CONTENTS Vision 2
About Penang Tourism Master Plan 4-6
Penang Tourism in Numbers 7
Challenges Facing Penang Tourism 8
Aligning with other Policies and Plans 9
Mitigating Disasters, Sustaining Future Tourism 10
Thrusts of Future Penang Tourism Growth 11
Thrusts and Sub-Thrusts 12
Thrust A: Diversification of Tourism Products 13-16
Thrust B: Positioning Penang as a Premier Destination 17-20
Thrust C: Ensuring Sustainable and Responsible Tourism 21-24
Thrust D: A Smart Tourism Destination 25-27
Number of Initiatives 28
Initiatives by Types and Prioritizations 29
Penang Key Tourism Corridors 2021-2030 30
Signature Projects 31-32
Positioning Penang 33
The Importance of Domestic Market 34
Sustaining Traditional Markets, Expanding into New Ones 35-38
Funding Models 39 Vision Penang as a premier, sustainable, diversified and smart tourism destination
2 Penang Tourism Master Plan 2021-2030 Executive Summary 3 About Penang Tourism Master Plan
he Penang State Government, FGDs and town halls engage all state through PETACE (Penang State tourism sector stakeholders, namely TExco Office for Tourism and - the local governments, tourism Creative Economy), has taken the industry players, Non-Governmental initiative to formulate this Penang Organizations (NGOs), political Tourism Master Plan (PGTMP) to steer leaders, local councillors, students, the growth of the State’s tourism academicians, and community sector for the next nine years (2021- leaders. The FGDs and town hall 2030). This Master Plan sets goals for sessions deliberated on the central sustainable tourism development. issues and challenges facing the It strengthens Penang’s competitive Penang tourism sector, reviewed positioning as a premier destination the changing and future tourism by drawing up its strategies and trends, and proposed strategic initiatives in two phases, namely, initiatives to manage the issues Phase 1 (2021-2025) and Phase 2 and enhance the tourist experience (2026-2030). This Master Plan utilizes further when visiting this state. This holistic and integrated approaches, Penang Tourism Master Plan must be gathering inputs from multiple adopted by all relevant government sources, including reviews on reports departments and agencies as the and policies, site evaluations, in- strategic direction, and all initiatives depth interviews, meetings, and a agreed are being implemented series of Focus Group Discussions effectively to ensure that this Master (FGDs) and town hall sessions. The Plan achieves its targets and vision.
4 Penang Tourism Master Plan 2021-2030 The Project Approach
a e Assessment uri m ar et a y i eta a y i icy ver a ce 1 Identification of Issues & Trends Review of Tourism Market Performance Primary Data uri m r uct e me t Collection
tervie cu r u i cu i
Survey Situational Analysis a e e c mar i a y i & Synthesis a a y i e a uri m rum a ue r iti a y i
2 m etitive e a y i Envisioning Tourism Master Plan
a e
m eme tati Si ature ru t Eva uati 3 a r ect Strate ie mmu icati a Penang Tourism Master Plan (2021-2030)
Town Hall Meeting Mid-Term Assessment (2025)
Executive Summary 5 1 2 3 4
Identification Identification Identification Formulating of Tourism of Tourism of Thrusts, Strategies, and Issues and Issues and Strategies, and Signature Challenges Challenges Signature Projects Projects
Participants: Participants: Participants: Participants: e a uri m ver me t itica ea er itica ea er ayer ity u ci r Se era erai ity mmu itie u ci r Number of Participants: Number of Participants: ca mmu ity e e Number of Participants: e e e a uri m e e ayer
Number of Participants: e e
6 Penang Tourism Master Plan 2021-2030 Penang Tourism in Numbers 9.48 million* *Number of tourists in 2019 staying at hotels and other forms of tourist accommodations *52% International, 48% Domestic visitors
Top 4 Main Purposes 77.2 Locals Average Stays RM1189 20.3 Internationals International of Visit Average expenditure Markets 6 days (International) 63% leisure per international tourist are Indonesia, Singapore, 4 days (Domestic) 19.3% culture & heritage in Penang repeat visitors China, India
19,753 hotel rooms, Over 375k with 6.39 million guests*. 2733 8.34 million 41 medical tourists sought treatments Average occupancy for events held in 2018, passengers passed through cruise ships and 157 transit at Penang hospitals in 2018. beach hotels: involving 327,627 delegates. Penang International Airport* cruises docked in Penang* 65.1 *2019
Top 4 Penang Tourism Images
ca r u ticu tura Sa y 39.5% ui i e 33.7% erita e Site 7.6% S ciety 4.5% eac e
Source: Penang Tourism Survey (2019).
Executive Summary 7 Challenges Facing Penang Tourism
hile the State is trying its overcome. These are some critical best to develop the tourism issues and challenges discussed and Wsector sustainably, there agreed upon during the Focus Group are many challenges that it has to Discussions and interviews.
e ee r Innovation Congestions State of m r veme t uri m Product uri m at uri t Cleanliness at i uri m Variations r uct S t uri t ite Infrastructure
Increased uri m Gentrification e Shift Low Affordable Competition Crisis er uri t uri t e a r m e i a Preparedness ity S ace Yield e ti ati
te rate Imbalance in a i ac E rceme t uri t Concentration uri t Reliable Laws & Information Hub uri t ttracti Demography Data Regulations
Challenges Facing Penang Tourism
8 Penang Tourism Master Plan 2021-2030 Aligning with other Policies and Plans
his Master Plan considers key aligned. This Master Plan also reviews elements of other related strategies undertaken by selected Tpolicies and plans to ensure that countries such as Japan, Korea, China, all strategies, thrusts, and initiatives Spain, Australia, Thailand, the USA, identified by the Master Plan are and Indonesia.
Responsible Consumption Practice Sustainable Production Sustainable Cities Responsible Communities Tourism Quality Education Partnership for the Goals
Upskill Human Capital Empower People to Invest in the Built Strenghten Civic Environment to Participation Improve Resilience Enhance S Demand L Sophistication Inclusive A Infrastructure and Comprehensive O Y Connectivity C Sustainable, G I Eco-Friendly and Resilient T L Development O Creative and N Innovative G Human Capital IONIN PENA E P IT R ES N Create A ariety S MIE TINA G PO RE T A of Quality Tourism
P IO S Products
M A A N
N
E
M Aligning the
N Thrusts P
0
R S
S F U E
T Decent ork
O O
S
I R
3 C Economic
P N
0 I U
L N Growth
O with and
O Major Plans
R
I G
0 N
3 O Manage
E T
S S
R A Good
U
I U P 2 B V C Governance
I 0 S
L F Policies T M
E I E
O A S
S 2 I
G T I
N R R
T O D
A E U
U V
R B I O N
P L T L E I Strength
S E
M Governance
L P
A Capacity A
B
N
N
N
A S
E O
R
N Competitive Economy, I
I High alue and
P
T Global Classification A
A T
S N
U S
Increase Create Special Liveability to Enhance Quality Tourism Investment of life ones
Industry, Innovation Infrastructure
Embrace Smart Tourism
Executive Summary 9 Mitigating Disasters, Sustaining Future Tourism
he Penang state started the ‘Penang Lawan Covid-19’ campaign even before Tthe federal government announced the first MCO. The Crisis Preparedness and Response Centre had been set up and used social media platforms to disseminate the latest information about Covid-19. The State had also introduced various financial supports to assist the affected tourism industries. It had initiated the Tourism Recovery Action Plan (TRAP) to mitigate the pandemic’s impacts through several strategies under Penang’s positioning theme: a safe destination.
PHASE IMPACT MITIGATION Support & Sustain ACCELERATE RECOVERY
Penang: A PENANG: A SAFE CRISIS MANAGEMENT PHASE Strengthen & Adapt Responsible SUSTAINABILITY DESTINATION Destination
ECONOMIC RECOVERY BUILD RESILIENCE PHASE Rebuild & Rebound
Phases of Covid-19 Crisis Management
10 Penang Tourism Master Plan 2021-2030 Thrusts of Future Penang Tourism Growth
he key elements of this Master They are (A) Diversification of tourism Plan are the clusters of thrusts, products, (B) Positioning Penang as Tsub-thrusts, and strategies a premier destination, (C) Ensuring developed by all Penang tourism sustainable and responsible tourism, stakeholders based on future trends, and (D) A smart tourism destination. need analysis, challenges, and issues These thrusts are supported by facing Penang tourism. This Master 11 sub-thrusts, consisting of 84 Plan has four main thrusts of future initiatives and 13 signature projects. tourism development for Penang.
AirAsia and Penang Global Tourism launched a new collaboration that offers more travel options and value added services to domestic tourists visiting Penang
Executive Summary 11 Thrusts and Sub-Thrusts
A B C D DIVERSIFICATION POSITIONING ENSURING A SMART S E S S S E S E E S ES ES S E ES S THRUSTS
A B C D Promote Strengthen Enhancement Adoption of New Alternative International of Creative Technology in Tourism inkages Economy Tourism 4 0 Ecosystem
A B C D Value Add Branding, Nature-Based Integrated Existing Marketing, and Tourism Destination Products Promoting Penang Management THRUSTS
S A B C Product igh Authenticity Innovation ield in eritage, Arts, Tourism and Culture
12 Penang Tourism Master Plan 2021-2030 The ESCAPE Theme Park
THRUST A: DIVERSIFICATION OF TOURISM PRODUCTS
Sub-Thrusts (A-1) Promote Alternative Tourism (A-2) Value Add Existing Products (A-3) Product Innovation 25 Initiatives
Executive Summary 13 Sub-Thrust A-1: Promote Alternative Tourism
enang has a variety of unique Strategies alternative tourism products or } Create a variety of tourism products Psites that have the potentials to } Develop space for community and be further developed and promoted. products Diversifying tourism products can } Increase spending opportunity for attract greater tourist segments. tourists } Create a variety of experience-based tourism programs } Enhance existing value of heritage, arts and culture } Promote community-based tourism
Boria performance at the Butterworth Fringe Festival
14 Penang Tourism Master Plan 2021-2030 Kampung Agong evokes memories of yesteryears
Sub-Thrust A-2: Value Add Existing Products
trengthening existing tourism Strategies products, infrastructure, and } Enhancing safety and security Samenities is needed to enhance } Revitalizing night life tourists’ satisfaction level, increasing } Upgrading recreational infrastructure their loyalty to Penang as a destination. } Promoting green tourism corridors While focusing on innovating new } Providing special routes for visitors initiatives, the State must also improve with special needs its existing products, attracting visitors worldwide. The Unique Selling Propositions (USP) of Penang must be conserved and enhanced.
Executive Summary 15 Sub-Thrust A-3: Product Innovation
ustainable destinations require constant product innovation to Sinduce repeat visitations and loyalty among tourists to Penang. Continuous improvisation of existing products is a must. Exciting and more Unique Selling Propositions must be introduced to the changing market. The State must put a product development ecosystem to drive innovation.
Strategies } Transformation of tourism spaces } Product innovation and branding } Enhance existing value of heritage, arts and culture
The Habitat, Penang Hill 16 Penang Tourism Master Plan 2021-2030 THE TOP at Komtar
THRUST B:
POSITIONING PENANG AS A PREMIER DESTINATION
Sub-Thrusts (B-1) Strengthen International Linkages (B-2) Branding, Marketing, and Promoting Penang (B-3) High Yield Tourism
22 Initiatives Sub-Thrust B-1: Strengthen International Linkages
enang must enhance its international Strategies linkages and improve its tourist } Improve accessibility and Pinfrastructure to stay competitive in tourism tourist transportation system and emerge as a global tourist hub. } Develop special interest tourism } Establish Penang as the regional Halal tourism hub
The Little India
18 Penang Tourism Master Plan 2021-2030 Sub-Thrust B-2: Branding, Marketing, and Promoting Penang
he transformation of Penang tourism industry from high volume to high yield Trequires us to restrategize the branding, marketing, and promotion to align with Penang2030’s vision of ensuring viable growth of a green and smart State.
Strategies } Encourage and grow quality events based on needs, demands, and capacity } Brand Penang as health, spa, and wellness destination } Expand markets and promotion via multiple channels
George Town after dark Executive Summary 19 The SPICE arena Sub-Thrust B-3: High Yield Tourism
any tourist destinations have shifted Strategies their marketing focus away from merely } Develop an ecosystem for Mincreasing tourists’ number to quality high yield products tourism. Improving quality is often articulated } Develop more high-yield as moving away from mass tourism with low products expenditure per person to quality tourists with } Encourage Social high per capita spending and better behaviour. Entrepreneurship Tourism } Attract high-yield tourist segment
20 Penang Tourism Master Plan 2021-2030 THRUST C: ENSURING SUSTAINABLE AND RESPONSIBLE TOURISM
Sub-Thrusts (C-1) Enhancement of Creative Economy Ecosystem (C-2) Nature-Based Tourism (C-3) Authenticity in Heritage, Arts, and Culture
21 Initiatives
Executive Summary 21 The rattan maker in George Town Sub-Thrust C-1: Enhancement of Creative Economy Ecosystem
s a state that is blessed with a melting pot of unique values, Penang envisages Aculture, arts and heritage as an asset both to the economic development and social enrichment. To further align the existing culture, arts, and heritage products and activities into the mainstream economy with great potential for wealth and job creation, Penang ought to weave skills, knowledge, and technology into the equation. To ensure that these products continue to contribute to the Creative Economy, stimulating long-term networking between different platforms and stakeholders is imperative. Strategies } Provide tourism trade hub } Empower art, culture and heritage } Train the trainers/trainees } Instil the value of heritage appreciation in the new generation } Inculcate green practices & Listen to the story of the entrepreneurship Baba and Nyonya at the Pinang Peranakan Mansion
22 Penang Tourism Master Plan 2021-2030 The Frog Hill, Seberang Perai Utara
Sub-Thrust C-2: Nature-Based Tourism
verconcentration of tourists Strategies in the inner city of George } Identify and promote agrotourism and OTown calls for a balancing act ecotourism sites in Seberang Perai to spread the economic impacts of } Develop potential nature-based tourism to second-tier areas or into tourism places the peripheral areas. The Seberang } Provide education on nature and Perai areas have the potentials for nature tourism nature and agro-based tourism that have not been fully utilized. The State government acknowledges Seberang Perai as an area with great natural assets such as mangroves, mudflats, migratory birds, and the rivers. Yet, some of these places are receiving Listen to the story of the lesser attention. Baba and Nyonya at the Pinang Peranakan Mansion
Executive Summary 23 Sub-Thrust C-3: Authenticity in Heritage, Arts, and Culture
he conservancy of cultural Strategies heritage is consequently a } Provide platform for heritage, culture Tcornerstone of any cultural and arts stakeholders policy. The tangible cultural heritage } Enhance existing value of heritage, has faded during recent years due arts and culture A SMART TOURISM to dynamic and rapid changes in } Incorporate arts, culture, and heritage DESTINATION industrialization and urbanization, in local planning which were made worse by the increase in atmospheric pollution, various climatic factors, and mass tourism. Much of the non-physical Armenian Street heritage is vanishing out because of the interference of economic structures. In the context of intangible cultural heritage, the jeopardization of this value is contented by fluctuations in lifestyles, which have resulted in a dominant culture that is negatively influencing the social or economic entity.
24 Penang Tourism Master Plan 2021-2030 Karpal Singh Drive
THRUST D:
A SMART TOURISM DESTINATION
Sub-Thrusts (D-1) Adoption of New Technology in Tourism 4.0 (D-2) Integrated Destination Management
16 Initiatives
Executive Summary 25 Sub-Thrust D-1: Adoption of New Technology in Tourism 4.0
enang needs to adopt smart tourism approaches to facilitate travels to and Pwithin the state and enhance the travel experience, including the digital experience. Popular tourism and hospitality services have also capitalized on the ease of apps and have made them efficient and bug-free. The primary digital travel experience trends that have arisen in the travel industry to date are moving to mobile apps, artificial intelligence in the form of chatbots, and social media marketing. It also helps gather tourist information through their digital journey on tourist arrivals, demographic data, length of stay, expenditure, and travel patterns.
Strategies } Digitalize tourism products and service delivery } Introduce smart and friendly infrastructure
26 Penang Tourism Master Plan 2021-2030 Luxury Boulder Valley Glamping in Teluk Bahang
Sub-Thrust D-2: Integrated Destination Management
good destination must be Strategies clean, safe, and user-friendly. } Promote smart economy ABetter coordination among } Encourage smart governance key stakeholders is required for } Promote clean and hospitable Penang better destination management and to guarantee the quality of service. Information and data on the economic contributions from tourism must be recorded for future market references and to monitor Penang’s market performance.
Executive Summary 27 Number of Initiatives
SUB-THRUSTS THRUSTS 1 2 3 Total
A Diversification of Tourism Products 12 8 5 25
B Positioning Penang as a Premier Destination 12 6 4 22
C Ensuring Sustainable and Responsible Tourism 10 9 2 21
D A Smart Tourism Destination 7 9 16
Total 84
Penang Chief Minister enjoying local delicacies at the Penang International Paddy Festival
28 Penang Tourism Master Plan 2021-2030 Initiatives by Types and Prioritizations
o lead proper implementation of the initiatives, this Master Plan igh Talso locates the initiatives on two spectrums, namely (1) Feasibility MP QW (Major Project) of the initiatives (High-Low) and (2) ( uick Win) High m act High m act Impacts (High-Low). The feasibility Low ea i i ity High ea i i ity includes three major dimensions, IMPACT namely economic feasibility, technical LP EL feasibility, and operational feasibility. (Low Priority) (Effort Less) The Impact Spectrum, on the other Low m act Low m act Low ea i i ity High ea i i ity hand, measures the impacts of the initiatives on the economy, ow FEASIBILITY igh social well-being of the people and The Feasibility Quadrants for the environment. Based on the Project Implementation assessments above, this Master Plan proposes 4 quadrants for project 6% implementation, namely Quick Wins Smart Other Low Prioarity (QW); Major Project (MP); Effort Less 13% 13% 13% Effortless (EL) and; Least Priority (LP) . The 38% Major Project Culture & Infrastructure initiatives are planned for the period Heritage between 2021-2030 and depending 30% 23% 43% on availability of resources; the state Quick Wins
Ecotourism is encouraged to prioritize initiatives Event 15% listed as Quick Wins, especially in an 6% effort to rejuvenate to tourism sector Initiatives by Types of Product Initiatives by Prioritizations after the Covid-19 pandemic. Figures below show the classification of the initiatives or proposed tourist products based on types and prioritizations.
Executive Summary 29 Penang Key Tourism Corridors 2021-2030
30 Penang Tourism Master Plan 2021-2030 Signature Projects
ignature projects are special are clusters of initiatives, coming from projects that are transformational different thrusts and sub-thrusts but Sand impactful. They are chosen conceptually connected. Some are Quick due to their uniqueness, originality, Win projects, low hanging initiatives impacts on the economy, social ready to be implemented. There are, well-being of the people, and the however, initiatives that are already in the environment. Many Signature Projects implementation stage.
KAMPUNG TERUS- Penang Smart Transportation Air Itam Dalam Wetland and Mobility System
NORTHERN PENANG ISLAND Coastal Corridor
PENANG LEGEND SPORTS WELLNESS & AESTHETIC & Entertainment City Resort Enclave
EDUTOURISM City
Executive Summary 31 THE PENANG Sustainable Grand Bazaar Bukit Bendera
PACE: PENANG ARTS AND Culture Enclave
TANJUNG PERFORMING ARTS Museum and Gallery Network & Cultural Extravaganza Magnet
MUDA X-Plore
SMART TOURISM Solutions
32 Penang Tourism Master Plan 2021-2030 Positioning Penang
ositioning Penang as a premier and exclusive tourism destination with destination can increase tourists’ luxurious and high-quality standards Pexpenditure and encourage tourists of accessibility, attraction, amenities, to stay longer, spend more, and appreciate accommodation, activities, and Penang more. Penang needs to position experience. Tourists can experience the itself to create a competitive advantage best of the island and the Seberang Perai against its regional competitors. A of Penang that the state offers. premier destination is a world-class
Positioning Strategies
Brand Experiential iti i iti i
Experience and Telling a Great Story of Penang Ex erie tia Ex erie ce e a Cultural Heritage revie i ra S t e i e a uri m E ta i i t e ra t ry y e ra e cam ai t ry te er r e i c te t ee e a a ive Ex erie tia E a ci e ivery ri t Nature based c te t uri m
Generating better engage- ments, leads and conversions Ex erie tia rmati a ervice at Adventure the fingertips r m ut a m t uri m er u c a e
Executive Summary 33 The UNESCO listing of George Town as a world heritage site has positioned Penang on the world map
The Importance of Domestic Market hile most countries regard of cleanliness at eateries, availability of and target the international affordable accommodation, and continuous Wmarkets as their marketing focus, introduction of new and interesting new Penang should not take the domestic products. Domestic tourists have been market for granted. This is especially instrumental in reviving the ailing tourism important when the repeat visitation sector due to the spread of Covid-19 among domestic travellers to Penang has pandemic starting 2020. The lifting of been high. Malaysians outside Penang interstate travel bans had seen local tourists visit this state for its foods, heritage and flocking Penang, attracted by various offers beaches. Among measures needed to and packages by the local tourism players. retain Penang’s popularity among the local Among important sources of visitors to tourists and excursionists are to ensure Penang are Perak, Kedah, the Klang Valley, the authenticity of its cuisines, high level Johor, Sabah and Sarawak.
34 Penang Tourism Master Plan 2021-2030 Sustaining George Town at night Traditional Markets, Expanding into New Ones
enang must continue its efforts to sustain its Ptraditional tourist markets that include Singapore, India, China, Thailand and Indonesia. At the same time, it should strive to gain greater percentages of the outbound travelers from high growth countries that include Taiwan, South Korea, Hong Kong, Vietnam, and Myanmar. To further position itself as a regional tourist hub, Penang must also intensify its penetration into potential long- haul markets that include Europe, Australia, the United States, the United Kingdom, New Zealand, the Middle East, and Japan.
Executive Summary 35 Traditional Tourist Markets
Kazakhstan mongolia
Georgia
uzbekistan Kyrgyzstan Azerbaijan north turkmenistan turkey Taj i kistan korea japan Syria South afghanistan china Korea iraq iran jordan
pakistan Nepal Taiwan saudi united arab emirates Hong Kong arabia bangladesh oman india MYANMAR Laos VIETNAM
yemen thailand philippines
cambodia
Sri lanka Penang Malaysia
Singapore indonesia
36 Penang Tourism Master Plan 2021-2030 High Growth Markets for Penang
Russia
Kazakhstan mongolia
Georgia
uzbekistan Kyrgyzstan Azerbaijan north turkmenistan turkey Taj i kistan korea japan Syria South iran afghanistan china iraq Korea jordan
pakistan Nepal Taiwan saudi united arab emirates MYANMAR Hong Kong arabia bangladesh oman india Laos VIETNAM yemen thailand philippines
cambodia
Sri lanka Penang
Malaysia
indonesia
Executive Summary 37 Penang International Airport
Potential Long-Haul Markets
europe
France
United states of america Japan
Saudi Arabia
Penang
Australia
New Zealand
38 Penang Tourism Master Plan 2021-2030 Funding Models
ourism has a strategic role in sustainability with positive impacts. The driving the transition to a robust tourism initiatives, identified in this Master Teconomy, and contributing to more Plan require funding models that are sustainable and inclusive growth. Close collaborative, multi-channel, inclusive, links and integration of stakeholders at market-driven, innovative, dynamic, and the destination, national, and international organic. Effective funding models must be levels will lead to greater tourism able to weather economic ups and downs.
Tourism Initiatives Funding Models
Special Fund Appropriation for Tourism
Social Privatization Entrepreneurship
Grants for Arts and Co-funding Creative Industries
Network of Public and Private Partnership
Executive Summary 39