Page 179 - Contributed Paper Session (CPS) - Volume 8

CPS2231 Syafawati A. R. et al.
industry remain robust where in 2017 the Tourism Direct Gross Domestic
Product (TDGDP) contributed a share of 6.1 per cent to Malaysia’s GDP. The
value of TDGDP steadily increased by 7.8 per cent to registered RM82.6 billion
in 2017 as compared to RM76.6 billion in 2016.
The Malaysia’s tourism industry remain resilient largely attributed to the
active participation of both the public and private sector. In 2017, a total of
25.95 million tourist arrival recorded with a total revenue of RM82.1 billion.
The number of tourist arrival is expected to increase with concerted efforts
from the government towards realising its target to achieve 36 million tourist
arrival and RM168 billion in receipts by year 2020. The diversification in
tourism industry is a catalyst to other economic areas such as retail trade, food
and beverage services and accommodation. The retail trade industry
contributed 44.8 per cent to the total GVATI in 2017 while food and beverage
and accommodation both contributed 16.3 per cent and 12.8 per cent
respectively to GVATI in the same year. The tourism industry impact on the
economic growth is felt mostly by foreign currency exchange, labour and
employment as well as wages. In 2017, the tourism industry has employed 3.4
million persons and contributed 23.2 per cent to the Malaysia’s total
employment.
Melaka’s tourism industry has flourished tremendously over the years since
being recognized as UNESCO World Heritage Site in 2008. The state
government is actively promoting and developing the tourism industry
towards enhancing its contribution to the services sector in particular, and the
state economy in general. In 2017, a total of 16.8 million tourist arrival
recorded in Melaka, an increase of 3.15 per cent as compared to 16.3 million
tourist arrival in 2016. Melaka continues to show positive growth in the tourism
industry, where the total number of foreign tourist expanded by 3.15 per cent
to registered 5.06 million foreign tourist in 2016 as compared to 4.47 million
foreign tourist in the previous year. In conjunction with Visit Melaka Year 2019,
the state government is focusing more on improving services in the state’s
tourism industry as well as developing new tourism products in an effort to
achieve 20 million tourist in 2019.
As tourism activities involve both the consumption and purchase of goods
and services, the impact of those activities would be reflected in the various
sectors of the national economy. The main purpose of this study is to develop
an understanding of the impact of tourism industry in consumer price index
in Melaka. However due to practical constraint, this paper cannot provide
comprehensive review of the tourism industry for Malaysia.

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