National Tourism Policy 2020 - 2030

Part A Part C © TRANSFORMATION AGENDA ® TRANSFORMATION STRATEGIES The Need For Transformation - 4 The Six Transformation Strategies - 11 Breaking Out Of The Comfort Zone - s 01 ~ Strengthen Governance Capacity - 12 Part B (!) DRIVING A TRANSFORMATION AGENDA ~ 02 Create Special Tourism Investment Zones - 14 03 The Transformation Process - 7 ~ Embrace Smart Tourism - 16 Goal - 8 04 Strategic Direction 2020 - 2030 - 9 ~ Enhance Demand Sophistication - 18 Drivers ofTransformative Change - 10 05 ~~ Practise Sustainable and Responsible Tourism - 20 ., '~ --~~ 06 d •-. Upskill Human Capital - 22 ® Part D PRODUCT AUGMENTATION STRATEGIES - 24 Part A TRANSFORMATION AGENDA THE NEED FOR TRANSFORMATION To harness the competitiveness of Malaysia's tourism industry in an increasingly competitive and uncertain world by increasing revenue, securing partnerships and investments, empowering local communities, and ensuring the sustainability and resilience of the industry. BREAKING OUT OF I THE COMFORT ZONE There are signs that Malaysia's tourism industry is stuck in a comfort zone. Existing tourism products are becoming "tired" and unattractive due to the lack of creativity and innovation, resulting from the over-dependence on the government and a silo mentality. The inability to harness a service culture has resulted in a real or perceived deterioration in service quality in comparison to our ASEAN neighbours. Poor destination management has also led to unsustainable physical development and negative tourist experiences. Finally, an over-reliance on traditional marketing and promotion has left Malaysia behind in terms of embracing Smart Tourism. Hence the need to re-invent and transform the industry so as to remain competitive. Sameness ~I and lack of competitiveness Negative tourist experience ~ SILO MENTALllY AND DEPENDENCY LOW SERVICE OVER-RELIANCE SYNDROME QUALllY ON TRADITIONAL MARKETING - ~ LACK OF . & Tourism INNOVATION Absence of Bypassed by destinations service culture Industrial becoming less Revolution 4.0? attractive

■ NATIONAL TOURISM POLICY 2020 - 2030 5 THE TRANSFORMATION PROCESS STRATEGIC DIRECTION ............ -~ :·············· · ·••··•····· ······· PILLARS - - - - - - - - - - - z . Competitivess Sustainability Inclusiveness 0 ~ ~ •...... .......................... .. ... -------------- c:: 0 :· • • • • • • • • • • • • • • • • • • • • • • • • • • • • • STRATEGIES u. V'l z <:;7 Strengthen Governance /41 Enhance Demand <( c:: Li Ca pacity ~ Sophistication f- Create Special Tourism Practise Sustainable & Investment Zones fu) Responsible Tourism Embrace Upskill Human Smart Tourism Capital •• •••••••••••••••••••••••• •••••••••••• -------------- z 0 .: ·········•• •······••········ VALUE ADDING i= <:;7 Scaling Up Strenghtening ~ Li Tourism Products Enablers z LU ~ I.!) Adding Depth to the Removing => <( Tourist Experience Impediments •...... ..... .... ... .. ..... .. .. ..... ... { > - - - - - - - - - - - - - ' ■ NATIONAL TOURISM POLICY 2020 - 2030 7 GOAL To formu late a National Tourism Policy based on t he princip les of competitiveness, sustainability and inclusiveness to place Ma laysia as a global top ten tourism destination in both arrivals and receipts. ~ STRATEGIC DIRECTION : 2020 - 2030 Transform Malaysia's tou rism industry by harnessing public-private sector partnerships and embracing digitalisation to drive innovation and competitiveness towards sustainable and inclusive development in line with the United Nations Sustainable Development Goals. DRIVERS OF TRANSFORMATIVE CHANGE In line with the Strategic Direction, six Transformation Strategies are formulated to drive the transformative change. These strategies are supported by 22 strategic actions and 32 tactics. TRANSFORMATION STRATEGIES

STRATEGIC ACTIONS TACTICS ■ NATIONAL TOURISM POLICY 2020 - 2030 10 Part C TRANSFORMATION STRATEGIES 01 02 Strengthen Create Special Tourism Governance Investment Zones Capacity 03 04 Embrace Enhance Demand Smart Tourism Sophistication 05 06 Practise Sustainable Upskill Human and Responsible Capital Tourism ■ NATIONAL TOURISM POLICY 2020 - 2030 11 TRANSFORMATION STRATEGY 1 Strengthen Governance Capacity 0 Strategy Transforming the governance capacity of tourism-related agencies In Malaysia to harness their tourism core skills 0 Rationale Strengthening coordination and the governance capacity of more than 40 government agencies and local authorities directly or indirectly involved in tourism development will improve the delivery of competitive tourism products and memorable tourist experiences ■ NATIONAL TOURISM POLICY 2020 - 2030 12 4 Strategic Actions 8 Tactics Strengthen high level coordination to drive the implementation of the National Tourism Policy Tactic 1 : Establish a National Tourism Council (NTC) Tactic 2: Strengthen MOTAC's authority in tourism planning and destination management Enhance tourism core skills of related government agencies to support the implementation of the National Tourism Policy Tactic 1 : Establish a tourism academy for government officials involved in tourism Increase the capacity and tourism core skills of local authorities that are involved in destination management Tactic 1 : Empower local authorities to be actively involved in tourism destination management Tactic 2 : Encourage local authorities of major cities to set up in-house MICE units Embrace innovative governance models to facilitate participatory processes and public-private sector partnerships Tactic 1 : Adopt a collaborative management model for island tourism Tactic 2: Embrace tourism concessions to strengthen the ecotourism component and sustainable financing of national parks Tactic 3: Reduce the role of government in managing tourism attractions through PPPs ■ NATIONAL TOURISM POLICY 2020 - 2030 13 TRANSFORMATION STRATEGY 2 Create Special Tourism Investment Zones 0 Strategy Creating Special Tourism Investment Zones (STIZs) to drive the development of high value and innovative tourism products and services in response to growing market sophistication 0 Rationale Public private partnerships are crucial in transforming Malaysia's tourism industry and the designation of STIZ's will create a pro-investment environment besides sending the right signal to international and homegrown investors

■ NATIONAL TOURISM POLICY 2020 - 2030 14 2 Strategic Actions 5 Tactics Spearhead tourism innovation through Public-Private Partnerships (PPP) Tactic 1 : Designate STIZs to stimulate high value tourism development Tactic 2 : Issue Request for Proposals for key tourism (PPP) projects as growth accelerators w ithin the STIZs Create a pro investment environment through targeted business facilitation Tactic 1 : Provide Flagship Matching Grants for innovative tourism projects Tactic 2: Ease access to the Special Tourism Fund/Tourism Infrastructure Fund for tourism SM Es Tactic 3: Intensify capacity building for tourism SM Es TRANSFORMATION STRATEGY 3 Embrace Smart Tourism 0 Strategy Embarking on a comprehensive digitalisation journey to transform Malaysia's tourism industry towards Smart Tourism 0 Rationale Embracing the whole spectrum of digitalisation will provide the necessary tools for t he tourism industry to be internationally connected, perform rigorous data analytics of tourism futures and shorten the supply chain ■ NATIONAL TOURISM POLICY 2020 - 2030 16 4 Strategic Actions 4 Tactics Optimise e-marketing through smart partnerships between the government and the tourism industry Tactic 1 : Step up synergy between the government and industry players in driving digitalisation Embrace but regulate the Sharing Economy to encourage innovation Tactic 1 : Leverage on the Sharing Economy to innovate the informal tourism sector and rural tourism STRATEGIC ACTION 3 Advance the use of Big Data Analytics in tourism planning and management Tactic 1 : Leverage on Big Data Analytics to support data driven decision making and future planning Consolidate the Visitor Economy to optimise the tourism value chain Tactic 1 : Increase the Visitor Economy of rural areas through digitalisation ■ NATIONAL TOURISM POLICY 2020 - 2030 17 TRANSFORMATION STRATEGY 4 Enhance Demand Sophistication 0 Strategy Nurturing demand sophistication by increasing the depth of the tourist experience in support of customised and discerning travel 0 Rationale Influencing tourism demand to attract high value tourists as well as catering to the needs of customised travel both as a mainstream and niche travel form is essential in enticing tourists to stay longer and spend more at multiple destinations ■ NATIONAL TOURISM POLICY 2020 - 2030 18 4 Strategic Actions 6 Tactics Undertaking rigorous and sophisticated tourism analytics Tactic 1 : Produce sophisticated market intelligence to support future planning Understand and cater to customised travel demand Tactic 1 : Cater to the needs of customised travel lers with high discretionary spending Tactic 2 : Encourage high value domestic tourists to participate in creative tourism activities at cultural tourism attractions Tactic 3 : Restore air connectivity to traditional high value markets Leverage on international designations as part of destination branding Tactic 1 : Brand Malaysia as a premier ecotourism destination Remove impediments that restrict high value tourism Tactic 1 : Curtail 'zero cost tours' that impedes the growth of the tourism industry along the value chain ■ NATIONAL TOURISM POLICY 2020 - 2030 19

TRANSFORMATION STRATEGY 5 Practise Sustainable and Responsible Tourism 0 Strategy Aligning the National Tourism Policy towards the United Nations Sustainable Development Goals (UNSDGs) by reinforcing the role of tourism as a catalyst for economic development in a sustainable, responsible and inclusive manner 0 Rationale The UNSDGs provide the appropriate benchmarking for the sustainable growth of Malaysia's tourism industry that is cognisant of the role of tourism in promoting inclusive development as well as for the industry to promote responsible consumption and practices ■ NATIONAL TOURISM POLICY 2020 - 2030 20 4 Strategic Actions 4 Tactics Champion responsible tourism especially at environmentally fragile areas Tactic 1 : Advocate responsible tourism in the management of fragile tourism destination areas (UNSDG Goal 12) STRATEGIC ACTION 2 Manage the development of tourism islands in synergy with conservation Tactic 1 : Reposition the tourism islands as premier marine ecotourism destinations STRATEGIC ACTION 3 Practise inclusive tourism development to include women, youth and disadvantaged groups Tactic: Reinforce the role of tourism as a catalyst for rural empowerment (UNSDG Goal 8) Monitor the tourism industry's contribution to the UNSDGs Tactic 1 : Develop a data reporting mechanism for sustainable tourism that is aligned to the UNSDGs (Goals 8, 14 and 15) ■ NATIONAL TOURISM POLICY 2020 - 2030 21 TRANSFORMATION STRATEGY 6 Upskilling Human Capital 0 Strategy Nurturing the development of a service culture through capacity building and human capital development that cascades seamlessly from the macro level to the destinati on level 0 Rationale Ensuring an attractive career path in tourism by transforming human capital development is key towards the creation of a service culture that personifies the warmth, hospitality and professionalism of the people in the tourism industry ■ NATIONAL TOURISM POLICY 2020 - 2030 22 4 Strategic Actions 5 Tactics Improve the quality of tourism education and the credibility of the profession Tactic 1 : Enhance collaboration between the public sector, private sector and academia in streamlining human capital development STRATEGIC ACTION 2 Value add Smart Tourism content in education and training Tactic 1 : Expand the use of digital technology in tourism and hospitality programmes Entice youths with fresh ideas and new skill sets into the tourism profession Tactic 1 : Support the progression and career path of tourism startups Enhance professionalism through specialised training Tactic 1 : Elevate the career path development of women and youths in tourism through upskilling Tactic 2 : Revisit the role of tour operators and tour guides in response to growing demand sophistication ■ NATIONAL TOURISM POLICY 2020 - 2030 23 I For further information please contact: Ministry ofTourism, Arts and Cu lture Tourism Policy and International Affa irs Division Level 13, No. 2, Tower 1, Ja lan PS/6 Precint 5, 62200 PUTRAJAYA Publisher's Copyright© All rights reserved. No part of this publication may be reproduced, copied, stored in any retrieval system or transmitted in any form or by any means-electronic, mechan ical. photocopying, record ing or otherwise, without prior permission of Ministry of Tourism, Arts and Culture, Malaysia.