policies, guidelines and potential tourism opportunities in

POLICIES, GUIDELINES
AND POTENTIAL TOURISM
OPPORTUNITIES IN SABAH
By:
Ms Christiana Tharsis
Director
Strategic Planning & International Affairs Division
Ministry of Tourism Malaysia
MINISTRY OF TOURISM MALAYSIA
1
MALAYSIA TOURISM PERFORMANCE
Global Ranking 2011
Tourist Arrivals
24.7 million
Tourism Revenue
USD 19.2 million
9
14
SOURCE : UNWTO
2
MALAYSIA’S TOURISM PERFORMANCE 2011
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
3
INTERNATIONAL ARRIVALS & RECEIPTS 1999-2011
30
Arrivals (Million)
25
Receipts (USD Billion)
20
15
10
5
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
9/11
BOMBING
BALI
BOMBING
SARS/IRAQ
WAR
TSUNAMI
VMY
VMY & GLOBAL
ECONOMIC CRISIS
GLOBAL
ECONOMIC CRISIS
& H1N1
JAPAN
EARTHQUAKE
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"
5
Report.
MALAYSIA TOURISM TRANSFORMATION PLAN
Year 2020
36 million tourists
USD56 billion (RM168 billion) receipts
Longer Stay Higher Yield Tourists
*USD1 = RM3
6
MTTP 2020:36:168
2011
Tourist
receipts
(Bn)
# arrivals
(Mn)
YIELD
2020
3X
168
53
RM1 bn/week
RM3 bn/week
1.5X
24.7
36
2x
Spend/
arrival
(RM)
2359.6
Global
ranking
#14
4,675
Top 10
7
TOURISM NKEA : 12 EPPS
Affordable Luxury
(i.e. shopping)
Family
Fun
1• Duty-free for
Tourism with GNI of
RM94b
(3x growth)
Events,
4 • Develop an
wider range of
goods
Entertainment
and Spa & Sports
6 • Bid for more
international
events
Econature
Integrated Resort
5• Straits Riviera
2
• BB-KLCC as
premier shopping
district
Cruise
playground for
high-end cruise +
urban
redevelopment of
port landing
areas
3
• 3 new premium
outlets
11
7
8
• Establish
dedicated
entertainment
zones
Business
Tourism
9• Establish
Malaysia as a
leading M.I.C.E.
destination
• Target Spa &
Sports (golf,
angling) tourism
Nature
Adventure
10• Establish
Malaysia as the
pre-eminent
global biodiversity
hub
• Rainforest &
Marine Discovery
Centres (together
with parks &
gardens)
• new and
enhanced live
biodiversity sites
Connectivity (greater focus on medium connectivity to support growth)
12
Hotels (ensure adequate supply with better mix, better rates)
Enablers (Marketing, Visa, Funding, Human Capital, Tourism Environment)
USD8.93 billion in GNI impact
8
DIVERSITY AS OUR STRENGTH
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
9
DIVERSITY AS OUR STRENGTH
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
10
DIVERSITY AS OUR STRENGTH
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
BUSINESS TOURISM
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)
12
CREATIVE AND
INNOVATIVE NEW EVENTS
13
SHOE FESTIVAL WITH JIMMY CHOO
(APRIL)
60,000
visitors last
shoe festival,
and sold
USD1.96 mil
worth of
shoes
100 local and
overseas wellknown shoe
manufacturers
participated
14
1MALAYSIA CONTEMPORARY ART TOURISM
JULY – SEPTEMBER
15
1MALAYSIA CONTEMPORARY ART TOURISM
(1MCAT)
1st MCAT – 2010
Total sales : USD4.58 million
2nd MCAT – 2011
Total
sales : USD5.46 million
3rd MCAT – 2012
Total
sales : USD9.82 million
16
FABULOUS
FOOD
1MALAYSIA
• Malaysia International Gourmet Festival (MIGF)
October
• ASEAN Food Heritage Trail
November
• Street Food & Restaurant Festival
December
17
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
18
MALAYSIA TOURISM
PROTECTS, PRESERVES AND CONSERVES
MOTHER NATURE
19
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
20
APPROVED INVESTMENT IN HOTEL & TOURISM
PROJECTS IN MALAYSIA (2008- AUGUST 2012)
YEAR
No. of
PROJECT
EMPLOYMENT
2008
23
2009
INVESTMENT (RM BILLION)
DOMESTIC
FOREIGN
TOTAL
2,121
0.95
0.08
1.03
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)
21
APPROVED INVESTMENT IN HOTEL & TOURISM
PROJECTS IN SABAH (2008- AUGUST 2012)
YEAR
No. of
PROJECT
EMPLOYMENT
INVESTMENT (RM BILLION)
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
DOMESTIC
FOREIGN
TOTAL
Source: Malaysian Investment Development Authority (MIDA)
22
APPROVED INVESTMENT IN HOTEL & TOURISM
PROJECTS (2008- AUG 2012)
DOMESTIC INVESTMENT (RM BILLION)
MALAYSIA
SABAH
1.48
1.28
0.95
0.69
0.56
0.22
2008
0.3
0.15
2009
0.18
2010
0.19
2011
2012 (JANAUG)
Source: Malaysian Investment Development Authority (MIDA)
APPROVED INVESTMENT IN HOTEL & TOURISM
PROJECTS (2008- AUG 2012)
FOREIGN INVESTMENT (RM BILLION)
MALAYSIA
SABAH
0.1
0.08
0.07
0.07
0.06
0.011
0.0005
2008
0
0
2009
0.003
2010
2011
2012 (JANAUG)
Source: Malaysian Investment Development Authority (MIDA)
INVESTMENT OPPORTUNITIES IN SABAH
Accomodation
Transportation
Tourism Attractions
MICE Events
25
INVESTMENT OPPORTUNITIES IN SABAH
Travel Trade
Cruise Lines, Entertainment and
Restaurant
Tourism Services
Tour Packages
(Source: Ministry of Tourism, Culture and Environment Sabah)
26
PROMOTED TOURISM ACTIVITIES
 Hotels
• Establishment / Expansion / Modernization of hotels
 1 - 2 star (100% Malaysian equity required)
 3 star (follow liberalization roadmap)
Year
2012
2013
2014
2015
% of foreign equity allowed
30%
49%
51%
70%
 4 - 5 star hotels (100% foreign equity allowed)
27
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
28
GUIDELINES FOR EQUITY AND PAID-UP CAPITAL REQUIREMENTS FOR MALAYSIAN /
FOREIGNER IN TOUR OPERATING AND TRAVEL AGENCY BUSINESS (TOBTAB)
NO.
1)
TYPE OF
LICENSE
Inbound &
Ticketing
2)
Inbound
3)
Outbound
4)
Inbound,
Outbound &
Ticketing
5)
Inbound
6)
EQUITY OWNERSHIP
MAXIMUM SHARE HOLDING
Foreign (Individual / Company) ASEAN
Foreign (Individual / Company) – Non
ASEAN
Foreign Companyy (ASEAN & Non
ASEAN)
Foreign (Individual / Company) ASEAN
Foreign (Individual / Company) – Non
ASEAN
Bumiputera (B)
Rural
Non Bumiputera (NB)
&
City
Local Company (LC)
70% - Singapore & Combodia only
51% - Except Singapore & Combodia
MINIMUM
PAID-UP
CAPITAL
RM250,000
30%
100%
Not Allowed
100
RM500,000
Not Applicable
RM200,000
(B/ NB/ LC)
Rural
RM50,000
(B/ NB/ LC)
City
RM200,000
Inbound &
Ticketing
(B/ NB/ LC)
Rural
RM150,000
(B/ NB/ LC)
City
RM200,000
7)
Inbound &
Outbound
(B/ NB/ LC)
Rural
(B/ NB/ LC)
City
8)
Ticketing
(B/ NB/ LC)
Rural
RM100,000
(B/ NB/ LC)
City
RM200,000
9)
Outbound &
Ticketing
(B/ NB/ LC)
(B/ NB/ LC)
Rural
City
RM200,000
100
RM200,000
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
30
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
31
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
32
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
33
TOURISM FUNDS
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 Cooperative 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 projects34
• Min paid-up capital of RM5 million
WHY
SABAH?
WHY SABAH?
• Sabah as the premier eco-tourism
destination in Malaysia
• Well conserved natural heritage,
culture and biodiversity
• A clean and healthy environment
35
BEAUTY OF SABAH
36
SAMPORNA
NATURE OF SABAH
ORANG UTAN
37
DIVERSITY OF SABAH
38
Thank You
39