There are huge opportunities for investment in the tourism sector of Malaysia. The Malaysian government is totally committed to the development of this sector. Over the last 12 years, extensive promotional campaigns have been engineered both locally and overseas to attract tourists from around the world. Despite the economic slowdown, the tourism industry remains strong. Today, Malaysia is one of the most popular tourist destinations in Asia. In 2005 alone, the industry accounted for a total of RM31 billion in foreign exchange earnings from over 16.4 million tourist arrivals.

Malaysia’s continuous efforts to improve the quality of tourism services and infrastructure play an important role in attracting foreign investors to this sector. The government’s many initiatives, which are undertaken by its official tourism promotional board Tourism Malaysia, have also resulted in tremendous growth in the industry’s supply and demand chain – thus, creating potential investment opportunities in many areas, from retail and services to hospitality and travel.

A Truly Malaysian Experience
The most distinct and charming aspect of Malaysian tourism is the country’s cultural and natural heritage. While cultural and historical tourist attractions can be found in destinations such as Malacca and Penang, eco- and agro-tourism activities are more popular in the east coast of Peninsular Malaysia, and Sabah and Sarawak in East Malaysia.

Besides sightseeing, other activities that are attracting tourists to Malaysia include shopping, leisure and business-related events. Global sporting events like the Sepang F1 Grand Prix, Le Tour de Langkawi and the Raja Muda International Regatta are also drawing in a significant number of foreign tourists into the country.

Domestic tourism is also another important part of Malaysia’s tourism industry. In 2005, Malaysians alone made 16 million tourism trips in the country. In that same year, the number of domestic hotel guests was recorded at an astounding 29 million. The growing interest in domestic tourism can be attributed to rising household incomes, the improved quality of life among Malaysians, as well as the corporate retreats, family-friendly resorts and recreational camps burgeoning at various tourist destinations around the country. Investment opportunities abound in these areas for both local and foreign companies.

Flying High 
The state-of-the-art Kuala Lumpur International Airport (KLIA) is a major gateway into South East Asia. The airport currently handles flights for over 40 international carriers. These include British Airways, KLM, Japan Airlines, Emirates, Lufthansa, Northwest and many others.

Despite rising global fuel prices, air fares remain relatively stable in Malaysia. The local air routes are serviced mainly by national carrier Malaysia Airlines and Asia’s largest budget airlines Air Asia. With the introduction of this low-cost carrier, there are now more travel options to various local destinations, especially East Malaysia. The healthy competition between these airlines has facilitated in the growth of tourist arrivals by providing competitive air fares to all.

World-Class Accommodations
Some of the world’s leading hotel brands are already in Malaysia – including Hilton, Marriott, Shangri-La, Sheraton and Westin. However, with the tourism boom still gaining momentum in Asia, there is great potential for investors to come in. The occupancy rate of hotels is consistently high for popular tourist attractions such as Kuala Lumpur and Genting Highlands, especially with a steady flow of tourists from neighbouring countries such as Singapore and Thailand.

A Shopping Haven For Tourists
With an endless variety of goods and competitive prices, Malaysia is a glorious haven for shoppers, local and international alike. From massive shopping malls and hypermarkets to ethnic stores, exclusive boutiques and duty free shops, Malaysia has all the attributes to make it the preferred shopping destination in the region.

For the international shopper, the biggest highlight of the year will probably be the Malaysian Mega Sale Carnival, an event organised by the Ministry of Tourism, Tourism Malaysia and the Shopping Malaysia Secretariat. Held twice a year, the Mega Sale Carnival is an exciting one-month showcase of promotions, bargains and discounts of up to 70% on a wide variety of products, brands and services at shopping complexes and malls across the country. During this period, tourists can take advantage of concessions on room rates, F&B, entertainment outlets as well as transportation & travel packages.