A report by global business data aggregator and analysis firm, Future Market Insights (FMI) says that Malaysian tourism receipts are likely rise from USD 2.85 billion in 2023 to over USD 9.35 billion within a decade, growing at a fast clip of 12.6 pc CAGR.
The report by FMI says that quality accommodation and transport is better which is attracting more and more tourists. This is one of the key reasons for the growth in Malaysia market, while another factor which is driving growth of tourism is the Malaysian government’s unending effort in targeting global elites who are from the high-income group.
In a statement, FMI says that the project of developing 15 projects including Malaysia Eye, International Fashion Street, Sunset Beach, and Cruse Shopping Gallery is creating curiosity among tourists and is therefore leading to a robust development in the growth of Malaysian tourism. Medical tourism is one of the important factors that is boosting the tourism industry in Malaysia, it adds.
Liberalisation of some government-controlled sectors, development of more tourism destinations, and increased involvement of the private sector are some of the key measure that will improve Malaysia tourism performance in the future. The Malaysian government is making its tourism industry more attractive, but more skilled personnel will be required to manage government function in future.
The report says that as per the latest update by Future Market Insights, the Malaysia tourism market is forecast to increase at a prolific CAGR of 12.6 pc between 2023 and 2033. Over the last few decades, tourism industry has become a significant contributor to the GDP of Malaysia, adds the statement.
FMI says that having a rich cultural history, diverse local lifestyle and beautiful natural landmarks, Malaysia has turned into one of the most popular tourist destinations, it says. Today, with the worldwide campaign called ‘Malaysia, Truly Asia’ this small country is generating extra revenue through tourism to contribute towards the development of its economy.
However, being one of the hardest hit sectors due to the covid19 pandemic, this industry has only now started to recover, says the FMI report. In response, the National Tourism Policy 2020-2030 was launched by the government to ensure the continuity of the country’s tourism industry while also targeting to make Malaysia one of the top 10 global tourist destinations.
The report goes on to add that this long-term strategy is divided into six main strategic thrusts such as strengthening governance capacity, creating special tourist investment zones to encourage technology oriented tourism investment, practicing sustainable and responsible tourism and embracing smart tourism.
Malaysia revamps medical tourism offer
According to the statement, Malaysia Healthcare Travel Council, a government agency, is actively working on revamping Malaysia as a medical tourism destination. A positive growth has only been possible by boosting the healthcare quality, focusing on patient experience and ensuring affordable services while following proper protocols.
The statement adds that as good governance requires a balance between development, protection and preservation of the country’s treasures including the environment, culture and heritage, the National Tourism Policy is therefore trying to incorporate elements of the sustainable development goals and enhancing tourism’s role in promoting inclusive development along with responsible consumption practices. This will consequently make Malaysia a more preferred destination amongst an environmentally conscious generation, says FMI.
FMI report adds that Malaysia opened its international borders and lifted all travel restrictions to enter the post pandemic world. Despite the increasing number of travelers, Malaysia continues to struggle due to lack of airline tickets and hotel rooms since a lot of sub sectors of tourism industry had to downsize during nationwide lockdowns. Additionally, a large proportion of people who lost their jobs are believed to have found alternate sources of employment thereby making the industry understaffed. This poses a direct threat to the resurgence of tourism sector.
Regional markets such as South Korea, Japan, Thailand and Indonesia are few of the destinations that are chosen as an alternative to Malaysia. Even developing Asian countries are slowly becoming tourist hotspots.
On the demographic details of the tourists visiting Malaysia, the FMI report says that middle-aged travellers are most likely to travel overseas. People between the age group of 25-39 make up the largest percentage of international tourists in Malaysia, it adds.
FMI adds that these travellers belong to the working population who are situated across the globe and have the spending capacity as well as good health to take overseas tours. Tourists from this age group are mostly independent travellers who plan their trip on their own to various new destinations. Additionally, the vast number of beautiful islands makes Malaysia a favorable destination for young couples who also belong to the same age group. The various promotional activities on social media platforms are attracting tourists across this age group and is forecast to display same trend over the forecast period.
The FMI adds that in the last few years there have been rapid technological advancements due to which a large number of people have become quite comfortable with emerging technologies and are well equipped to adapt to change. Consequently, this has led to an increase in the number of independent travellers and is forecast to only increase further.
Tourists enjoy taking holidays, but for many, planning the trip is also a big part of that enjoyment. It usually takes a lot of time and effort to research and make a decision before purchasing travel tickets, accommodations, tours, or any other supplementary services or modes of transportation. However, the existence of online travel agencies has unquestionably both sped up the procedure and offered clients access to more choices, it says.
People who book their vacations online prefer to compare travel on booking portals and hotel websites. Offline, however, arranging a trip is carried out with the aid of a travel company or a tour operator. The ‘Hashtag Generation’, which includes Millennials and Generation Z, is more likely to try new things and seek out new experiences.