1. To understand the positive and negative impacts of economic towards tourism in Malaysia.
2. Analyze how economic affect the tourism industry.
3. Understanding the tourist behaviour in spending during the travelling period.
4. To evaluate the economic impacts of changes in tourism demand.
5. To understand the development of economic on tourism in Malaysia.
6. Analyze how important that the economic for tourism industry.
7. To evaluate the economic impacts of changes in tourism supply.
1.4 Research Questions
1. What is economic impact?
2. What are the positive and negative impacts of economic to tourism?
3. What are the effects of the economic to tourism?
4. How much earnings of foreign exchange towards tourism?
5. Who get the benefits of the tourism?
1.5 Theoretical and Conceptual Framework
1.5.1 Theoretical Framework
In this research will discuss about the economic impacts on tourism in Malaysia. Due to tourism is second largest sources income of foreign exchange, therefore economic can bring a lot of impacts to tourism industry. In addition, the tourism also will bring many impact to the economic, this both of the sectors must be related. Economic in Malaysia is relying on the natural resources and many investors come from other country, tourism can attract more investors to Malaysia. Besides that, tourism can increase the foreign exchange earnings, taxes revenue and create many job opportunities; it can help to decrease Malaysia's unemployment rate. . Economic impacts have divided into positive and negative impacts to the tourism industry and local community. Positive impacts help the development of some rural area and local community, increasing the job opportunity and can change the living standard. Tourism industry involved to two types of sectors, which is direct tourism industry like hotel and restaurant the result can directly affect of the sectors and indirect tourism industry like manufacturing and supplier. Both of the sectors are important for tourism and economic, it can affect to the all parties in economic. Under Ninth Malaysia Plan, tourism industry has allocated around RM 1 billion to upgrade and create more facilities and infrastructure and for promoting funds, it really can helps the development of tourism industry.
1.5.2 Conceptual Framework
Economic in Malaysia
Tourism in Malaysia
Economic Impact of Tourism
1.6 Significance of the Study
We need to know how important that economic for tourism industry. Tourism is one of the major industries in the world. In year 2010, the tourism economy contributes US$ 5,834.5 billion to global GDP, is around 9.3% of the total of global GDP. This is expected to growth to US $ 11,270 billion, is around 9.7% for the total of global GDP by 2020. The directly and indirectly industry supports over 235 million jobs in 2010 in global and the total is forecast to increase to just over 303 million in 2020. The global tourism investment is estimated at US$1,255.5 billion in 2010 and should reach US$2,722.3 billion by 2020. (WTTC, 2010)
This all figure it means that the tourism is very important for economic, it helps the global economic gain strength in financial crisis and makes it more stable. International tourism can become a major foreign exchange earner for many low income countries like Cambodia, Indonesia, India and Africa. Many countries are trying to develop tourism sector and increase the number of incoming visitors because international tourism brings a lot of foreign exchange to the host country.
In Malaysia, tourism was important to economic, it creates around 1,331,000 jobs in 2010, and it helps Malaysia's job opportunities increasing and the tourism investment brings around RM 19.9 billion revenue in 2010, it should reach RM 49.8 billion in 2020. The economic impacts of tourism usually focus on the related tourism sectors that change in sales, income and employment.
Besides that, this study is make us to know and understand that economic can influence many tourism industry, it affect the income of foreign exchange, gross domestic profit (GDP), and the job opportunities within the country. There are some primary tourism sectors like lodging, dining restaurant, transportations, and retail shops are affected directly by economic.
1.7 Scope and Limitation
This study is about the impacts of economic that bring to tourism. This research focus more on how economic affects the tourism and will discuss the positive and negative impacts. This study will cover the spending behaviour of international tourist in Malaysia, tourism demand in Malaysia, and many aspects of the economic impacts of tourism in Malaysia and will related with many tourism sectors. In order to complete this study, all the information will be found in internet, newspapers, magazine and journals. Although, the information about the economy of tourism in Malaysia is very limited, the World Travel and Tourism Council (WTTC) which is the forum of the business leaders in the travel and tourism industry through by this internet website can get a lot of information about the economic impact of tourism in Malaysia.