Tourism
Tourism is one of the key sectors in the Malaysian economy and the second-largest foreign exchange earner in Malaysia after manufacturing, contributing 5.5% to Malaysia’s GDP in 20051. Tourism is a promoted sector for Malaysia as a whole, with arrivals into Malaysia projected to be 20.1 million by the end of 2007, and targeted to increase to 24.6 million by 2010, generating total tourist receipts of RM59.4 billion and employment opportunities for 520,700 people.
| Indicators | 2000 | 2005 | 2010 | 2015* | 2020* | 2025* |
|---|---|---|---|---|---|---|
| Number of Tourists Arrivals (million) | 10.2 | 16.4 | 24.6 | 32.9 | 44.1 | 59.0 |
| By Country of Origin (%) | ||||||
| ASEAN | 70.4 | 76.8 | 65.0 | - | - | - |
| China | 4.2 | 3.8 | 6.1 | - | - | - |
| Japan | 4.5 | 1.9 | 2.2 | - | - | - |
| Australia | 2.3 | 1.5 | 2.7 | - | - | - |
| United Kingdom | 2.3 | 1.5 | 2.8 | - | - | - |
| Taiwan | 2.1 | 1.3 | 2.7 | - | - | - |
| India | 1.3 | 1.2 | 1.8 | - | - | - |
| West Asia | 0.5 | 1.0 | 2.7 | - | - | - |
| Others | 12.4 | 11.0 | 14.0 | - | - | - |
| Total Tourist Receipts (RM billion) | 17.3 | 31.0 | 59.4 | 79.5 | 106.4 | 142.4 |
| Per capita expenditure (RM) | 1,696 | 1,890 | 2,417 | 3,234 | 4,328 | 5,792 |
| Average length of stay (nights) | 5.8 | 7.2 | 8.7 | - | - | - |
| Employement | 390,600 | 451,000 | 520,700 | 598,805 | 688,626 | 791,920 |
Source: Ninth Malaysia Plan, 2006
*Sime Darby Berhad’s computation
Similarly, tourism is an important sector in the Northern Corridor. It is a major contributor to the Region’s economy, generating RM9.1 billion in tourist receipts in 2005. It is also one of the largest job contributors, employing 132,000 people in the tourism services industry in 2005.
| Tourist Arrivals | 2005 | 2008 – 2012 Forecast* |
|---|---|---|
| Pulau Pinang | 3.0 million | 17.4 million (+5% YOY) |
| Langkawi | 1.8 million | 10.4 million (+5% YOY) |
| Per capita expenditure | RM1,890 | RM2,000 |
| Total estimated tourist receipts | RM9.1 billion | RM55.6 billion |
| Estimated population employed / year | 132,000 | 150,000 |
Source: Estimates from various sources: www.penang.gov.my, www.lada.gov.my, www.btimes.com.my and Ninth Malaysia Plan
*Sime Darby Berhad
The NCER is endowed with an abundance of natural attractions and culture and heritage, and houses good infrastructure and services which can be leveraged to support a vibrant tourism sector.
Natural Attractions
The NCER offers a rich diversity of natural attractions ranging from beaches, hot water springs, scenic locations and eco-tourism sites which are spread across all four states in the Region. Beaches on the NCER islands are among the key reasons visitors travel there, as they are renowned for their soft, golden sand, secluded bays and spectacular tropical sunsets. The availability of water sports and activities which include water skiing, boating, cruising and trips to offshore islands have also added to the appeal of the Region to both foreign and local tourists.
Culture and Heritage
With hundreds of years of racial and cultural integration, the NCER has been left with various imprints of culture and heritage. Although certain cultures have vigorously maintained their traditions and community structures, they have blended together to create contemporary Malaysia's uniquely diverse heritage. The evidence can be seen from the historical architectural attractions and handicraft in the Northern Corridor which have been a key pull factor for tourists into the Region.
The handicraft industry in particular is age-old and is spread across the rural areas of the Region. It has become a key source of employment and income for the locals.
Accessibility
The main international gateway into the Northern Corridor is via air travel into 1 of the Region’s 2 international airports – the Penang International Airport and the Langkawi International Airport. The airports have an annual capacity of 5 million and 2.5 million passengers respectively, and have good connections with major cities in Southeast Asia. The Penang International Airport is also the hub for Firefly, the new budget airline by Malaysia Airlines, which will further enhance regional accessibility to the Northern Corridor.
In March 2007, the Government gave the green light to resume the Ipoh-Padang Besar double-tracking project as well as the West Coast Highway, which will connect Taiping in Perak to Banting in Selangor. These projects are expected to boost road and rail travel and national connectivity to the NCER.
| International Airports | Penang, Langkawi |
| Domestic Airports | Alor Setar, Tekah |
| Sea Ports | Peinang, Langkawi, Kuala Kedah, Kuala Perlis |
| Rail | Johor Baru to Padang Besar |
| Road Links | North-South Expressway, East-West Highway (Grik-Jeli), Coastal Roads, Federal and State Roads |
Tourism Infrastructure and Services
The Northern Corridor offers a wide variety of tourism infrastructure and services targeted at the masses, such as affordable accommodation, food and shopping.
The Region is known for world-class resorts and spas in Pulau Pinang and Langkawi which are targeted at high-end tourists. Among these are The Andaman, The Datai and the Four Seasons Resorts in Langkawi, and Shangri-La Rasa Sayang and Mutiara Beach Resort in Pulau Pinang. There are also numerous luxurious day spas offering traditional treatments and alternative therapies which are gaining wide popularity among well-heeled Western travellers.
Healthcare services is also an area the Northern Corridor can focus on, leveraging on Pulau Pinang’s various state-of-the-art private hospitals. Pulau Pinang has 7 private hospitals that are recognised by the Ministry of Health for the promotion of health tourism2, and are supported by highly-trained healthcare professionals. Ninety per cent of these doctors received postgraduate training in the United Kingdom, the United States, Australia and Canada.
Current Situation
The tertiary sector accounted for 54.4% of the GDP of the Northern Corridor in 20003. However, much of this was concentrated in the public services sector. The aim of the Northern Corridor initiative is to significantly diversify the tertiary sector and accelerate the move into more “modern” services industries. The focus shall be on tourism and logistics services, leveraging the Region’s strengths such as Langkawi and Pulau Pinang as premier tourist destinations, and the strategic location of the Northern Corridor with respect to the IMT-GT.
- Source: TheEdge, March 2007
- Association of Private Hospitals in Malaysia
- Figure for Perak includes total for the state