5.1 The Industry
5.1.1 Definition of the Industry
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people who "travel to and stay in places outside their usual environment for more than twenty-four hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited".
Tourism has become a popular global leisure activity. In 2010, there were over 940 million international tourist arrivals, with a growth of 6.6% as compared to 2009. International tourism receipts grew to US$919 billion (euro 693 billion) in 2010, corresponding to an increase in real terms of 4.7%. As a result of the late-2000s recession, international travel demand suffered a strong slowdown beginning in June 2008, with growth in international tourism arrivals worldwide falling to 2% during the boreal summer months. This negative trend intensified during 2009, exacerbated in some countries due to the outbreak of the H1N1 influenza virus, resulting in a worldwide decline of 4% in 2009 to 880 million international tourists arrivals, and an estimated 6% decline in international tourism receipts.
Tourism is vital for many countries, such as France, Egypt, Greece, United States, Spain, Italy,and Thailand, and many island nations, such as The Bahamas, Fiji, Maldives, Philippines and the Seychelles, due to the large intake of money for businesses with their goods and services and the opportunity for employment in the service industries associated with tourism. These service industries include transportation services, such as airlines, cruise ships and taxicabs, hospitality services, such as accommodations, including hotels and resorts, and entertainment venues, such as amusement parks, casinos, shopping malls, music venues and theatres.
As an industry, tourism plays a vital role in world’s economy. We can define ‘tourism Industry’ in a narrow sense, eg accommodation establishments, restaurants, cafes, bars and canteens as well as travel agencies and tour operators.
Tourism is the temporary, short-term movement of people to destination outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes.
5.1.2 Shape of the Industry
Tourism is a dynamic and competitive industry that requires the ability to constantly adapt to customers changing needs and desires, as the customer’s satisfaction, safety and enjoyment are the particular the focus of tourism business. It is divided into five different sectors; accommodation, food and beverages, recreational and environment, transportation and travel services.
Tourism arises from the movement of people and their stay in various destinations. There are two elements in the tourism characteristics which is the journey to the targeted destinations and the stay, including activities at the destination.
Tourism gives rises to activities when tourist travel and stay at another different location which takes place outside their normal residence and workplace which are distinct from those of the resident and working populations of the place.
5.1.3 Development of the Industry
There has been an upmarket trend in the tourism over the last few decades, especially in Europe, where international travel for short breaks is common. Tourists have high levels of disposable income, considerable leisure time, are well educated, and have sophisticated tastes. There is now a demand for a better quality products, which has resulted in a fragmenting of the mass market for beach vacations; people want more specialised versions, quieter resorts, family-oriented holidays or niche market-targeted destination hotels.
The developments in technology and transport infrastructure, such as jumbo jets, low-cost airlines and more accessible airports have made many types of tourism more affordable. As of April 28, 2009 The Guardian article notes that, "the WHO estimates that up to 500,000 people are on planes at any time." There have also been changes in lifestyle, such as retiree-age people who sustain year round tourism. This is facilitated by internet sales of tourism products. Some sites have now started to offer dynamic packaging, in which an inclusive price is quoted for a tailor-made package requested by the customer upon impulse.
There have been a few setbacks in tourism, such as the September 11 attacks and terrorist threats to tourist destinations, such as in Bali and several European cities. Also, on December 26, 2004, a tsunami, caused by the 2004 Indian Ocean earthquake, hit the Asian countries on the Indian Ocean, including the Maldives. Thousands of lives were lost and many tourists died. This, together with the vast clean-up operation in place, has stopped or severely hampered tourism to the area.
The terms tourism and travel are sometimes used interchangeably. In this context, travel has a similar definition to tourism, but implies a more purposeful journey. The terms tourism and tourist are sometimes used pejoratively, to imply a shallow interest in the cultures or locations visited by tourists.
In 2010, there were 940 million international tourist arrivals with growth of 6.6% as compared to 2009. The World Tourism Organisation reports the following ten countries as the most visited by the number of international travellers. When compared to 2009, China surpassed Spain to become the third most visited country. Most of the top visited countries continue to be on the European continent, followed by a growing number of Asian countries. Malaysia is ranked number nine in the world and second in Asia with 24.6 million international arrivals.
5.2 Marketplace Analysis
Malaysia is a bubbling, bustling melting pot of races and religions where Malays, Indians, Chinese and many other ethnic groups live together in peace and harmony. Multiculturalism has not only made Malaysia a gastronomical paradise, it has also made Malaysia home to hundreds of colourful festivals. It's no wonder that we love celebrating and socialising. As a people, Malaysians are very laid back, warm and friendly.
Geographically, Malaysia is as diverse as its culture. Malaysia is divided into 13 states and 3 Federal Territories, separated by the South China Sea with 11 states and 2 federal territories (Kuala Lumpur and Putrajaya) in Peninsular Malaysia and two states and 1 federal territory (Labuan) in East Malaysia.
One of Malaysia's key attractions is its extreme contrasts. Towering skyscrapers look down upon wooden houses built on stilts, and five-star hotels sit several metres away from ancient reefs. Cool hideaways are found in the highlands that roll down to warm, sandy beaches and rich, humid mangroves.
5.2.1 Current condition of the Marketplace
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5.2.2 Changes in Marketspace
a) Positive
· Bukit Merah Laketown Resort would be a famous tourism spot.
· Perak will be the leading tourism state
· More tourist will be visiting Perak and at the same time increasing the number of tourist visiting Malaysia
b) Negative
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