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Editorial
Global Tourism sTaTisTics
International tourist arrivals reached 1,138 million in 2014,
a 4.7% increase over the previous year, according to latest
statistics published by the United Nations World Tourism
Organization (UNWTO). This is the fifth consecutive year
of above average growth since the 2008/2009 economic
crisis. Over the past few years, tourism has proven to be a
surprisingly strong and resilient economic activity and a
fundamental contributor to economic recovery by generating
billions of dollars in exports and creating millions of jobs.
This has been true for destinations all around the world,
but particularly for Europe, as the region struggles to
consolidate its way out of one of the worst economic
periods in its history.
By region, the Americas (+7%) and Asia and the Pacific (+5%)
registered the strongest growth, while Europe (+4%), the
Middle East (+4%) and Africa (+2%) grew at a slightly more
modest pace. By sub-region, North America (+8%) saw
the best results, followed by North-East Asia, South Asia,
Southern and Mediterranean Europe, Northern Europe and
the Caribbean, all increasing by 7%.
Zooming in on Asia and the Pacif ic region (+5%),
international tourist arrivals increased by 13 million to 263
million in 2014. The best performance was recorded in
North-East Asia and South Asia (both +7%). Arrivals in
Oceania grew by 6% while growth moderated in South-East
Asia (+2%) as compared to previous years.
Receipts from international visi tors spending on
accommodation, food and drink, entertainment, shopping
and other goods and services reached an estimated $1,245
billion in 2014, an increase of 3.7% in real terms (taking into
account exchange rate fluctuations and inflation). Aside from
international tourism receipts, tourism also generates export
earnings through international passenger transport services.
The latter amounted to an estimated $221 billion in 2014,
bringing total exports from international tourism up to $1.5
trillion, or $4 billion per day on average.
Europe, which accounts for 41% of worldwide international
tourism receipts, saw an increase in tourism earnings in
absolute terms of $17 billion to $509 billion last year. Asia
and the Pacific (30% share) saw an increase of $16 billion,
reaching $377 billion while in the Americas (22% share),
receipts increased by $10 billion to a total of $274 billion.
In the Middle East (4% share), tourism receipts grew by an
estimated $4 billion to $49 billion and in Africa (3% share)
by $1 billion to $36 billion.
In terms of outbound tourism, the world’s top spender China
continued its exceptional pace of growth, registering a 28%
increase in expenditure last year, reaching a total of $165
billion. While two other major emerging economies among
the first 10 – the Russian Federation (5th largest) and Brazil
(10th largest) lost strength, various advanced economy
source markets picked up in growth. The world’s second
largest spender, the United States, posted a 7% increase
in tourism expenditure. The United Kingdom spent 4%
more (4th in ranking) and France recorded an increase in
expenditure by 11%, retaining its 6th position. Italy grew by
6%, putting in on the 8th spot and Germany (3rd), Canada
(7th) and Australia (9th) take the remaining places of the
top 10.
For 2015, UNWTO forecasts international tourist arrivals
to grow between 3% and 4%, further contributing to the
global economic recovery. By region, growth is expected
to be stronger in Asia and the Pacific (+4% to +5%) and the
Americas (+4% to +5%), followed by Europe (+3% to +4%).
Meanwhile, arrivals are expected to increase by +3% to +5%
in Africa and by +2% to +5% in the Middle East.
UNWTO expects demand to continue growing this year as
the global economic situation improves even though there
are still plenty of challenges ahead. On the positive side,
oil prices have declined to a level not seen since 2009
and this significantly lowers transport costs and boosts
purchasing power. However, it could also negatively impact
some of the oil exporting countries which have emerged as
strong tourism source markets.
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MALAYSIA CONVENTION & EXHIBITION DIRECTORY 2015/2016
In 2014, tourism was the sixth largest contributor to the
Malaysian economy. Tourist arrivals to Malaysia for 2014
continued to increase, registering a hike of 6.7%. The country
received a total of 27.4 million tourists last year, compared
to 25.7 million tourist arrivals in 2013. Correspondingly,
tourist receipts rose by 10%, contributing RM72 billion to the
country’s revenue against RM65.4 billion recorded in 2013.
The top 10 tourist generating markets to Malaysia in 2014
were Singapore, Indonesia, China, Thailand, Brunei, India,
the Philippines, Australia, Japan and the United Kingdom
(refer to Table 1).
Tourism in malaysia
and Myanmar (+5.1%). Improved connectivity, increased
flight frequencies and participation in various tourism
events in ASEAN markets, such as Vietnam International
Travel 2014 and Thailand Travel Mart Plus 2014, contributed
to the growth in tourist arrivals from ASEAN countries.
The results highlight the resilience of the tourism industry
despite the aviation tragedies that afflicted the nation in the
first half of 2014. The achievements can be directly attributed
to the Ministry of Tourism and Culture (MoTAC) and Tourism
Malaysia’s aggressive promotional efforts, investments and
commitment in line with the celebration of Visit Malaysia
Year 2014 (VMY 2014). The year has seen a series of
year-long special events and activities, along with strong
collaborations with numerous industry stakeholders. MoTAC
also took steps to adapt to the needs of this dynamic
industry as well as intensified promotions to other markets
to counter the shortfall from the Chinese market.
Tourism Malaysia is confident of achieving the target of
attracting 29.4 million tourist arrivals and RM89 billion in
tourist receipts this year in view of the Malaysia Year of
Festivals 2015 (MyFest 2015), despite the volatile econom-
ic condition. It is hoped that MyFest 2015, a successor of
the VMY 2014, could place the country as a top-of-the-mind
tourist destination by encouraging tourists to stay longer in
order to enjoy the festival offerings nationwide.
MyFest 2015, with its theme “Endless Celebrations”, focuses
on empowering and celebrating the country’s racial diversity
with various cultures, heritage, festivals and arts, as a unique
tourism package, in line with the “Malaysia Truly Asia” brand.
The Endless Celebrations campaign will also complement the
Malaysia Tourism Transformation Plan, in which the country
aims to record 36 million tourist arrivals with RM168 billion in
tourist receipts by 2020.
The “Land of Hornbill” Sarawak received 4.86 million visitors
last year (from 3.27 million back in 2010). Out of the 4.86
million tourists who visited Sarawak, 3 million were foreign
tourists while domestic tourists from Peninsular Malaysia
and Sabah contributed 1.86 million people. Compared to the
The ASEAN region continued to be the largest contributor,
accounting for 74.3% share (20.4 million) of total tourist
arrivals. Vietnam registered the highest growth at 21.2%,
fol lowed by Cambodia (+14.2%), Thailand (+12.4%),
Indonesia (+11%), the Philippines (+11%), Singapore (+5.7%)
Source: Tourism Malaysia, 2015
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Editorial
whole of 2013, total visitor arrivals into Sarawak increased
by 11%. Meanwhile, total tourism receipts reached RM10.69
billion last year (equivalent to 17% of the state’s GDP)
against RM9.59 billion in 2013, registering a growth of 11.5%.
In the first quarter of 2015, statistics from the Ministry of
Tourism Sarawak’s website showed that the percentage of
tourist arrivals into Sarawak has grown 8.1% year-on-year
to 1.2 million as compared with 1.11 million in Q1 2014. It
was observed that tourists from Singapore, Canada, United
Kingdom, United States, Japan, Europe, the Philippines and
Latin America recorded higher month-on-month arrivals in
the first three months of this year.
Additionally, tourists from Brunei, India, China, Thailand,
South Korea and Indonesia also recorded steady increase.
With the encouraging figures and trend, the state is on track
to achieve five million tourist arrivals this year. The Ministry
of Tourism Sarawak is also looking forward to bringing in
more tourists from the Middle East and China to boost retail
businesses, particularly shopping as they are known to be
big spenders of luxury goods.
In conjunction with MyFest 2015, the Ministry of Tourism
Sarawak also lined up several major events to boost tourist
arrivals which include the Borneo Cultural Festival, Bario
Food Festival, Sarawak International Dragon Boat Regatta,
Borneo International Kite Festival and the yearly Rainforest
World Music Festival. Other than that, there are also some
local events such as the Padawan Raft Safari 2015, Kuching
Marathon 2015, Serian Cultural Fiesta and Traditional Dance
Competition and Pesta Sematan which are being planned to
draw more crowd.
Sabah’s biggest income earner, its tourism, has taken a
severe blow due to a spike in kidnappings of foreigners and
businessmen along its porous east coast by armed militants.
Total tourist arrivals to the state fell 4.5% from 3.38 million in
2013 to 3.23 million in 2014, falling short of the targeted 3.5
million tourist arrivals last year. The kidnappings resulted in
40.6% and 15.4% declines in Taiwanese and Chinese tourist
arrivals (respectively) and many flights from China and
Taiwan being cancelled.
In a bid to balance the decline in the number of tourist
arrivals from Taiwan and China, Tourism Malaysia beefed
up promotions in medium-haul markets and increased its
campaign in other countries including Thailand, Singapore,
Indonesia, Brunei, the Philippines, India, Bangladesh, Kuwait,
Oman, Qatar, Australia and New Zealand.
Measures are also undertaken to strengthen security in the
east coast through the restructuring of the Eastern Sabah
Security Command (Esscom). This involved the setting up of
two major components – security and defence management
as well as enforcement and public action. In an effort to curb
cross-border crimes in the east coast, State Commissioner
Police Datuk Jalaluddin Abdul Rahman declared a 12-hour
curfew order from 6pm to 6am on the waters off six
districts namely Sandakan, Kinabatangan, Lahad Datu,
Kunak, Semporna and Tawau.
Meanwhile, Tourism Malaysia Penang expects a big growth
in tourist arrivals from China into the state this year following
the visa fee waiver introduced by the government. Penang
received 72,957 Chinese tourists via air and sea last year
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MALAYSIA CONVENTION & EXHIBITION DIRECTORY 2015/2016
Malaysia jumped five places from 2013 in world convention
country ranking and two places in Asia Pacific ranking
based on the number of international association meetings
held in 2014 as per the recently released report from the
International Congress and Convention Association (ICCA).
Other than Kuala Lumpur, other Malaysian cities such as
Kuching and Kota Kinabalu also saw improved rankings in
2014, reflecting a growth in Malaysia’s meetings industry
amidst a competitive and challenging market.
from 61,924 tourists in 2013. Since China is one of the main
contributors to Malaysia’s tourist arrivals (after Singapore,
Indonesia and Thailand), it is hoped that the free visa for
Chinese tourists would boost tourist arrivals and strengthen
bilateral ties between Malaysia and China.
It was also recently announced by MoTAC Minister Datuk
Seri Mohamad Nazri that beginning September this year,
Chinese visitors on group tours would be exempted from
visa. Due to security concerns, independent Chinese tourists
still need to obtain visa. Currently, independent Chinese
travellers can access the visa-on-arrival (VoA) service via
five entry points – Bayan Lepas International Airport
(Penang), Senai International Airport (Johor), Kota Kinabalu
International Airport (Sabah), Kuching International Airport
(Sarawak) and the Kuala Lumpur International Airport (KLIA
and KLIA 2). These measures are aimed at realizing the
target of attracting two million Chinese tourist arrivals this
year as well as positioning Malaysia as one of the top 10
destinations for Chinese tourists.
The Malaysia Convention and Exhibition Bureau (MyCEB)
was established to expand the business events segment
(travel relating to meetings, incentives, conventions and
exhibitions) and position Malaysia as a leading destination
in this lucrative and growing sector. From January to
December 2014, the efforts of MyCEB and industry
partners generated a total of 362,280 delegate days,
surpassing the target performance of 230,000 delegate days.
This was achieved by securing several large conventions,
incentive groups and exhibitions which totalled 152 events
secured or supported between 2014 and 2020.
micE indusTry
Source: ICCA, 2015.
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Editorial
Maintaining its reputation to be bold and different, SCB is
taking an unconventional approach by not participating
in international trade shows for 2015. SCB will take this
opportunity to increase its resource allocation, promotional
activities and sales calls to the national market that will
create a domino effect to attract more international business
to Sarawak.
To support its national market development strategy,
SCB introduced “BESarawak”, a platform that functions to
nurture, provide promotion of business, engender business
opportunities and recognize professionalism and excellence
in all aspects of business events. Offering a dynamic mix
of Communication, Educating and Awarding, these three
elements aim to spur the development of the MICE industry
not only in Sarawak, but also Malaysia. It is envisioned
that through “BESarawak”, more leads for international and
national business can be generated from associations and
corporations based in Peninsular Malaysia.
2014 was also a busy and challenging year for Malaysia
Major Events (MME), a division of MyCEB in charge of
facilitating the development of the international events
Some of the events supported by MyCEB during the year
include the 25th International Federation of Surveyors (FIG)
Congress 2014 which was attended by 2,500 delegates
from 99 countries and officiated by Prime Minister Datuk
Seri Najib Tun Abdul Razak; the Perfect China Annual
Conference which was well-attended by 3,500 delegates
from China (even post-MH370); and the Toastmaster World
Convention 2014 (held for the first time outside North
America) which saw an attendance of over 2,700 delegates
from more than 100 countries.
Major bids won in 2014 include the World Federation of
Hemophi l ia (WFH) World Congress for 2020, with an
expected 3,400 delegates; the 9th World Urban Forum 2018
(WUF9) with an expected 10,000 delegates; and Cityscape
Malaysia 2015, which will be the largest international real
estate event held in Malaysia, with a projected foreign
delegate count of 5,000.
Aside from these supported and secured events, MyCEB
also put tremendous effort into industry engagements,
particularly focused on nurturing and developing local
associations, a necessary pre-condit ion to improve
Malaysia’s readiness to attract and host more international
conferences and conventions. These efforts included the
launch of the inaugural Malaysia Business Events Week in
August 2014, an industry forum at which international and
local industry speakers shared insight and expertise with
delegates from different sectors in Malaysia to help stimulate
the development of the local MICE industry.
In 2014, Sarawak Convention Bureau (SCB) once again
surpassed its targeted bid wins with an 86% bid success
rate. With an average of 1.2 bid wins per week, SCB has
secured 60 bid wins for various conferences to be held
between 2015 and 2017, recording an estimated RM31 million
in direct delegate expenditure. Among the major conventions
secured last year include the IEEE International Conference
on Power & Energy (2014), Asia for Animals International
Conference (2015), 6th International Research Symposium
on Service Management (2015) and the 29th World Congress
of the International Association for Suicide Prevention (2017).
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MALAYSIA CONVENTION & EXHIBITION DIRECTORY 2015/2016
industry in Malaysia. Via MME’s efforts, the number of
supported events increased from 32 in 2013 to 47 in 2014.
Malaysian tourism benefitted significantly, with international
attendees increasing by 14.1% from 97,211 in 2013 to
110,899 in 2014.
Key highlights for 2014 include the Ironman challenge,
IFMA Muaythai World Championships 2014, the A.R. Rahman
Infinite Love Malaysia concert and Temptation Reloaded
– Shah Rukh Khan Live in Malaysia 2014. Meanwhile, a
home-grown success story, the Viper Challenge Malaysia
2014 enjoyed a successful second year, and is expected
to scale up further in 2015.
Bringing the Malaysia events industry up to world-class
standards remains a challenging task, with ambitious goals
set for MME in 2015. Efforts will be focused on identifying
high potential landmark events to complement MyFest 2015
and heightened engagement with the private sector to help
bid for more international events. Together with MoTAC,
MME will also sustain efforts to enhance intra-stakeholder
communication amongst the industry players, agencies
and ministries.
In 2014, golf revenue rose 2.6% to RM312 million, led by
the efforts of Tourism Malaysia and the Malaysian Golf
Tourism Association (MGTA). Tourism Malaysia and MGTA’s
efforts also resulted in significant landmark achievements
for Malaysia, which was awarded the “Asia’s Best Golf
Destination Award” at the World Golf Awards held at the
Conrad Algarve Hotel in Portugal end of last year, further
enhancing its reputation as a golfing haven.
The World Golf Awards 2014 is a newly launched,
specialized subset of the prestigious World Tourism Awards,
aimed at celebrating and rewarding excellence in golf
tourism, world-class courses and golf destinations. Located
within the 10 million years old rainforests of Langkawi, the
recently opened The Els Club Teluk Datai, designed by golf
legend Ernie Els, was awarded the Best New Golf Course
in Asia and Best New Golf Course in the World awards.
The accolade can be attributed to the continuous efforts
of MGTA in collaboration with the International Association
of Golf Tour Operators (IAGTO) to put Malaysian golf
courses and golf clubs on the map internationally. MGTA’s
participation at various key golf events such as the Asia
Golf Tourism Convention (AGTC) and International Golf Travel
Mart (IGTM) also contributed to the visibility for Malaysia.
MGTA also aggressively undertook a “Play Malaysia Golf”
campaign, promoting various golf destinations in Malaysia
as well as the diversity of packages offered by Malaysian
golf tour operators. Furthermore, Malaysia hosted the
CIMB Classic and Sime Darby LPGA, which helped boost
international visibility to the wider international golfing
audience. Moving forward, MGTA will continue to collaborate
with Tourism Malaysia to push strategies that leverage
Malaysia’s latest international recognition to take Malaysian
golf tourism to the next level.
Golf Tourism
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Editorial
number of rooms increased 25.1% from 209,527 in 2013
to 262,021 in 2014.
4,039 new 4- and 5-star hotels were completed in 2014
with a good distribution throughout the country in the key
cities of Alor Setar, Ulu Kinta, Kuching, Johor Bahru, Penang,
Pulau Carey, Melaka and Miri. Notable project completions
include the 335-room 5-star DoubleTree by Hilton Hotels in
Johor Baru, the 497-room 5-star Best Western Premier in Ulu
Kinta (Perak) and the 325-room 4-star Boulevard Imperial
Hotel in Kuching.
11,277 4- and 5-star rooms were completed between 2011
– 2013, and the current incremental total is 15,316 4- and
5-star rooms for 2014. Spurred by the government’s efforts
to extend the existing Investment Tax Allowance to the end
of 2016, the growth trajectory remains on track to achieve
the target of 37,000 new 4- and 5-star hotel rooms by 2020.
The global hospitality industry entered 2014 on an upward
growth trajectory; a greater sense of optimism was palpable
across most regions, as accelerating capital markets,
favourable supply and demand balances and strong
investor appetites fuelled higher transaction volumes and
strengthened lodging fundamentals.
For 2015, further gains in the global hospitality sector
are anticipated. Major industry players are seeking to
strategically deploy and optimize their capital investments,
and stronger investor appetites, coupled with the availability
of flexible and creative capital sources, will fuel demand
for hotel acquisitions. The consolidation of asset-light,
third-party management platforms will remain prominent, as
investors continue to seek the most qualified operators to
improve the performance of recently acquired assets.
In 2014, the number of hotels in Malaysia increased by
31.6% from 3,094 in 2013 to 4,072. At the same time, the
HospiTaliTy
Source: Tourism Malaysia, MoTAC, MAH, 2015.
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MALAYSIA CONVENTION & EXHIBITION DIRECTORY 2015/2016
An article published by the Star Newspaper highlights that
every year, almost a quarter of hotel guests in Malaysia
stay in Kuala Lumpur, making it a desirable place to build
a hotel. There is no short of choices for places to stay
in the city ranging from budget hostels all the way to
international brands and upscale hotels including the
Mandarin Oriental Kuala Lumpur, Grand Hyatt Kuala Lumpur,
Hilton Kuala Lumpur, Le Meridien Kuala Lumpur and
JW Marriott Kuala Lumpur, to name a few.
A drive around the city centre will also reveal various
new hotel developments signalling the arrival of more
well-known brands such as the Four Seasons Place,
St Regis Kuala Lumpur, W Kuala Lumpur and even the
first-in-the-world Harrods Hotel. DBKL Planning deputy
director Datuk Mahadi Che Ngah said the trend was an
indication of the city’s attractiveness as a leisure and
business tourism destination. According to Datuk Mahadi,
Kuala Lumpur has not reached saturation stage for
hotels and as such, DBKL has no specific town planning
restr ict ions. General ly , appl icat ions that meet a l l
requirements would be approved. One exception is that
hotels are not allowed on local commercial lots meant for
small businesses catering to the needs of the immediate
community.
DBKL’s target is to achieve 107 million sqm of commercial
space, including hotel space, by 2020. As of end-2014, there
were 41 million sqm, which was a combination of exist-
ing space and development orders issued for commercial
space. Meanwhile, Tourism Malaysia statistics show that the
average occupancy rate for hotels in Kuala Lumpur over the
last few years fall between 63% and 70%.
In Penang, ten new hotels (currently under construction)
are set to open for business by end of the year which will
continue to draw local and international tourists. Among
the chain hotels and stand-alone hotels are the St Giles
Wembley and Cititel Express located near the Komtar
bui lding in George Town, offer ing some 750 rooms
combined. Next is the Jazz Hotel in Tanjung Tokong
with 200-odd rooms and the Rice Miller City Hotel &
Residences in the George Town banking district along
Beach Street offering 46 hotel suites and 99 residential
suites. Another hotel under the Angsana Group is expected
to open in Teluk Bahang followed by the Light Hotel by
IJM Group, OZO Hotel, Olive Hotel, Neo Hotel and Hilton’s
DoubleTree Resort.
Earlier in June this year, Hilton signed a management
agreement with Pinnacle Nexus Sdn Bhd, a member of
Cornerstone Partners, to open DoubleTree Resort by Hilton
Penang at the popular tourist belt of Batu Ferringhi. The
RM230 million project is expected to be completed by end of
this year and open its doors in early 2016. The DoubleTree
Resort by Hilton Penang will be the brand’s third property
in Malaysia, after DoubleTree by Hilton Kuala Lumpur and
DoubleTree by Hilton Johor Baru. The new resort will
feature 318 rooms, three restaurants, a lobby bar, a café,
a ballroom, function rooms and recreational areas. One of
the main attractions of the hotel will be the introduction of
Malaysia’s first teddy bear themed museum and gallery –
Teddyville – located within the building itself.
Also in the pipeline is another 5-star hotel by Starwood Group
along Gurney Drive. As of June 2015, there are 179 hotels
in Penang, offering 15,499 rooms, according to Penang Chief
Minister Lim Guan Eng. The opening of these new hotels
would augur well for the hospitality industry in Penang as
the standards and service for guests will also be enhanced.
Moving forward, tourism will continue to serve as a catalyst
towards the growth of Penang’s economy.