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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.