Tourism Business Analysis and Planning
Tourism has today become one of the fastest growing industries. The rapid expansion of the industry globally contributes to economic improvement by creating employment opportunities and especially developing foe host countries like Malaysia. Statistics put it that in 2005 there were 806 million tourists worldwide, and the number of tourists is expected to increase to 1 billion tourists annually by 2010 (Bok and Holland, 2007). Malaysia is a South East Asian country that covers an area of 336,700 square kilometers and has two regions, west and east Malaysia. The Western region shares its borders with Thailand to the North and Singapore in the South; South by Indonesia is in the south of Malaysia East. With 23 million people inhabiting Malaysia, the country is into thirteen states.
Malaysian Discovery Is a fully licensed tour and travel agency company that deals with inbound and outbound tours and safaris. Accredited by the Ministry of Tourism Malaysia Malaysian discovery has organized countless tours. The expertise and wealth of experience wielded by Malaysia Discovery the company has gained trust from thousands of tourists who visit Malaysia. Malaysian Discovery specializes in a wide array of tours and travels elements Airline booking, hotels car rental and connect you to other travel intermediaries.
Malaysian Discovery is a family company. Both the husband and wife have vast expertise in the tourism industry. With over twenty years’ worth of experience, Malaysian seeks to invite tourists to come and discover Malaysia, its beauty and all it has to offer. In upholding this, the company has an array of objectives that aid in driving the business forward.
The Malaysian discovery prides itself in its mission and vision statements. The mission of the company is “We unite, we serve, we protect.” The vision statement of the company is to make Malaysian discovery a top tourist destination which showcases the culture, heritage and natural beauty of Malaysia. In accomplishing its mission and vision Malaysian Discovery has set it goals and objectives as follows. The Malaysian Discovery was started to develop and improve tourism, tourist trade and all other ways of attracting tourists to Malaysian Discovery and the country of Malaysia in general. The company uses its appeal to persuade neighbors and domestic residents of Malaysia and neighboring countries to spend their holidays in Malaysian Discovery. By publishing brochures articles and putting advertisements o social media television Malaysian Discovery seeks to stimulate interests from tourists, travel agencies hoteliers and tour operators.
With the numerous activities in Malaysia, Malaysian Discovery is out to encourage the assistance to other industries such as entertainment, accommodation, catering, promotion of handicrafts and other amenities tourists demand. The company promotes the objectives of the organization through leaflets, guidebooks, handbooks in order to share with tourists the plan that Malaysian Discovery has for them and the future. Malaysian Discovery is out to improve coordination amongst tourists’ trade and travels in order to promote voluntary cooperation in the publicity of Tourism in Malaysia. Another goal of Malaysian Discovery is to guide and advise members of tourism and tourist trades and any other issue within the scope of the companies’ objectives. Helping out tourists with the problem on tour guide and advice accordingly travelers, travel agencies tour operators and all other statutory regulations covering documents, immigration, and customs.
Malaysian Discovery participates in advising the government and local authority on methods of promoting the tourism industry and other related amenities. Malaysian caters for its member by fostering welfare matters to underline their contribution towards the goals of the company. The company also organizes luncheon and dinner amongst other functions for guests and members. The company uses its premises to conduct meeting exhibitions lectures on issues affecting the Association and also participates in conferences and seminars initiated by other organizations or government authorities. Malaysian Discovery maintains contact with tourism associations in Malaysia and abroad to conduct business according to the set regulations and to become an affiliate member. The Malaysian Discovery accepts subscription from members, donors and occasionally government grants and uses the receipts for the purpose of making payment to staff, tax obligations, and all necessary expenses that ensure smooth operations of the company.
In 1990, the tourism industry in Malaysia generated gross revenue of RM4.5 billion from 7.5 million tourists’ arrivals. The numbers have since then been gradually increasing to 12.5 million by 2000 (Chambers, 2000). Most of the tourists toured the Peninsular Malaysia came from Asian countries such as Singapore, Singapore alone gathering 3 million every year. With tourist arrivals in Malaysia expected to rise the receipts will help offset the balance of payment account and in support of the industry RM1.0 billion will be allocated for expansion of social and physical infrastructure.
The plan for the years 1990 to 1995 was geared towards expanding and diversifying the tourism base to reduce the pressure on the narrow range of activities and markets. The strategy involved investment opportunities on other regions have tourism potential and use that to improve employment in the country, improve personal income and add that value by linking it to other sectors of the economy (Davison et al., n.d.). In planning for the preceding years from 1995 to 2000, the strategies targeted tourists that were out to stay for longer times and spend more. Efforts were intensified because tourism was to gain the country more foreign exchange. Policies for the plan 2000- 2005 was to grow the industry gradually to a sustainable level. The government of Malaysia integrated tourism and other sectors of the economy in order to develop a more competitive tourism industry.
The Malaysian Discovery products and services include corporate functions and events that are delivered through eminent events umbrella. Under this package the company provides services such as creative ideas and concepts, entertainment, special effects, photography and so on. The company amongst its many services also offers van and coach rental. The renting of vehicles services is has been modernized by computerized booking and the purchasing of new cars including Mercedes, Toyota and air conditioned vans. This has enables 24 hour service provision and door to door services. The tour packages offered cover touring the city the countryside to attending cultural events in Malaysia. The room booking possibilities have been extended to twin, triple and quad rooms to accommodate more tourists. Customized solutions are also available such as addition of an extra bed at additional charges.
The sales of the company during the peak season is okay but the low season is characterized with low profits. The company during the low season has to adjust rates to accommodate more local tourists in order to boost the accounting books.
The services and products provided by the Malaysian discovery performance is rated by its users ranging from local destination managers, public authorities, travel organizers and other tourists services. For instance the tours and travel can be assessed by local destination managers. The management involved ought to be exceptional as well as the concept Quality Performance Evaluation (QPE).
The Human resource department in order to improve the tourist’s activities can offer more training and education to the existing workforce. The organization can also improve the finances of the company by diversifying its activities to activities such as sporting and other recreational events. The company could provide serviced and non-service accommodation. The company can also involve in international marketing.
In choosing the appropriate business improvement strategies the administration together with the finance department should assess the. Net Present Value of the projects to be undertaken such that the present value in the future justifies the need to invest now. Today’s investments have to be justified by the receipts that are to be received from every project. The projects in question say marketing and advertising, training and educating and diversifying the companies services to sporting events can all be assessed to show which is the most viable through the Net Present Value technique.
In carrying out any new project there are always risks involved. These can be greatly managed by total avoidance. This is done through eliminating the risk causing activity or situation. Risks can also be transferred, this is mainly done through acquiring insurance, leases or other types of contracts. Risks could also be reduced by establishing policies and procedures that reduce on the risks undertaken. It should however be noted that some risks cannot be evaded and should be assumed.
Before development of the management and staff of the company they have to be thoroughly evaluated to a certain if their expertise and acquired experience is of good value to the company and what areas should be improved. The evaluation can be done through skills diagrams so check the strengths and weaknesses of the employees. Skill detect is another method through which helps employees identify the skills by themselves. The top level management of Malaysia discovery is well experienced and performs its duties up to the required levels. The middle level management could use more training on hospitality because most of them are professional on other fields. The casual employers on the other hand are perfectly suited to their areas but need more of language exploration.
The current workforce no doubt needs training on other fields and as the training needs to be conducted without greatly affecting daily operations and activities. The top level management would be awarded first opportunity to go for training on weekends and off peak hours. The trend goes for the mid-level management and casual workers as well.
In examining the SWOT analysis of Malaysia,
Strengths
The strength of Malaysia as a tourist destination relies on its diverse natural sceneries. This is recognized worldwide, and the World Travel and Tourism Council (WTTC) has dubbed Malaysia as “a destination full of unrealized potential.” The Malaysia geography is in itself a natural attraction being surrounded by seas and well preserved natural islands. The white beaches, diverse sea creatures, and corals are a beauty to watch and experience. Malaysia has a large tropical rainforest infested with thousands of animal’s species that are unique to the Malaysian region. The diverse species of zoology include over two hundred and fifty species of mammals, seven hundred bird species, four hundred and six species of reptiles and amphibians and over ten thousand insect species. (Dorai, 2000)
Additionally Malaysia has an excellent transport infrastructure in airport facilities and accommodation can be easily acquired. Because English is a wide spoken language in Malaysia, Malaysia is an ideal tourism destination for the long term and short term holidays.
Weaknesses
Despite all the strengths the Malaysia possess they face the problem of low-profit margin. The economic returns for Malaysia are minimal due to the low priced accommodation. For instance, a night in a four or five-star hotel in Malaysia is $100 per night which is relatively low compared to the same in other parts of the world. As a result of this the services offered at these hotels are hampered and are not as good as expected. The hotel staff is not offered additional training due to the low income, and the hotel does not undergo regular renovation causing the clients not to be very pleased. The hotels are stuck in the same situation for many years without development due to the low-income levels.
Opportunities
With the advent of Tourism in Malaysia, many opportunities have arisen that are keen to encourage and grow the industry. The economic problem of Malaysia promotes innovation and marketing efforts to make the business sustainable for the foreseeable future. Promotions in targeted areas could be launched and intensified via strategic alliances forged to grip tourist opportunities. For instance, various marketing and promotional programs have been developed over the years.
1990 saw the formation of the” Visit Malaysia Year Campaign”. This resulted in attracting over 7 million tourists to Malaysia compared to 4 million in the previous year (Gingging, 2003). On the celebration of the 50 years of independence for Malaysia and The Visit Malaysia Year Campaign together were able to attract over twenty million tourists in 2007 alone. In this respect, the government and private sector can join hands in driving the government’s commitment towards development and promotion of the industry.
The public sector can capitalize providing investment infrastructure, regulation, public awareness, incentives, manpower training, and destination promotion while the private sector and entrepreneurs focus man-made attractions, transportation, and food facilities entertainment and so on. This underlines focus of the private sector, is to improve the quality of the tourists stay. It should be almost every tourist who tours a country will almost certainly be a retail customer. Turning Malaysia into a shopping destination should improve the tourist experience in Malaysia. Shopping is vital in tourism and is one of the most important tourist activities.
The entrepreneurs and private sector can provide the necessary facilities in order to improve the shopping experience for the tourist. The developments of shopping malls such as AEON, star hill, KLCC that offer products from all over the world are some of the strategies used aside from the annual Malaysia Mega Sale Carnival and End year Sale. Several stores offered special discounts and incentives during the carnival periods to encourage tourists to shop in Malaysia. Malaysia my second home program sought to attract foreign investors to own properties in Malaysia. The program attracted over 7000 investors between 2000 and 2005 a majority of the participants coming from China, Bangladesh, and Britain.
Threats
Threats faced by the Malaysian government are regional safety. Diseases and natural disasters affect safety. Catastrophes such as the tsunami led to environmental degradation and pollution. Terrorist attacks are a constant threat to Malaysian Discovery and the country as a whole. Trends in home entertainment like inviting family and watching TV threaten Malaysian tourism industry.
The Pestel factors that affect Malaysia include,
Political
Malaysia Tourism industry on the political front is affected by the following; Malaysia became independent in 1963 after merging with Singapore, Sabah, and Sarawak. Singapore later became independent in August 1965. Today Malaysia has thirteen states with three being federal territories; Kuala Lumpur, Labuan Island, and Putrajaya federal administrative territory. Each of the states is headed by a chief minister and has a government and assembly. Nine among the thirteen states are by hereditary ruling with the ruler known as a ‘sultan’. It is mandatory and essential that foreign tourists follow the laws by the Malaysian government. Malaysia is strict on immigration policies, but tourists visiting Malaysia for not more than a month do not require a visa.
Economical
After independence, the economy of Malaysia was hugely dependent on tin and rubber. Today the largest foreign exchange earner is the tourism industry with the sector generating a whopping RM11.2 billion in 1996. Malaysia serviced the global recession in 1997 and had a stable economy going forward recording a GDP of RM679, 687 million in 2009 (Kasipillai and Chan, 2008). The government has used huge funds in subsidizing natural gas, petrol, and food. The unemployment rates in Malaysia are low the department of statistics research shows that only 3.3% are unemployed as at July 2010. (Oon, 2006)
Social and Legal
Malaysia currently has a population of 28.5 million people. The country is rich in different cultures including Chinese, Indian, and Malay. The majority of Malaysia people are Muslim while the rest are Buddhists, Christians or other. The official language of the country is Bahasa Melayu, but other dialects such as Chinese, Tamil and English amongst others are spoken (Spilsbury, 2011). The numerous languages spoken make Malaysia an ideal tourist destination because language barriers have been eliminated. The travelling perquisites and documents procedures have been made lenient in order for the tourists to have an easier time with the authority. The reduction of legal procedures has greatly influenced the influx of tourists as tourists do not like being caught in the thick over border crisis and national documents of a foreign country.
Technological
Technological advancements in Malaysia will make life easier for touring foreigners. With good international calling lines, there is little or no connectivity problem in Malaysia. Nine Internet Service Providers in Malaysia ensure that the tourists stay connected throughout their stay (Richmond, 2007). Moreover over fifty radio and television channels tourists will keep tourists occupied all day every day.
Environmental
With the tropical forest covering more than 70% of Malaysia, there is a broad diversity of flora and fauna in existence (Oon, 2011). Malaysia has the fifth largest mangrove forest, and the government recognizes this by taking part in its preservation. The government introduced the Air Pollutant Index that indicates air quality and maintains at acceptable levels. There are also other organizations monitoring the ambient noise and river pollution levels in the country.
Basing on the SWOT analysis earlier the company can from these strength capitalize on the available opportunities as follows. The Malaysian Discovery could base on the strengths of Malaysia and come up with ways to advertise the company internationally.
The company could also seek to train more people into becoming tour guides or any other tourism course to aid in the available manpower. Charging fair rates for hotel stay and improving the condition of four and five-star hotels.
The company should reassure tourists all over the world that measured steps have been taken to protect the clients in case of a calamity such as a tsunami. Backup plans such as emergency rooms and numbers have been put in to deal with risks in the quickest possible time.
The company can call seminars in order to convince foreign investors on different avenues where they can invest and have handsome returns, for instance investing more airlines that ferry tourists in and out of Malaysia.
The company can set aside a considerable amount of money for both domestic and international advertisements. Malaysia discovery can invest in promoting the company and Malaysia on social media. This way cheaper, and the company will reach more people more easily. The company could come up will a sound financial management department that assesses the needs of the company and what the tourists are willing to spend. This helps the company provide the best services and at the same time improve the company premises over time. Quality and assurance department should always be monitoring the services and products offered by the business. This ensures that quality does not degrade at any point in time while doing business.
Quality management will also serve to ensure that the personnel employed meet the minimum quality and can be relied upon in serving the company diligently. The quality people also have to ensure that everything the company acquires is of good quality and matches the set samples. Risk management in a travel and tourism company is essential. Risks can range from man-made such as accidents to natural catastrophes that are unforeseen. The risk management department should make the business prepared financially for any mishap that may happen seen or unforeseen. This requires to be insured against natural calamities and or car accidents and so on.
Conclusion
Government policies over the 1950’s to 1970’s were geared towards the development of tourism. The rapid development of the industry has forced the government to revise constantly the development and activities of promotion. This shows that the government of Malaysia finally recognizes tourism as a primary income earner for the country. However, there is still need to employ more effective strategies to ensure that tourism is marketed.
The concept of ‘green tourism’ should be encouraged in to sustain the natural attractions long enough for greater economic gain for longer. Advertising Malaysia in the International Tourism Industry will boost tourist arrivals. Placing advertisement during prime time and showcasing the natural beauty and rich Malaysian culture will attract travelers from all over the world. Exercising good Media relations and informing the public about upcoming events in Malaysia. Invitation of international news companies’ international magazines should be invited so that they can broadcast the beauty and everything that Malaysia stands for. The official Malaysia Tourism website could be with additional information on the upcoming events. Malaysia could participate in travel exhibitions held in different countries all over the world. Representatives in the various countries will have to promote tourism in Malaysia and attendants to the exhibitions will be given flyers for more information. International sporting events can be by Malaysia such as the World Cup, and PGA tour could attract tourists into seeing Malaysia.
References
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Chambers, E. (2000). Native tours. Prospect Heights, Ill.: Waveland Press.
Davison, G., Payne, J., Gumal, M., Hogg, S. and Prudente, C. (n.d.). Wild Malaysia.
Dorai, F. (2000). Malaysia. Singapore: APA Publications.
Gingging, F. (2003). Understanding indigenous identity through the study of cultural tourism in Sabah, Malaysia.
Kasipillai, J. and Chan, P. (2008). Travel Demand Management: Lessons for Malaysia. Journal of Public Transportation, 11(3), pp.41-55.
Oon, H. (2006). Malaysia. London: New Holland.
Oon, H. (2011). Malaysia. London: New Holland.
Richmond, S. (2007). Malaysia, Singapore & Brunei. Footscray, Vic: Lonely Planet.
Spilsbury, R. (2011). Tourism industry. New York: Rosen Central.
