The Impact of Tourism on Economic Growth in Malaysia

Tourism and trading have been remarkably successful in Malaysia, with some experts attributing its economic growth to its tourism and trading industries.

Malaysia as A Top Tourist Destination

There are many reasons why Malaysia is an attractive tourist destination for travellers and investors alike. Many travellers decide to journey in a Northerly direction from Singapore in the South to the capital of Thailand in Bangkok.

In this way, travellers can experience picturesque scenes, exotic islands, traditional towns, and city life along the coastline. Travellers normally arrive with an itinerary planned, and others choose to backpack their way through the country.

How Tourism and Trading Generates Economic Growth

With more investors and traders looking to do business in Malaysia, it creates more jobs for the citizens of the country. This increases the country’s Gross Domestic Product (GDP).

This increase in GDP allows the infrastructure of the country to improve. This gives a boost to the country’s tourism industry. Tourists flock in their thousands annually to see the iconic Petronas Twin Towers in Kuala Lumpur. This influx of tourists brings even more money into the country.

Trading and Bartering in Malaysia

Many citizens of the country still engage in bartering the traditional way. Because informal trading is still popular, tourism creates more jobs and opportunities for lower-class individuals. This form of trading has a largely positive impact on Malaysia’s economy.

It is a great idea for people travelling the country to be familiar with trading and bartering conventions. When negotiating a price, play the low/high game by starting very low if their price is very high. But don’t look too desperate. Knowing about the exchange rates (USD/MYR) beforehand is a powerful tool in negotiation.

Tourism and trading will always benefit the economy of a country. Remember that trading is about power in any culture. It starts with respect and ends with both parties getting something out of the deal.