TOURISM is a term that can be vague when used broadly or misapplied to recreational activities that generate no income, such as visiting natural sites like beaches and jungles, or manmade areas with free public access, such as city streets and parks.
The United Nations World Tourism Organisation defines tourism as a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.
The above definition is suitable for academics and tourism students, but for the vast majority in the tourism sector, it sounds like jargon and serves little practical purpose in the industry.
It is more meaningful to describe tourism as a massive industry, with the main expenditures being shopping, accommodation, food and beverages, transport, entertainment and attractions.
Taking travel into account, the tourism business can be divided into outbound tours for travelling overseas, inbound tours for incoming tourists and domestic tours for travel within the country.
While outbound tour fares are primarily spent overseas, fees collected for inbound and domestic tour services remain within the country. Additionally, the services for inbound and domestic tours are largely the same, with the main difference being that inbound passengers typically pre-book their services before entering Malaysia.
Many assume that domestic tour packages are only for Malaysians but most are actually sold to foreigners already in the country. These could be visiting tourists who prefer to purchase sightseeing tours upon arrival or foreigners living here, including students, expatriates and their family members.
Few Malaysians travelling within the country purchase domestic tour packages as most have their own vehicles or use public transport. They can also book their flights and accommodations directly, without needing to pay for services provided by travel agencies.
The success of a nation can also be determined by its inbound tourism, which not only brings in foreign exchange but also foreign investments. There is a strong correlation between inbound tourism and foreign investments, both at the national level and within its various regions or states.
Last year, Malaysia’s inbound tourism nearly reached 2019 levels. The four years from 2020 to 2023 are not suitable for comparison as they were heavily impacted by Covid-19. However, 2024 will serve as the new benchmark for comparing performance in the years to come.
In 2024, we received 25,016,968 tourist arrivals, less than the 26,100,784 in 2019. However, the number of excursionist arrivals rocketed to 12,944,787 from 8,944,841 in 2019. Overall, we had 37,961,484 foreign visitors in 2024 compared with 35,045,625 in 2019.
Foreign tourists spent RM102.2 billion, or an average of RM4,086.60 per person while foreign excursionists spent only RM4.5 billion or an average of RM348 per person during their few hours in our country, including the large numbers of cruise ship passengers on shore excursions.
In terms of per capita expenditure, a foreign tourist is 11.7 times more valuable than a foreign excursionist. In other words, one million foreign tourists is equivalent to 11.7 million foreign excursionists. The tourism business is driven by numbers, and receipts are more important than arrivals.
However, the likelihood of their return for future visits is the same. Therefore, we must treat all visitors with the same care and respect, including those staying at hostels and budget hotels, as they could return as successful executives or business people, bringing many family members and friends along with them.
Last year, the top six nationalities that made up the most number of visitors to Malaysia were from Singapore, Indonesia, China, Thailand, Brunei and India. Combined, they totalled 32,092,389, or 84.5% of all foreign arrivals.
Focusing on these six nationalities makes sense for those looking to make a significant impact in Malaysia’s inbound tourism.
However, there is also potential for businesses to target niche markets they specialise in. Ultimately, success depends on understanding and acting on the relevant facts and figures.
Comments: letters@thesundaily.com
