7/28/2019 Langkawi Blueprint
4/8
V.
Economic impact and fundingThe results of the Blueprint will
double Langkawis tourism and tourism-related gross national
income
(GNI) from RM0.8 bn in 2010 to RM1.9 bn in 2015. This doubl ing
is driven by an expected increase in
tourism receipts and additional agri- and aquaculture revenues
from the farming and fisheries initiative
(categorised as tourism-related income). There is also likely to
be further potential upside to the GNI
as our forecast currently excludes income that may be generated
from real estate sales as well as the
multiplier effect (as income from tourism flows into other
related sectors to generate more income).
Tourism receipts are expected to double from
RM1.9 bn in 2010 to RM3.8 bn in 2015
By launching tailored marketing campaigns, enhancing
flight connectivity and developing more products
targeted at the luxury market, we expect to shift the
mix of tourists to higher spending tourists. In addition,
the Blueprint will also create a greater variety of quality
products, thereby encouraging visitors to spend moreon
attractions and stay longer. The increase in these
key levers (visitor arrivals, average spend per day and
average length of stay) will drive Langkawis tourism
receipts to grow at 14% p.a. from RM1.9 bn in 2010 to
RM3.8 bn in 2015.
The Blueprint will create an incremental 4,200
jobs by 2015
The Blueprint will be a growth catalyst for Langkawis
tourism industry. More accommodation and commercialzones are
expected to be developed, leading to
generation of new jobs at hotels and retail shops.
The fragrant rice programme and integrated cage fish
farming initiative will create more jobs for farmers and
fishermen as well. As a result, the Blueprint is expected
to create an incremental 4,200 jobs, of which ~55%
will require vocational or certificate qualifications and
~45% will earn over RM2,000 per month.
Critically, the Blueprint will improve the livelihoods ofthe
local community by addressing current career
frustrations and opening up a new landscape of
opportunity. For example, local entrepreneurs will
benefit from healthier market competition given
strict enforcement against illegal operators. Similarly,
students who were previously deterred from entering
the tourism industry due to a lack of training
opportunities and uncertain work prospects will now
be able to pursue a good education at the Tourism
Academy followed by a guaranteed job placement
with a participating industry member.
Cumulative funds of over RM5 bn are required,
of which only 8% is expected to be publicly
funded
We estimate to spend over RM5 bn from 2011 to
2015 to implement the Blueprint initiatives. Of this
amount, ~84% will go towards capital expenditure
for the product initiatives, for instance, the building
of hotels, commercial zones and new attractions like
the Interpretive Centres.
We expect the private sector to participate actively in
these initiatives and contribute 92% of funding. The
remaining 8% that is funded by the public sector will
primarily go towards the acquisition of land for the
development of the accommodation and commercial
zones and the enhancement of baseline infrastructure
(e.g., agriculture dams). In the 2012 Budget tabled
on October 2011, RM420 mn was allocated towards
the implementation of the initiatives within thisBlueprint.
- 68 -
MSG027_SquareA4_inlay.indd 68MSG027_SquareA4_inlay.indd 68
2011-12-01 17:442011-12-01 17:44
