Main Tourism Sectorsin Malaysia: a Contribution Towards Economic

Home , A Famosa, Lenggong, Tourism in Malaysia

Journal of Development Economics and Finance, Vol. 1 no. 1, pp 35-43 [Year]

Main Tourism Sectorsin Malaysia: A Contribution Towards Economic Growth Ahmad Yunus Mohd Noor1 (Corresponding author) Asmilyia Mohd Mokhtar3 Sabri Mohamad Sharif2 Ahmad Sunawari Long1 Zaizul Ab Rahman1 Najwa Amalina Abdul Wahab1

1Center for Akidah & Global Peace, Faculty of Islamic Studies, National University of Malaysia,43600, UKM Bangi, Selangor, Malaysia. Tel: +6018-3958073 2Univesiti Teknikal Malaysia (UTeM) 3Celpad, International Islamic University of Malaysia (IIUM)

Abstract: The global awakening of growth and development is a situation that have been a phenomenon worldwide. In Malaysia, the main sources to that demand is tourism industry. Even though Malaysia is a small country, the uniqueness, difference, and privileges of this country is undebatable. This is a literature research that aims to define the main sector in this industry that playing roles as a stimulus for the country’s growth and development. This research has been done using textual analysis method by referring to news and other literatures. Results shown that there are five sectors in tourism industry stimulating country’s growth and development; health tourism, sustainable tourism, cultural tourism, eco-tourism and Islamic tourism. These five sectors have played the same role in their own ways. There are also contribute to the rise of income per capita and living standards of local communities. Some efforts to maintain and sustain in development should be complemented in each of the development activities. This is to ensure the sustainable perpetuity of ecosystem for the next generation. Keywords: Tourism, Development, Living Standards, Sustainability, Sectors

1. INTRODUCTION Tourism has been used as a medium to introduce a country to the outsiders such as the uniqueness of a ritual by a local community, the uniqueness of a community lifestyle in certain part in a country, introducing traditional food etc. From researcher’s observation, activities based on tourism has been done long ago without being specifically called as tourism. Based on Kamus Dewan fourth edition (2005), tourism is about anything related to travel or a person who is travelling, or services related to it. Meanwhile, in Kamus Besar Bahasa Melayu Utusan (1995) stated that tourism is a journey sight-seeing, walking, resting and the like.

Journal of Development Economics and Finance, Vol. 1 no. 1, pp 35-43 [Year]

For example, in 11th century until the time before World War II, communities in that era has travelled visiting a place to another place with different purposes. They have been doing trades, learning, preaching, and establishing diplomatic relations between empires. As the time goes by, there are changes of rules, development of technologies, systems in trades, development of transportation etc. have turning those activities into an important role in stimulating economy of a country. Indeed, this industry has been classified in categories and there are organizations formed to ensure the activities in this industries going smoothly and meet the demands of tourists. In 2018, tourism industry has contributed RM84.1 billion for this country. This shown a significant rise as much as 2.4% which is in 2017 has been recorded income as much as RM8.2 billion (Bernama 2019). However, the amount of international tourists in 2018 which is 25.8 million shows a decreasing from 2017 which is 25.9 million. But, the amount of total expenses per capita of the international tourist rise up to RM3,257 in 2018 from RM3,266in 2017 with the percentage of the rising is 2.9%. The amount was from shopping (33.4%), accommodation (25.7%) and food and beverages (13.4%) (Bernama 2019). From the records, it clearly shows that tourism is the main stimulus in the economic development in this country. It helps in raising local infrastructures by improving facilities for public use as well as improving services in various sectors including transportation, securities, health, accommodation etc. 2. RESEARCH OBJECTIVES The research aims to achieve several objectives as the following: i). To review the concept of tourism industry in Malaysia. ii). To identify the main tourism sectors and their different activities as well as their services. iii). To enhance the sustainability of the tourism industry to all over the world.

3. RESEARCH METHODOLOGY This qualitative research has been conducted using textual research. Texts in form of news, other literatures and previous researches from academic journals has been used to study and analyze. While analyzing has been done by using content analysis method.

4. RESULTS: MAIN TOURISM SECTORS Each tourism sector held different activities and services on their own ways. This is done to occupy tourist needs, increasing their level of satisfaction and to ensure they are comfy and cozy being in this country.

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4.1Health tourism Malaysia has been recognized as the best tourism country in the world. This was caused by the good services and facilities in health field is at international level. Besides, medical cost in Malaysia, either government health center or private, is considered as affordable and reasonable compared to other countries. Hence, there are many of outsiders come to Malaysia to be treated especially from neighboring countries such as Indonesia, Singapore, Philippine and Thailand. Utusan Online (Maisarah 2019) has reported about breeding treatment in Malaysia, health facilities in this country using latest and sophisticated tools. Besides, those in this field are experienced with international accreditation. With that advantageous, it provides comfortable to the patients yet increasing their satisfaction level during treatments. As a country that recognize Islam as official religion, halal status for each treatment and medicines used in this sector is guaranteed. Hence, Muslim tourist who are visiting this country would not be worried for the contents of medications in their treatments. This directly induce in making Malaysia as the best location for Muslim tourism from 2011-2019. Based from the same resource (Maisarah 2019), along the years of 2011-2016 health tourism has recorded amount of its tourist as much as 300%. Well managed health care system has form Malaysia as a country that have world class medical services. It is strictly controlled and observed by the Ministry of Health Malaysia through Private Healthcare Facilities and Services Act 1998. Increasing of the amount stated in previous paragraph proves the confidence of patients receive treatments here and the effectiveness of treatments provided. In fact, the success percentage of a treatment (for example IVF treatment) has shown high percentage when a lot of tourists come to Malaysia for breeding treatment. Based record in health tourism it shows a rapid growth of tourists which is 1.2 million in 2018 compared to 643,000 in 2011. News portal Astro AWANI (Bernama 2019) has also confirmed statements and records by the Utusan Online. From health tourists visits Malaysia has successfully recorded income as much as RM1.5 billion. That amount can contribute as much as RM5 billion for Keluaran Dalam Negara Kasar (KDNK) from all medical fields such as dentistry, cosmetics, health, logistics, and hospital services. Economic growth in this sector raised up to 16% to 17% each year which is beyond annual rate of global growth which is only 12% to 14%. There are five states that play the main roles in stimulating economic growth in health tourism; Penang, Melaka, Kuala Lumpur, Selangor and Sarawak. Referring to the same portal (Bernama 2019), based on the growth in health tourism, Ministry of Financial Malaysia predicted the increase of health tourists to 2 million towards 2020. The prediction has been made due to the tax exception for medical bills. Deputy Ministry of Financial, Datuk Ir Amiruddin Hamzah said that Goods and Services Tax (GST) for medical bills before will be exempted with the enforcement of Sales and Service Tax (SST) lately. With the improvements and acknowledgements towards health service in Malaysia, it enhancing the elements and attraction in tourism industry for this country. It turns tourists visit

Journal of Development Economics and Finance, Vol. 1 no. 1, pp 35-43 [Year] not only focused to cultures and traditions in Malaysia but also experiencing world class medical services.

4.2 Sustainable Tourism Briefly sustainable tourism has been introduced and exercised to ensure the continuance of local values and cultures. In an article entitled Pembangunan Pelancongan Lestari di Melaka: Perspektif Pelancong (Development of sustainable tourism in Melaka: Tourists’ perspectives) by Er Ah Choy (2013) aimed to analyze sustainable tourism from tourists’ perspectives. This research focused on the tourism location in Alor Gajah, Ayer Keroh and Bandar Melaka. Results shown that most of the tourists chose Melaka as holiday destination with family. This is due to the old buildings such as Stadhuy’s, entrance of A’Famosa fortress and other historical heritages are well maintained. Community living in Kampung Morten are preserving their traditional dance and musics. The puppet-show and batik has attracted tourists to enjoy their visits. From this research it clearly shows the efforts in sustaining traditional and historical values in developing tourism. However, this research doesn’t show the effort in sustaining Islamic values in tourism.

4.3Cultural Tourism An article entitled Mitos dan lagenda sebagai produk pelancongan di Malaysia: Kajian kes Lembah Lenggong (Myths and legends as tourism product in Malaysia: case study Lembah Lenggong) by Fatimah Hassan and Hamid Mohd Isa (2014) focused on the suitability of raising local myths and legend as cultural tourism product using Lembah Lenggong as a location for this case study. This article stated that elements in Lembah Lenggong can be tourist’s attraction from its myths and legends including the origin of the name Lembah Lenggong, the story of Gua Puteri, Batu Puteri atau Batu Gajah. In tourism, there is concepts that based on this element that later been categorized or named as cultural tourism. From this article, researcher can see that myths and legends elements in Malaysia indeed can be attraction and product in tourism. This is due to its uniqueness that different from one story to the other in different places. This will definitely attract tourists interest to see and experience the places in the stories. The latest report from Astro AWANI news portal (Bernama 2019), Ministry of Tourism,Arts and Culture target the amount of domestic tourists and international tourist as much as 30 million in 2020 which is the Visit Malaysia Year. There are a lot of ways and strategies has been formed and planned to achieve the target. In fact, initial allocation as much as RM50million has been prepared for that purpose. In this strategy, the country is still focusing on eco-tourism and cultural tourism besides other sector in tourism. Cultures and heritages in this country indeed has been the main role in contribution in economic growth.

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4.4Eco-tourism During visits in Malaysia, tourists will enjoy green scenery of nature and enjoying the experience to be in the middle of the beauty of flora and fauna. Tropical rainforest and nature in this country is restored and maintained from being damage by development activities. An article entitled Pertumbuhan dan pelestarian industri eko-pelancongan: kajian pulau- pulau peranginan sekitar pantai timur Sabah. Malaysia (Eco-tourism growth and sustainalble: study at resort islands around East Coast Sabah, Malaysia) (Lee & Siti Suriani 2010) has been conducted to assess eco-tourism growth in archipelago near Semporna. At the same time, these researchers trying to seek international tourists’ experiences from different countries. Results shown that this sector successfully raised up national income and provided jobs to locals with the establishment of resorts build by locals. Is has also successfully improve Small and Medium Enterprise (IKS) and crafts retail business in Mabul island. This later contributed to increasing economy and highway system improvement in that area. Behind this benefits in eco-tourism, the issues in sustainable, continuance the conditions of the development have been damaging the areas dynamic deep sea structure in long-term effects. Based on this research, researcher observed that eco-tourism activities in Sabah undoubtedly has brought development and increasing level standard. However, the activities have slowly effecting the ecosystem. Another article entitled The role of eco-tourism for sustainable development in East Coast Economic Region (ECER), Malaysia has written to discuss the sustainable development potential at ECER through eco-tourism (Md. Anowar et. al 2012). The main objective this research conducted is to identify the strength and weakness of sustainable development in that area in eco-tourism sector. Results shown that sustainable development in this sector has brought the increasing of per capita income, improving and maintaining ecology, improving living standards, lowering poverty rate, providing jobs to locals. In this research clearly shows that sustaining in developing and modernizing in an area plays the important role. It is a huge different from the previous article about archipelago Sabah. Based on the two research articles, it proves that eco-tourism is part of the role and contributor for the increasing in income and economy. However, the efforts of sustaining ecosystem and original elements in an area is not being seriously practiced. This is due to the areas that only focusing on the development and tourism activities. In the future, if this matter had not been taken in action, ecosystem and deep sea will be in critical stage of damage and restoring might be difficult. Sustainable development should be implemented in each of development activities to ensure the continuity of the maintain ecosystem and keeping the values in original elements in an area.

4.5 Islamic Tourism Religion is an important thing in life of each person. It is led by human nature who needs help from the powerful element compared to human ability to ensure a better future. There are humans who deny the existence of god however they seek for help while having a hard time or at

Journal of Development Economics and Finance, Vol. 1 no. 1, pp 35-43 [Year] least questioning “where’s the god’s help?” This prove that each human need god and for that we need a religion to embrace and guide our faith to know god that we are worshipping to(Razali, W. M. F. A. W.et al2017). In Malaysia, Islam has been recognized as official religion. In a book entitled Change the Muslim World (H. Stoddard et. al 1981) stated that Islam is the best religion and had the whole way of life. Based on that book, nearly 1 of 5 (1/5) population in the world are Muslims. In Malaysian community, there are different believers such as Christians, Hinduism, Buddhist, Taoism, Sikh and many more. As written in Constitution of Malaysia, Islam is the official religion in this country meanwhile the other religions are freely practiced. International tourists visiting Malaysia will see there are a lot and various kind of worshipping places such as churches, temples, and mosques. In 2005 (Hafiz 2015), Global Muslim Tourism Index (GMTI) announced Malaysia as main destination for Muslim tourism with marks record 83.8 through research conducted by Master-Card-Crescent Rating for the sector. With the recorded marks, Malaysia has defeated 100 countries in the research. This is led from the promoting activities that has been aggressively conducted by the government beside Muslim-friendly concept in accommodation, food, beverages and worshipping places. The world ‘Islam’ in tourism concept can be divided into categories; first, renewal and spreading Islamic culture; second, benefits from economic aspects and community; third, strengthening identity, confidence and faith besides get at the stereotype in Muslim community (Jabil et al 2015) (Mohd Noor, A. Y. et al 2017). Islamic tourism is indeed different from conventional tourism. In Islamic tourism aspects, tourists have to guard their manners and following rules during their visits which is covering aurah, guarding syariah, keep clean and using the legal sources.(Mohd Noor, A. Y. et al 2017) There are three main components in Islamic tourism sector which is economy, culture and conservative religion (Jabil et. al 2015). In this three components, various strategies and ways established and done to fulfill Muslim tourists demands as well as non-Muslim tourists. Services as transportation, accommodation, food and beverages guarded and improved to guarantee tourists satisfaction. Culture, heritage and Islamic buildings is also included in that three components. It provides new knowledge for the tourists either they are Muslim or non- Muslim. (Mohd Noor, A. Y. et al 2017) In Malaysia, Islamic tourism introduced in 2010 (Jabil et. al 2015) and it is the best way in portraying Malaysia as a country that recognized Islam as their official religion. There are numbers ofmosques in Malaysia that have been chosen as Islamic tourism center and introducing Mosque Tourism concept. With this concept non-Muslim tourists will be given chances to enter the mosques, observing Muslim worships, observing the mosque structure and reasons it have been made that way by trained tourists guide. They are also explaining briefly about Islam and its contents for those interested. Indeed, Malaysia concerns in implementing Islamic values in administration helps to push ahead the establishments of hub and halal products. Besides, the building of infrastructure and landmarks with touching of Islamic concept has been an important asset to the tourism sector. (Mohd Noor, A. Y. et al 2017)

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In 2008, Islamic tourism as stated by Zairin (2013) has been introduced in Malaysia with approaching of ‘Islam Hadhari’ by Tun Abdullah Ahmad Badawi, the prime minister during that time. Islamic tourism has been practiced by other countries before Malaysia. Malaysia is also one of the Muslim-friendly tourism destination and at the first place with grade 8.3. This has turned Malaysia as Muslim-friendly tourism destination defeating Egypt, UAE, Turkey and Saudi Arabia. Establishment of Islamic tourism center in early 2010 under Ministry of Tourism Malaysia is the best platform in encouraging this country tourism industry. This has made Malaysia as a developing country that focused on Muslim tourists from the entire world as well as known as famous holiday destination for its image as an Islamic country, safe, and harmony.

CONCLUSION As a small country, Malaysia can challenge the other developing countries in economic aspect. Tourism industry in this country has been proven its capability in stimulating economic growth. It has open the opportunity of development and providing jobs for locals. Thus, living standards of local communities and urban development are improving from time to time. Following global development, Malaysia not only focusing tourism industry towards cultures and heritage but enlarging tourism potential to other elements. In fact, until these days, potential in another elementhave been observed to find its uniqueness to diversify tourism pattern in this country. Tourism sectors in this industry have their own role but have the same contribution for the country in form of economy and living standards from time to time. Privileges in Malaysia has make Malaysia as a tourist’s selection holiday destination. Other than various culture and heritage,the harmonious living in multi-ethnics, the beauty of nature, and the uniqueness of flora and fauna are also valuable elements to be restored and maintained. This is due to its role in tourists’ attraction in tourism industry in Malaysia. Behind the racing in development activities and global growth, Malaysia has seen to started in implementing sustainable development to ensure the source and elements in some areas not going to be effected for it to sustain and maintain in long-term for our next generation as well as improving suffocated ecosystem.

ACKNOWLEDGEMENT This research was financially supported by the Geran Cabaran Perdana [Grant No.: DCP-2018- 001/3], Topdown Research Grant Scheme [Grant No.: TD-2016-001], and Geran Galakan Penyelidik Muda [Grant No.: GGPM-2016-047] from the National University of Malaysia, UKM Bangi, Selangor. REFERENCES

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