SWOT Analysis
Tourism Economis Analysis

The lectures notes illustrate the construction of a Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis for Tourism Economics. Then a SWOT Analysis of the Malaysian Tourism Industry is presented.

An Outline of a SWOT Analysis

Introduction

  • Introduce your topic; interest your readers from the beginning.
  • Historic or interesting fact
  • Overview of the fantastic, perfect vacation and that country's facilities and natural resources.
  • SWOT Analysis is usually done for businesses.  Introduction is usually something historical or innovative about the company.

Strengths

  • List the strengths first
  • Strengths are intrinsic or inherent to the country; government has some control over it.
  • Valuable resources, attractions, landmarks, historic sites, etc.
  • Friendly people
  • Outdoor activities
  • Has infrastructure like ports and airports to accommodate tourists
  • Favorable weather and climate

Weaknesses

  • Weaknesses are internal to the country.  The country has control over its weaknesses
  • The opposite of strengths

Opportunities

  • External factors; country has little control over it
  • Opportunities are the need for expansion
  • Increased access to the country
    • Larger airports
    • Cheaper transportation costs
    • Cruise ship ports
  • Which countries to attract tourists from?
    • Example - expand marketing to developing countries. 
    • As their wealth increases, these countries will have more tourists with money
  • Market to particular age group, etc.
    • Market to older, retired tourists
    • Market to singles or families

Threats

  • Threats are external, and country has little control over them
  • Which factors could prevent a country from realizing its opportunities
  • Competition from other countries or emerging new tourist destinations
  • Problems such as rising fuel costs, 2012 Recession, terrorism, etc.
  • Changes in culture, perception, etc.

Conclusion

  • Summarize the main conclusions of the essay
  • The conclusions must be supported by the analysis

SWOT Outline for Malaysian Tourist Industry

Introduction

  • Malaysia has large, clean modern cities
  • Malaysia has lush tropical jungles filled with a diverse range of plant, animal, and insect life.
  • Malaysia has pristine white sand beaches and the coasts are teaming with life and coral reefs
  • Malaysia has towering mountains, where tourists can pick strawberries or visit a tea plantation
  • A Strengths-Weaknesses-Opportunities- Threat (SWOT) Analysis for Malaysia

Strengths

  • English is widely spoken
  • The Malaysian government created Tourism Malaysia, as the government’s promotion of tourism board
  • The board has 34 overseas and 11 marketing offices
  • Malaysia is the 9th tourist destination in the world (UNWTO 2011)
  • Tourists spent $17.8 billion in 2010 (UNWTO 2011)
  • Malaysia may have high Keynesian multiplier effect, because it has the manufacturing industries to support the tourist industries
  • 24.7 million tourists visited Malaysia in 2011 (UNWTO 2011)
  • Tourism is second most important industry for foreign earnings after manufacturing

Weaknesses

  • Transportation - not enough direct flight to Malaysia from Europe.
  • Most flight will need many transits and usually fly directly to Singapore instead of KLIA.
  • Tourists prefer Singapore as the transit.
  • Not enough activities for the party loving foreigners.
  • Malaysia is an Islamic country.
  • Many foreigners have negative perception and misconception about Islam.
  • So they go elsewhere for vacation, because they think is safer.
  • In 2011, 13.3 million tourists were from Singapore (Tourism Malaysia 2011)
  • Dependency ratio = 54.1%
  • Malaysia relies on Singaporeans for tourists
  • Many tourists complain about taxi drivers, who overcharge for their services.

Opportunities

  • China is growing at 10.4% in 2010 (World Bank 2012)
  • The tourists from China were 1.3 million in 2011 (Tourism Malaysia 2011)
  • Indonesia is Malaysia’s neighbor, and its economy is growing fast
  • 2.1 million tourists were from Indonesia (Tourism Malaysia 2011)
  • Ecotourism
  • Quickly expanding segment of Malaysian tourism
  • Parks, forests, and coastlines have a large biodiversity

Threats

  • Intense competition from Hong Kong, China, Japan
  • Malaysia is a developed country; manufacturing industries continue to grow
  • Malaysia is building more resorts, golf courses, marinas, roads, and highways
  • Could damage the ecosystems and natural habitats.

Conclusion (summarize and build on the most important points in the paper)

  • Malaysia is ranked ninth in the world for number of tourist arrivals
  • Malaysia can attract a variety of tourists, whether the tourists want to visit modern cities or hike through dense, pure jungles swarming with wildlife
  • The tourist industry is a competitive industry
  • Malaysia can develop a niche in sustainable tourism by protecting its natural resources

The SWOT Analysis for the Malaysian Tourist Industry

Malaysia offers the adventurous tourist a large array of activities. A tourist can enjoy the comfort of Malaysia’s large, clean modern cities, hike through the lush tropical jungles brimming with a wide assortment of plant, animal, and insect life, swim or sunbathe on Malaysia’s pristine white sandy beaches, or scuba dive along the coral reefs teeming with life. When the tourists become tired of the heat and humidity, they can trek up the towering mountains in central Malaysia, and pick strawberries, or visit a tea plantation. Consequently, this essay presents a Strengths-Weaknesses-Opportunities- Threat (SWOT) Analysis for Malaysia’s Tourist Industry.

The Malaysian tourist industry has three strengths. First, a large portion of Malaysia’s population speaks English, and many are friendly, and will help lost and confused travelers. Second, the Malaysian government is committed to boosting its tourist industry, and established the government’s promotion board, Tourism Malaysia. The board has 11 marketing offices within the country, and 34 offices overseas. Finally, Malaysia's tourist industry experienced strong growth, and is the 9th most traveled tourist destination in the world, attracting approximately 24.7 million tourists in 2011. Consequently, tourism is the second most important industry for foreign earnings after manufacturing, because tourists spent around $17.8 billion in 2010 (UNWTO 2011). Since Malaysia is a newly industrialized country, it may have a high Keynesian multiplier effect, and can retain most of the tourist dollars within the country. Malaysia has the manufacturing industries to support its tourist industries and prevent the leakage of its foreign-currency earnings.

Malaysia, unfortunately, has four weaknesses. First, Malaysia does not have enough direct flights between Malaysia and Europe. Most tourists prefer Singapore as their transit route, instead directly to Kuala Lumpur International Airport. Second, Malaysia is an Islamic country; many tourists from Europe and North America may have negative perceptions and misconceptions about Islam, and they travel elsewhere for vacation, because they believe, it is safer. Moreover, Malaysia may not have enough nightlife and nightclubs for the nighttime prone tourists. Third, Malaysia depends on tourists from Singapore. Approximately, 13.3 million tourists came from Singapore in 2011(Tourism Malaysia 2011), which means the dependency ratio is 54.1%. Finally, many tourists complain about taxi drivers, who overcharge for their services. However, opportunistic taxi drivers plague every country across the world.

Malaysia has three opportunities to sustain its tourist industry. First, China continues to grow at a phenomenal rate, and its gross domestic product (GDP) grew at 10.4% in 2010 (World Bank 2012). Since tourism is a luxury good, rising GDP increases the people’s incomes, thus creating more tourists. Although 1.3 million Chinese tourists visited Malaysia in 2011 (Tourism Malaysia 2011), China’s rapid growth will increase the number of tourists who will explore Malaysia. Second, Indonesia is Malaysia’s neighbor, and its economy is growing furiously. Many international tourists explore the countries next to theirs, and consequently. 2.1 million Indonesian tourists visited Malaysia in 2011 (Tourism Malaysia 2011). Finally, Malaysia could develop an eco-tourism market, because it has lush jungles and parks, and pristine beaches and coastlines that are brimming with wildlife, beauty, and bio-diversity. Thus, Malaysia could move away from mass tourism, and develop a niche market in eco-tourism similar to Costa Rica’s.

The Malaysian tourist industry has two threats that could cause future problems. First, international travel and leisure are a competitive industry, and Malaysia competes with Hong Kong, China, and Japan for tourists. Second, Malaysia is a developed country, and its manufacturing industries continue to grow. Thus, Malaysia is building more resorts, golf courses, marinas, roads, and highways that could damage the ecosystems and natural habitats. Sustainable tourism means Malaysia should preserve its environment, so all future generations can enjoy and share Malaysia’s natural resources.

Malaysia has a strong tourist industry, and it is ranked ninth in the world for tourist arrivals. Hence, the Malaysian government can build upon its success, and continue to attract a variety of tourists, whether the tourists want to visit modern cities or hike through dense, pure jungles swarming with wildlife. Unfortunately, the international tourist industry is a competitive industry, but Malaysia can develop a niche market in sustainable tourism by protecting its natural resources and market them to the world.

References

Tourism Malaysia. NA. Malaysia Tourists Arrivals 2011. Available at http://corporate.tourism.gov.my/images/research/pdf/2011/TouristArrivals_JanDec_2011.pdf (access date 4/18/2012).

United Nations World Tourism Organization (UNWTO). 2011. UNWTO Tourism Highlights. Available at http://mkt.unwto.org/sites/all/files/docpdf/unwtohighlights11enlr.pdf (access date 4/21/2012).

World Bank. 2012. GDP Growth (Annual %). Available at http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG (access date 4/18/2012)