becomes an insignificant factor. Domestic tourism is another important consideration however, as there are many important domestic tourist points of interest. Globalization has always been an important point of revenue particularly related to business customers.

This is significant related to studies including studies on subjects including gambling tourism across borders and areas called "liminal spaces where state power is both at its most apparent and most lax" (King, 2008). In these areas governments must work to develop processes for both when tourism is at its peak and when tourism fails, such as when natural disasters such as tsunamis or the SARS epidemic hits. Cochrane (2008) suggests that incompetence among government officials and "private interests" intermingled with "entrenched systems of patronage" and lack of government involvement or too much red tape have left the tourism industry tied up and unable to grow (p.4). This has led to a failure in the national capacity to grow and has led to the necessity of alternate plans for tourism grown including the involvement and growth of regional players and charity organizations, international developmental agencies, although Cochrane (2008) admits the government's role in tourism growth will always be a factor in sustainable development (p. 131).

In countries like Malaysia, the best way to eliminate red tape and other factors is to pay attention to areas where red tape and government involvement is most likely to be present. This is likely for example, in the medical tourism industry, where certification and insurance, and other factors may play an important role in tourism. The medical tourism industry is more likely in Malaysia to be regulated than other tourist venues, like domestic tourism for holidays. Medical tourism should be closely guarded to ascertain what avenues can be streamlined to ensure the process is cost-efficient but and causes the tourists and the administrators the least amount of disruption when attempting to implement services, thus generating the maximum capacity for revenues. This is also an area where Malaysian officials can consider risk management related to travel and tourism, to limit the risks associated with offering complex services to patrons.

Methodology

The purpose of this paper is to provide a synopsis of the current environment in which Malaysian tourism resides, and provide planning to extend and expand future tourism within the country. The paper will also explore current challenges tourism in Malaysia faces, as well as those challenges the tourism industry may have faced in the past. The paper will evaluate the successes of the tourism industry in the past and present. Also an important consideration is the actions DMOs and the government can take or have taken to help resolve any conflicts or potential conflicts in tourism. The paper will explore the status of tourism in Malaysia compared elsewhere, and factors influencing tourism now and into the future. Based on a preliminary review of the literature, the current factors facing tourism include the financial crisis including recent economic recession, natural disasters in nearby region including health epidemics like SARS, and changing in tourism demands, both domestic and international, such as requests for medical tourism.

Analysis

1. Origin of Tourism to Malaysia

Tourists have come to Malaysia historically for many different reasons. These include the beautiful paradise that many see when they first visit the 13 states and 3 federally operated territories. There are a variety of different people that live in Malaysia making it much like visiting a miniature world, with people of so many different ethnicities. Among the reasons for its popularity include the fine arts of Malaysia, with influences from the indigenous people, China, Thailand, Indonesia and other people's. There is a rich history of music and performances, as well as festivals. Malaysia is likely to be visited for those interested in heritage tourism and festival tourism as much as for any other reason.

Some travel for religious and sacred interests as well. There are many fine cuisines with influences from the surrounding regions including Indian, Sumatra, China, Thai, and Malay. Historically medical tourism was not a highly popular service in Malaysia; it is only within the past decade or so that medical tourism has become a staple in the industry, generating a large portion of profits, primarily because the cost of medical care throughout the world especially in the West has become some high.

2. Tourist Arrivals Historically

Historically there has been a steady number of arrivals of tourists to Malaysia for various reasons, creating a steady revenue of income generated through hotels and other service industries.

Source: Malaysia.gov Facts and Figures

According to these figures, one may assume that tourism is likely to continue to increase in Malaysia, with small dips in tourism likely given natural tendencies for increases and decreases in the flow of tourism. It is important to realize however that at any point in time, the industry may change, so the government should always consider this when planning for the future in tourism. There are no guarantees when it comes to doing business in any industry. This is why the relevance of Plan B. is highlighted in so much of the literature related to business and marketing.

That said, Malaysia has been one of the top tourism destinations for several years now, whereas in other countries there has been an ebb and flow of tourism. This may be due to the high cultural diversity present within the country, and also due to the availability of many diverse selections including medical services available in Malaysia today.

3. Financial Analysis

Thus far there has been a steady increase in financial receipts from tourism during the last 9 years, although the increase could be even more given new predicted avenues for growth.

Source: Malaysia.gov Facts and Figures 2010

Fortunately, Malaysia is one of few countries that has not been hard hit by the financial crises and economic downturn of the recession a few years back. While growth and receipts may not be as high as in some countries, Malaysia is one of the few countries that remains among the top 10 when it comes to receipts in the billions when it comes to travel and tourism. It ranks right up along with the U.S., France, Turkey, and China with regard to income generated from travel and tourism. This suggests that Malaysia will continue to do well in the future as long as it remains a key player in the travel and tourism industry, and continues to plan for the future demands of tourists within the hospitality and tourism industry.

4. Demands/Current Trends Areas of Tourism in Malaysia

It is vital when analyzing data on tourism that one explore not simply the past successes but also the potential future demand for travel and tourism within the country. The demand for new areas in tourism includes the following categories:

Current Trends In Tourism Consumption

Government spending

Fixed Spending

Business Travel

Travel and Passenger Transport Earnings

Future Tourism Consumption (Proposed)

Religious Sacred Tourism

Medical Tourism

Festival Tourism

Eco-Tourism

Cultural/Heritage Tourism

It is critical to analyze the Tourism industries economic importance relevant to government expenditures and share of resource allocation and income generation. The relationship between demand and supply and national income accounts is critical to the influence tourism has on government interest in tourism. The most difficult issue concerning the assessment of the tourism industry in the defined areas including the selection of potential new areas for development including the following:

1. Expectation that given past variables, a projected new area for development would succeed, given the history of economic failures or successes in any industry.

2. Expectation that countries would agree to work together, given the assumed requirement that such is necessary given the need or universal desire or expectation for globalization.

This research follows the methodology and approach the World Tourism Industry has advocated and proposed for several years, promoting interdependence and promoting inter-governmental allegiances in the travel and tourism industry.

Based on this perspective, it is reasonable to expect that Asian countries including Malaysia that currently gather a good deal of income from tourism would still benefit from new approaches to tourism as there is always the probability of economic downturn, financial crises, natural disaster, and change in consumers demands related to travel and tourism.

Analysis and Strategic Planning For Malaysia

*Managing The Effects of Crises on Tourism in Malaysia

One important and relevant factor to consider is the effect of crises on tourism. As King (2008) notes, tourism in Malaysia is hugely affected by economic and natural disasters throughout the world; as the economy continues to collapse and sickness and natural disasters strike including tsunami's and earthquakes, it is important for the Malaysian government, as it would be any government to consider how they will respond to such crises (p. 40). Coordination among foreign investors, regional collaboration, better communication strategies and the development of new markets are vital to the success of the industry (King, 2008 p. 40).

*Planning for New Areas of Tourism

As evidenced from the literature review and available materials, to continue to succeed in the field of tourism it is critical Malaysia keep up with other competitors by arranging for new areas of travel and tourism. Business tourism and traditional venues of tourism will no longer be enough to keep people coming to Malaysia, as beautiful as it is. There are many new tourism "hot spots" and ideas that will promote tourism in Malaysia into the next Century. Among the possibilities include developing new areas of tourism including promoting longer term residency among tourists, medical tourism, romance and wedding tourism, religious tourism including journeys that are spiritual and sacred, medical tourism, backpacker tourism and cultural or heritage tourism (Winter, 2007, p. 40).

King (2008) also suggests that domestic tourism is an often neglected area of research that may provide an avenue for economic success in the tourism agencies. Festival tourism may also be an avenue for income generation, such as attendance at local cultural events, however there may be problems in the case of tourists visiting festivals in China and other areas where "domestic outbursts" such as those in Tibet are likely due to government disagreement with the political nature of the people's interests (King, 2008, p. 40). Another avenue the government may explore and work with DMO's to promote the community vision in is the area of eco-tourism, especially given the current interest in community vision for the environment; areas of interest may include "wetland tourism" (King, 2008).

Cochrane (2008) notes that "the major markets in most Asian countries are other Asians) rather than Westerners (p.1) promoting the idea that local cultural and festival tourism may do very well, especially when many Asian tourists are motivated by the "images which they construct and entertain of their neighbors" or neighboring countries (King, 2008, p.40). Something to consider too seems to be the thoughts other Asians may have between the "cultural similarities and differences" between themselves and their cultural Asian counterparts, and members of the European classes and people in surrounding regions (King, 2008, p. 40). Something governments have focused on that is not new, but something communities have focused on is the potential revenue for gambling tourists and student tourists (Chon, 2000, p. 152).

*Taking Advantage of Technology And Innovation

Consumers are interested in technology and innovation. Medical tourism fits into this category, as countries like Malaysia can take advantage of technology including the Internet to reach out to consumers that might have never known about their country otherwise, to promote new goods and services that they may reach a new level of customer interest and satisfaction. They can learn about the latest technological advances and provide new services to customers. They can also offer jobs to up and coming doctors and physicians that may want to take advantage of opportunities abroad. This is a new field and one that is highly advantageous, not simply to the Malaysian people, but also to foreigners that may be interested in job opportunities in another country, where perhaps competition for employment that is highly specialized is not as stiff as it may be in their country. Who wouldn't want to work in a beautiful, tropical paradise, where they can serve the elite and the newly initiated? There are many ways the government can work to woo tourists just as companies can work to lure eager young professionals to work with their hospitals and clinics as medical professionals.

*Working Toward Globalization

Malaysia, just as any other country, must work not just as an independent entity, but must also explore the world around it, to see if there are opportunities for expansion and growth. Many Asian countries including Malaysia are beginning to see the advantages of working with other countries to expand their offerings. While globalization is not as popular in Malaysia as it is in some other Asian countries that are more closely linked, it is inevitable. The government can work closely with other international agencies to help foster growth and encourage stabilization of the tourism industry.

This is especially important given the current state of the economy. The development of any type of capital including that which might come from new tourism opportunities and the expansion of the industry typically has resulted in independent efforts, including those from DMOs rather than cross-border and region wide efforts. This is why so much of the effort has been disjointed. Tourism is a significant factor in the globalization process and is a force "for both homogenization and differentiation in which states and other actors both shape and are shaped" (Yamashita, 2003; King 2008). Therefore it is vital governments work together in reconciling their differences and cooperating in planning and directing local and regional tourism activities so the economies as a whole succeed.