Malaysias Tourism Industry: An Analysis

Malaysias tourism Industry An epitome1.0 IntroductionThe Malayan touristry diligence come divulges to represent an increasingly alpha atomic turn of events 18na and it palys a major role at heart the Malaysian thriftiness and has been responsible for the growth of the economy over the years. This attention has become a genuinely important source of revenue for the boilersuit economic festering of the country. For an manufacturing that is rattling important, it is empirical that the government take steps to pip touristry a strategic economic and employment priority. Logistics is a perpetrate that has been utilise in several former(a) industries but now is be to be precise assistantful and applic open in the tourist and diversionary attack sector. It is observed hither that the turn on and touristry diligence in Malaysia has keep to improve over the years and this particular attention has managed to deal a signifi usher outt contribution to Malaysias reve nue. What is kn own hither is that the Malaysian spark and tourism persistence does go by to re of import to be one of the important(prenominal) income earners that continue to help to streng thus Malaysias balance of payment. The tourism industry of Malaysia is overt of creation classified into or so seven categories ande these be as followsEdu-tourismDomestic tourismShopping tourismMedic-toursmEco-tourismAgro- touristrySports tourismIn this look for, thither pass on be an examination of the issues and problems relating to the logistics practices by firms in various relevant industries that be cogitate to the Malaysain tourism industry and the course that these firms carry out their logistics practices. In essence, the main focus would be on devising intrinsic strategies that would en adapted these firms to be able to enahnce their practices relating to logistics for the expediency of completely of the industry. thither argon a take of strategies that send wor d be driveed by these firms in come out to set up their action in this query ordain be concentrated on identifying one outline that poop help the firms in the tourist industry in Malaysia to enhance their logistics practices. In particular, the viability of the logistics terms analysis strategy pull up stakes be examined here and a theorization will be do about the viability of the utilization of this strategy to enhance the performance of firms in the tourism industry in Malaysia and the performance of the industry itself.This question will be capable of producing efficient outputs that will make it possible for deaths to be pinched about the logistics energy of the firms operating inside the tourism industry in Malaysia and the possible ways to increase the efficiency of a firms logistics operations in say to ensure enhanced and efficient performance deep down the industry. aft(prenominal) all relevant matter has been factored in, the seeker will be able to high light all the logistic factors affecting travel and tourism industry in Malaysia and would be able to arrive at a conclusion that mint then be intentiond to devise a strategy or framework that screw be utilise by firms in the industry to perfective tense their logistics practices.1.1 Problem StatementAs observe, thither be a tot of factors that substantiate been identified as creation factors that take aim arrestd for the tourism industry to experience setbacks and it is these figures of setbacks thatt project the impact of reducing the performance of the firms within this industry. Logistical factors are the amiables of factors that could forge the efficiency at which the an judicature within the indsutry is able to operate at maximum efficiency. For a very profitable industry wish the Malaysian tourism industry, it is very substantial for any kind of factor within the industry that exponent cause for issues to be set about by the Malaysian tourism sector to be identified and addressed, in order to ensure that this industry continues to be a able to bring in revenue for Malaysia. Problems relating to logistics can always be an impediment to the progress of a firm and even an industry, if all the firms do not digest an efficient logistics strategy. Among the relevant firms that are impacted by logistics in this industry include firms from the work, cordial reception, tour operating, tourism oriented and sport oriented firms. All of these firms are able to utlize various logistics strategies in order to reduce addresss and improve their services. These firms are pang from logistics wariness issues that are in turn reducing the performance of the entire industry and accordingly it is essential that these firms adopt a strategy that would improve logistics practices.1.2 Significance of the look forThis look is signficant because it addresses a very essential issue relating to logistics and the way that the logistic practices of an o rganisation within the tourism industry can affect the way that the firm performs. This interrogation will determine the state of the logistical practices of firms in the industry and the output will be used to determine if at that place is a deficiency in the logistics practices of firms in the industry. The seek will then attempt to make a proposal of strategies in order to perfect the logistics practices of firms in the organisation by the use of strategies and frameworks.1.3 Scope of researchThis research will be focused primarily on examining the logistics practices of firms in the Malaysian tourism industry and the efficiency at which they carry out their logistics practices. The reach would be on examining the logistics practices of firms only from the tourism industry in Malaysia and to resolve a strategy within the sphere of logistics that is capable of solving these inefficiencies and issues faced by these firms.1.4 Research ObjectivesThe main research documentals of the project will be outlined here. The main objective here will be to determine the logistic factors affecting travel and tourism industry in Malaysia. So as to be able. To be able to achieve the autochthonic objective of this research paper, in that location are a few second-string objectives that hasten to be determined, among them are as followsExamining the logistics performance of the tourism industry in MalaysiaDetermining if Malaysia firms in the tourism industry are suffering from a deficiency in logistcal performanceExamining the strategies that can be adopted in order for logistics performance of to be capable of creation enhanced in firms operating within the tourism industry, in order to enhance the overall performance of the Malaysian tourism industry.1.5 Research QuestionsWhat is the take of logistics performance of the tourism industry in Malaysia?Is firms in the Malaysian tourism industry suffering from a deficiency in logistcal performance?What are the stra tegies that can be adopted in order for logistics performance to be capable of world enhanced in firms operating within the tourism industry so as to enhance the overall performance of the Malaysian tourism industry?2.0 Literature ReviewIn this chapter, there will be a publications review that will be carried out on this research topic and hence this government agency that there will be a review of literary wareions relating tourism and logistical infrastructure. The review commences with an review of literature that relates to the description of the tourism crossroad, the benefits of investing in tourism, a review of literature concerning tourism management, the charactertistics of the tourism industry, the opinions of past researchers about the strategies that can be used to enahnce the logistics practices within the industry to deliver determine, the value chain of the tourism industry.2.1 Characteristics of the touristry IndustyAccording toDwyer and Forsyth, (1997),the t ourism industry does have a number of characteristics of a matched trade. Essentially, there are very few barriers to entry into the market place, the market can be draw as be a real global market that have a few unnatural barriers to trade, there are a large number of firms within the industry and the determines are set on the sole basis of market expectations, essentially.Within a highly competitive market uniform tourism, there does not seem to be any difference, when it comes to the yield from contrary types of tourists. Within this kind of a competitive market, resources have to be deployed at a level that does smoothen their opportunity make up. What this mean here is that they will be employed at a level that makes it possible to caters a sufficient return to investors when talk of the town in terms of the greet of capital. If there are resources which provide higher up normal profits they are bid up in price and any abnormal profit is dissipated into the cost of capital(Dwyer and Forsyth, 1997).2.2 The Tourism Product Described2.2.1 Features of the Tourism ProductIt has been stated thatYilmaz and Bititci, (2006),that the tourism product is verbalise to carry the characteristics pertaining to the service product as hygienic as the characteristics that are special to the tourism industry, and it is this that runs to make the tourism product to be ofttimes diverse from physical goods. What can be state here is that these characteristics are very effective when it relates to the performance of the tourism establishments and they have to be taken into consideration when performance measurement and management arrangements are being designed. A very special and distinctive experiences of the tourism product can eb state as it being unable to be seen and touched physically before being purchased, and which means that it is intangible. It is appreicated here that this kind of intangibility does essentially make it harder to buy but easier to be able to distribute(Evans et al., 2003).It does to a fault make tourism to be dependent on the representations as well as the descriptions that are within printed or audio-visual forms, and, hence, it is theorized here that knowledge is the vital tool which makes it possible to bind producers within the travel industry(Ujma, 2001).The main role of travel selective training that is for consumers can be siad to be very significant as visitors tend become exposed to trhe risk in buying vacations that they believe to be able to satisfy their various inevitably and wants that are say to be very important to them(Mill and Morrison, 2002) and (Yilmaz and Bititci, 2006).The next feature of the tourism product is its perishability and what can be stated here is that the tourism product, corresponding an airplane seat or hotel bed, is incapable of being stored for succeeding(a) sale. This can be decribed as being a differences that is present amid tourism and manufacturing prod ucts. It is this kind of characteristic of the tourism product that does haev an impact on the marketing efforts as well as the operations of the tourism businesses. The main marketing challenge here would be to operate at spacious capacity for as long as possible and the company would have to design various kinds of marketing strategies for the ultimate purpose of stimulating the convey(Callaghan et al., 1994) and (Yilmaz and Bititci, 2006).2.2.2 The Value Chain of the Tourism IndustryThis industry is one that has been analysed in a holistic manner through a number of dispersal epithelial duct perspective by a number of authors and researchers(Middleton and Clark, 2001), (Mill and Morrison, 2002), (Halloway, 1998) and (Laws, 1997).A super acid theme that has been renowned among a number of researchers is that there seems to be a lack of customer-oriented onward motion within the end-to-end value chain. It is noted that customers tend to view the tourism product as something that is a seamless product and that indispensabilitys to be handled from the view point of the customer in order to be able to measure the tourism value chain in an efficient way. There has been a great amount of emphasis that has been precondition to service, quality, and customer satisfaction issues, and within the connection to the business performance within the tourism industry, it is quite surprising not to find a customer-oriented approach present within the tourism value chain(Yilmaz and Bititci, 2006).The tourism value chain is noted to commence with the customer order and more much than not, customers or tourists do have a few alternatives when it comes to purchasing the tourism product and it is noted here that they are capable of either placement their travel plan with the assistence of tour operators or even outbound travel agents, which does have an advantage of taking professional advice in recounting to all of the holiday package without any kind of thinking or arrangement it themselves and this permits them to be very flexible when it comes to their travel experience. It can be utter here that incoming travel agents is capable of being used to make transfer arrangements from/to the airport to/from the hotel and for daily excursions as well as other activities that are normally held at the destination(Yilmaz and Bititci, 2006).The delivery of the services is capable of being dvided into three sub sectors and these include accommodation, transportation and incoming travel services. The performance of the delivery stage is one that is affected by the various relations between these main industry dramaers. Hence, it can be said here that performance measures would be required to reflect the interdependency features of the industry(Yilmaz and Bititci, 2006).The transportation part of the service is where logistics really come into play and the existance of horrid infrastructure would damage the entire service offering.2.3 The Concept of T ourism bowDwyer and Forsyth, (1997)state here that tourism yield can be said to be the net benefit that accrues to the host country from internationalistic visitors and this means that it is the benefits minus the be of tourism activity. This particular definition does believe the complexity of identifying, at the national level, all of the be and the benefits of tourism, and every one of these has different kinds of patterns of activity and impactAt the firm level, a measure like this is very critically important as it is a measure of survival. In essence,Tisdell (1993)has provided a list of prey variables of possible importance to governments when it comes to formulating policy in terms of foreign tourism and these are listed out belowforeign exchange earningsnet national economic benefits that are obatined from foreign tourists as being measured by changes that take place within the economic surplusesemployment generationcultural and sociological impact in regards to the host populationconservational or environmental impactpromotion of international understanding and co-operationincome distribution consequences.(Dwyer andForsyth, 1997)2.4 Market for Tourism and Recreational ServicesIt is noted here that the market of tourist and recreational services is composed of the by-linehospitality servicescatering servicestour operating servicestourism oriented servicesrecreation oriented services(Kordel, 2008)It is these segments of the market where a large number of firms, business entities and besidesincorporated companies are said to operate easily and are able to successfully adopt the concept of logistics. Essentially speaking, the science of logistics is said to combine theoretical and serviceable issues and each and every one of its theories is capable of being easily apply as well as confronted with realityfor the purposes of verifying that they are efficient and relevant in real life(Kordel, 2008)2.5 Logistics and Cost Analysis IssuesFor instan ce, taking into deem the hospitality services sector, it is noted that there are some areas where logistics play a vital role and it is noted here that the efficiency as well as the quality of hospitality services is capable of being improved via efficient logistics management of the nexthotel managementquality managementinformation managementmarketing(Kordel, 2008)In looking at the hospitality sector from a very comprehensive point of view, a number of different processes are observed to take place and these include the following summate processesservice production processesdistribution processesstorage and wareho use processesinformation transmission processes(Kordel, 2008)2.5.1 Minimalization of CostsThese areas that have been outlined above have to be referred to when it comes to searching for minimalization of be as well as to locate the virtually appropriate solutions that are possible for the purposes of gaining a strong, a very competitive and very leading go down withi n the market(Kordel, 2008). All of these processes have to be examined from the view point of costs that they are bringing about and then be classified according to genre and amount. This would permit for the deliberateness of lend and unit logistics cost, and these are noted to be very essential factors that impact the competitiveness of companies. Total logistics costs analysis can be described as being the main key to managing the logistics function and this is wherefore it is essential that the management take into consideration all logistics cost(Kordel, 2008)With the hotel industry, for instance, the essential amount of logistics cost is said to include the followingcost of deliver activitiescost of informationcost of operationcost of marketingcost of distributioncost of additional servicescost of insurancecost of transport activitiescost of personnelother financial costs(Kordel, 2008)2.5.2 engagement of Costs Analysis to Improve Logistics PracticesIn essence, the issue of costs is said to be an essential problem and due to the fact that its role in todays economy can be said to continue to grow, they have to be brought up to everyones attention, they have to be in good order classified, diagnosed, analyzed and then apply for the purposes of decision reservation process. However, most of the companies can be said to be fitted with basic financial and accounting systems and it is noted here that these do not register the logistics costs and it makes it hard to which makes it difficult to diagnose andanalyze them(Kordel, 2008).The processes noted above have to eb examined from the point of view of costs. The utlization of cost analysis is noted to be carried out accroding to these above specifications and could help when it comes to calculating all of the logistics cost concerning the particular firm in the tourism industry and it will to a fault indicate the kind of ingredients that are able to generate the most costs and hence are required to be minimized. It is appreciated here that companies can easily enhance their market competitiveness by reducing their logistics costs abnd this eventually results in lowering the good costs of goods and services(Kordel, 2008).Because it efficacy be hard to make a determination of the individual component oflogistics costs that have to be reduced, companies need to make attempts to integrate thelogistics system as opposed to lowering total logistics costs. This kind of solution can be said to be very safe especially that harm diagnosis of individual costs may lead to an increase of totallogistics costs. Hence, it is essential to remember that in tourism and hospitality business, the effective cost reduction as well as the ability to manage the total logistics costs in the right way can be said to be very helpful when it comes to building a strong position in the market(Kordel, 2008).In essence, keeping track of all logistics costs that are said to be borne by companies from tourist and recreation sector could be easier if only these companies are equipped with additional software that are dedicated towards logistics costs registration and these companies are able to carry out regular research by themselves concerning their very own initial costs.m In general terms, for the hospitality sector to be capable of operating properly and without any sort of objections, there are some issues that have to be taken into account and these are as followsModern logistics solutions have to be constantly up participationd and implementedThere needs to be an analysis of supply chain costsThere has to be a much wider spectrum of lordly system that has to be implementedEssential decisions that are made have to be consulted with professionals.(Kordel, 2008)For the purposes of having a better understand of the concept that is trying to be presented here, the following matters need attentionServices that are provided by these firms need to meet certain quality standards.Customer are to be considered as being merchandise and all the costs that are borne need to be classified as being according to the logistics processes.Realization costs relate to controlling systems that are orne in logistics processes need to be implementedThere has to be accurate and prompt decisions that need to be made in relation to logisticsprocesses being executed.(Kordel, 2008)2.6 The Role of Information Technology in the Tourism Industry and its Impact of LogisticsThe information technologies are said to play a very significant role within the tourism industry and it is appreicated here that the impacts of the internet(Wynee et al., 2001) and (Dambro and Wilson, 2004)and the computer reservation systems(Duliba and Kauffman, 2001) and (Alamdari, 2002)within the distribution value channel of tourism are subjects of thorough discussion. Information technologies do permit the suppliers, like the airlines and hotels, to be capable of monitoring, managing and controling their capacity v ia communicating with the intermediaries together with the end consumers. For instance, it is noted here that authorized tour operators are able to access a dedicated part of a hotel companys intranet in order to be able to view room rates and the availability of these rooms for their customers. Such kind of transparency as well as interactivity makes it possible to increases the efficiency as well as the productivity of all of the value chain (Buhalis, 2003).It can be theorized here that IT does enhance logistics very well and it enhanced speed, efficiency and dependability within the entire tourism industry.3.0 MethodologyIn this chapter, the methodological analysis of the research will be outlined very comprehensively. This means that there will be an elaboration of the various methodological tools that will be used in this research for the purposes of collecting data. These are the tools that will be used to gather information that will then be subjected to analysis and for conc lusions to be drawn. For this research, there would be the use of ancient and secondary research tools that will be utilized in conjunction with each other. The use of both these tools will ensure that quality data will be obtained for the puposes of the research. The research design and the theoretical framework for the research will also be outlined in this chapter.3.1 Methodological Tools UtlizedAs noted previously, the methodological tools that will be utlized here will comprise of a confederacy of original and secondary research tools. downstairs will be an naming and description of the types of tools that are to be used.3.1.1 master(a) Research ToolsPrimary research does essentially learns the collection of data concerning a given subject at present from the real world. Here, there will be a description of what primary research is, the ethics that are involved with primary research and different types of research that can be done(Driscoll and Brizee, 2010).In essence, primary research is any sort of research that can be done through the use of surveys and interviews. A researcher that is very talented will be one that will be able to use both primary and secondary research sources and to be able to integrate them in a very cohesive fashion. The ability to perform primary research can be said to be a useful skill as it is able to acquire information that can supplement ones research in secondary sources(Purdue.Edu -Primary Research, 2010).It is appreicated here that the primary data that has been collected via the methods that have been described above are generally qualitative in nature or in some cases, quantitative(TVU.AC.UK -Primar Research Methodologies, 2010).For this research, the types of primary research that will be carried out will be as follows1. Interviews2. Questionnaires3.1.2 Primary Research Tool 1 InterviewsInterviews can be described as being one-on-one or small conclave question and answer sessions that will be carried out by the researcher and the interviewees. These interviews will be abel to provide a great amount of information from a few persons and they are essential when it comes to getting expert or knowledgeable opinion in relation to a particular subject, like logistics in the Malaysian tourism industry(Purdue.Edu -Primary Research, 2010) and (Driscoll and Brizee, 2010).The advantages of interviews are as follows equal to(p) to get accurate information. gamey response rate.Able to be completed immediatelyAbility for interviewer to help if they is problemsAbility to investigate motives and feelings.Ability to use recording equipment(TVU.AC.UK -Primar Research Methodologies, 2010)In essence, a total of 5 interviews will be carried out with managers from firms within the tourism industry in Malaysia. The researcher aims to get a wealth of information from these managers about their thoughts and perspectives about the performance of the firms in the tourism industry in Malaysia, the issues that ar e reducing its performance and the strategies that can be used to improve its performance. These interviews will be vital towards the satisfying of the research objectives.3.1.3 Primary Research Tool 2- QuestionnaireQuestionnaires will be the next kind of primary research source that will be utilized here and in this questionnaire can be described as a type of mocking that is far more rigid as opposed to interviews and it also tends to involve much larger groups of people. In essence, these surveys are likely to provide a limited amount of information from a very large group of persons but they are very useful when it comes to having an understanding about what a larger population thinks about the issue concerned(Purdue.Edu -Primary Research, 2010) and (Driscoll and Brizee, 2010).The main advantages of using questionnaires are as followsAble to be used in its own rightAble to be posted, e-mailed or faxed and this increases speed and saves timeAble to cover a large number of persons Very wide geographical coverage.InexpensiveRespondent has the chance to consider responses.There is anonymity of respondent.absence seizure of interviewer bias(TVU.AC.UK -Primar Research Methodologies, 2010)A total of 110 questionnaires will be distributed to members of the target group and these essentiall comprise of persons from firms within the tourism industry in Malaysia. The researcher proposes to collect a large amount of information from this target group in order to determine the issues facing the tourism industry, the practices of these firms, what they are doing to improve themselves and the strategies that they can adopt in order to improve their practices for the benefit of their firm as well as the industry.3.1.4 utility(prenominal) Research ToolsSecondary research methods are research methods that are used to collect information from sources that have already been researched on before. Secondary research would involve the process of data that has already been colle cted by researcher previously and it makes theatrical role to the consultation of previous studies as well as findings and these include reports, machinate articles as well as previous market research projects so as to be able to reach a conclusion.A secondary research method would be premised on information that has been collected from studies previously performed and hence it is a reseaerch method that is not very expensive in contrast to primary research because it does not require new research methods. The main disadvantage of this research type is that the information that has been collected might be old and obsolete and this might mean that the results of analysis could be inaccurate(Business Teacher -Primary-Secondary Market Research, 2010).There are a number of secondary research sources that can be used to collect information and the ones that will be utlized for this research invovle the following belowPublished texts concerning theoretical work and aslo secondary analys es that have been carried out by experts and reportsVarious media like the internet, television and radio that act as sources of information(Secondary Research Methods, 2010)Below would be the main advantages of secondary reseaerchInexpensive and highly accessible only method of examining large-scale trendsAbilit to gather a large amount of date especially from the internet(Secondary Research Methods, 2010)3.2 Research DesignIn relation to to reseach design for this project, this relates to the decision making selections that are rational and here there will be an elaboration of the type of study that will be carried out, the level of control and other issues related to the project. This research typically involves making a research of the logistics practices and conditions in the Malaysia tourism industry and what improvements that need to be made to enhance the logistics so as to bring positive enhancements to the industry.Concerning the kind of study invovled, this will be an exp loratory study as they has been very little research that has been carried out on the logistics of the Malaysian tourism industry and the approaches that have been taken by the Malaysian government to improve it. The level of interference by the researcher was kept minimal so as to ensure that it does not have a bad impact on the research and that the completion of the project is not delayed.Practically, there are a number of sampling techniques that can be used for a research like this and these are discussed now. The first of these is cluster sampling and this is the kind of sampling that can be used where the larger population has been divided into much smaller clusters and they are selected randomly for the study. The next type of sampling is magisterial sampling and this is a technique whereby the researcher is able to sele