WITH economic headwinds expected to loom over Malaysia next year amidst potential trade wars and retaliatory sanctions, it’s most judicious of the government to allocate RM1.1 billion for the Ministry of Tourism, Arts and Culture to promote tourism and other projects related to Visit Malaysia Year 2020 (VMY2020).
Except for oil and gas bubbling in the sea, we can’t expect much from the other sectors to be major money-spinners. Tourism is perhaps our best bet as the returns are almost instantaneous. No long lead times or gestation periods to wait for factories to be built, latex to ooze from rubber trees or oil palm bunches to be brought down for refining.
We’ve already a winning start before the clock strikes 12 on Jan 1, 2020 with the “Visit Truly Asia Malaysia” tagline and our well-established infrastructure: good communication links, excellent accommodation, enchanting scenic spots, yummy secret recipes of local delicacies and, most important of all, the ever-beaming and hard-working people in the industry itself.
Tourism is one of the major contributors to economic growth. In fact, the gross value added of tourism industries grew by 10 per cent to RM220.6 billion or 15.2 per cent of Malaysia’s GDP, and was amply supported by the retail trade as well as the food and beverage (F&B) segments in 2018.
It has the highest returns in terms of investment where an additional RM1 billion invested will increase output by RM1.9 billion compared with only RM1.8 billion for ICT and RM1.6 billion for the wholesale and retail trade.
So, it pays to nurture the goose that lays the golden eggs. It’s an industry that employs 3.5 million people or 23.5 per cent of the country’s total jobs. On a global scale, travel and tourism has been regarded as one of the world’s largest economic sectors as it creates jobs, drives exports and generates prosperity across the world, says Gloria Guevara Manzo, President & CEO of the World Travel & Tourism Council.
This sector accounted for 10.4 per cent of global GDP and 319 million jobs, or 10 per cent of total employment in 2018. It also supports opportunities in developing countries by spreading development and regional economic benefits and building national pride.
Some of the government’s 2020 Budget initiatives merit mentioning like the accelerated capital allowance for expenditure incurred on buying new locally-assembled excursion buses to be fully claimed within two years and excise duty exemption of 50 per cent for locally-assembled vehicles for tour operators. This should give rise to more comfortable rides for tourists.
Concert organisers are also excited about the government’s move to lighten the load of event organisers as there will be some form of tax exemption on arts, cultural and recreational events.
Remember the kind of artistes we used to have for our F1 concerts at Sepang and what big-name acts the South of the Border night grand prix concerts had? It’s how those acts can also shoot Kuala Lumpur and other cities into stardom as venues for high-quality performances and generate revenue from overseas fans as well.
A sum of RM5 million for the Cultural Economy Development Agency to support Malaysian visual art galleries and exhibition organisers to hold art exhibitions is another welcome move.
So is the RM10 million for Think City to preserve culture and urban heritage, which the entity had done admirably with the Kwai Chai Hong enclave in Kuala Lumpur’s Jalan Petaling, to cite one of many examples.
The RM25 million for the Malaysian Healthcare Tourism Council is a shot in the arm to strengthen Malaysia’s position as a preferred destination for health tourism in oncology, cardiology and fertility treatment. In 2018 alone, it generated RM1.5 billion in revenue receipts from 1.2 million healthcare travellers.
Penang Hill, one of the country’s iconic attractions since the last century, has been given a RM100 million boost for the construction of a new cable car system. More tourists have discovered breathtaking attractions up there, including one known as The Habitat, which showcases the pristine 130 million year-old rainforests and forest reserves.
It’s one thing to plan, but it’s another when it comes to implementation. It’s actually a win-win for everyone if businesses succeed, not just the entrepreneurs.
Take F&B, for example, a key component for tourism as travellers need to fill their bellies and wet their lips as they soak in the sights. A common lament by restaurateurs is the long time taken to approve licences.
Opportunities are lost and ultimately the government also loses out in tax revenue. Be it restaurants, liquor licences, or permits for foreign workers eager to work for a decent living — the approval process usually takes on a snail’s pace. It shows we’re generally oblivious to the progress and improvements made by our neighbours to secure the precious tourist dollar.
One enterprising but exasperated restaurateur in the bustling F&B precinct of Sri Hartamas in Kuala Lumpur said: “Just tell us what to do, we’re only too happy to comply with the regulations. But don’t leave us in a lurch and keep us guessing about our applications.”
Perhaps it’s high time that the Malaysian Anti-Corruption Commission pays a visit to all the licensing authorities. Like what actress Audrey Hepburn used to say: “Nothing is impossible, the word itself says ‘I’m possible’!”
The writer is a former chief
executive officer and editor-in-chief of Bernama