FAKULTI SAINS SUKAN DAN REKREASI

KAMPUS SEREMBAN
UNIVERSITI TEKNOLOGI MARA CAWANGAN NEGERI SEMBILAN

SMG603 (TOURISM PLANNING AND DEVELOPMENT)

INDIVIDUAL ASSIGNMENT

PREPARED BY:
NUR SAIDATUL ALIAH BINTI ZULKAFLI (2019572681)

PREPARED FOR:

MADAM NUR HANI SYAZWANI BINTI BAKRI

SUBBIMISION DATE:

7TH MAY 2021

(Be sure to keep a copy of all work submitted)

ONLINE Assignment Coversheet

Name (s):
1. NUR SAIDATUL ALIAH BINTI ZULKAFLI
2.
3.
4.

ID Number(s):
1. 2019572681
2.
3.
4.

Lecturer:
MADAM NUR HANI SYAZWANI
BINTI BAKRI

Course and Course Code: Submission Date:

TOURISM PLANNING AND 7th MAY 2021
MANAGEMENT (SMG603)

Assignment No./ Title:

TOURISM ECONOMIC
ANALYSIS

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 TABLE OF CONTENTS
1.0 INTRODUCTION..................................................................................................................... 3
2.0 ISSUES/ PROBLEMS/ IMPACTS OF THE CASE .............................................................. 4
3.0 SWOT ANALYSIS ................................................................................................................... 5
3.1 STRENGTHS ........................................................................................................................ 6
3.1.1 Accommodation............................................................................................................. 6
3.1.2 New Business Model...................................................................................................... 6
3.2 WEAKNESESS ..................................................................................................................... 6
3.2.1 Room Rates .................................................................................................................... 6
3.2.2 Impose MCOs on targeted areas or clusters............................................................... 6
3.2.3 Improving performance by “lean and mean management approach” .................... 7
3.3 OPPORTUNITIES ............................................................................................................... 7
3.3.1 Pent-up Demand............................................................................................................ 7
3.3.2 Entertainment Tax Act 1953. ....................................................................................... 7
3.4 THREATS ............................................................................................................................. 8
3.4.1 Job losses ........................................................................................................................ 8
3.4.2 Unpaid leaves or pay cut. ............................................................................................. 8
4.0 ECONOMIC STRATEGIC RECOMMENDATION PLAN ................................................ 9
4.2 Accommodation........................................................................................................................... 9
4.3 Managing the crisis. .................................................................................................................. 10
4.4 Preparing for Tomorrow. ......................................................................................................... 10
4.5 Domestic tourism ...................................................................................................................... 11
4.6 Supply factors ............................................................................................................................ 11
4.7 Competition ............................................................................................................................... 12
4.8 Strengthen coordination, partnerships, and solidarity for socio-economic recovery. ........ 12
5.0 CONCLUSION ....................................................................................................................... 12
REFERENCES .................................................................................................................................... 14
1.0 INTRODUCTION
Living has been disrupted and global economic processes have been disrupted after the
World Health Organization (WHO) officially proclaimed the Novel Coronavirus (Covid-19)
epidemic a global pandemic on March 11, 2020. The Covid-19 epidemic began in Wuhan,
Hubei Province, China, on April 20, 2020, and has spread to 184 countries, affecting 2,406,781
people worldwide, with 165,273 deaths and 628,914 recovered cases. The figures are also
increasing in ASEAN, with more than 29 660 confirmed cases and 1,144 deaths recorded as of
April 20. (ASEAN Policy Brief, 2020)

The Covid-19 virus is said to have spread from a farmer's market in Wuhan to the rest
of the city, the world, and even beyond China's borders. The lethal virus has cast a pall across
the globe, leaving infectious nations and regions without adequate pandemic plans and
pressuring global and local humanitarian institutions and local officials to alter approaches,
responding to the virus's dissemination at varying rates without national or international
cooperation. (ASEAN, 2020)

The epidemic has an effect on businesses and sectors that participate in large-scale
development and manufacturing with manpower. Since large gatherings will transmit the
infection, many people will be required to stay at home and operate from home. However, not
all industry will be able to do that, as not all workers will have access to a reliable Wi-Fi
network at home and other necessary components. Although the health sector may be able to
survive and even thrive once the Covid-19 epidemic is resolved, several other sectors, including
the tourism industry, may not.

Covid-19 will have a huge effect on tourism around the world. According to the United
Nations World Tourism Organization, foreign tourist arrivals could drop by 20-30 percent in
2020, from 1.46 billion in 2019 to just 1.02-1.17 billion this year (2020). It could result in
losses of $300 billion to $450 billion in foreign tourism exports (UNWTO, 2020). It could
result in losses of $300 billion to $450 billion in foreign tourism exports (UNWTO, 2020).
Malaysia announced a net loss of RM 3.37 million in the tourism sector due to the Covid-19
outbreak from January to February. (Dzulkifly, 2020)

3
2.0 ISSUES/ PROBLEMS/ IMPACTS OF THE CASE
The Covid-19 pandemic brought the entire tourist industry to a halt as the country, along
with its counterparts around the world, closed borders to stop the outbreak, resulting in
major job and revenue losses. When finances dry up, several hotels closed, and several
travel companies and businesses collapsed.
Tourist arrivals in Malaysia fell by 78.6% to 4.29 million in the first nine months of the
year, compared to 20.1 million in the previous comparable timeframe. The majority of
visitors (4.23 million) arrived before the borders were closed on March 18. As a result,
tourism revenues, which are the country's third-largest source of income, fell 80.9 percent
to RM12.6 billion from RM66.1 billion in the previous comparable year.
i. Accommodation:
After shopping, accommodation is the second-largest contribution from
international visitors. This year, the hotel industry is forecast to lose up to
RM6.54 billion in sales. 109 hotels, resorts, motels, home stays, and chalets
have closed permanently since March. And, as of May, the sector had lost
12,000 jobs, or 6% of its workers.
ii. Amusement and theme park industry:
The theme park and amusement park industries have not been spared. The
Malaysian Association of Amusement Theme Parks and Family Attractions
(Maatfa) estimates RM2.8 billion in sales losses between March and
December. A total of 2,543 jobs are projected to be lost, with 420 employees
laid off in December alone. Since March, eighteen Maatfa participants have
permanently suspended activities, with ten of them doing so in the fourth
quarter.
iii. Hoteliers:
Even though travel bans were introduced in other countries as early as end-
January, hoteliers did not anticipate a full halt in tourism. Apart from sales
losses, Yap Lip Seng, CEO of the Malaysian Association of Hotels, predicts
that between 10% and 20% of the industry's employees will be laid off by the
end of 2020, with Kedah, Perak, Negeri Sembilan, Melaka, Sabah, Kuala
Lumpur, and Selangor being the hardest hit. The majority of the remaining
workers have been sent on unpaid leave or have their wages reduced.

4
 iv. Tour and Travel Agents (Matta):
The MCO and its various versions, such as the CMCO, Recovery MCO,
Enhanced MCO, and Targeted MCO, hold the borders closed and cause travel
disruption. Datuk Tan Kok Liang, President of the Malaysia Association of
Tour and Travel Agents (Matta), reported that the tour and travel agent
industry has been experiencing severe cash flow issues with near-zero sales
since March. Others whose revenue has been impacted include seasoned
independent professionals such as tour agents and tour guides, in addition to
the 95 tourist companies and tourism events operators who have gone
bankrupt.

3.0 SWOT ANALYSIS

STRENGTH WEAKNESS
• After shopping, accommodation is the • the way room rates are managed.
second-largest contribution from • impose MCOs on targeted areas or
international visitors. clusters.
• new business models and for tour and • Need to improve performance by using
travel agents to diversify their offerings. “lean and mean management approach”.

OPPORTUNITIES THREATS
• pent-up demand for the year end. • Job losses.
• abolish the obsolete Entertainment Tax • employees are on unpaid leave or have
Act 1953. had their pay cut.

Table 1 SWOT Analysis

5
3.1 STRENGTHS
3.1.1 Accommodation
Tourism is reliant on the consistency and quantity of available lodging options.
It is a critical component of the tourism industry's growth. The provision of
accommodation should be considered a key aspect of tourism planning in order to
envision a sustainable tourism development. In other words, since accommodation is a
matrix of tourism, it is essential to choose suitable lodging in order to extend and grow
the tourism industry.
Comfortable hotels and other types of lodging facilities are important in
attracting visitors to tourism destinations. If a person who is far away from home may
enjoy the same services and comforts as at home, he or she is likely to become attached
to the place. In the other hand, if a guest stays in a poor hotel or lodging facility, he or
she is more likely to never return to that location. Furthermore, the location would have
a bad image among his or her peers who may have visited it.

3.1.2 New Business Model

By the changing of consumer tastes, new modes of transportation, new types of

sustainable tourism, and new business models can emerge, requiring revision of the
tourism eco-system as we know it. Local public and private actors, through the growth
of locally diversified and customised touristic solutions, are one of the actors with the
ability to grow in significance.

3.2 WEAKNESESS
3.2.1 Room Rates
The industry needs to improve the way room prices are handled, and the ability
to do so could arise next year as foreign visitors begin to arrive. Malaysia is said to have
the lowest room prices, but it appears that the industry will be able to improve it next
year, achieving an ADR that is better than pre-Covid-19 peaks, aimed at foreign
travellers. The average daily rate (ADR) is a statistic that shows the average revenue
per occupied room for a given period of time. It's calculated by multiplying gross sales
by the number of rooms sold.

3.2.2 Impose MCOs on targeted areas or clusters.

In mid-October, all states except Perlis, Pahang, and Kelantan were hit with a
second round of Conditional MCO (CMCO), prompting operators to close their doors

6
once more. This year, several players were closed for a total of 160 days. After the
second round of state-wide CMCO, the segment reached rock bottom, with ten of its
participants closing indefinitely in the fourth quarter. The industry has been able to
reopen at 50% capacity since December 11, but that does not mean it is out of the
woods. MCOs can be imposed by the government on certain areas or districts, allowing
tourist numbers to rise and the industry to rebound.

3.2.3 Improving performance by “lean and mean management

approach”
Implementing innovative marketing and distribution tactics to maximise
revenue, manage costs, work productively, and multitask is the industry's toughest
obstacle. With the aim of enhancing efficiency, the industry is supposed to adopt a "lean
and mean management strategy." Lean management is a way of running a business that
emphasises continual growth, a long-term commitment to work that consistently aims
to increase reliability and productivity by making gradual, progressive improvements
to procedures.

3.3 OPPORTUNITIES
3.3.1 Pent-up Demand
Pent-up demand for the year end is showing signs of recovery in the sector,
which could stretch into the first quarter of 2021. The comments are relating to domestic
tourist assistance. The hotel industry expects a slow first quarter, a moderate second
quarter, and a transitional third quarter next year before foreign arrivals resume in the
fourth quarter.

3.3.2 Entertainment Tax Act 1953.

It will have been more involved at the start of the pandemic, according to
Maatfa. It could have given the industry a stronger voice in the government's policy on
overall tourism policy and incentives. Around the same time, the group may have been
able to properly participate in discussions with the government to have the outdated
Entertainment Tax Act of 1953 repealed. Following the pandemic, the elimination of
the levy has been critical to the industry's sustainability.

7
3.4 THREATS
3.4.1 Job losses
109 hotels, resorts, motels, home stays, and chalets have closed permanently
since March. And, as of May, the sector had lost 12,000 jobs, or 6% of its workers. The
theme park and amusement park industries have not been spared. The Malaysian
Association of Amusement Theme Parks and Family Attractions (Maatfa) estimates
RM2.8 billion in sales losses between March and December. A total of 2,543 jobs are
projected to be lost, with 420 employees laid off in December alone. Since March,
eighteen Maatfa participants have permanently suspended activities, with ten of them
doing so in the fourth quarter.

3.4.2 Unpaid leaves or pay cut.

Even though travel bans were introduced in other countries as early as end-
January, hoteliers did not anticipate a full halt in tourism. Apart from sales losses, Yap
Lip Seng, CEO of the Malaysian Association of Hotels, predicts that between 10% and
20% of the industry's employees will be laid off by the end of 2020, with Kedah, Perak,
Negeri Sembilan, Melaka, Sabah, Kuala Lumpur, and Selangor being the hardest hit.
The majority of the remaining workers have been sent on unpaid leave or have their
wages reduced.

8
4.0 ECONOMIC STRATEGIC RECOMMENDATION PLAN
4.2 Accommodation
The way people enjoy their vacations has changed dramatically in recent years.
People enjoy spending their vacations and free time with friends and family while also
visiting numerous tourism destinations around the world. As a result, the tourism
industry has experienced exponential growth around the world, with remarkable growth
in lodging facilities.
Accommodation, as a major component of tourism, has had a significant impact
on the growth of tourism in some destinations. In the tourist industry, lodging is a must.
As a result, it stands to reason that the construction of lodging should be a key
component of the overall planning process for a tourist destination. As a centre of the
tourism industry, most countries have recognised its relevance in terms of tourism
growth, and as a result, the governments of destination countries have been
coordinating their tourism activities with the accommodation industries by stressing
attractive intensive and concessions to visitor accommodation providers. This form of
government strategy has resulted in the development of different forms of lodging. One
of the fundamental foundations of tourism growth is a sufficient availability of lodging
facilities. (Poudel, 2013)
Since tourism accommodation plays such an important role in a country's
economy, countries that recognise its positive impact on the economy place greater
emphasis on its growth. The quality and quantity of lodging available has a significant
impact on the overall popularity of tourist destinations. In order to achieve tourism
growth, the development of the accommodation sector should be a key component of
the destination planning process. Failure to prepare and manage the accommodation
sector would result in many tourism destinations failing to achieve their planned
tourism growth. The positive aspects of tourism growth are socioeconomic and cultural
development in destination countries, but it also has some negative consequences for
the destination, such as environmental degradation and incoming cultural presence in
host countries. (Poudel, 2013)
In recent years, the lodging industry's pattern and approach have shifted. These
developments are due to emerging innovation in the tourism industry, such as new
progress in tourism and transportation, as well as technical advances. Consumers today
are much more self-reliant than they were only a few years before. Since online booking

9
 is so convenient, travellers no longer go to travel agents or tour operators to book their
accommodations for their journey. If you log in to the system, you can pay with a credit
card and print your flight ticket and receipt from the comfort of your own home.
(Poudel, 2013)
New types of accommodation, such as family-friendly holiday villas, private
villas, apartment houses, and camping and caravanning, have proven to be very popular
in the new accommodation industry, and are displacing hotel-dominated
accommodation supply to some degree. These current developments in the lodging
industry indicate shifts in demand as new, especially young, groups enter the travel
business. (Poudel, 2013)

4.3 Managing the crisis.

Workplace welfare, self-employed assistance, liquidity safety, capability
development, and a study of taxation, transport, and tourism charges and regulations
are among the key recommendations. The plans are being made in anticipation of a
global economic recession. Tourism would be severely harmed because it is labour-
intensive, putting millions of jobs at risk, especially for women, youth, and
disadvantaged communities. (Mohamad Khairi Alwi, 2020)

4.4 Preparing for Tomorrow.

The recommendations emphasise the sector's commitment to the Sustainable
Development Agenda and build sustainability through learning from the current crisis
lessons, with the goal of increasing tourism's unique ability to lead local and national
expansion. Governments and private-sector actors are urged to build circular economy
readiness strategies, according to the recommendations.
The UNWTO also presents the tagline "Stay home today, fly tomorrow," which
is being promoted on social media with the hashtag #TravelTomorrow. Temporary
tourism and travel assistance from national governments, as well as money to provide
quick and easy access to short- and medium-term loans to resolve liquidity shortages,
fiscal relief for SMEs, and defence of employees from unemployment and lack of jobs,
should all be seen as possible recovery measures. Finally, the coalition proposes that
immigration rules be simplified, travel taxes be reduced or eliminated, and
economically impacted destinations be promoted and marketed to attract tourists and
ensure a quick recovery in the wake of the crisis. (Mohamad Khairi Alwi, 2020)

10
4.5 Domestic tourism
Many countries are counting on domestic tourism to boost their economies. In
this study, we discovered that diverting tourism from international to domestic
destinations helped to close the gap in about half of the economies. As a result, this is
an appealing choice, especially where large domestic tourism markets already exist.
Domestic tourism, on the other hand, is not a feasible choice for filling the void in
economies that depend heavily on tourism, such as Fiji, the Cook Islands, Palau, and
the Maldives. (Matthias Helble, 2020)
Moreover, supporting domestic tourism is a difficult task. Many people would
have less disposable income for recreational activities, and social distancing and other
containment initiatives can make it difficult or unappealing to do so. Similarly, where
tourist destinations are oriented toward international markets, reorienting to domestic
tastes can take time. In certain ways, there is a strong distinction in spending between
domestic and international visitors. (Matthias Helble, 2020)
It makes sense for policymakers to assist tourism industries in rebuilding and
reforming in heavily tourism-dependent economies. To mitigate the effects of COVID-
19, several governments have implemented economic stimulus packages, which will
help the tourism industry's recovery after the acute crisis has ended. The development
of health and sanitary protocols, certifications, awareness strategies, and special offers
to fuel demand are all examples of tourism-specific support. Governments will also
need to invest in and encourage investments that help ensure the tourism industry's
long-term viability, as well as take advantage of the potential to "build back better."
(Matthias Helble, 2020)

4.6 Supply factors

New skills, materials, programmes, and organisational structures arose as a
result of the availability of new technology. This is particularly relevant in the last two
decades, when technical advancement played a critical role. Technology has given rise
to a modern kind of tourism industry known as e-tourism, which is perhaps the most
powerful force in e-commerce.
New skills in tourism management (e-marketing) were required as a result of
this growth, such as a range of coaching and interactive skills in the fields of wellness
and adventure tourism, for example. When databases made it easier to manage user
accounts and behaviour, new information systems for visitors arose. Furthermore, in

11
 the field of cooperative tourism marketing, new ways of network organisation have
arisen. They have also been made possible by the use of emerging technology.
(Weiermair, 2004)

4.7 Competition
Many aspects of the tourism industry, especially transportation, airlines, hotel
chains, tour operators, and car rental companies, are highly concentrated and operate as
global players. With market maturity, increased technical progress in the IT sector, and
a slowdown in demand, competitiveness has transformed into ruinous competition in
many parts of the industry. Globalisation and deregulation have increased innovation
even further. These business dynamics, as those in other areas of economic
development, favour process advancement (networking, reservation, and yield control
processes, etc.) over product innovation, which is quickly imitated by competitors.
(Weiermair, 2004)

4.8 Strengthen coordination, partnerships, and solidarity for socio-economic recovery.

Socioeconomic recovery programmes and travel guidelines should be designed
and adopted to improve market recovery and traveller morale through good national
and international collaboration and teamwork, a whole-of-government policy,
public/private sector collaborations, and community interaction.
To encourage healthy travel, restore trust, and accelerate recovery as tourism
resumes, full collaboration with health authorities, as well as international cooperation
on customer protection policies and travel restrictions, is critical.
To ensure a smooth resumption of tourism, countries should thoroughly organise the
removal or enforcing of travel restrictions. To advance safety and protection, effective
reopening and recovery strategies and policies would necessitate more complex and
flexible systems that make for greater cooperation among all stakeholders – including
various ministries and public authorities. (United Nations, 2020)

5.0 CONCLUSION
The Covid-19 pandemic has had a catastrophic effect on people's lives all around the
world. As the global community's growing interdependence has been influenced, the
pandemic has quickly produced a chain reaction all over the world. The pandemic is
having an effect on the global economy, and Malaysia's tourism industry is one of the
hardest hits. Governments all over the world have now adopted containment plans that

12
would take years to bear fruit. Most countries, including Malaysia, depend on funding
from the government's stimulus package and other opportunities to mitigate economic
risks.
Obviously, none of this is going to be easy. For the time being, it would be expensive.
The government's fiscal shortfall targets will have to be exceeded. It is necessary to make
difficult choices in the future on how to increase tax collections, but these expenses do
not have to be met by the middle or lower classes. If the Covid-19 epidemic takes nine
months to reach the 'recovery' point, the aviation and airline industries will be the hardest
hit, and it will take much longer for hotels and tourist destinations to completely recover
and return their operations to pre-disease levels.

13
REFERENCES
ASEAN. (April, 2020). ASEAN Policy Brief. Retrieved from asean.org:
https://asean.org/storage/2020/04/ASEAN-Policy-Brief-April-2020_FINAL.pdf

Dzulkifly, D. (13 March, 2020). Muhyiddin: Tourism industry hit hardest by Covid-19, faces RM3.37b
loss. Retrieved from malaymail.com:
https://www.malaymail.com/news/malaysia/2020/03/13/muhyiddin-tourism-industry-hit-
hard-by-covid-19-to-lose-rm3.37b-while-gdp-s/1846323

Matthias Helble, A. F. (2020). Reviving Tourism amid the COVID-19 Pandemic. ADB BRIEFS , 13.

Mohamad Khairi Alwi, A. K. (2020). COVID 19 AND TOURISM INDUSTRY IN MALAYSIA:

RECOMMENDATION FOR FUTURE RECOVERY. PalArch's Journal of Archaeology of
Egypt/Egyptology, 19.

Poudel, S. (May, 2013). THE INFLUENCE OF THE ACCOMMODATION SECTOR ON TOURISM

DEVELOPMENT AND ITS SUSTAINABILITY. Retrieved from theseus.fi:
https://www.theseus.fi/bitstream/handle/10024/61014/Thesis_Final_SP.pdf?sequence=1

United Nations. (2020). COVID-19 AND TRANSFORMING TOURISM. United Nations, 27.

UNWTO. (24 March, 2020). Impact assessment of the COVID-19 outbreak on international tourism.
Retrieved from webuntwo: https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-
public/2020-03/24-03Coronavirus.pdf

Weiermair, K. (2004). PRODUCT IMPROVEMENT OR INNOVATION: WHAT IS THE KEY TO SUCCESS IN

TOURISM? . Retrieved from oecd.org: https://www.oecd.org/cfe/tourism/34267947.pdf

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ATTACHMENT
ASSIGNMENT RUBRICS

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6
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7
).

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"you knows." and has ed.
difficulty
understanding .
the words in
the message.
Cre Very original Some Little or no Repetitive Not
ativi presentation of originality variation; with little creativ
ty. material; apparent; material or no e at all.
captures the good variety presented with variety;
1
audience’s and blending little insufficien
.
Krea attention. of materials / originality or t use of
5
tiviti media. interpretation. materials /
. . media.

9
Prep All presenters Slight Significant Unbalance All
ared knew the domination controlling by d membe
ness/ information, of one some members presentati rs are
Part participated presenter. with one on or not
icipa equally, and Members minimally tension prepar
tion/ helped each helped each contributing. resulting ed, just
Gro other as other. Very Primarily from over- readin
up needed. well prepared but helping. g the
Dyn Extremely prepared. with some Multiple slides /
amic prepared and dependence on group screen.
s rehearsed. just reading off members
1 slides/screen. not
. participati
5 ng.
Evident
lack of
preparatio
n/rehearsa
l.
Dependen
ce on
slides/scre
en.

Tota 5
l

10