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TOURISM

BUSINESS
SURVEY
2020
Unfolding what the Malaysian
tourism player expect in 2020

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Tourism businesses have a significant
impact on Malaysia, making up 7% of the
country economy. However, the direct
effect from lower tourist receipts, as a
result of the Coronavirus (COVID-19)
outbreak, is estimated to result in an
immediate reduction in Malaysia’s gross
domestic product (GDP) growth.

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Tourism industry players such as
hoteliers, travel agents, recreational
and food and beverage businesses
were severely impacted by COVID-
19 and the latest movement control
order (MCO) by the Malaysian
government.

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Disruption to the tourism business is
likely to continue for many months
to come. Therefore, the Tourism
Educators Association of Malaysia
(TEAM) want to understand better
the current tourism business trend,
impact, and business needs from
COVID-19 outbreak.

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This survey assesses the potential impact of Coronavirus
(COVID-19) outbreak to tourism businesses and gauge
the tourism industry resilience and readiness

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Business Profile

1. The survey was conducted on 233 participants.


2. 56.4% of the participants representing travel agencies, 16% representing
budget hotels, 12.4% representing 3-star hotels, 6.7% representing theme
parks, 4% representing spa and wellness centres, and 2.2% representing
the food and beverage service providers.
3. Majority of the respondent were managing directors or directors of the
hospitality and tourism organisations.
4. 87.6% of the respondents had 50 or fewer employees and located in
Wilayah Persekutuan or Selangor.

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Business Profiles
Type of business

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Business Profiles
Type of respondents

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Business Profiles
Size of business

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Business Profiles
Business location

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Business Performance

1. In the past 3 months, most of the businesses reported much reduced


sales turnover, profit and investments and have retained most of their
employees.
2. In the next three months, these businesses expected sales, profit and
investments to reduce and will be decreasing number of employees.

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Business Performance
Tell us how your business has performed recently

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Business Performance
Tell us your future expectations of your business performance

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COVID-19 Impact

1. The COVID-19 situation has impacted tourism businesses in many ways.


2. In terms of Human Resource impacts, as a service industry, human
resources is essential and online services are less effective.
3. Majority of the industry players doubt that the sales will pick up in the
next three months, thus anticipating high losses.
4. Their number of staff would be structurally, and future investment in the
form of assets replacement and acquisition will drastically change.
5. The industry players will review and revise their business plan, trim
down the planned investment.

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COVID-19 Impact

6. They also plan to explore new markets and businesses to stay afloat and
reduce operational costs.
7. They consider changing their operation model, think about opportunities to
drive innovation and venture into collaborative opportunities, like mergers
and acquisitions.
8. Most of the industry players also plan to explore new markets and
businesses to stay afloat and reduce operational costs.
9. Startlingly, the majority of the respondent also claimed that they would
take no action, as they are expecting the COVID-19 issues to ease off
within the next few months.

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COVID-19 Impact
Impact on Business

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COVID-19 Impact
Impact on Human Resource Management

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COVID-19 Impact
Impact on business sales

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COVID-19 Impact
Business decision to absorb the impact of COVID-19

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Government Assistance

1. The government assistance offered to the business owners are well


accepted but is still insufficient.
2. Business owners are requesting for support in terms of business grants,
wage subsidies, tax reliefs, extended moratorium period, business advice
in terms of risk management and strategic planning, technological
expertise, training and human capital development.
3. The top three support requested includes business grants, wage subsidies
and tax reliefs.

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Government Assistance
Awareness on the financial measures offered by the government

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Government Assistance
Financial measures application

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Government Assistance
Financial measures application (based on type of business)

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Government Assistance
Is it sufficient?

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Government Assistance
Is it sufficient? (based on type of business)

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Government Assistance
Other type of support businesses needs to mitigate the impact of COVID-19

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Recommendation
The government need to provide continuous guidance and
support for recovery measures for the private and public
tourism sector, including organizers of tourism events and fairs.

Academician should be working closely with the government


and industry; providing much-needed expertise and support.

The tourism sector needs to keep an eye on the future, remain


optimistic and be ready when restrictions are lifted and
demand for holidays returns.

People will travel again, but their travel behaviour would


change. Tourism businesses need to learn and re-learn fast
and prepared for a sharp increase in holidaymakers post
COVID-19.

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Conclusion
COVID-19 showed that hospitality and tourism
players need to be flexible amid the pandemic
and economic uncertainties. Besides, a COVID-
19-style outbreak is very likely to occur again.

Therefore, tourism businesses need to be


prepared to face similar circumstances. This
unprecedented event will change the way the
industry players operates their businesses as
well as crafting future strategies.

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TEAM Tourism Educators Association


of Malaysia

Contact Us
03-5519 2069
TEAM Secretariat
Hotel UiTM
Universiti Teknologi MARA bit.ly/tourismeducators
Persiaran Raja Muda team.secretariat1@gmail.com
40450 Shah Alam, Selangor

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