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2018 Annual Report HEAD OFFICE 9th Floor, No. 2, Tower 1, Jalan P5/6, Precinct 5, 62200 Putrajaya, Malaysia • Tel: 603 8891 8000 • E-mail: [email protected] • Tourism Info Line: 1 300 88 5050 (within Malaysia only) www.malaysia.travel twitter.malaysia.travel youtube.malaysia.travel facebook.malaysia.travel instagram.malaysia.travel blog.malaysia.travel Annual Report 2018 1 The 2018 Annual Report features the theme of Family Fun. Malaysia has an extensive array of theme parks, amusement parks, edutainment centres, extreme parks, wildlife parks, animal farms, water parks as well as culture and heritage centres that are great places to strengthen family ties. The montage of photographs reflect the wide range of attractions for family fun that are found around the country. 2 Annual Report 2018 CONTENTS 5 OVERVIEW 75 GOVERNANCE 6 Who We Are 76 • Board of Directors 8 Our Functions 78 • Management Team 8 Our Vision, Mission, and Quality Policy 80 • Operations and Management Services 10 Chairman’s Statement – 2018 in Review 83 • Administration 86 • Audit and External Scrutiny 15 PERFORMANCE 86 • Integrity Unit 24 • Tourism Industry Performance 86 • Technological Applications 29 • International Tourism Promotions 35 • Domestic Tourism Promotions 89 ADDITIONAL INFORMATION 41 • Niche Tourism Promotions 90 • 2018 Awards and Accolades 51 • Advertising and Digital 92 • Tourism Malaysia Offices 60 • Industry Development and Research 69 • Publicity and Promotion Support 92 FINANCIAL STATEMENTS Annual Report 2018 3 4 Annual Report 2018 OVERVIEW Annual Report 2018 5 Who We Are To date, Tourism Malaysia has 35 Overseas Offices and seven Marketing Representative offices in locations identified as Malaysia’s key markets. In addition, there are four Regional Offices and two Supervisory Tourist Information Centres Offices at strategic locations within Malaysia. Driven by its aspiration to promote Malaysia as a destination of excellence in this region, Tourism The Malaysia Tourism Promotion Board or Malaysia continues to propel the industry to Tourism Malaysia is an agency under the Ministry greater heights. Today, Malaysia’s tourism of Tourism, Arts and Culture Malaysia. It focuses industry has become the second largest foreign on the specific task of promoting tourism in exchange earner for the national economy whilst Malaysia and overseas. still maintaining the growth trend from year to year. Since its inception in 1972, Tourism Malaysia has grown by leaps and bounds and has played a prominent role in the international tourism arena. 6 Annual Report 2018 WHO WE ARE In 2018, Malaysia registered 25.8 million tourist Meanwhile, Ipoh was named as the Top 3 Best arrivals and RM84.1 billion in tourist receipts, Coffee Town in Asia by Lonely Planet, while Taiping placing the country as the 15 most visited tourism was named as one of the 100 Sustainable Cities. It destination in the world. was the only Malaysian city that made it in this year’s list by Green Destinations. Along the way, the country has also received numerous international awards and accolades. Tourism Malaysia will continue to work closely with For instance, at the BrandLaureate BestBrands other Government agencies and the private sector Awards 2017-2018, Tourism Malaysia received the to help secure Malaysia’s position as a leading BestBrands Award for Nation Branding, while at the tourist destination and achieve the country’s target 2018 China ASEAN Tourism Exhibition, it received of 30 million tourist arrivals and RM100 billion in the Best Organization Award. Tourism Malaysia also receipts by 2020, as outlined in the Tourism National received the Best Tourism Publicity Award at the Key Economic Area (NKEA). 21st Busan International Travel Fair. Please visit www.malaysia.travel for information on Malaysia was crowned the Most Attractive Travel a wide range of fascinating tourist attractions and Destination in the World 2018 at the 8th Hong Kong destinations in Malaysia, as well as exciting events. Global City Forum, while Sipadan Island clinched the title of Best Diving Destination at the 2018 Nature Travel Awards. Besides that, Kuala Lumpur clinched the 7th spot in the 20 most visited cities around the world in 2018 by MasterCard Global Destination Cities Index. Annual Report 2018 7 OUR FUNCTIONS Our Functions In accordance with the Malaysian Tourism Promotion Board Act 1992, the functions of the Board (Tourism Malaysia) are as follows: • Stimulate and promote tourism to and within Malaysia. • Invigorate, develop and market Malaysia internationally and domestically as a tourist focal point. • Coordinate all marketing or promotional activities relating to tourism conducted by any organisation, government or non-governmental agency. • Recommend to the minister relevant measures and programmes that stimulate the development and promotion of the Malaysian tourism industry and to implement them upon approval. In line with the role of Tourism Malaysia as a promotional organisation, the following objectives were upheld: • Increase international tourist arrivals. • Extend the average length of stay of visitors to increase tourism revenue. • Stimulate the growth of domestic tourism. • Increase the benefits/share obtained from the MICE market. Vision To make the tourism industry a primary source of national revenue and a prime contributor to the Our Vision, Mission, socio-economic development of And Quality Policy the nation. Mission To market Malaysia as a premier destination of excellence in the region. 8 Annual Report 2018 OUR VISION, MISSION, AND QUALITY POLICY Quality Policy Quality Objective Tourism Malaysia is committed to the • To produce an outgoing and knowledgeable professional and effective dissemination of workforce. national tourism information, the fulfilment of • To disseminate tourism information customer requirements and supporting or accurately and efficiently with customer- assisting customers in making their visits to friendly service. Malaysia a success. Annual Report 2018 9 Chairman’s Statement 2018 In Review Malaysia’s tourism industry continued to build on the country’s prominence as a world-renowned tourism destination. In 2018, it recorded 25.8 million (25, 832,354) tourist arrivals, contributing RM84.1 billion in revenue to the country’s economy. 10 Annual Report 2018 CHAIRMAN’S STATEMENT Despite the slight decline in arrivals by 0.4% receipts from shopping exceeded accommodation, compared to 2017, the contribution of tourist growing from a share of 32.7% in 2017 to 33.4% in receipts increased by 2.4%. Besides that, tourism 2018. performance also saw growth in terms of per capita expenditure, which increased by 2.9% to RM3,257, Tourism Malaysia also continued to place emphasis while the Average Length of Stay (ALOS) climbed on domestic tourism, which is a key contributor 0.8 points to 6.5 nights. to the country’s economy. A total of 221.3 million domestic visitors were recorded in 2018 with a Singapore remained as the highest contributor of growth of 7.7% compared to 2017, while domestic tourists to Malaysia with 10.6 million, followed by tourist expenditure registered a double-digit growth Indonesia (3.3 million), China (2.9 million), Thailand of 11.4% with RM92,561 million. (1.9 million), Brunei (1.4 million), South Korea (0.62 million), India (0.6 million), the Philippines (0.4 million), Our promotional strategies in 2018 were guided by Japan (0.39 million), and Taiwan (0.38 million). Tourism Malaysia Integrated Promotion Plan (TMIPP) 2018 – 2020, which sets to drive the country’s The ASEAN region continued to dominate the share tourism industry forward and achieve its objectives of tourist arrivals to Malaysia. It contributed 70.1% to and targets for the next three years. The Plan the country’s total tourist arrivals in 2018, while the continues the strategic path laid out in the previous medium- and long-haul markets occupied 20.3% plans and paves the way for the achievement of the and 13.3% shares respectively. country’s ultimate goal of 30 million tourist arrivals and RM100 billion in tourist receipts by the year Tourist arrivals growth were seen in Central Asia 2020. (+81.9%), Africa (+49.1%), Americas (+26.3%), West Asia (+25.3%), East Asia (+24.3%), South Asia TMIPP 2018 – 2020 sets out the general outlook (+13.4%), and Europe (+7.8%), while declines were and perspectives for the overall marketing recorded for Oceania (-0.8%) and ASEAN (-7.0%) programmes for Tourism Malaysia. Our major focus markets. is to enhance Malaysia’s appeal as a top-of-mind tourism destination while promoting domestic Overall, the performance of the medium- and long- tourism. Indeed, the Plan serves as a useful haul markets showed healthy recovery with 19.3% reference for all industry players to steer our tourism growth compared to the previous year, impacting the sector in the right direction. length of stay and receipts positively. We have undertaken various strategies and dynamic In terms of overall tourist expenditure, the ASEAN efforts to boost the country’s arrivals and tourism region remained as the biggest contributor, with revenue. Together with industry players and tourism a total of RM48.5 billion. The highest per capita stakeholders from the public and private sectors, we expenditure was from West Asian tourists with focused on promotional programmes that helped RM9,947, an increase of 6.1% against RM9,378.50 build momentum and culminate with the celebration in 2017. of the country’s fifth Visit Malaysia Year in 2020. The top three components of tourist expenditure Our strategies to attract arrivals from key markets were shopping (33.4%), accommodation (25.7%), revolved around forming strategic partnerships with and food and beverages (13.4%). Once again, airlines and corporate bodies, utilising digital media Annual Report 2018 11 CHAIRMAN’S STATEMENT platforms for marketing and publicity, organising Malaysian Government has special incentives for this familiarisation trips for selected markets, and taking purpose and Tourism Malaysia is using this to attract part in major international tourism trade shows.
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