IMPACT of INFLUX OF TOURIST
1.0 INTRODUCTIONLow Cost Carrier introduce in North America and Europe in early 1970 by Southwest and repeated by Ryanair in 1990s. (Zhang, Hanaoka, Inamura and Ishikura,2009). Airasia founded in year 2001 with sensational financial growth from RM86 million debt to 161 million credit by the year of 2005 (Aruan, 2005) carried 10 million people visiting Malaysia in year 2007.(Market Bulletin, 2008)
The growth of tourism and its increasing importance to economies can be seen from the growth over the years. The decade start well with 7.4 million tourist arrivals as a result of Visit Malaysia Year campaign in 1990, increase to 20.97 million in year 2007 with total receipt were RM46.1 billion. (Victor Wee, 2007)
As a result, Malaysia becomes World’s top ten tourism destination by International tourism arrivals.
In this report, I will analyse how Low Cost Carrier were generate impact to the numbers of international visitor arrival and later influent advantages and disadvantages to our socio-economic. To achieve this objective I will base on literature research from book, annual report, research paper and news paper.
Generally, by terms low cost Carrier is refers to low fares flight (Fernandez, 2009) and tourism identifies as tourist attraction with hotel or accommodation sector. (Goeldner and Ritchie, 2009).
However this accommodation and attraction has a different roles such as attraction forms the basic pleasure oriented travel while hotel and resorts built to meet visitor accommodations.
This report also divided to five sections with stress to positive and negative impact, suggestion to overcome the disadvantage and conclusion.
2.0 POSITIVE IMPACTAs per expectations, tourism sector were major contributor to our economic growth with 1/10 figure since first Visit Malaysia Year Campaign in year 1990. The numbers of visitor increase from 4.8 Million to 22.0 Million when second Visit Malaysia Year 2007 was launched.
2.1 ECONOMYFor the past four years, the World Economic Forum has engaged key industry and thought leaders through its Aviation, Travel & Tourism Industry Partnership Programme to carry out an in-depth analysis of the T&T competitiveness of economies around the world. The goal is to construct a platform for multi-stakeholder dialogue to ensure the development of strong and sustainable national T&T industries capable of contributing effectively to international economic development.
Malaysia is ranked 7th regionally, with its rich natural resources and good round transport infrastructure. The country also benefits from excellent price competitiveness , with low comparative hotel and fuel prices, low ticket taxes and airport charges, very competitive hotel prices, and a favourable tax regime.
Malaysia’s policy environment is assessed as highly conducive to the development of the sector, and the country is prioritizing Travel & Tourism; it markets the country at many international tourism fairs and also has an excellent evaluation for its destination-marketing campaigns. With regard to weaknesses, health and hygiene indicators lag behind those of many other countries in the region, with, in particular, a low physician density.
2.1.1 Tourist ReceiptThe World Tourism Organisation forecasts that international arrivals worldwide are expected to reach 1.0 billion by 2010. Of this, 791 million or about 80 per cent is envisaged to be intra-regional tourists, with the rest being longhaul travellers. The East Asia and Pacific region is expected to receive 200 million travellers.
In spite of the rising competition from other tourist-seeking economies, Malaysia’s tourism sector is expected to benefit considerably from the growth of international travel during the Ninth Plan period. Tourist arrivals to Malaysia are poised to grow at an average rate of 8.4 per cent per annum and estimated to reach 24.6 million by 2010.
Correspondingly, tourist receipts are set to rise at an average annual rate of 13.9 per cent to RM59.4 billion in 2010, and is expected to contribute substantially to the total earnings in the services account of balance of payments.
Increased joint development efforts under the purview of the Indonesia-Malaysia-Thailand Growth Triangle are expected to further encourage cross border tourism activities.
Further cooperation under the Brunei Darussalam-Indonesia-Malaysia-the Philippines East ASEAN Growth Area (BIMP-EAGA) will continue to encourage travel and tour activities among these countries.
For the Ninth Plan, the strategy will focus on fully realising the tourism potential as an important source of growth in terms of foreign exchange earnings, entrepreneurship development and employment generation. Efforts will be intensified towards strengthening Malaysia’s position as a preferred global tourist destination. Thus, the strategic thrusts will include the following:
2.1.2 Low Cost Carrier and Low Cost Carrier TerminalMuch to the understand of traditional network airlines in North America, Europe and Asia, well-capitalized start ups have entered the low-cost carrier (LCC) market, and existing no-frills carriers have grown rapidly. These carriers are exploiting a powerful, previously-untapped market opportunity to:
• Leverage low unit costs to stimulate demand among more price-sensitive travelers with lower fares.
• Seize market share from less agile competitors saddled with legacy labor and infrastructure costs.
The LCC model has demonstrated its ability to consistently deliver operating margins exceeding those of full-service airlines. In contrast to the major network carriers, operating margins for many of the new entrances in this environment range from 15 to 30 percent.
Low-cost carriers have been able to demonstrate consistent profitability over 31 years of consecutive annual profits for Southwest, 13 for Ryanair, 6 for easyJet, and 3 for both JetBlue and Virgin Blue.
In Asia, Airasia was launching in year 2001 and rapidly expend from lost to gain in year 2006, with 17 numbers of flagships Boeing 737-300 air craft.
Low Cost Carrier need Terminal to make them stay low. In asia there are two major low cost Carrier Terminal i.e in Kuala Lumpur and air budget Terminal in Singapore (Market Bulletin,2008). Low cost terminal will affect Low Cost Carriers lowered the cost and later giving a good reputation to the airport itself. So, for the long term the number of flight land will increase and numbers of visitor arrival also increase.
As a result last year 11.0 Million peoples arrivals at LCCTI Kuala Lumpur generated 9% of GDP(market bulletin 2008)
2.1.3 Hotel and AccommodationMalaysia had approximately 98440 rooms in some 1460 hotels in year 1997. Until then the supply of hotel room in has increase by 38% to 160237 in year 2008. Table 1 express the distribution of hotel room in Malaysia
The hotel room occupation rate average at 70% shown, that how good return hotel sector which is employ approximately 1 million people. The strong growth in international arrivals and domestic tourism contributed to a higher average hotel occupancy rate, which increased from 59.2 per cent in 2000 to 63.5 per cent in 2005. During peak seasons, the average occupancy rate in key destinations, namely, Wilayah Persekutuan Kuala Lumpur, Kota Kinabalu and Melaka, was more than 80 per cent. Hotels in the tourist resorts of Genting Highlands in Pahang and Langkawi in Kedah had all year round occupancy rates of above 80 per cent and 60 per cent, respectively. The other popular destinations, including Johor Bahru in Johor and Kuching in Sarawak, had average occupancy rates of between 50 to 60 per cent throughout the Plan period.
The impact in term and tourism recept record from RM 9 billion to 46 billion in 2008. Hotel and resorts are built to meet a demand for accommodation of the travellers and tourist. In year 2008 there are 45% from 31603 tourists are foreigner with contribution of Ringgit Malaysia 20 million currencies exchange. (Haminah Hassan, 2008)
As a result, the increasing local and foreigner tourism were contributing the growth of development of hotel and resorts. This hotel sector was employs 7.7% of total11 Million workers in Malaysia.
2.1.4 Tourism ProductTo enhance the distinct appeal of Malaysian tourism products and services, the Government continued to promote the country’s traditional advantages, namely, its cultural and natural heritage. The emphasis on promoting cultural and historical heritage as well as eco- and agro-tourism propagated the popularity of destinations such as Melaka, Pulau Pinang, the east coast of Peninsular Malaysia, Sabah and Sarawak.
Other tourism products included shopping, leisure and sports-related activities as well as business-related events, particularly the meetings, incentives, conventions and exhibitions (MICE) segment.
2.1.4.1 Eco-Tourism, Agro-Tourism and Homestay Programme.During the Plan period, the Government continued to promote and develop eco-tourism as guided by the National Eco-tourism Plan, which identified 48 priority sites. Malaysia leveraged on the listing of the Mulu Caves and the Kinabalu Park on UNESCO’s World Heritage Sites as well as other natural sites such as marine parks at the Tioman and Redang islands, to promote its rich and diverse natural resources as tourist attractions. The homestay programme was enhanced to increase participation of the rural population in tourism-related activities as well as provide rural households opportunities to supplement their incomes. An additional 463 homestay operators were trained and licensed during the Plan period, bringing the total to 1,089 from 79 villages.
2.1.4.2 Cultural and Heritage Tourism.As part of efforts to preserve cultural and heritage sites and meet the special interests of potential tourists, a number of projects were implemented. More than 60 monuments and 25 historical sites were upgraded as tourist attractions. New and existing cultural centres provided an avenue to showcase Malaysia’s traditional arts and crafts including batik,pua kumbu and songket.
2.1.4.3 Thematic Events.Greater efforts were undertaken to promote the country as a destination for continuous year-round events of festivities and celebrations. These events included Colours of Malaysia, Food and Fruit Festival and the National Water Festival as well as the annual KL Fashion Show, highlighting Malaysian textiles including batik and songket. In view of the tremendous potential of shopping as an attractive tourism product, the Mega Sales Shopping Carnivals were further promoted and complemented by a variety of other events to attract international and domestic visitors.
2.1.4.4 The Meetings, Incentives, Conventions and ExhibitionsThe market was an important source of growth for the tourism sector, due to its capability to attract the high spending business travellers. The significant contribution made by both international and local participants in the MICE segment, in terms of number of events and receipts, is as shown in Table 8-2.
2.1.4.5 Sports and Recreation Tourism.Malaysia continued to host annual global events, such as Petronas F1 Grand Prix, the Raja Muda International Regatta, Le Tour de Langkawi and World Amateur Inter-Team Golf Championship as well as Putrajaya Boat Championship. To develop the potential of the sailing and cruising industry, an additional 10 marinas were built at strategic locations including Pulau Langkawi, Pulau Pangkor, Pulau Pinang and Pulau Tioman.
2.1.5 InvestmentThe anticipated growth in tourism will require the expansion of tourismrelated infrastructure and facilities. The public sector will supplement private sector efforts with an allocation of RM1.0 billion, and concentrate on the upgrading and maintenance of existing facilities such as public parks, pedestrian and bicycle pathways, rest and recreation areas as well as other basic amenities. Improved infrastructure will be built, including the establishment of additional tourist information centres as well as provision of better access via roads, rails, jetties and bridges to popular tourist destinations.
In order to continue promoting Malaysia as a preferred tourist destination in this region, the private sector will be encouraged to develop innovative tourism products and services to meet the demand of different market segments as well as develop potential niche markets. The emphasis will also be on the repackaging of existing attractions and developing new travel and tourism products. Marketing and promotional activities will be tailored to key market segments with a view to increasing greater inbound and domestic travel.
The tourism industry offers tremendous scope for creativity, innovativeness and entrepreneurship development with wide ranging investment opportunities, including hotels and resorts development as well as provision of a varied range of services and attractions.
2.1.6 Human Resources and Job OpporturnityTo meet the increasing demand for trained and experienced human resource at the managerial, supervisory and technical levels, particularly for the hotel and travel subsectors, provision of relevant training programmes will be further emphasised. The NTHRDC together with the MLVK and the Ministry of Higher Education as well as the Tourism Accreditation Board will coordinate technical and vocational, as well as management and supervisory training and liaise with the private sector to ensure output is in line with the growing sophistication of the tourism industry. In this regard, the existing NOSS will be constantly reviewed by the MLVK to ensure relevancy of skill standards to meet the more stringent demands of the tourism industry. Students in schools will also be given exposure on career opportunities in the tourism industry, while institutions of higher education will be encouraged to offer a wider range of tourism-related courses. Tour guides will be continuously retrained, while new ones given intensive training to ensure quality service. Tourist guides will also be encouraged to learn foreign languages, particularly Arabic, German, Japanese and Spanish.
3.0 NEGETIVE IMPACTInstead of Tourism and Travelling contributing advantanges to the country there are a negative impact packaging to our society.
3.1 SOCIETY3.1.1 Drug Abuse and Drug TraffickingDrug-trafficking remains a problem and international drug syndicates are increasingly turning to Malaysia as a regional production hub for crystal methamphetamine and Ecstasy (MDMA). Narcotics imported to Malaysia include heroin and marijuana from the Golden Triangle area (Thailand, Burma, Laos), and other drugs such as amphetamine type stimulants (ATS). Small quantities of cocaine are smuggled into and through Malaysia from South America. Local demand and consumption of drugs is very limited in Malaysia; however, crystal methamphetamine, Ecstasy, and ketamine, mostly from India, are smuggled through Malaysia en route to consumers in Thailand, Singapore, China, and Australia. Ketamine from India is an increasingly popular drug in Malaysia.
Since 2006, Malaysia has also been a location where significant quantities of crystal methamphetamine are produced. This trend continued in 2008, with a large methamphetamine laboratory seized in Southern Malaysia, and frequent police reports of ethnic Chinese traffickers setting up labs in Malaysia. Between January and July 2008, police encountered and identified 7,992 addicts, of whom 3,584 were new cases.
3.1.2 Sex Exploitation entertainment and prostitution.As many as several thousand women from Thailand, Indonesia, the People’s Republic of China (P.R.C.), Cambodia, and Burma are trafficked to Malaysia for commercial sexual exploitation.
CSE and pornography (Commercial Sexual Exploitation - CSE) continue to be major demand-side factors across the region, burgeoning (often unfettered) commercial sexual exploitation in destination countries providing ample incentive to traffickers to meet demand. However, industry sectors are also sources of demand for trafficked victims including fisheries, forestry, mining, garment and other consumer goods light industry.
There is no reliable direct evidence of the trade growing or declining, and there exist no reliable, academically rigourous attempts to quantify or value the trade in humans. There is significant evidence of organised crime involvement in the trade, in particular in the ownership of the means of exploitation, particularly in :
a) regional hubs for the demanding industries, and
b) more distant but lucrative destination markets.
4.0 SUGGESTIONA more integrated approach to tourism planning and implementation shall be undertaken to ensure sustainable development of the industry. Emphasis will be given to preserving and enhancing existing natural and cultural assets that are susceptible to environmental damage. Local authorities and communities will be encouraged to be more actively involved in project preparation, implementation and maintenance to ensure adverse environmental impact is minimised.
The role of State Tourism Action Councils should be further strengthened to include monitoring, surveillance and regular evaluation of project outcomes. This is to reinforce, among others, the environmental impact assessment and other relevant guidelines, which continue to be important considerations when formulating and implementing projects and related infrastructure. It will be necessary to ensure that providers of tourism products and services take into account the specific criteria and guidelines on carrying capacity of environmentally-sensitive tourist areas such as islands, highlands and coastal areas. Tourism programmes and projects, particularly hotels and resorts, will need to incorporate, among others, water and energy conservation as well as waste disposal aspects in their implementation, management and maintenance plans.
Marketing and promotion efforts will be intensified to sustain the competitiveness and attractiveness of tourism products and services. The theme ‘Malaysia Truly Asia’ will be capitalised upon to strengthen it as a distinct and identifiable image recognised by the international tourism community.
To avoid human trafficking, It is recommended that synergism among the National Human Rights Institutions In Southeast Asia in the combat against trafficking of women and children.
US Security Report that, our government does not fully comply with the minimum standards for the elimination of trafficking. However, it is making significant efforts to do so. While the government took some steps to combat trafficking, Malaysia lacks comprehensive anti-trafficking legislation to enable officials to provide adequate victim protection and work effectively at the interagency level to combat trafficking in persons.
The Ministry for Women, Family, and Community Development announced in December 2004 the establishment of a dedicated shelter for foreign trafficking victims. The National Human Rights Commission (Suhakam) drafted a national action plan on trafficking, though it has not yet been approved by the government.
5.0 CONCLUSIONTourist and Travelling contribute 10% of Malaysian economic. On early 1990s, our income from this section not even touch 5% to our economic development. Last year this sector giving approximately one million job opportunity to Malaysian worker. To make these sector sustainable and more visitor arrival we have to maintain our tourist product, improve our service and even more friendly.
With a small expenditure this tourist and Travel will able to reduce our poverty level.
REFERENCEJennifer Blanke, Thea Chiesa, (2009), The Travel & Tourism Competitiveness Report 2009 Managing in a Time of Turbulence, Geneva, World Economic Forum
United States Department of State, Bureau for International Narcotics and Law,Enforcement Affairs International Narcotics Control Strategy Report Volume IDrug and Chemical ControlMarch 2009.
Cathy Zimmerman and Charlotte Watts (2003), WHO ethical and safety recommendations for interviewing trafficked women, HEALTH ORGANIZATION
Hamimah Hassan, (2008), Ten Years After Financial Crisis: Tourism Growth in Malaysia. UPM kL.
Victor Wee (2007), World Tourism Conference – Tourism success Stories and Shooting star, WCT07, Madrid
