The positive and negative impact of Tourism Malaysia economic development.
POSITIVE
Foreign exchange earnings
This all figure it means that the tourism is very important for economic, it helps the globaleconomic gain strength in financial crisis and makes it more stable. International tourism can become a major foreign exchange earner for many low income countries like Cambodia, Indonesia, India and Africa. Many countries are trying to develop tourism sector and increase the number of incoming visitors because international tourism brings a lot of foreign exchange to the host country.
Job opportunities
In Malaysia, tourism was important to economic, it creates around 1,331,000 jobs in 2010, and it helps Malaysia’s job opportunities increasing and the tourism investment brings around RM 19.9 billion revenue in 2010 , its should reach RM 49.8 billion in 2020. The
economic impacts of tourism usually focus on the related tourism sectors that change in sales, income and employment.
economic impacts of tourism usually focus on the related tourism sectors that change in sales, income and employment.
Increase in government revenues
Expenditure of improving access and facilities for tourist arrivals, upgrade and maintainingthe public and on some marketing campaigns in major source markets and tourist infrastucture such as roads, sewage, public transport, electricity and communications.
NEGATIVE
There are many hidden costs to tourism, which can have unfavorable economic effects on the host community. Often rich countries are better able to profit from tourism than poor ones. Whereas the least developed countries have the most urgent need for income, employment and general rise of the standard of living by means of tourism, they are least able to realize these benefits. Among the reasons for this are large-scale transfer of tourism revenues out of the host country and exclusion of local businesses and products.
There are many hidden costs to tourism, which can have unfavorable economic effects on the host community. Often rich countries are better able to profit from tourism than poor ones. Whereas the least developed countries have the most urgent need for income, employment and general rise of the standard of living by means of tourism, they are least able to realize these benefits. Among the reasons for this are large-scale transfer of tourism revenues out of the host country and exclusion of local businesses and products.
Leakage
The direct income for an area is the amount of tourist expenditure that remains locally after taxes, profits, and wages are paid outside the area and after imports are purchased; these subtracted amounts are called leakage. In most all-inclusive package tours, about 80% of travelers' expenditures go to the airlines, hotels and other international companies (who often have their headquarters in the travelers' home countries), and not to local businesses or workers. In addition, significant amounts of income actually retained at destination level can leave again through leakage.
Infrastructure cost
Tourism development can cost the local government and local taxpayers a great deal of money. Developers may want the government to improve the airport, roads and other infrastructure, and possibly to provide tax breaks and other financial advantages, which
are costly activities for the government. Public resources spent on subsidized
infrastructure or tax breaks may reduce government investment in other critical areas suchas education and health.
are costly activities for the government. Public resources spent on subsidized
infrastructure or tax breaks may reduce government investment in other critical areas suchas education and health.
Economic dependence of the local community on tourism
Diversification in an economy is a sign of health, however if a country or region becomes dependent for its economic survival upon one industry, it can put major stress upon this industry as well as the people involved to perform well. Many countries, especially developing countries with little ability to explore other resources, have embraced tourismas a way to boost the economy.
Seasonal character of jobs
The seasonal character of the tourism industry creates economic problems for destinations that are heavily dependent on it. Problems that seasonal workers face include job (and therefore income) insecurity, usually with no guarantee of employment from one season to the next, difficulties in getting training, employment-related
medical benefits, and recognition of their experience, and unsatisfactory housing and working conditions.
Number of visits and tourism receipt in Malaysia
According to 2005 data from World Tourism Organization (WTO), Malaysia places 14th in the ranking of counties either by international tourism arrivals. International tourism arrivals in Malaysia increased from 7.9 million in 1999 to 23.6 million in 2009, representing an average annual growth about 15.7 million and the growth of tourist receipts has been even more spectacular, rising from RM 12.3 billion in 1999 to RM 53.4 billion in 2009 with
an annual growth about RM 41.1 billion (Malaysia Tourism Statistics, 2010).
an annual growth about RM 41.1 billion (Malaysia Tourism Statistics, 2010).
In 2010, Malaysia’s tourism is expected to generate RM 98 billion of economic activity. Theindustry’s direct and indirect effect of travel and tourism in Malaysia in 2010 was expected to account for 37 billion of GDP (equivalent to 5.1% of total GDP) and 597,000
jobs (5.3% of total employment). However, since the tourism touches all the sectors of
the economy, it bring a real impact is even greater.
jobs (5.3% of total employment). However, since the tourism touches all the sectors of
the economy, it bring a real impact is even greater.
The travel and tourism sector generated RM 98 billion in economy GDP
(equivalent to 13.4 of total GDP), export revenue, services and merchandise
representing RM 89 billion (equivalent to 12.7% of total exports),economy employment
representing 1,331,000 jobs (11.9% of total employment) and it making tourism in Malaysia is the second largest contributor of foreign exchange earnings to the country after the manufacturing sector.
