POLICIES, GUIDELINES AND POTENTIAL TOURISM OPPORTUNITIES IN SABAH · MINISTRY OF TOURISM MALAYSIA...

MINISTRY OF TOURISM MALAYSIA

POLICIES, GUIDELINES AND POTENTIAL TOURISM OPPORTUNITIES IN SABAH

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By:

Ms Christiana Tharsis

Director

Strategic Planning & International Affairs Division

Ministry of Tourism Malaysia

Tourist Arrivals 24.7 million

Tourism Revenue USD 19.2 million

SOURCE : UNWTO

MALAYSIA TOURISM PERFORMANCE

Global Ranking 2011

9

14

2

3rd Major Foreign Earnings (after manufacturing

& palm oil)

6.6% Tourist Receipts as ratio to GDP

1.8 million (16.2%) workers out of 11.1 million

workforce in 2010

MALAYSIA’S TOURISM PERFORMANCE 2011

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INTERNATIONAL ARRIVALS & RECEIPTS 1999-2011

0

5

10

15

20

25

30

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

9/11 BOMBING

BALI BOMBING

SARS/IRAQ WAR

TSUNAMI VMY & GLOBAL ECONOMIC CRISIS VMY

GLOBAL

ECONOMIC CRISIS

& H1N1

JAPAN EARTHQUAKE

Arrivals (Million) Receipts (USD Billion)

4

MALAYSIA’S ACHIEVEMENT 2011/2012

Kuala Lumpur

4th Best Shopping City in The World by CNN Travel Survey, 2012.

2nd Best Shopping Destination in Asia Pacific by Globe Shopper Index, 2012.

Malaysia – 10th in Hospitality by Forbes' World's Friendliest Countries, 2012.

Malaysia Homestay Experience Programme won the UNWTO Ulysses Award Innovation in Public Policy and Governance, 2012.

MM2H - 4th World's Top Ten Retirement Havens by The International Living Magazine, 2012.

Business Tourism - (ICCA) - Malaysia Retains its Position as the Top 10 Meetings Destination in Asia Pacific. Kuala Lumpur Top 5.

MALAYSIA is the 12th Most Competitive Economy in The World for Doing Business, according to the 2012 Edition of The World Bank's "Doing Business" Report. 5

MALAYSIA TOURISM TRANSFORMATION PLAN

Year 2020

36 million tourists

USD56 billion (RM168 billion) receipts

Longer Stay Higher Yield Tourists *USD1 = RM3

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Tourist receipts

(Bn)

# arrivals (Mn)

Spend/ arrival (RM)

Global ranking

168

53

2020

3X

3624.7

1.5X

4,675

2359.6

2011

2x

#14 Top 10

YIELD

RM1 bn/week RM3 bn/week

MTTP 2020:36:168

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Affordable Luxury (i.e. shopping)

• Duty-free for

wider range of

goods

• BB-KLCC as

premier shopping

district

• 3 new premium

outlets

1

2

3

Nature Adventure

• Establish Malaysia as the pre-eminent global biodiversity hub

• Rainforest & Marine Discovery Centres (together with parks & gardens)

• new and enhanced live biodiversity sites

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Family Fun

• Develop an

Econature

Integrated Resort

• Straits Riviera

Cruise

playground for

high-end cruise +

urban

redevelopment of

port landing

areas

4

5

Business Tourism

• Establish

Malaysia as a

leading M.I.C.E.

destination

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Tourism with GNI of RM94b

(3x growth) Events,

Entertainment and Spa & Sports

• Bid for more

international

events

• Establish

dedicated

entertainment

zones

• Target Spa &

Sports (golf,

angling) tourism

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7

8

Enablers (Marketing, Visa, Funding, Human Capital, Tourism Environment)

Connectivity (greater focus on medium connectivity to support growth)

Hotels (ensure adequate supply with better mix, better rates)

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12

USD8.93 billion in GNI impact 8

TOURISM NKEA : 12 EPPS

Multi-racial society Malay, Chinese, Indian, Peranakan, Iban, Kadazan, etc

127 ethnic / sub ethnic groups = 1MALAYSIA

Multi-lingual National Language /Bahasa Malaysia, English,

Mandarin and Chinese dialects, Tamil, Sikh, Thai

language, etc

Multi-religious / multi-cultural

Heritage UNESCO World Heritage Cities Penang and Melaka

UNESCO Geo Park-Langkawi, Mulu Cave, etc

Festivals Colors of 1Malaysia

1Malaysia International Shoe Festival

Magic of the Night, etc

DIVERSITY AS OUR STRENGTH

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Food Fabulous Food 1Malaysia Festivals

Affordable Luxury Golf, Shopping, Cruising, Diving, Resorts, SPA’s, Art

Tourism

Nature and Adventure Rainforest - World’s Oldest Rainforest

Global Bio Diversity Hub

Rainforest Discovery Centre

12 Mega Diversity - over 1,000 jungle orchids

25 National Parks

Islands and Beaches Over 1,000 islands

World-Class Diving Sites

40 Marine Parks

World class Resorts


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Family Fun Theme Parks:

Genting Highlands

Sunway Lagoon

Legoland

Kidzania,

Lost World of Tambun, etc

Nature – FRIM, Bukit Merah Laketown, etc

Green Tourism Cycling (88 packages offered)

Rural Tourism Homestay (3,395 houses, 4,669 rooms, 254,981 tourists)

Agro-Tourism

Railway Tourism

Others Medical tourism

Education tourism

Long-stay tourism


11

MICE Contribution 2011 7th in Asia Pacific

RM10.7 billion (USD3.4 billion)

1.2 million arrivals

MICE Venues Kuala Lumpur Convention Centre (KLCC)

The Mines Exhibition and Expo Centre

Putrajaya International Convention Centre (PICC)

Putra World Trade Centre (PWTC)

Borneo International Convention Centre

Matrade Exhibition Centre (to be launched)

Events MITE (Malaysia International Tourism Exchange)

PGA Tour

F1 Grand Prix

Motor GP

ATP (Tennis)

BUSINESS TOURISM

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13

CREATIVE AND INNOVATIVE NEW EVENTS

60,000

visitors last

shoe festival,

and sold

USD1.96 mil

worth of

shoes

100 local and

overseas well-

known shoe

manufacturers

participated

SHOE FESTIVAL WITH JIMMY CHOO (APRIL)

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1MALAYSIA CONTEMPORARY ART TOURISM JULY – SEPTEMBER

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1st MCAT – 2010

Total sales : USD4.58 million

2nd MCAT – 2011


3rd MCAT – 2012


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1MALAYSIA CONTEMPORARY ART TOURISM (1MCAT)

• Malaysia International Gourmet Festival (MIGF)

October

• ASEAN Food Heritage Trail

November

• Street Food & Restaurant Festival

December

FABULOUS FOOD

1MALAYSIA

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GOURMET (OCTOBER)

28 of the

country's best

restaurants

taking part.

Attracts about

300,000 visitors

and USD1.5 mil in

sales.

Reflects the best of

the 1Malaysia spirit

as it unites the

various races and

cultures

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MALAYSIA TOURISM

PROTECTS, PRESERVES AND CONSERVES

MOTHER NATURE

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MALAYSIA TOURISM PROTECTS, PRESERVES AND

CONSERVES MOTHER NATURE

• Promote The Development of Green Tourism • Cycling - Reduce Carbon Footprint • Green Tourism Award • Plant A Tree Programme

• 1Malaysia Green 1Malaysia Clean • Parks and Garden

• Clean-up Projects

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APPROVED INVESTMENT IN HOTEL & TOURISM PROJECTS IN MALAYSIA (2008- AUGUST 2012)

YEAR No. of PROJECT

EMPLOYMENT INVESTMENT (RM BILLION)

DOMESTIC FOREIGN TOTAL

2008 23 2,121 0.95 0.08 1.03

2009 12 862 0.56 0.00 0.56

2010 41 1,874 0.69 0.06 0.75

2011 57 2,090 1.28 0.07 1.35

2012 (Jan – Aug)

28 2,633 1.48 0.10 1.58

Source: Malaysian Investment Development Authority (MIDA)

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APPROVED INVESTMENT IN HOTEL & TOURISM PROJECTS IN SABAH (2008- AUGUST 2012)

YEAR No. of PROJECT

EMPLOYMENT INVESTMENT (RM BILLION)

DOMESTIC FOREIGN TOTAL

2008 8 697 0.22 0.0005 0.2205

2009 7 500 0.15 0 0.15

2010 17 635 0.18 0.003 0.183

2011 17 651 0.19 0.011 0.201

2012 (Jan – Aug)

9 701 0.30 0.07 0.37


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0.95

0.56

0.69

1.28

1.48

0.22 0.15 0.18 0.19

0.3

2008 2009 2010 2011 2012 (JAN-AUG)

DOMESTIC INVESTMENT (RM BILLION)

MALAYSIA SABAH


APPROVED INVESTMENT IN HOTEL & TOURISM PROJECTS (2008- AUG 2012)

0.08

0

0.06

0.07

0.1

0.0005 0 0.003 0.011

0.07

2008 2009 2010 2011 2012 (JAN-AUG)

FOREIGN INVESTMENT (RM BILLION)

MALAYSIA SABAH


APPROVED INVESTMENT IN HOTEL & TOURISM PROJECTS (2008- AUG 2012)

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Accomodation

MICE Events

INVESTMENT OPPORTUNITIES IN SABAH

Tourism Attractions

Transportation

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INVESTMENT OPPORTUNITIES IN SABAH

Tour Packages Cruise Lines, Entertainment and Restaurant

Tourism Services Travel Trade

(Source: Ministry of Tourism, Culture and Environment Sabah)

PROMOTED TOURISM ACTIVITIES

Hotels

• Establishment / Expansion / Modernization of hotels

1 - 2 star (100% Malaysian equity required)

3 star (follow liberalization roadmap)

Year % of foreign equity allowed

2012 30%

2013 49%

2014 51%

2015 70%

4 - 5 star hotels (100% foreign equity allowed)

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PROMOTED TOURISM ACTIVITIES

Tourism Projects

• Establishment / Expansion / Modernization of Tourism Projects

• (100% foreign equity allowed for theme park)

Establishment of Recreational Camps

Establishment of Convention Centers

• (100% foreign equity allowed for >5,000 seating capacity)

Healthcare Travel (100% foreign equity allowed)

• Private hospitals / ambulatory care centers

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NO. TYPE OF

LICENSE EQUITY OWNERSHIP MAXIMUM SHARE HOLDING

MINIMUM

PAID-UP

CAPITAL

1) Inbound &

Ticketing

Foreign (Individual / Company) -

ASEAN

70% - Singapore & Combodia only

51% - Except Singapore & Combodia RM250,000

Foreign (Individual / Company) – Non

ASEAN 30%

2) Inbound Foreign Companyy (ASEAN & Non

ASEAN) 100% RM500,000

3) Outbound

Foreign (Individual / Company) -

ASEAN Not Allowed Not Applicable

Foreign (Individual / Company) – Non

ASEAN

4)

Inbound,

Outbound &

Ticketing

Bumiputera (B) Rural

&

City

100 RM200,000 Non Bumiputera (NB)

Local Company (LC)

5) Inbound (B/ NB/ LC) Rural

100

RM50,000

(B/ NB/ LC) City RM200,000

6) Inbound &

Ticketing

(B/ NB/ LC) Rural RM150,000


7) Inbound &

Outbound


(B/ NB/ LC) City

8) Ticketing (B/ NB/ LC) Rural RM100,000


9) Outbound &

Ticketing


(B/ NB/ LC) City

GUIDELINES FOR EQUITY AND PAID-UP CAPITAL REQUIREMENTS FOR MALAYSIAN / FOREIGNER IN TOUR OPERATING AND TRAVEL AGENCY BUSINESS (TOBTAB)

TAX INCENTIVES

1. Pioneer Status (PS) Income tax exemption, ranging from 70% to 10% of statutory income for a period of 5 years

2. Investment Tax Allowance (ITA)

ITA of 60% to 100% on qualifying capital expenditure incurred for a period of 5 years. The allowance can be offset against 70% to 100% of the statutory income for each year of assessment.

3. Reinvestment Incentive • Hotels – 3 rounds (limited to 3 companies under the same group) • Tourism project – 2 rounds

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IMPORT DUTY AND SALES TAX EXEMPTIONS

Exemptions from Import Duty and Sales Tax

328 items under 8 categories has been given duty exemption as a

result of EPP10: Duty Free Malaysia of Wholesale and Retail NKEA

(under KPDNKK)

Raw materials / components

Machinery and equipment

Provided the items are:

– NOT produced locally; or

– Locally produced raw materials / components are NOT OF

ACCEPTABLE quality and price

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ADDITIONAL INCENTIVES

1. Industrial Building Allowance for Hotels

2. Double Deduction on Expenditure incurred for overseas Promotion and Approved Trade Fair

3. Tax Exemption for Tour Operators 3 years tax exemption if brings 750 foreign tourists or 1,500

local tourists

4. Tax Exemption for Promoting International Conferences and Trade Exhibitions in Malaysia

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ADDITIONAL INCENTIVES

5. Tax Exemption for Promoting and Managing

Cultural Group and Sponsoring Local and / or

Foreign Cultural Performances approved by

MOTOUR

6. Excise Duty Exemption for Car Rental Operators

7. Tax Incentives for Renewable Energy and Energy

Conservation

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TOURISM FUNDS

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DETAILS SPECIAL TOURISM FUND TOURISM INFRASTUCTURE

FUND

Objective To assist tourism entrepreneurs who wish

to develop or expend projects i.e. tourism

accommodations, transportation services,

tourism attractions etc.

To assist tourism entrepreneurs who wish

to develop or expend projects that

contribute to the development of tourism

industry.

Lending Rate 4.0% - 5.5% per annum 4.0% - 5.0% per annum

Tenure of Loan 5-20 years Up to 20 years

Min Loan RM50,000 for each project or 90% of the

project cost

RM5 million

Max Loan RM25 million or 90% of the project cost RM50 million or up to a max of 80% of the

project cost (whichever is lower is

allowed)

Eligibility • SME companies with Bumiputera equity

60%

• Registered under Companies

Commission of Malaysia Act 2002 or Co-

operative Act 1993

• Shareholder fund is at least 20% of the

loan, but more than RM10 million

• Existing or new enterprises are eligible

to apply

• Registered under the Company Act

1965, Companies Commission of

Malaysia Act 2002 or/ and Companies

Co-operative Act 1970 or Co-operative

Act 1993

• Majority owned by Malaysian

• Existing and new enterprises carrying

out tourism infrastructure projects

• Min paid-up capital of RM5 million

• Sabah as the premier eco-tourism

destination in Malaysia

• Well conserved natural heritage,

culture and biodiversity

• A clean and healthy environment

WHY SABAH?

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WHY SABAH?

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BEAUTY OF SABAH

SAMPORNA

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NATURE OF SABAH

PROBOSCIS MONKEY

ORANG UTAN

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DIVERSITY OF SABAH

Thank You 39

POLICIES, GUIDELINES AND POTENTIAL TOURISM OPPORTUNITIES IN SABAH · MINISTRY OF TOURISM MALAYSIA...

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