1. Economic Value of Business Tourism in Malaysia
Jeetesh Kumar
PhD (Hospitality and Tourism)
Supervisor: Assoc. Prof. Dr. Kashif Hussian
Co Supervisor: Dr. Suresh Kannan
AIM OF THE STUDY
The aim of current study is to investigate the size and economic value of business events in Malaysia: An Application of Money Generation Model.
OBJECTIVES
To determine the direct effects of business events on job creation.
To determine the direct effects of business events on government tax revenue generation.
To determine the indirect effects of business events on local business sales.
To determine the indirect effects of business events on demand and supply of products and services.
To determine the induced effects of business events on business tourists for returning back for leisure tourism rather than business in future.
BACKGROUND OF THE STUDY
Tourism and becoming very much common as a means to regenerate local economies. According to International Congress and Convention Association (ICCA, 2012), the tourism industry can be divided into Leisure tourism and Business Tourism. Similarly, Tang, Jones & Webb (2007) and Hankinsos (2005), mentioned in their study that the business tourism is consist of all trips related to a traveller’s employment or business interest such as conferences, meetings and exhibitions.
A number of studies have commented on the confusion that surrounds the use of particular terminology in the field of business tourism or meeting industry related to MICE. Therefore, the current study elaborates its business events concepts from three (3) dimensional perspectives as following:-
Conferences: A conference is a meeting activity/event of people who "confer" about a topic of common interest, with organizer and attending delegates.
Incentive groups: A group of people travelling with a reward subset of an incentive, recognition or a loyalty program, which is a business tool used to change behaviour to improve profit, cash flow, employee engagement and customer engagement.
Exhibitions: An exhibition is a professionally organized event that facilitates the meeting of buyers and sellers in a cost-effective manner. A commercial exhibition includes trade fairs, trade shows or expos usually organized for a specific interest or industry can showcase and demonstrate their latest products, services, and examine recent trends and opportunities.
A standard economic impact analysis calculates the sum of direct, indirect and induced effects in the region and these effects can be help full to measure gross output for sales, income and employment (Stynes,1997).
International Business Tourists Arrival to Malaysia 2005 – 2011
As per UNWTO (2013), 145 million business tourists travelled worldwide in Specifically in Asia Pacific region the number of tourists travelled for business purpose in year 2012 was million. In Malaysia the size of business tourists has increased by 133% since 2003 (MyCEB, 2012).
PROBLEM STATEMENT
Malaysia is most popular tourists destination in Asia, and it received 23.6 million
Tourists in Malaysia government’s priority is to increase its focus on high yield
Business travellers.
Business tourism is one of the leading form of tourism with lots of potential, it can be observed in Malaysian context that it is working very well and growing very faster. Government of Malaysia is using Input Output Model and looking out in general. Input-output analysis needs very detailed data concerning the transactions between the numerous sectors of the economy and concerning every sector’s purchases of imports, their payments to factors of production, their level of employment, and their sales to each of the other sectors and to exports, the public sector, and domestic consumption. In Malaysian perspective government thinks that business tourism is less significant industry. Through input output we can’t measure the economic impacts of business events separately and there is high dependency on the primary sectors like Oil palm, Rubber and Wood sectors.
METHODOLOGY
In order to serve the objectives of the study, the researcher will use quantitative research approach based on number of questionnaires designed to understand the business events activities in Malaysia. Two types of questionnaire will be developed, for organizer and participants . with self-administered questionnaires approach and few open ended questions with qualitative nature.
There will be total six (6) surveys (instruments) implemented on conferences, incentives groups and exhibitions. Researcher will conduct the survey at KLCC - Kuala Lumpur and Borneo Convention Centre - Kuching, Malaysia in several business events listed by MYCEB as more than 500 Pax attending/participating conferences, Incentive Groups and Exhibitions. The targeted sample size for this study is n=2000.
RESEARCH DESIGN
MALAYSIA: THE PERFECT MICE DESTINATION
Affordable world class accommodations
Cost effective standards of living
Excellent transport infrastructure & network
Financial and socio-political stability
Diverse culture for an unforgettable local experience
References
Hankinson, G. (2005). Destination Brand Images: A Business Tourism Perspective. Journal of Services Marketing, 19(1),
Haven-Tang, C., Jones, E. & Webb, C. (2007). Critical Success Factors for Business Tourism Destinations: Exploiting Cardiff’s National Capital City Status and Shaping its Business Tourism Offer. Journal of Travel and Tourism Marketing, 22, (3/4),
International Congress and Convention Association, (ICCA). (2010). Country and City Rankings Report. Retrieved September 29, Available at
KL Metropolis, Malaysia Mice Industry. Retrieved November 18, Available at
Malaysia convention & Exhibition Bureau (MyCEB), (2013). The Value of Tourism to Malaysia. Retrieved October 25, Available at
MICE Research Institute, (2011). MICE. Retrieved November 2, Available at
Stynes, D. J. (1997). Economic Impacts of Tourism, A Handbook for Tourism Professionals, Illinois Bureau of Tourism, Illinois Department of Commerce and Community Affairs, Prepared by the Tourism Research Laboratory at the University of Illinois at Urbana-Champaign.
United Nations World Tourism Organization (UNWTO), (2013). Understanding Tourism: Basic Glossary. London: United Nations World Tourism Organization.
Conferences
Exhibitions
Incentive Groups
Organizer
Delegate
Buyer
Seller
Strategic Analysis
(Field Work – Data Collection)
Determine the Objectives
Research Design
Pilot Test
Data Collection
Data Analysis
Data Entry
Assessment/ Identification of Gaps
(Content Analysis)
Size and Economic Impacts of Business Events in Malaysia
Scope of the Study
Assessment
Data and Information Collection
From Secondary Sources
MICE Industry
Economic Impacts of Business Events
Multiplier Effects
Money Generation Model
2005
2006
2007
2008
2009
2010
2011
773,562
820,243
1,013,104
1,123,373
1,253,248
1,278,014
1,285,145
KL Metropolis, 2012
Acknowledgement
This research is associated with the grant of RM 330,000 by the result of collaboration in-between Malaysia Convention & Exhibition Bureau (MyCEB) and Taylor’s University.