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Tourism planning in a presently developing country
Tourism planning in a presently developing country The case of Malaysia R.J.G. Wells Increasingly sophisticated economic studies of tourism have been undertaken in developed countries, (DCs); in presently developing countries, (PDCs), however, the paucity of reliable data often precludes such studies. However, in some PDCs there is already a relatlvely strong economic and industrial base, and tourism is not viewed as the motor of development, but rather as a sector of economic diversification within the development process. The planning and management of tourism in Malaysia provides an apposite casestudy of what contribution tourism can make to the economies of PDCs, and how tourism may be stimulated in such cases.
Keywords Malaysm. tourism plannmg,
developmgcounmes R.J G. Wells is lecturer m economicsat the Faculty of Economics and Administration, Umversny of Malaya, Kuala Lumpur 22-11, Malaysm.
1. Since it is our intention'to be illustrative rather than exhaustive in our coverage of the literature on tourism, two major studies can be cited, viz A.J. Burkart and S. Medlik, Tourism: Past, Present and Future
(London, Hememann, 1974) and D.E. Lundberg, The Tourist Business (Boston, CBI Publishing Co Inc, 1980), fourth edition. 2 The British Tourist Authority, for instance, esttmated that tourism and its related industries provide employment for more than 1.5 million people in the UK.
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Research devoted to the analysis of tourism m industrially developed countries has flourished in the past few years, and attention has been focused on the tourist product. ~ It has also increasingly been shown that tourism is a major source of employment - - both directly and indirectly 2 - although analysts have noted that an attribution problem is commonly encountered in empirical studies since part of employment creation in many leisure services is not wholly attributable to tourism. 3 In the developed countries ( D C s ) analysis has been conducted at the destination-region level, and income and employment impacts have been rigorously a s s e s s e d : Tourist expenditure, for instance, has often constituted a significant benefit to less urbanized regions through the augmentation and supplementation of rural incomes and farm incomes. For presently developing countries ( P D C s ) such as Malaysia there have been few such studies; most published material is at a highly aggregative level. Attempts have also been made in D C s to examine systematically the social costs of tourism. Among the less easily measurable costs identified are the deleterious effects of traffic volume and congestion, environmental damage, noise intrusion and the even less tractable but potentially pervasive costs that m a y be involved in the cultural impact of alien customs, values and mores on indigenous culture: Tourism economists have noted that costs and benefits are usually not evenly distributed among residents and between residents and non-residents. Distributional questions thus require tackling; this will require a sound system of weighting. While there are still conceptual limitations and practical measurement problems to be resolved, the economics of tourism is nevertheless emerging from its embryonic state. This is shown by the growing number of empirically sophisticated studies, especially in the DCs. In P D C s , such as Malaysia, the situation is not as sanguine for a variety of reasons. Conceptual and measurement difficulties arise as a result of limited reliable information and because of the novelty in such countries of economists seeking to evaluate, in monetary terms, the explicit and implicit benefits and costs of tourism. A common salient weakness of the tourism database in many P D C s , for instance, is the paucity of reliable time-series data on tourist expenditure; inter alia, this impedes assessment of the
0261-5177/82/020098-10503.00 © 1982 Butterworth & Co (Publishers) Ltd
Tourtsm planning tn a presentl3" developtng country
socioeconomic impact of tourism. It also militates against effective tourism planning. Malaysia is no exception to this situation. F o r researchers reliance has to be placed on cross-section data and while the quality of employment and income statistics has improved over the past two or three decades, the available database precludes a rigorous examination of employment or income generation from tourism. Apart from anything else, boundary problems exist since the tourist sector is not demarcated.
Malaysia: physical and e c o n o m i c profile Malaysia, which comprises several physically separate entities, Peninsular Malaysia and the East Malaysian states of Sabah and Sarawak, is a tropical country of 14 million people and 330 434 km 2 in area. The majority of the population live in Peninsular Malaysia which consists of a spinal mountain range running north to south in the centre, flanked by coastal plains with a low level region to the south. It is one of the most prosperous countries of Asia with a per capita income of an estimated US$1 840 (1981), and has long possessed a relatively well developed physical infrastructure, especially in the West Coast states of the Peninsular where the bulk of tourism occurs. Indeed, the developed areas containing the cities and largest towns and the major industrial and mining activities are to be found primarily along the western side of Peninsular Malaysia. Tourist attractions Gearing, Swart and Var have developed a methodology for measuring touristic attractiveness; this involved the selection of a group of 17 criteria, organized into five sub-groups. 6 The latter were: • N a t u r a l factors
•
3 For an analysis of the primary and the indxrect and induced employment effects of tourism, see, N Vanhove, "'Tourism and employment" Internattonal Journal of Tourism Management, September 1981, 2 (3), pages 162-175 4. Widely quoted studies include B Archer, S. Shea and R. de Vane, Tourism in Gwynedd: An Economic Study (Cardiff, 1974) and P.G. Sadler, B.H Archer and C.E. Owen, "Regional income multipliers: the Anglesey study" Bangor Occasional Papers tn Economics, No 1 (Cardiff, 1973). 5. See, D.M. Shucksmlth, "'Petrol prices and rural rec, eat~on m the 1980's", National Westmtnster Bank Quarterly Review, Feb 1980, pages 52-59. 6 See C E. Gearing, W W. Swart and Turgut Var, "'Estabhshing a measure of tounstic attractiveness". Journal of Travel Research, 1974 12 (2), pages 1-8.
Tourism Management June 1982
•
•
•
o Natural beauty o Climate Social factors o Artistic and architectural features o Festivals o Distinctive local features o Fairs and exhibits o Attitudes towards tourists Historical factors o Ancient ruins 0 Religious significance 0 Historical prominence Recreational a n d shopping facilities 0 Sports facilities o Educational facilities o Faculties conducive to health, rest and tranquillity o Night-time recreation o Shopping facilities Infrastructure a n d f o o d a n d shelter o Infrastructiare above 'minimal' touristic quality o F o o d and lodging facilities above 'minimal' touristic quality
What constitutes 'tourist attractions' is ultimately subjective, and attractions may differ to visitors from different geographic regions:
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Tourtsm planning m a presently developmg countr)"
tropical sunshine represents a "pull'-factor to north-west Europeans but is probably not an important attribute to visitors from other parts of the Association of South-East Asian Nations ( A S E A N ) area. Malaysia does offer a considerable variety of landscape including beaches and small coves, forest parks, islands, mountain ranges and hill resorts, including Mount Kinabalu, the highest peak in Southeast Asia, and National Parks. The principal tourist localities include the West Coast, Peninsular, towns of Kuala Lumpur, Ipoh and Malacca, the islands of Langkawi and Penang, the beach resorts and turtle Sanctuary of the East Coast states of Pahang and Trengganu and the hill resorts of Maxwell Hill, Fraser's Hill, Cameron Highlands and Genting Highlands. In a recent study of tourism, Hofmann, 7 enumerated five prime tourist attractions of Peninsular Malaysia: • • • • •
recreation, food, excursions, multi-ethnic people, and shopping.
With the possible exception of the fourth characteristic, it might also be said that these attractions also exist in most other South-east Asian nations; this is not to imply that such attractions and amenities are not worthy of publicizing, since most extra-regional tourists visit several countries during their holidays. Multi-country tours rather than single-country tours are the rule rather than the exception; in the past Malaysia has tended to be a stopover point or component part of a multi-stop itinerary for international tourists in the region. On the Gearing, Swart and Var methodology specified above, Malaysia, with varied scenic attractions and amenable climate, would score highly as regards natural factors. Other tourism resources with which Malaysia is well endowed include good infrastructure and food and shelter, and social attributes - - especially the generally friendly attitude of Malaysians towards tourists. Such subjective impressions are supported by data from various tourist surveys 8 which show that "'warm and friendly people" and "'beautiful scenery/countryside" ranked 1 and 2 in the frequency distribution of favourable comments. 7. Norbert Hofmann, "A survey of tourism m West Malaysia and some soclo-economic imphcations", Institute of Southeast As~an Studies, Research Notes and Discussions Paper 13 (Smgapore, 1979). 8. See ibid, inter aha.
9. Case studies of tourism in Bali, Malta, Cyprus and Seychelles are contained in Emmanuel de Kadt. Tourism, Passport to Development?
(New York, Oxford Umversity Press, 1979). 10. The World Bank, World Development Report, 1980, (Oxford, New York, Oxford Umverslty Press for the IBRD, 1980) gives GNP per capita for Malays,a as US$1090 (1978), as compared to South Korea -- certainly a "newly industrializing country' -- GNP per capita of US$1160.
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Economic
benefits of tourism for PDCs
Tourism growth can offer substantial economic advantages to developing countries: it can stimulate investment, generate foreignexchange earnings, and can frequently provide an important source of income and employment. For m a n y P D C s foreign exchange earnings from tourism are highly significant to their national economies. This, rather unsurprisingly, is particularly true in the case of the natural-resource-poor islands, such as Cyprus, Malta, the Seychelles and Bali? By contrast Malaysia, although still considered a PDC. is in fact developing rapidly - - it falls within the World Bank classification of 'Middle-Income Countries', and, even if it is not yet officially designated a newly industrializing country (NIC), it is on the verge of becoming so. 1° Further, Malaysia possesses a wide natural resource base and a rapidly expanding manufacturing sector, and for most of
Tourism Management June 1982
Tourism planning m a presently developmg country
the "modern" economic history of the country the balance of payment rarely appears to have represented a s~gnificant constraint to development. Thus in the Malaysian case, where there is a relatively strong industrial base, eg in tin, rubber etc, tourism cannot be conceived as a 'primary motivator' of economic development, but rather as economic d~versification within the development process. As such, there are lessons from the Malaysian experience for other states at similar levels of economic d e v e l o p m e n t - for example, about how much tourism can be expected to contribute to the national economy and how the industry should be managed to achieve economic goals. Perhaps because the Malaysian government has been concerned to concentrate initially on building up the 'primary' industries to exploit the country's national resource base and build up the manufacturing sector, there has been no all-out government-led drive to maximize returns from tourism. The country can still not yet be considered a major tourist destination. Rather, it is what might more appropriately be termed a secondary or special interest destination. Only in 1972 did the Malaysian government actively involve itself in stimulating tourism. Government assistance, both organizationally and financially, was provided following the passage of the Tourist Development Corporation Act of 1972.
Organization and goals of tourism planning The 1972 Act established a government-f'mancedstatutory body - - the Tourist Development Corporation (TDC), which, inter alia, is responsible for the overseas promotion of tourism within Malaysia and for the development, coordination and improvement of facilities and amenities for tourists, and for promotional work and publicity in Malaysia. Previous responsibility for tourism promotion rested with a Department of Tourism in the Ministry of Trade and Industry. Government policy is aimed at encouraging tourism growth in hiterto largely unexploited a r e a s - - f o r instance, the East Coast of Peninsular Malaysia - - while helping to sustain the industry in the established 'traditional' tourist centres. The T D C is empowered to provide financial assistance and participate in joint equity tourist projects, and was primarily assigned three main functions -- coordination, development, and national and international tourism promotion. It is a statutory body responsible to the Minister of Trade and Industry, and the duties and responsibilities of the Corporation are undertaken by six divisions: • • • • • •
Development and project management division; Research and planning division; Enforcement division; Marketing division; International relations and convention division; and Finance, administration and general services division.
The TDC, in its efforts to coordinate, develop and promote tourism, has from its inception considered planned developments to be more appropriate than uncontrolled growth. However, there is evidence to suggest that it has faced formidable obstacles. Difficulties have arisen out of federal/state government relationships on tourist development; tourism was not clearly defined in the constitution and
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Tourism plannmg in a presently developing country'
this has led to various interpretations being made by government agencies and state governments. Further, the development of accommodation facilities has not always been well coordinated with the provision of public utility and infrastructural developments. While the enabling legislation empowers the T D C to coordinate the development of tourism plant and facilities, the T D C does not always possess the 'tools' necessary for implementation and enforcement. For example, the varying legal powers to approve the establishment of hotels and related tourism facilities lie separately in different government agencies, local authorities and state governments. The application for hotel projects must be approved by the federal government to obtain pioneer status and tax holidays, after which it must be submitted to the state planning authorities for building approval, and then on completion the project must be licensed by the local authority. ~ In its efforts to develop new tourist destinations and thereby promote dispersion rather than concentration the T D C is slowly laying the foundations for a regionally diversified tourist industry; for instance, it is trying to establish a tourism corridor in the East Coast of the Peninsular. It clearly has a long way to go -- a major drawback is accessibility w but it has already built and is operating several motels at the turtle sanctuary and other beach locations in the East Coast Peninsular state of Trengganu. It is heavily promoting the East Coast tourist regions and has also entered into a joint equity venture with Club Mediterran~e and the local state economic development corporation at Cherating, Pahang. This is the first Club Mediterrange outlet in Asia and reputedly offers identical facilities to its members as its outlets in Europe and Africa. To date the TDC, either on its own or in a joint venture, has developed four motels with 440 rooms and improved facilities at existing establishments and has also set up duty-free shops. Such direct participation is viewed by the T D C as a catalyst to stimulate private investment in areas of potential touristic attractiveness. The Investment Incentive Act of 1968 enables it to discriminate in favour of such areas, since the types and extent of incentives offered to hoteliers depend on the location of the approved hotels. Thus, for instance, hoteliers in the East Coast states of Trengganu, Pahang and Kelantan can obtain an abatement of income tax on 25% of chargeable income for a period of 12 years; by contrast, in 'popular' areas such as Kuala Lumpur and Penang, income tax abatement is limited to a maximum of 15%.
Value of planning
11. The Malaysian Government introduced special provisions relating to the hotel industry in the Investment Incentive Act, 1968, which included the provision of pioneer status, locational incentives and abatement of mcome-tax for the establishment of new hotels, and expansion and modernization of existing hotels.
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Given the dynamic nature of tourism as a relative latecomer to tourist development, Malaysia is in some respects fortunate. That its growing tourist industry is still in its formative stage helps facilitate planned development; it also enables policymakers to employ it as a tool for diversifying the country's economic base - - sectorally and regionally. For example, in the past tourism had devoted and centred almost wholly around the gateway cities of the country, tourist growth being largely attributed to Malaysia's strategic geographic location. Situated between the two major Southeast Asian tourist destinations, Bangkok and Singapore, the country became a convenient stopover for transient tourists. The three principal
Tourism Management June 1982
Tourism planning zn a presently developtng country
gateways or entry points for international and regional visitors became Kuala Lumpur, Penang and Johore Bahru, the latter almost wholly for 'surface' transportation. The future growth of international tourism to Malaysia coupled with the activation of'planning' by the TDC enables the Corporation to 'promote' new tourist destinations in economically disadvantaged areas. That tourism is in a relatively underdeveloped stage of formation means that Malaysia can benefit from the experience of other, more developed countries. Tourism may, whether positively or negatively, affect the social structure, mode of life and environmental quality at the tourist destination.~2 The TDC can seek to prevent the onset of a decline in the current environmental quality and attractiveness of its tourist assets through the regulation of user density, the prevention of crowding and as a result of dispersal policies. In planning new tourist facilities including the provision of transportation and accommodation, it can adjust to the changes in the needs and preferences of "modern-day' visitors more flexibly than 'old' tourist areas. To facilitate policy planning for the development of Malaysia's tourist industry the TDC has defined six geographical regions in the Peninsular as 'touristic areas' (see Figure 1). These are the Kuala Lumpur-Malacca tourist region, Penang-Langkawi, the Perak region, Johore region, Kuantan region and the Kota Bharu-Kuala Trengganu region. Development priorities have been established,
KOTA BHARU TRENGGANU TOURIST REGION PENANG LANGKAWI TOURIST REGION xELA~T=N
,
- TAM~ PERAK TOURIST REGION
•
',
I
p,- .o,
KUALA LUMPUR MALACCA TOURIST REGION
K.AUNTAN TOURIST REGIO~N
"-.
~
o. ~,
~
s t
•
JOHORE TOURIST RIEG~
M,l~
%.
\
l
| , ,, ~ a ~ °
4"d~
12 For a concise analysis of the sigmficance of tourism, see, Burkart and Medlik, op cit, reference 1, pages 57-68.
Tourism Management June 1982
Figure 1.
0
IOOm,
200~,
30Ore,
Tour~stlc r e g i o n s - Peninsular Malaysia.
103
Tourism planning in a presently developing countr3'
resort and hotel area land-use and development controls implemented, and historical and cultural preservation methods have been drawn-up Important priorities are: parks and public amenity development, historic building preservation and urban renewal for the Kuala Lumpur-Malacca region; further development of the transportation infrastructure for Penang-Langkawi; improvement of air services and airport facilities for Perak; provision of additional touristic accommodation for the Johore-Kuantan and Kota Bharu and Kuala Trengganu regions. Thus for the 'newer' touristic regions transportation and accommodation are two of the crucial inputs while, if the older 'traditional' touristic regions are not to start to decline, their natural and cultural attractions must not be debased. Water-borne pollution, for instance, is one of the greatest dangers facing the beach areas of Penang; the West Coast of Peninsular Malaysia is also vulnerable to effluent discharges and other forms of marine pollution from maritime traffic in the busy Straits of Malacca.
Tourism growth Tourism growth in Malaysia has been substantial through the 1970s, as shown in Table 1 which shows the number of tourist arrivals. Visitor arrivals in the country increased from less than 726 000 in 1972 to more than 1.25 million in 1977, and by 1980 amounted to 1 529 915. This sizeable increase was due in part to promotional efforts undertaken by the T D C and the rise in the standard of living in other countries. While the most rapid increase took place in the early 1970s - - mainly before the full impact of the 'oil crisis' - - tourism still grew at 8% over the year 1979-80. This is a relatively 'respectable' rate compared with the rate of growth of international tourist traffic. The slower growth was largely attributable to higher travel costs which unsurprisingly influenced substantially the choice of holiday locations by most tourists. A plausible case could be made for arguing that the increase in tourist arrivals in Malaysia was in part supply led, ie demand was stimulated as a result of the substantially increased availability of requisite tourist facilities. The number of hotels increased from 766 with 21 746 rooms in 1976 to 835 with 27 559 rooms in 1980; out of these more than 1 0 0 0 0 rooms were in first-class hotels by international standards. The number of tour agencies increased from Table 1.
Source: Tourist Development Corporation. Note: The term "visitor" closely follows the definition as adopted by the United Nations Conference on International Travel and Tourism in 1963.
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Growth of tourism in Malaysia, 1972-80.
Year
Total visitor annuals
Visitors from Europe
Visitors from ASEAN
Visitors from regions other than Europe and ASEAN
Annual growth rate (%)
1972 1973 1974 1975 1976 1977 1978 1979 1980
725833 869 559 1 080720 1 183014 1 224815 1 228 995 1 399058 1 416378 1 529915
50845 63 509 63509 62477 65692 72 655 82399 87 382 106332
312910 353 810 416753 647 143 703 123 706 767 767 199 798088 844368
362 128 453 344 600458 473394 456000 509 463 549460 530908 579215
19.8 24.3 9.4 3.5 5.2 8.5 1.2 8.0
Tourism Management June 1982
Tourism planning in a presently developing country
553 in 1976 to 773 in 1980, and the number of licensed tour coaches, limousine taxes and rental cars showed a 50% increase over the same period.
Characteristics of demand The first characteristic of tourist demand in Malaysia is that more than 50% of tourists came from other A S E A N countries, viz Singapore, Indonesia, Thailand and the Philippines; geographic proximity and intra-regional trading ties are important influences. Visitors from Europe, although representing only a small part of the total, have nevertheless doubled over the period, while the increase of tourists from regions other than A S E A N and Europe has been more sluggish. Visitors from Australia, Hong Kong, the USA and Japan form the bulk of this category. Subang (Kuala Lumpur) is the main point of entry for air travellers followed by Bayan Lepas (Penang) while the southern town of Johore Bahru is the major entry point for both road and rail travellers. A 1980 survey of some 665 000 tourists to Malaysia by air through the two principal airports of Subang (Kuala Lumpur) and Bayan Lepas (Penang) provided detailed information on other salient characteristics. 25% of the tourists visited Malaysia on a package tour, while the average length of stay of all tourists was five nights in 1980. Pleasure/vacation and business were the overwhelmingly dominant reasons for visiting the country. The median age of visitors was 36 years and each tourist spent an average of US$225 during his stay; this was more than 16% higher than the corresponding figure for 1979. Accommodation accounted for 34.7% of this expenditure; food and beverages 22.9%, shopping 20.4% and local transport 11.4%. The dispersal pattern of visitors to the country was extensively studied. Tourists showed a clear preference for staying in Kuala Lumpur, Penang and Genting Highlands in that order; the first is the capital and main administrative and financial centre of Malaysia, Penang is the principal resort area, and the last the hill resort in closest proximity to Kuala Lumpur.
Economic effects of tourism growth Some projections of estimated foreign exchange earnings from tourism for the period 1975-1980 are shown in Table 2. Gross receipts from tourists and excursionists were estimated to have increased from nearly M$486 million in 1976 to M$995 million by 1980; net foreign exchange earnings were estimated as having more Table 2.
1975 1976 1977 1978 1979 1980
Projected foreign exchange earnings from tourism, Malaysia 1975-80 (Malaysian $). Gross tourist receiptsa
Excursionist receipts
Gross receipts
Leakage
Net foreign exchange
Less capital and Foreign operating exchange expenses excess
450.2 550.9 633.3 737.6 842.1 949.9
35.4 37.1 39.0 41.0 43.0 45.2
485.6 588.0 672 3 778 6 885.1 995.1
72.8 88.2 100.8 116.8 132.8 149.3
412.8 499.8 571.5 661.8 752.3 845 8
27 4 33.4 31.7 35.9 40.0 42.5
385.4 466.4 539.8 625.9 712.3 803.3
Source Tourist Development Corporanon, Tounsm Development Programme, Vol IV (Kuala Lumpur) aEstimates of gross tourism receipts were based on an average dally expenditure of M$57 (or US$24).
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105
Tourism planning in a presently developing counto'
than doubled, from nearly MS413 million to almost MS846 million over the same period. After deductions of the foreign exchange components of tourism, capital expenditure and overseas expenditure for advertising and promotion, the 'foreign exchange excess' was also computed. Unfortunately, there are no other known studies of the import content of the income from tourism in Malaysia, but if cross-country comparisons are made, the volume of leakage indicated in Table 2 seems to be very low. In Malta various studies have suggested that the import content varies between 35% and 50%, z3 figures of 50% for leakages have been quoted for the Virgin Islands and Seychelles, 45% for Hawaii, 43% for the Bahamas, 30% for Hong Kong and 22% for Kenya. ~ Disaggregation of the estimated gross tourism receipts by tourist regions indicate the dominance of two regions: in 1980, Kuala Lumpur/Malacca and Penang/Langkawi were expected to account for 85% of gross tourist receipts. Johor was estimated to obtain 5%, Juantan 4% and the Perak region only 3%. Data regarding the employment effects of tourism in Malaysia are noticeably scarce. The country's Fourth Malaysia Plan document acknowledges that tourism generates employment in related support services such as tours, travel, transportation, recreational facilities and accommodation. Thus by implication it is asserted that the tourist industry is labour-intensive and is in congruence with Malaysia's factor endowment. Apart from noting that employment in the hotel industry expanded from 5 200 in 1970 to 14 800 in 1980 and that tourism employs 31 800 people, no attempt was made to measure the indirect and induced employment effects. ~5 It is observed, however, that employment in the tourist industry is expected to increase at the rate of 5 % per annum between 1980 and 1985, when it is envisaged as amounting to 40 000. Although it is difficult to verify empirically such data, the trend is not surprising; employment in the tourist industry rising in step with tourism growth is a phenomenon that has been experienced by many other countries.
Planning for the future
13 J. Boissevam and P.S. Inglelt, "'Tourism in Malta", in Emmanuel de Kadt, op cit, reference 9, pages 265284. 14. D. Wilson, "The early effects of tourism in the Seychelles", m Emmanuel de Kadt, ibid, pages 205236. 15. Federanon of Malaysia, Fourth Malaysia Plan 1981-1985 (Kuala Lumpur, National Printing Department, 1981)
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Domestic programmes to stimulate the development of the tourist industry and to make Malaysia a more significant tourist destination are to be further expanded in the 1980s. Tourist arrivals are projected to total 3 131 800 by 1985, arrivals into Peninsular Malaysia, Sabah and Sarawak are expected to be 2 823 000, 126 000 and 162 000 respectively. In order to meet the projected increase in tourist arrivals, Malaysian planners estimate that another 30 485 rooms will be required. The T D C has explicitly indicated that during the first half of the 1980s development of tourist facilities in locations other than Kuala Lumpur and Penang will be accorded priority. Major extensions to the T D C projects in the East Coast state of Trengganu are planned, and for the Fourth Malaysia Plan period, 1981-85, a sum of MS40 million will be provided to the T D C to undertake such projects. Additionally, it is foreseen that regional authorities and some State Economic Development Corporations will also expand their tourist development programmes. Regional cooperation in tourism is slowly gaining momentum in
Tourism Management June 1982
Tourism planning in a presently developing country
A S E A N . ~6At present A S E A N cooperation in tourism is handled by the regional organization, the A S E A N Tour and Travel Association ( A S E A N T T A ) , which has a secretariat based in Jakarta, Indonesia. The Association's principal objectives are to increase the volume of international tourists to the A S E A N region, to assist in the development of regional tourist industries and to encourage the development of such support industries as travel agencies, hotels and international transportation. Deliberations have been held on the possibilities of improving the intra-ASEAN rail network, shipping, air transport and communication services as well as more direct efforts to promote intra-ASEAN tourist development. Such developments although modest in scope and intention to date provide opportunities to Malaysia to increase its level of regional visitors and the T D C has indicated that its regional marketing efforts are to be intensified. As regards international tourism the T D C intends to concentrate its international marketing activities in Japan, Hong Kong, Australasia, West Germany and the UK, although it is expected that it will explore potentially attractive new market areas such as West Asia, France and North America. Whether these efforts will make Malaysia a major tourist destination is a moot question. It is generally a slow process to change tastes and, in any event, some other conditions of demand, especially per capita incomes, may be more important determinants of the rest of the world's demand for Malaysia's tourist attractions. These conditions cannot be regarded as policy variables as far as Malaysia's planners are concerned. Policymakers can, however, through judicious planning, increase the quality and quantity of touristic "attractions' and ensure that trans16. From its reception in 1967 the portation and accommodation faulties are improved. There are clear membership of ASEAN has remained signs that this is one lesson that Malaysian tourist planners have at five, vtz Indonesia, Malaysia, the quickly learnt. Philippines, Singapore and Thadand.
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107
Keywords Malaysm. tourism plannmg,
developmgcounmes R.J G. Wells is lecturer m economicsat the Faculty of Economics and Administration, Umversny of Malaya, Kuala Lumpur 22-11, Malaysm.
1. Since it is our intention'to be illustrative rather than exhaustive in our coverage of the literature on tourism, two major studies can be cited, viz A.J. Burkart and S. Medlik, Tourism: Past, Present and Future
(London, Hememann, 1974) and D.E. Lundberg, The Tourist Business (Boston, CBI Publishing Co Inc, 1980), fourth edition. 2 The British Tourist Authority, for instance, esttmated that tourism and its related industries provide employment for more than 1.5 million people in the UK.
98
Research devoted to the analysis of tourism m industrially developed countries has flourished in the past few years, and attention has been focused on the tourist product. ~ It has also increasingly been shown that tourism is a major source of employment - - both directly and indirectly 2 - although analysts have noted that an attribution problem is commonly encountered in empirical studies since part of employment creation in many leisure services is not wholly attributable to tourism. 3 In the developed countries ( D C s ) analysis has been conducted at the destination-region level, and income and employment impacts have been rigorously a s s e s s e d : Tourist expenditure, for instance, has often constituted a significant benefit to less urbanized regions through the augmentation and supplementation of rural incomes and farm incomes. For presently developing countries ( P D C s ) such as Malaysia there have been few such studies; most published material is at a highly aggregative level. Attempts have also been made in D C s to examine systematically the social costs of tourism. Among the less easily measurable costs identified are the deleterious effects of traffic volume and congestion, environmental damage, noise intrusion and the even less tractable but potentially pervasive costs that m a y be involved in the cultural impact of alien customs, values and mores on indigenous culture: Tourism economists have noted that costs and benefits are usually not evenly distributed among residents and between residents and non-residents. Distributional questions thus require tackling; this will require a sound system of weighting. While there are still conceptual limitations and practical measurement problems to be resolved, the economics of tourism is nevertheless emerging from its embryonic state. This is shown by the growing number of empirically sophisticated studies, especially in the DCs. In P D C s , such as Malaysia, the situation is not as sanguine for a variety of reasons. Conceptual and measurement difficulties arise as a result of limited reliable information and because of the novelty in such countries of economists seeking to evaluate, in monetary terms, the explicit and implicit benefits and costs of tourism. A common salient weakness of the tourism database in many P D C s , for instance, is the paucity of reliable time-series data on tourist expenditure; inter alia, this impedes assessment of the
0261-5177/82/020098-10503.00 © 1982 Butterworth & Co (Publishers) Ltd
Tourtsm planning tn a presentl3" developtng country
socioeconomic impact of tourism. It also militates against effective tourism planning. Malaysia is no exception to this situation. F o r researchers reliance has to be placed on cross-section data and while the quality of employment and income statistics has improved over the past two or three decades, the available database precludes a rigorous examination of employment or income generation from tourism. Apart from anything else, boundary problems exist since the tourist sector is not demarcated.
Malaysia: physical and e c o n o m i c profile Malaysia, which comprises several physically separate entities, Peninsular Malaysia and the East Malaysian states of Sabah and Sarawak, is a tropical country of 14 million people and 330 434 km 2 in area. The majority of the population live in Peninsular Malaysia which consists of a spinal mountain range running north to south in the centre, flanked by coastal plains with a low level region to the south. It is one of the most prosperous countries of Asia with a per capita income of an estimated US$1 840 (1981), and has long possessed a relatively well developed physical infrastructure, especially in the West Coast states of the Peninsular where the bulk of tourism occurs. Indeed, the developed areas containing the cities and largest towns and the major industrial and mining activities are to be found primarily along the western side of Peninsular Malaysia. Tourist attractions Gearing, Swart and Var have developed a methodology for measuring touristic attractiveness; this involved the selection of a group of 17 criteria, organized into five sub-groups. 6 The latter were: • N a t u r a l factors
•
3 For an analysis of the primary and the indxrect and induced employment effects of tourism, see, N Vanhove, "'Tourism and employment" Internattonal Journal of Tourism Management, September 1981, 2 (3), pages 162-175 4. Widely quoted studies include B Archer, S. Shea and R. de Vane, Tourism in Gwynedd: An Economic Study (Cardiff, 1974) and P.G. Sadler, B.H Archer and C.E. Owen, "Regional income multipliers: the Anglesey study" Bangor Occasional Papers tn Economics, No 1 (Cardiff, 1973). 5. See, D.M. Shucksmlth, "'Petrol prices and rural rec, eat~on m the 1980's", National Westmtnster Bank Quarterly Review, Feb 1980, pages 52-59. 6 See C E. Gearing, W W. Swart and Turgut Var, "'Estabhshing a measure of tounstic attractiveness". Journal of Travel Research, 1974 12 (2), pages 1-8.
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•
•
•
o Natural beauty o Climate Social factors o Artistic and architectural features o Festivals o Distinctive local features o Fairs and exhibits o Attitudes towards tourists Historical factors o Ancient ruins 0 Religious significance 0 Historical prominence Recreational a n d shopping facilities 0 Sports facilities o Educational facilities o Faculties conducive to health, rest and tranquillity o Night-time recreation o Shopping facilities Infrastructure a n d f o o d a n d shelter o Infrastructiare above 'minimal' touristic quality o F o o d and lodging facilities above 'minimal' touristic quality
What constitutes 'tourist attractions' is ultimately subjective, and attractions may differ to visitors from different geographic regions:
99
Tourtsm planning m a presently developmg countr)"
tropical sunshine represents a "pull'-factor to north-west Europeans but is probably not an important attribute to visitors from other parts of the Association of South-East Asian Nations ( A S E A N ) area. Malaysia does offer a considerable variety of landscape including beaches and small coves, forest parks, islands, mountain ranges and hill resorts, including Mount Kinabalu, the highest peak in Southeast Asia, and National Parks. The principal tourist localities include the West Coast, Peninsular, towns of Kuala Lumpur, Ipoh and Malacca, the islands of Langkawi and Penang, the beach resorts and turtle Sanctuary of the East Coast states of Pahang and Trengganu and the hill resorts of Maxwell Hill, Fraser's Hill, Cameron Highlands and Genting Highlands. In a recent study of tourism, Hofmann, 7 enumerated five prime tourist attractions of Peninsular Malaysia: • • • • •
recreation, food, excursions, multi-ethnic people, and shopping.
With the possible exception of the fourth characteristic, it might also be said that these attractions also exist in most other South-east Asian nations; this is not to imply that such attractions and amenities are not worthy of publicizing, since most extra-regional tourists visit several countries during their holidays. Multi-country tours rather than single-country tours are the rule rather than the exception; in the past Malaysia has tended to be a stopover point or component part of a multi-stop itinerary for international tourists in the region. On the Gearing, Swart and Var methodology specified above, Malaysia, with varied scenic attractions and amenable climate, would score highly as regards natural factors. Other tourism resources with which Malaysia is well endowed include good infrastructure and food and shelter, and social attributes - - especially the generally friendly attitude of Malaysians towards tourists. Such subjective impressions are supported by data from various tourist surveys 8 which show that "'warm and friendly people" and "'beautiful scenery/countryside" ranked 1 and 2 in the frequency distribution of favourable comments. 7. Norbert Hofmann, "A survey of tourism m West Malaysia and some soclo-economic imphcations", Institute of Southeast As~an Studies, Research Notes and Discussions Paper 13 (Smgapore, 1979). 8. See ibid, inter aha.
9. Case studies of tourism in Bali, Malta, Cyprus and Seychelles are contained in Emmanuel de Kadt. Tourism, Passport to Development?
(New York, Oxford Umversity Press, 1979). 10. The World Bank, World Development Report, 1980, (Oxford, New York, Oxford Umverslty Press for the IBRD, 1980) gives GNP per capita for Malays,a as US$1090 (1978), as compared to South Korea -- certainly a "newly industrializing country' -- GNP per capita of US$1160.
100
Economic
benefits of tourism for PDCs
Tourism growth can offer substantial economic advantages to developing countries: it can stimulate investment, generate foreignexchange earnings, and can frequently provide an important source of income and employment. For m a n y P D C s foreign exchange earnings from tourism are highly significant to their national economies. This, rather unsurprisingly, is particularly true in the case of the natural-resource-poor islands, such as Cyprus, Malta, the Seychelles and Bali? By contrast Malaysia, although still considered a PDC. is in fact developing rapidly - - it falls within the World Bank classification of 'Middle-Income Countries', and, even if it is not yet officially designated a newly industrializing country (NIC), it is on the verge of becoming so. 1° Further, Malaysia possesses a wide natural resource base and a rapidly expanding manufacturing sector, and for most of
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the "modern" economic history of the country the balance of payment rarely appears to have represented a s~gnificant constraint to development. Thus in the Malaysian case, where there is a relatively strong industrial base, eg in tin, rubber etc, tourism cannot be conceived as a 'primary motivator' of economic development, but rather as economic d~versification within the development process. As such, there are lessons from the Malaysian experience for other states at similar levels of economic d e v e l o p m e n t - for example, about how much tourism can be expected to contribute to the national economy and how the industry should be managed to achieve economic goals. Perhaps because the Malaysian government has been concerned to concentrate initially on building up the 'primary' industries to exploit the country's national resource base and build up the manufacturing sector, there has been no all-out government-led drive to maximize returns from tourism. The country can still not yet be considered a major tourist destination. Rather, it is what might more appropriately be termed a secondary or special interest destination. Only in 1972 did the Malaysian government actively involve itself in stimulating tourism. Government assistance, both organizationally and financially, was provided following the passage of the Tourist Development Corporation Act of 1972.
Organization and goals of tourism planning The 1972 Act established a government-f'mancedstatutory body - - the Tourist Development Corporation (TDC), which, inter alia, is responsible for the overseas promotion of tourism within Malaysia and for the development, coordination and improvement of facilities and amenities for tourists, and for promotional work and publicity in Malaysia. Previous responsibility for tourism promotion rested with a Department of Tourism in the Ministry of Trade and Industry. Government policy is aimed at encouraging tourism growth in hiterto largely unexploited a r e a s - - f o r instance, the East Coast of Peninsular Malaysia - - while helping to sustain the industry in the established 'traditional' tourist centres. The T D C is empowered to provide financial assistance and participate in joint equity tourist projects, and was primarily assigned three main functions -- coordination, development, and national and international tourism promotion. It is a statutory body responsible to the Minister of Trade and Industry, and the duties and responsibilities of the Corporation are undertaken by six divisions: • • • • • •
Development and project management division; Research and planning division; Enforcement division; Marketing division; International relations and convention division; and Finance, administration and general services division.
The TDC, in its efforts to coordinate, develop and promote tourism, has from its inception considered planned developments to be more appropriate than uncontrolled growth. However, there is evidence to suggest that it has faced formidable obstacles. Difficulties have arisen out of federal/state government relationships on tourist development; tourism was not clearly defined in the constitution and
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Tourism plannmg in a presently developing country'
this has led to various interpretations being made by government agencies and state governments. Further, the development of accommodation facilities has not always been well coordinated with the provision of public utility and infrastructural developments. While the enabling legislation empowers the T D C to coordinate the development of tourism plant and facilities, the T D C does not always possess the 'tools' necessary for implementation and enforcement. For example, the varying legal powers to approve the establishment of hotels and related tourism facilities lie separately in different government agencies, local authorities and state governments. The application for hotel projects must be approved by the federal government to obtain pioneer status and tax holidays, after which it must be submitted to the state planning authorities for building approval, and then on completion the project must be licensed by the local authority. ~ In its efforts to develop new tourist destinations and thereby promote dispersion rather than concentration the T D C is slowly laying the foundations for a regionally diversified tourist industry; for instance, it is trying to establish a tourism corridor in the East Coast of the Peninsular. It clearly has a long way to go -- a major drawback is accessibility w but it has already built and is operating several motels at the turtle sanctuary and other beach locations in the East Coast Peninsular state of Trengganu. It is heavily promoting the East Coast tourist regions and has also entered into a joint equity venture with Club Mediterran~e and the local state economic development corporation at Cherating, Pahang. This is the first Club Mediterrange outlet in Asia and reputedly offers identical facilities to its members as its outlets in Europe and Africa. To date the TDC, either on its own or in a joint venture, has developed four motels with 440 rooms and improved facilities at existing establishments and has also set up duty-free shops. Such direct participation is viewed by the T D C as a catalyst to stimulate private investment in areas of potential touristic attractiveness. The Investment Incentive Act of 1968 enables it to discriminate in favour of such areas, since the types and extent of incentives offered to hoteliers depend on the location of the approved hotels. Thus, for instance, hoteliers in the East Coast states of Trengganu, Pahang and Kelantan can obtain an abatement of income tax on 25% of chargeable income for a period of 12 years; by contrast, in 'popular' areas such as Kuala Lumpur and Penang, income tax abatement is limited to a maximum of 15%.
Value of planning
11. The Malaysian Government introduced special provisions relating to the hotel industry in the Investment Incentive Act, 1968, which included the provision of pioneer status, locational incentives and abatement of mcome-tax for the establishment of new hotels, and expansion and modernization of existing hotels.
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Given the dynamic nature of tourism as a relative latecomer to tourist development, Malaysia is in some respects fortunate. That its growing tourist industry is still in its formative stage helps facilitate planned development; it also enables policymakers to employ it as a tool for diversifying the country's economic base - - sectorally and regionally. For example, in the past tourism had devoted and centred almost wholly around the gateway cities of the country, tourist growth being largely attributed to Malaysia's strategic geographic location. Situated between the two major Southeast Asian tourist destinations, Bangkok and Singapore, the country became a convenient stopover for transient tourists. The three principal
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Tourism planning zn a presently developtng country
gateways or entry points for international and regional visitors became Kuala Lumpur, Penang and Johore Bahru, the latter almost wholly for 'surface' transportation. The future growth of international tourism to Malaysia coupled with the activation of'planning' by the TDC enables the Corporation to 'promote' new tourist destinations in economically disadvantaged areas. That tourism is in a relatively underdeveloped stage of formation means that Malaysia can benefit from the experience of other, more developed countries. Tourism may, whether positively or negatively, affect the social structure, mode of life and environmental quality at the tourist destination.~2 The TDC can seek to prevent the onset of a decline in the current environmental quality and attractiveness of its tourist assets through the regulation of user density, the prevention of crowding and as a result of dispersal policies. In planning new tourist facilities including the provision of transportation and accommodation, it can adjust to the changes in the needs and preferences of "modern-day' visitors more flexibly than 'old' tourist areas. To facilitate policy planning for the development of Malaysia's tourist industry the TDC has defined six geographical regions in the Peninsular as 'touristic areas' (see Figure 1). These are the Kuala Lumpur-Malacca tourist region, Penang-Langkawi, the Perak region, Johore region, Kuantan region and the Kota Bharu-Kuala Trengganu region. Development priorities have been established,
KOTA BHARU TRENGGANU TOURIST REGION PENANG LANGKAWI TOURIST REGION xELA~T=N
,
- TAM~ PERAK TOURIST REGION
•
',
I
p,- .o,
KUALA LUMPUR MALACCA TOURIST REGION
K.AUNTAN TOURIST REGIO~N
"-.
~
o. ~,
~
s t
•
JOHORE TOURIST RIEG~
M,l~
%.
\
l
| , ,, ~ a ~ °
4"d~
12 For a concise analysis of the sigmficance of tourism, see, Burkart and Medlik, op cit, reference 1, pages 57-68.
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Figure 1.
0
IOOm,
200~,
30Ore,
Tour~stlc r e g i o n s - Peninsular Malaysia.
103
Tourism planning in a presently developing countr3'
resort and hotel area land-use and development controls implemented, and historical and cultural preservation methods have been drawn-up Important priorities are: parks and public amenity development, historic building preservation and urban renewal for the Kuala Lumpur-Malacca region; further development of the transportation infrastructure for Penang-Langkawi; improvement of air services and airport facilities for Perak; provision of additional touristic accommodation for the Johore-Kuantan and Kota Bharu and Kuala Trengganu regions. Thus for the 'newer' touristic regions transportation and accommodation are two of the crucial inputs while, if the older 'traditional' touristic regions are not to start to decline, their natural and cultural attractions must not be debased. Water-borne pollution, for instance, is one of the greatest dangers facing the beach areas of Penang; the West Coast of Peninsular Malaysia is also vulnerable to effluent discharges and other forms of marine pollution from maritime traffic in the busy Straits of Malacca.
Tourism growth Tourism growth in Malaysia has been substantial through the 1970s, as shown in Table 1 which shows the number of tourist arrivals. Visitor arrivals in the country increased from less than 726 000 in 1972 to more than 1.25 million in 1977, and by 1980 amounted to 1 529 915. This sizeable increase was due in part to promotional efforts undertaken by the T D C and the rise in the standard of living in other countries. While the most rapid increase took place in the early 1970s - - mainly before the full impact of the 'oil crisis' - - tourism still grew at 8% over the year 1979-80. This is a relatively 'respectable' rate compared with the rate of growth of international tourist traffic. The slower growth was largely attributable to higher travel costs which unsurprisingly influenced substantially the choice of holiday locations by most tourists. A plausible case could be made for arguing that the increase in tourist arrivals in Malaysia was in part supply led, ie demand was stimulated as a result of the substantially increased availability of requisite tourist facilities. The number of hotels increased from 766 with 21 746 rooms in 1976 to 835 with 27 559 rooms in 1980; out of these more than 1 0 0 0 0 rooms were in first-class hotels by international standards. The number of tour agencies increased from Table 1.
Source: Tourist Development Corporation. Note: The term "visitor" closely follows the definition as adopted by the United Nations Conference on International Travel and Tourism in 1963.
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Growth of tourism in Malaysia, 1972-80.
Year
Total visitor annuals
Visitors from Europe
Visitors from ASEAN
Visitors from regions other than Europe and ASEAN
Annual growth rate (%)
1972 1973 1974 1975 1976 1977 1978 1979 1980
725833 869 559 1 080720 1 183014 1 224815 1 228 995 1 399058 1 416378 1 529915
50845 63 509 63509 62477 65692 72 655 82399 87 382 106332
312910 353 810 416753 647 143 703 123 706 767 767 199 798088 844368
362 128 453 344 600458 473394 456000 509 463 549460 530908 579215
19.8 24.3 9.4 3.5 5.2 8.5 1.2 8.0
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553 in 1976 to 773 in 1980, and the number of licensed tour coaches, limousine taxes and rental cars showed a 50% increase over the same period.
Characteristics of demand The first characteristic of tourist demand in Malaysia is that more than 50% of tourists came from other A S E A N countries, viz Singapore, Indonesia, Thailand and the Philippines; geographic proximity and intra-regional trading ties are important influences. Visitors from Europe, although representing only a small part of the total, have nevertheless doubled over the period, while the increase of tourists from regions other than A S E A N and Europe has been more sluggish. Visitors from Australia, Hong Kong, the USA and Japan form the bulk of this category. Subang (Kuala Lumpur) is the main point of entry for air travellers followed by Bayan Lepas (Penang) while the southern town of Johore Bahru is the major entry point for both road and rail travellers. A 1980 survey of some 665 000 tourists to Malaysia by air through the two principal airports of Subang (Kuala Lumpur) and Bayan Lepas (Penang) provided detailed information on other salient characteristics. 25% of the tourists visited Malaysia on a package tour, while the average length of stay of all tourists was five nights in 1980. Pleasure/vacation and business were the overwhelmingly dominant reasons for visiting the country. The median age of visitors was 36 years and each tourist spent an average of US$225 during his stay; this was more than 16% higher than the corresponding figure for 1979. Accommodation accounted for 34.7% of this expenditure; food and beverages 22.9%, shopping 20.4% and local transport 11.4%. The dispersal pattern of visitors to the country was extensively studied. Tourists showed a clear preference for staying in Kuala Lumpur, Penang and Genting Highlands in that order; the first is the capital and main administrative and financial centre of Malaysia, Penang is the principal resort area, and the last the hill resort in closest proximity to Kuala Lumpur.
Economic effects of tourism growth Some projections of estimated foreign exchange earnings from tourism for the period 1975-1980 are shown in Table 2. Gross receipts from tourists and excursionists were estimated to have increased from nearly M$486 million in 1976 to M$995 million by 1980; net foreign exchange earnings were estimated as having more Table 2.
1975 1976 1977 1978 1979 1980
Projected foreign exchange earnings from tourism, Malaysia 1975-80 (Malaysian $). Gross tourist receiptsa
Excursionist receipts
Gross receipts
Leakage
Net foreign exchange
Less capital and Foreign operating exchange expenses excess
450.2 550.9 633.3 737.6 842.1 949.9
35.4 37.1 39.0 41.0 43.0 45.2
485.6 588.0 672 3 778 6 885.1 995.1
72.8 88.2 100.8 116.8 132.8 149.3
412.8 499.8 571.5 661.8 752.3 845 8
27 4 33.4 31.7 35.9 40.0 42.5
385.4 466.4 539.8 625.9 712.3 803.3
Source Tourist Development Corporanon, Tounsm Development Programme, Vol IV (Kuala Lumpur) aEstimates of gross tourism receipts were based on an average dally expenditure of M$57 (or US$24).
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Tourism planning in a presently developing counto'
than doubled, from nearly MS413 million to almost MS846 million over the same period. After deductions of the foreign exchange components of tourism, capital expenditure and overseas expenditure for advertising and promotion, the 'foreign exchange excess' was also computed. Unfortunately, there are no other known studies of the import content of the income from tourism in Malaysia, but if cross-country comparisons are made, the volume of leakage indicated in Table 2 seems to be very low. In Malta various studies have suggested that the import content varies between 35% and 50%, z3 figures of 50% for leakages have been quoted for the Virgin Islands and Seychelles, 45% for Hawaii, 43% for the Bahamas, 30% for Hong Kong and 22% for Kenya. ~ Disaggregation of the estimated gross tourism receipts by tourist regions indicate the dominance of two regions: in 1980, Kuala Lumpur/Malacca and Penang/Langkawi were expected to account for 85% of gross tourist receipts. Johor was estimated to obtain 5%, Juantan 4% and the Perak region only 3%. Data regarding the employment effects of tourism in Malaysia are noticeably scarce. The country's Fourth Malaysia Plan document acknowledges that tourism generates employment in related support services such as tours, travel, transportation, recreational facilities and accommodation. Thus by implication it is asserted that the tourist industry is labour-intensive and is in congruence with Malaysia's factor endowment. Apart from noting that employment in the hotel industry expanded from 5 200 in 1970 to 14 800 in 1980 and that tourism employs 31 800 people, no attempt was made to measure the indirect and induced employment effects. ~5 It is observed, however, that employment in the tourist industry is expected to increase at the rate of 5 % per annum between 1980 and 1985, when it is envisaged as amounting to 40 000. Although it is difficult to verify empirically such data, the trend is not surprising; employment in the tourist industry rising in step with tourism growth is a phenomenon that has been experienced by many other countries.
Planning for the future
13 J. Boissevam and P.S. Inglelt, "'Tourism in Malta", in Emmanuel de Kadt, op cit, reference 9, pages 265284. 14. D. Wilson, "The early effects of tourism in the Seychelles", m Emmanuel de Kadt, ibid, pages 205236. 15. Federanon of Malaysia, Fourth Malaysia Plan 1981-1985 (Kuala Lumpur, National Printing Department, 1981)
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Domestic programmes to stimulate the development of the tourist industry and to make Malaysia a more significant tourist destination are to be further expanded in the 1980s. Tourist arrivals are projected to total 3 131 800 by 1985, arrivals into Peninsular Malaysia, Sabah and Sarawak are expected to be 2 823 000, 126 000 and 162 000 respectively. In order to meet the projected increase in tourist arrivals, Malaysian planners estimate that another 30 485 rooms will be required. The T D C has explicitly indicated that during the first half of the 1980s development of tourist facilities in locations other than Kuala Lumpur and Penang will be accorded priority. Major extensions to the T D C projects in the East Coast state of Trengganu are planned, and for the Fourth Malaysia Plan period, 1981-85, a sum of MS40 million will be provided to the T D C to undertake such projects. Additionally, it is foreseen that regional authorities and some State Economic Development Corporations will also expand their tourist development programmes. Regional cooperation in tourism is slowly gaining momentum in
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Tourism planning in a presently developing country
A S E A N . ~6At present A S E A N cooperation in tourism is handled by the regional organization, the A S E A N Tour and Travel Association ( A S E A N T T A ) , which has a secretariat based in Jakarta, Indonesia. The Association's principal objectives are to increase the volume of international tourists to the A S E A N region, to assist in the development of regional tourist industries and to encourage the development of such support industries as travel agencies, hotels and international transportation. Deliberations have been held on the possibilities of improving the intra-ASEAN rail network, shipping, air transport and communication services as well as more direct efforts to promote intra-ASEAN tourist development. Such developments although modest in scope and intention to date provide opportunities to Malaysia to increase its level of regional visitors and the T D C has indicated that its regional marketing efforts are to be intensified. As regards international tourism the T D C intends to concentrate its international marketing activities in Japan, Hong Kong, Australasia, West Germany and the UK, although it is expected that it will explore potentially attractive new market areas such as West Asia, France and North America. Whether these efforts will make Malaysia a major tourist destination is a moot question. It is generally a slow process to change tastes and, in any event, some other conditions of demand, especially per capita incomes, may be more important determinants of the rest of the world's demand for Malaysia's tourist attractions. These conditions cannot be regarded as policy variables as far as Malaysia's planners are concerned. Policymakers can, however, through judicious planning, increase the quality and quantity of touristic "attractions' and ensure that trans16. From its reception in 1967 the portation and accommodation faulties are improved. There are clear membership of ASEAN has remained signs that this is one lesson that Malaysian tourist planners have at five, vtz Indonesia, Malaysia, the quickly learnt. Philippines, Singapore and Thadand.
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