Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Car rental; Demand factors; Health & wellness tourism; Tourism flows domestic;
Tourism flows inbound; Tourism flows outbound; Tourism receipts and
expenditure; Tourist attractions; Transportation; Travel accommodation; Travel
retail
Executive summary
Visit Malaysia Year 2007 campaign helps to boost tourist arrivals
The visit Malaysia Year 2007 campaign helped to increase awareness of Malaysia
as a tourist destination throughout the world and to sharply increase the
number of tourists visiting the country. Tourist arrivals have increased
across all sectors, whether business or leisure. The 9th Malaysia Plan, a 5
year economic plan developed by the Malaysian government, projected a 9%
annual increase in tourism inbound figures from 2006 to 2010 -- a target which
is likely to be met as a result of the success of the marketing campaign.
Highly competitive and increasingly segmented industry
Travel and tourism remains a highly important part of the Malaysian economy,
with an ever increasing number of companies competing for a share of rising
tourist expenditure. The tourism accommodation and air transportation sectors
have seen the lion' s share of growth. For example, AirAsia, the country' s
premium low cost carrier, has expanded its operations and now offers many more
routes within and outside the country and is regarded as a significant
regional player. The hotel segment has been growing particularly rapidly, with
the popularity of top-end boutique hotels continuing to increase. In addition,
the budget accommodation segment is also performing well, with new entrant
Tune Hotels expected to become the country' s largest chain of budget hotels.
Internet sales limited but growing rapidly
In 2008, the majority of travel and accommodation reservations were either
performed via the telephone or face-to-face, with internet retailing remaining
very much a niche channel. However, the number of internet bookings continues
to increase rapidly as retailers increase their technological capabilities.
The leader of the internet sales model is Air Asia, which follows an almost
exclusive online booking strategy in order to minimise operating costs. Not
surprisingly, internet bookings are most popular in the airline sector and are
increasing in the hotel segment, with internet sales in other categories such
as travel retail, car rentals, and tourist attractions lagging behind.
Slower growth forecasted due to economic slowdown
The global economic downturn is expected to have a severe impact on Malaysia' s
travel and tourism industry, with many tourists worldwide likely to reduce
expenditure as a result of declining confidence. As a result, tourism arrival
figures are expected to decline over the early part of the forecast period.
However, incoming tourism numbers are expected to recover towards the end of
the forecast period, partly as a result of the government' s fiscal stimulus
package.
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