Economic Analysis of Tourism Sector in Kuala Lumpur, Malaysia

This essay explores the tourism sector in Kuala Lumpur, Malaysia, highlighting its significance to the national economy. Kuala Lumpur, established in 1880, has evolved into a major tourist destination, offering cultural, medicinal, and shopping tourism experiences. Accommodation options range from budget-friendly hostels to luxurious five-star hotels, catering to diverse traveler preferences. The tourism sector is a substantial contributor to Malaysia's GDP, with projections estimating increased tourist arrivals and revenue by 2020. The essay also analyzes tourist arrival trends, noting the impact of events like the disappearance of Malaysian Airline Flight 370 and the significant contribution of ASEAN countries to tourism. Key attractions and destinations, including historical buildings, museums, and natural sites like the Lake Gardens, are essential to Kuala Lumpur's appeal. The city's political stability and diverse attractions continue to boost its tourism industry.

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Introduction
Kuala Lumpur was established in 1880 to replace the state capital, Selangor so that
residents and businesses could be safe from calamities such as floods and diseases following the
occurrence of such events in a mining center. Kuala Lumpur was curved out from the Selangor
State, however, in 1974, Kuala Lumpur got separated completely and given to Malaysia.
Types of tourism in Kuala Lumpur
Cultural tourism
Kuala Lumpur has a rich culture based on the national heritage (DBKL, 2018). This kind of
tourism fascinates travelers who are interested in this kind of tourism.
Medicinal tourism
Kuala Lumpur is also famous for its traditional and modern cures using herbs. The country also
takes pride in having some of the best doctors and medical facilities in the world encouraging
people from other parts of the world to visit Malaysia for medication.
Shopping tourism
Kuala Lumpur has many places designated for shopping purposes with items such as artifacts,
Malaysian clothing, and fashion all portraying Malaysia diversity and culture.
Types of accommodation in Kuala Lumpur
Hotels
Malaysia has experienced a boom in the hotel industry over the past few decades, with
more and more global companies staking claims, in particular, Kuala Lumpur (Smarter travel,

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2016). The Accor hotel dominates the industry and has brands in multiple price ranges with
Pullman and Ibis included. The InterContinental represents the IHG group while Sheraton and
Marriott also have a presence in Malaysia. A one-star hotel provides a room without air
conditioning, and people share a bathroom. Two stars have air conditioning and Wi-Fi, but still,
chances of sharing a bathroom are high. Three stars, on the other hand, have a TV, a phone, and
other special amenities. The four-star hotel, on the other hand, is spacious enough with more
amenities and services. Five-star hotels, on the other hand, are exceptional as they have 24-hour
room service, unique facilities such as spa and perks that include limo services.
Historical lodging
The range here is overwhelming as one can choose from the old colonial hotels to
boutique mansions in places such as George Town and Melaka (Smarter travel, 2016). There are
also shophouses which are ancient buildings that have storefronts on the ground floor and family
quarters upstairs.
Vacation rentals and serviced apartments
People that are more independent or like spending a lot of time in one place are favored
by a vacation rental. TripAdvisor and VRBO have listings that range from the basic rooms to
condos and beach villas (Smarter travel, 2016). iBilik a Malaysian listing agent has a database of
apartments and rentals on short-term.
Guesthouses and homestays
The terms guesthouse and homestay are used interchangeably in Malaysia, so it is
important that a tourist be specific in what is needed (Smarter travel, 2016). The Malaysian

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culture entails living in longhouses that can accommodate the entire village. Such structures are
found in rural areas of Borneo specifically near rivers.
Hostels and dormitories
Malaysia has accommodations that are affordable to the common man and such facilities
range from dorms to hostels that are accredited by the Hosteling International a Malaysian agent
(Smarter travel, 2016). Some hostels are located in some of the Malaysian national parks.
The economic impact of tourism
The tourism sector in Malaysia has been ranked as the 6th largest contributor to the
nation’s GDP and contributes a sum of RM 150 billion which is approximately about14.9% of
the Gross Domestic Product as per 2014 (The Star, 2017).As per the data that was released by
Tourism Malaysia, the government had targeted close to 31.8 million tourists who were expected
to generate revenue amounting to RM 118 billion (The Star, 2017). Tourism is considered as one
of the key economic areas that will help the government achieve the vision of transitioning,
Malaysia to become a high-income country by 2020.By 2020, Malaysia has projected to attract
more than 36 million tourists and the expected revenues from tourism have been projected at
RM168 billion (The Star, 2017).
The MasterCard Global Cities Index published some of the most visited cities in the
world, and Kuala Lumpur was ranked as the eighth in the list (Malaysia, 2017). This was great
news for Malaysia as the country has worked to promote tourism numbers over the years. Kuala
Lumpur received approximately 12.1 million international tourists in 2017.
Tourist arrivals in Malaysia

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There were signs of recovery of the tourism industry in Malaysia in 2016 as the projected
figures indicated that more tourist arrivals in Malaysia following a slowdown in 2014 and
2015.In 2016, the number of arrivals recorded was 25.7 million compared to 2015 indicating a
4% increase in growth of arrivals. Malaysia has been badly affected by publicity by the
disappearance of Malaysian Airline Flight 370, and it was reported that there were 239 people on
board. Singapore and Indonesia were the top two sources of tourists visiting Malaysia in 2016
recording 13 million and 3million respectively (Misachi, 2017).
country Visitor
Singapore 13272960
Indonesia 3049964
China 2124942
Thailand 1780800
Brunei 1391016
India 638578
South Korea 444,439
Phillipines 417,446
Figure 1. Table showing total number of visitors in Malaysia in 2016, Misachi.
The ASEAN region has been attributed as the most significant contributor of the
Malaysian tourism recording 76% of the total arrivals. Thailand recorded the highest growth
from 1.3 million to 1.7 million arrivals in 2016 and represented an uptrend of 32.5% increase
(Misachi, 2017). Other nations such as Brunei followed with 22.7 growth, Indonesia and
Singapore recording 9.4% and 2.6% growth respectively (Misachi, 2017). On the other hand, the
number of tourists that came from countries such as France, Vietnam, and India decreased. The
boom experience in the tourism sector in Malaysia can be linked to the cheap air flights and
availability of many flights as a result of the expansion of low-cost carriers in Malaysia.

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Thailand
Brunei
Indonesia
Singapore
0 5 10 15 20 25 30 35
% growth
Figure 2.the % growth of visitors by country of origin, Msachi
Tourist attractions and destinations
Malaysia is preferred as a tourist destination since the country has hundreds of tourist
attractions and destinations all distributed across the country. The important attractions involve
historical structural buildings such as Stadhuys and the Malacca Christ Church (Tourist
Destination, 2017). Other famous destinations include museums, beaches, numerous national
parks, towers, and resorts. Malaysia is also famous for being a shopping destination with many
services to offer to the different kind of shoppers. Medical tourism is also popular in Malaysia as
per the Malaysian healthcare travel agency; it was reported that there were more than 640,000
foreign patients in Malaysia.
Other tourist attractions that Kuala Lumpur should showcase
Kuala Lumpur is a historical and cultural city thriving as the capital city of Malaysia.
Kuala Lumpur is listed as the top tourist destinations in Malaysia (The Tourist, 2018). Kuala
Lumpur has several attractions that it should showcase for instance, the city has some of the

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highest buildings in the world such as the Petronas Twin Towers. Kuala Lumpur also has scenic
and unique natural sites such as The Lake Gardens that is worth viewing.
Conclusion
Kuala Lumpur offers many tourist attractions and destinations worth visiting. The
accommodation facilities are numerous and depend on an individual’s pocket. The political
stability of the country has boosted the tourism industry.
References

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DBKL, 2018. Tourism. [Online]
Available at: http://www.dbkl.gov.my/pskl2020/english/tourism/index.htm
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Malaysia, 2017. Kuala Lumpur No.8 Most Visited City In The World 2017. [Online]
Available at: http://blog.malaysia-asia.my/2017/09/kuala-lumpur-no8-most-visited-city-in.html
[Accessed 30 March 2018].
Misachi, J., 2017. Top Source Countries Of Tourists to Malaysia. [Online]
Available at: https://www.worldatlas.com/articles/top-source-countries-of-tourists-to-
malaysia.html
[Accessed 30 March 2018].
Smarter travel, 2016. Where to Stay in Malaysia: Lodging Tips. [Online]
Available at: https://www.smartertravel.com/2017/06/19/stay-malaysia-lodging-tips/
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The Star, 2017. Tourism sector to remain third largest contributor to economy. [Online]
Available at: https://www.thestar.com.my/business/business-news/2017/09/26/tourism-sector-to-
remain-third-largest-contributor-to-economy/
[Accessed 30 March 2018].
The Tourist, 2018. 25 Best Things to Do in Kuala Lumpur. [Online]
Available at: https://www.thecrazytourist.com/top-25-things-to-do-in-kuala-lumpur/
[Accessed 30 March 2018].
Tourist Destination, 2017. Kuala Lumpur, Malaysia. [Online]
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[Accessed 30 March 2018].