Tourism is a significant industry that plays a crucial role in the economy of Malaysia. The country is well-known for its diverse culture, natural sceneries, and welcoming people.
These attractions have made Malaysia one of the most popular tourist destinations in Southeast Asia. In this article, we’ll discuss how tourism affects the economy in Malaysia.
Contribution to GDP
The tourism industry is a vital contributor to the country’s Gross Domestic Product (GDP). According to the Malaysian Ministry of Tourism, Arts and Culture, the tourism sector contributed approximately RM240 billion (USD 58 billion) to the country’s GDP in 2019. This contribution represented approximately 15% of Malaysia’s total GDP for that year.
Employment Opportunities
The tourism industry is also a significant employer in Malaysia. It provides job opportunities for people across different skill levels and sectors such as transportation, hospitality, food and beverage, entertainment, and retail sectors. According to statistics from the Ministry of Tourism, Arts and Culture, the industry employed over 3 million people in 2019.
Infrastructure Development
The government of Malaysia has invested heavily in infrastructure development to support the growth of its tourism industry. The construction of airports, roads, hotels, theme parks and other tourist facilities has boosted tourism activities across different parts of the country.
Foreign Exchange Earnings
Tourism has also contributed significantly to foreign exchange earnings for Malaysia. In 2019, international tourist arrivals reached approximately 28 million visitors who spent around RM86 billion (USD 21 billion) during their stay in Malaysia. This income has helped to stabilize the country’s currency and increased foreign reserves.
Promotion of Local Culture
Tourism provides an excellent platform for promoting local culture through various forms such as music festivals, cultural shows and museums showcasing traditional arts and crafts. This promotion helps to preserve Malaysian culture while also creating a sense of pride for the local community.
Conclusion
The tourism industry is undoubtedly a vital contributor to the economy of Malaysia. It provides employment opportunities, boosts infrastructure development, and earns foreign exchange for the country. As such, the government should continue to invest in this sector while also ensuring sustainable tourism practices that preserve Malaysia’s natural and cultural heritage for future generations.