The Tourism Industry in Malaysia

3987 Words Oct 27th, 2008 16 Pages
INTRODUCTION

Malaysia has long been one of the world’s best kept tourism secrets. It is an ideal tourism destination in so many different respects as it offers a wide range of diverse attraction to suit all tastes and most importantly, at relatively affordable prices.

Figure 1: Map of Malaysia

Lying just north of the equator, Malaysia is located at the south of Cambodia and Vietnam and north of Singapore and Indonesia. More than one thousand islands are part of Malaysia with some 38 designated as marine parks. Parts of the primeval rainforest are more than 100 million years old with a dazzling selection of birds and wildlife.

Malaysia has superb golden beaches, lush vegetation, mountains and fabulous shopping allied to some
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By 2016, this should total 1,818,000 jobs, 13.9% of total employment. The Travel and Tourism Industry jobs account for 4.6% of total employment in 2006 and are forecast to increase to total 663,000 jobs for 5.1% of the total by 2016. Tourism can generate jobs directly through hotels, restaurants, nightclubs, taxis and souvenir sales, and indirectly through the supply of Gross Domestic Product (GDP) needed by tourism-related businesses.

Contribution to government revenues
Government revenues from the tourism sector can be categorized as direct and indirect contributions. Direct contributions are generated by taxes on incomes from tourism employment and tourism businesses, and by direct levies on tourist such as departure taxes (UNEP Tourism, 2001). Indirect contributions are those originated from taxes and duties levied on goods and services supplied to tourists (UNEP Tourism, 2001).

According to the World Travel & Tourism Council (2002), in Malaysia, the largest portion of this total is from indirect taxes paid in connection with visitor purchases of goods and services. Next in size is of corporate income taxes paid by Travel and Tourism businesses and suppliers. Personal taxes are paid by Travel and Tourism generated employment, and other taxes include oil and stamp taxes. For instance, when all totaled, the Travel & Tourism Economy was responsible for 10.5% of total taxes paid in 2001. Over the next ten years, Malaysia’s

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