Tourism Influences and Impacts in Malaysia - Assignment Example

Tourism Influences and Impacts Case Study - Malaysia Table of Contents Tourism Influences and Impacts Case Study - Malaysia Table of Contents 2 Introduction 3 Impact of Tourism on Malaysia 4 Economic Impact 4 Impact on the Society and Environment 4 Role of Government in Planning and Development of Tourism Industry in Malaysia 5 Influence of Economic Policy on the Tourism Industry of Malaysia 7 Influence of Political Change on the Travel and Tourism Industry of Malaysia 7 Strategies to be adopted to Minimize Negative Impact of Tourism in Malaysia 8 Conclusion 8 References 10 Introduction Tourism industry is one of the fastest growing industries of the world and is considered as the major source of foreign exchange that helps in the economic development of a country and generates more employment opportunities. The tourism industry in Malaysia has been undergoing continuous development, for which it has become the most attractive travel destinations of the world. The tourism industry also plays a major role in the economic and social development of Malaysia. The local tourists of Malaysia as well as the tourists of the foreign countries are considered to be the main contributors in an economy. As the tourism industry of Malaysia is the earner of huge foreign exchange, this has helped to contribute to the economic growth and development of the country and attract more foreign investments. As a result, the opportunities for jobs have also increased. Apart from promoting the domestic tourism, the government of Malaysia is highly focused on strengthening the position of the country as a leading tourist destination of the world. In order to support the growth of the tourism sector of Malaysia, many investors, business owners and entrepreneurs are identified to make huge investment in different areas for the development of the tourism sector as a whole. The Ministry of tourism is responsible for developing the tourism industry of Malaysia. Whereas, Malaysia Tourism Centre, Virtual Malaysia and Tourism Malaysia are responsible in promoting the diversification of the services of Malaysia’s tourism both nationally and internationally. The increase in the tourism activities in Malaysia has resulted in the growth of various sectors like hotel industry, restaurants, transportation and retail business. The tourism industry in Malaysia is playing a major role in the growth and development of Malaysia (Scribd Inc, 2014; The Establishment Post, 2014; TourismNews.org, 2014; Othman & et. al., 2012; Tourism Malaysia, 2008). Impact of Tourism on Malaysia Economic Impact The tourism industry is a major contributor to the Malaysian economy and thus, helps in the economic growth and development of Malaysia. Huge amount of foreign exchange is earned by the tourism industry, which has created new investment opportunities in the country as well as in generating more employment opportunities. A campaigning strategy was adopted by the Malaysia tourism board named as, ‘Malaysia Truly Asia’ in the year 1991. As a result of this campaigning, about eight million tourists visited Malaysia from various parts of the world and the revenue from this was nearly RM 12.3 billion. Moreover, the number of tourists and the revenue receipts from them are increasing year after year. The growth of international tourisms in Malaysia increased to 23.6 million in 2009, which generated revenue of RM 53.4 billion in that year. Moreover, the growth of the tourism industry in Malaysia has developed opportunity for the growth of the related sectors like hotel industries, transportation, entertainment and retail industries (Edge Insider Sdn Bhd, 2014; Scribd Inc, 2014; Abdullah, 2012; Wttc.org, 2014; Miepa, 2003). Impact on the Society and Environment The growth of tourism industry has both positive and negative impact on the society of Malaysia. There has been a rapid damage to the eco system of the tourist spots of Malaysia, which is regarded as great loss to the society. Moreover, construction of resorts and hotels along the coastal areas has caused destruction of the beaches, lagoons and mangroves because of the sewage and other wastes of construction materials. The development of tourism industry has enhanced the cross cultural mix of Malaysia, as the people from different parts of the world visit Malaysia, which has enhanced interaction amid people from different culture and religion. However, some negative consequences have also been identified as a result of the growth of tourism industry. Human trafficking has become more prevalent in Malaysia, which is considered as a lucrative industry (Scribd Inc, 2014; Abdullah, 2012). Role of Government in Planning and Development of Tourism Industry in Malaysia The government plays an important role in the development of tourism industry in Malaysia. During the second Malaysian plan (1971-1974), significant policies were established related to the growth of tourism in the country. Four strategies were proposed by the government in order to encourage tourism in Malaysia. The first strategy was to propose more tourist destinations and create tourism infrastructure in the whole country. The second strategy was to establish the tourist destinations along the side of the main road that would attract foreign tourists. The third strategy was to focus on the development of tourist places in the Northern and Southern peninsula of Malaysia, and the final strategy was to develop air transport in Sabah and Sarawak located in East Malaysia. In the year 1970, the New Economic Policy was developed by the government with a view to provide better economic quality and establish national unity among various races staying in Malaysia. In the year 1975, the National Tourism Master Plan was introduced. The objectives of the plan were to outline the tourism development in such a way that the natural attractions of Malaysia are fully utilized and to provide employment opportunities for some selected areas. The government introduced the National Tourism Policy in the year 1991, with a view to enhance the cultural diversity and natural recourses of Malaysia. According to the policy, an international infrastructure was required for tourism. The first strategy was to diversify the products and services of tourism to fulfil the needs of the tourists. Promoting and identifying both national as well as international markets was identified to the second strategy. The third strategy was to involve the private sectors in tourism sector for the enhanced development of the same. Fourth strategy signified the involvement of the local communities of Malaysia in various activities of tourism and finally the fifth strategy aimed at developing an effective communication system for the arrival of local as well as the tourists of foreign countries. Thus, the objective of the National Tourism Policy was to focus on the development of tourism products and investment from private concerns. The sixth Malaysian Plan (1991-1995), proposed the strategy of tourist development in order to enhance the inflows of tourists from foreign countries to Malaysia and minimize the outflows of foreign exchange by promoting domestic tourism. These strategies were further followed in the Seventh Malaysian Plan (1996-2000) and the focus on domestic tourism was given more priority by involving the local residents of Malaysia in the entrepreneurship of product and services of tourism. The Eighth Malaysian plan was focused on the adoption of sustainable policy of tourism in Malaysia in order to create a balance between economic, social, cultural and environmental issues related to all the tourism activities. The Ninth Malaysian Plan (2006-2010) emphasized the sustainable tourism development in Malaysia and concerned on the development of the tourism products, improvement of human resource and development the domestic tourism with the help of promotional activities (Scribd Inc, 2014; Bennett, Coleman & Co. Ltd., 2014) Influence of Economic Policy on the Tourism Industry of Malaysia The economic policy of Malaysia is aiming at promoting the tourism industry for which it has established an effective relationship with the foreign countries. For the growth and development of tourism in Malaysia, the federal government had introduced a five-year plan. The government policy aimed at increasing the employment growth in Malaysia. As a result of the growth of tourism in Malaysia, more foreign exchange are earned, which has resulted in the more foreign investment. This has helped in the generation of employment in the country and development of different sectors as well. Moreover, the government policy proposes to create more tourist destinations and improved international tourism infrastructure in Malaysia. This has provided an opportunity for the growth and development of tourism industry in Malaysia. The economic policy is planned to establish a national unity among various races of Malaysia. This policy is highly effective in the development of domestic tourism, as unity among the people will enable them to perform their tourism activities without any hindrances. As per the economic policy, there should be sustainability in the Malaysian economy. Thus, it may be an opportunity for the tourism industry to adopt sustainability in tourism activities in order to create a balance between the social, cultural, economic and environmental issues related to tourism. Thus, it can be stated that the economic policy of the country has a positive impact on the growth and development of tourism industry in Malaysia (Asian Development Bank Institute, 2014; Bennett, Coleman & Co. Ltd., 2014). Influence of Political Change on the Travel and Tourism Industry of Malaysia The change in the political scenario has a positive effect in the growth of travel and tourism industry in Malaysia. The new government has introduced several plans that will promote domestic as well as international tourism in the country. Many foreign relations have been established in order to promote tourism and endorse Malaysia as one of the most attractive tourist destinations of the world. Moreover, the strategy of sustainable tourism policy has been undertaken by the government, which has a positive impact on the tourism industry. In this context, certain rules and regulations that have been established by the government are in favour of expanding the tourism industry in Malaysia (CNBC LLC, 2014; TourismNews.org, 2014). Strategies to be adopted to Minimize Negative Impact of Tourism in Malaysia In order to minimize the negative economic, social and environmental impact of tourism in Malaysia, several strategies should be followed. The government should establish the policy of eco-tourism in the country. As the construction of hotels and resorts along the coastal areas are negatively affecting the eco-system of the country, so measures should be taken in order to provide sustainable tourism that may attract more tourists in the country and at the same time, the environment is also protected. In addition, the government with the implementation of eco-tourism will be able to develop the transportation and communication system. Owing the development of tourism industry in Malaysia, the rate of human trafficking has also increased. Thus, the government should take strict measures against the tourism agencies and other involved people in order to prevent human trafficking in Malaysia (Wttc.org, 2014). In addition, the Malaysian government is required to adopt infrastructural development strategy with the aim of ensuring that tourism facilities and infrastructure are developed to a large extent. In this context, the government will be able to attract local, national and international tourists with the provision of quality products and services (Turner, 2014; Nanthakumar & et. al., 2007). Conclusion From the above discussion, it can be concluded that the growth of tourism sector in Malaysia has a positive impact on the economy. As a result of the development of tourism industry, more foreign exchange is earned, which has assisted the development of the economy in terms of employment, infrastructure and different sectors among others. The tourists of foreign countries are considered to be the major contributor for the tourism industry of Malaysia. Moreover, tourism has led to the enhancement of cross cultural relationship in the country as the tourists from various countries come and interact with the Malaysian culture. However, the tourism industry has also certain negative impacts on the society as well as the environment. The rate of human trafficking is seen to be increasing in the country, which is mainly utilized in the tourism business. In the context of environment, the development of hotels and resorts along the coastal areas are identified to harm the environment for inappropriate disposal of construction wastages and other sewages. In this regard, the government has been adopting various measures in order to provide sustainable tourism in Malaysia that will help to keep a balance between the social, environmental and economic impact related to tourism. References Abdullah, R. B., 2012. The Economic Impact of Tourism in Malaysia: An Input Output Analysis. Master of Economic University Utara Malaysia, pp. 1-67. Asian Development Bank Institute, 2014. Government Policies and Regulations. Government Policies. [Online] Available at: http://www.adbi.org/working-paper/2011/04/19/4513.access.equity.malaysia.higher.educ/government.policies.and.regulations/ [Accessed November 30, 2014]. Bennett, Coleman & Co. Ltd., 2014. The Economic Times. Tourism Malaysia. [Online] Available at: http://articles.economictimes.indiatimes.com/keyword/tourism-malaysia [Accessed November 30, 2014]. CNBC LLC, 2014. Malaysia Tourism Escapes Threat of Twin Tragedies. Travel. [Online] Available at: http://www.cnbc.com/id/102148961#. [Accessed November 30, 2014]. Edge Insider Sdn Bhd, 2014. Malaysia to Face Losses Of Up To RM4 Billion In Tourism Revenue Due To MH370, Say Analysts. Article. [Online] Available at: http://www.themalaysianinsider.com/malaysia/article/malaysia-to-face-losses-of-up-to-rm4-billion-in-tourism-revenue-due-to-mh37 [Accessed November 30, 2014]. Miepa, 2003. Malaysia: Economic Policy Analysis. The Mckeever Institute Of Economic Policy Analysis. [Online] Available at: http://www.mkeever.com/malaysia.html [Accessed November 30, 2014]. Nanthakumar, L. & et. al., 2007. Tourism Development Policy, Strategic Alliances and Impact of Consumer Price Index on Tourist Arrivals: The Case of Malaysia. MPRA, pp.83-98. Othman, N. & et. al., 2012. International Conference on Economics, Trade and Development. Tourism Activities and Its Impact on Environmental Sustainability in Coastal Areas, Vol. 36, pp. 90-95. Scribd Inc, 2014. Impacts of Tourism in Malaysia. South East Asia: A Meso Regional Study. [Online] Available at: http://www.scribd.com/doc/29692549/Impacts-of-Tourism-in-Malaysia [Accessed November 30, 2014]. The Establishment Post, 2014. Tourism in Malaysia Down but Not Out. Tourism. [Online] Available at: http://www.establishmentpost.com/tourism-malaysia/ [Accessed November 30, 2014]. Tourism Malaysia, 2008. Our Mission Statement. Tourism Malaysia. [Online] Available at: http://corporate.tourism.gov.my/aboutus.asp [Accessed November 30, 2014]. TourismNews.org, 2014. Malaysia Tourism. Tourism Malaysia offer new deals to Indian flyers by Malaysia Airlines. [Online] Available at: http://www.tourismnews.org/category/asia/malaysia-tourism/ [Accessed November 30, 2014]. Turner, R., 2014. The Authority on World Travel and Tourism. Economic Impact 2014, pp. 1-18. Wttc.org, 2014. The Authority on World Travel & Tourism. Economic Impact 2014 Malaysia. pp. 1-17. Read More