The Tourism Industry In Malaysia Tourism Essay

This chapter includes parts. Part 1 is about the background of the tourism industry in Malaysia. Part 2 is about the problem statement. The following part is about the objectives of study and hypotheses of the study. Last part is significance of the study.

The tourism industry in Malaysia can be considered as one of the most important and strategic industries in the Malaysia sector. Compared with other industry sector in Malaysia, the tourism industry has been estimated to boost the Gross Domestic Income so that Malaysia can be a developed nation by 2020. For example, the estimation about China tourism industry is expand accordingly to Table 1 with market share of 8.6% and will have a drastically growth in future around 8.0% in year 2020.

Since the china have focusing on increase the tourism industry to boost the gross domestic income, Malaysia government are also trying to promote Malaysia as tourism country especially through a lot of advertising from inside or outside of Malaysia region. Currently, there are advertising Malaysia tourism industry with the slogan of ‘Malaysia Truly Asia’.

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The Malaysia tourism industry are developing because from the above table 2 show that the number of hotel was supply in Malaysia are there same amount that is 2,373 from to 2008 to 2009 but the number of hotel in every state are increasing especially for Kuala Lumpur, Selangor, Perak, Pulau Pinang, Johor and Sabah . There are only two state which numbers of hotel are decreasing are Putrajaya and Pahang. Furthermore, the total numbers of room supply are increasing about 1.9% from 165739 rooms to 168844 rooms for 2009. According to the table 2, there are increasing numbers of hotel and rooms by state showing the trend of tourist are increasing.

The tables 3 are showing the number of tourist arrival from outside of Malaysia on year 2008 and 2009.The total number of foreigner tourist arrival Malaysia are increasing from 22052488 people to 23646191 people and the percentage increase about 7.2%. There are some factors which lead to encourage outside tourist to visit Malaysia, although there are a barrier of distance between other country and Malaysia but the number of foreigner are still increasing from year 2008 to 2009. Although there are distance but the tourism keep visiting Malaysia from one year to one year.

1.3 Problem Statement

With the fast development of information communication technologies (ICTs) and the expansion of the Internet has affected the tourism industry structures around the world. New technologies have been adopted in the tourism industry in lot of country for more than 30 years, and the trend is likely to continue into the future. For example China, as a fast-growing developing country in Asia, is gaining importance in the international tourism market for its historical and cultural attractiveness as a destination. It is also becoming a booming tourism source country as its population starts travelling overseas. This study examines how the ICT and Internet gradually change the tourism industry structure in China; how important such changes are, and to where such changes will lead China’s tourism industry. Does Malaysia have the same situation such as China? In this research, the main purpose to conduct is to examine the use of information technology on Malaysia’s tourism agencies.

As we know IT’s become instrumental to boost their competitiveness in the tourism industries. The evolution of ITs’ processing power in the last decade have change their capabilities as they constantly increase the ability of technology to influence the tourism industry. With the innovation in technology, ensure the tourism industry bigger market which had leaded to increase the Gross Domestic Income. Moreover, as the technology going advance bring lot change to tourism industry and bring more advantage to this industry. What are the factors that give a positive impact to tourism from the use of information technology? This survey being conducted to explorer the factor that encourages the use of information technology on Malaysia’s tourism agencies.

Other than that, as many tourism agencies acknowledge that the impacts of information technology to Malaysia tourism industry are becoming more obvious nowadays. Today tourism industries are very different compare to era of 90’s, especially the trend of tourist are changing also has change drastically especially after population of human is increase from year to year. Is that socio-economic influence a tourist choosing their vacation? Socio-economic is the study of the relationship between economic activity and social life. Socio-economic includes age, salaries, education, gender and others. Both high salaries and low salaries tourist will choose the dissimilar vacation. The level education also may effect for the choosing of one location for vacation. Males and females are also preferred to difference location for vacation. Mostly probably we will know what are the personal traits of tourist which lead them to choose one location as their vacation?

As the diffusion of information technology occurs globally lead a use of different type of information technology for Malaysia tourism agencies. For example in tourism is the re-engineering of the booking process, which becomes rationalized and enables both consumers and the industry to save more time especially in identifying, reserving and purchasing tourism products. Moreover, tourists will be able to browse through the Internet and identify a rich variety of source from different information technology in order to make travel choices suited to their personal requirements. For example the Computer Reservation Systems (CRSs), Global Distribution Systems (GDSs), the emerging super highway by using the Internet and the World Wide Web and other information technology. Which is the most capable type of information technology being use by the tourist especially when they wanted to go for a vacation in Malaysia?

1.4 Objectives of study

The objectives are to examine the use of information technology in Malaysia’s tourism industry.

The specific objectives are:

To identify factor that encourages the use of information technology on Malaysia’s tourism industry.

To examine the tourist personnel trend from the innovation of information technology on Malaysia’s tourism industry.

To examine the relationship between different type of information technology on Malaysia’s tourism industry.

1.5 Hypotheses of the study

Based on the study, we are finding out whether the factor that encourage use of information technology on Malaysia’s tourism industry got relate with the use of different type of information technology through the tourist personal trend from innovation of information technology on Malaysia’s tourism industry. There are list of for the hypothesis development:

H1: Factors that encourage use of information technology will predict significantly the different type of information technology.

H2: There will be a significantly relationship between factors that encourage use of information technology and tourist personal trend from the innovation of information technology

H3: tourist personal trend from the innovation of information technology will significantly predict the use of different type of information technology.

H4: tourist personal trend from the innovation of information technology will mediate the relationships between that encourage use of information technology and the use of different type of information technology.

1.6 Significance of the study

This study will show the trend of tourism industry in Malaysia can help academicians or practitioner to improve and enhance their understanding about the factors that encourage use of information technology are the most important factor in Malaysia tourism industry and how it can how it can give impact to the use of different type of information technology in tourism industry through the trend of tourist personnel trend from innovation of information technology. Through this study also can help the people of this country to identify the drastic changing in tourism industry nowadays because of the influence of information technology in this industry. As a result, most of tourism agencies going to use information technology to advertise and this encourage tourist choose different type of information technology for purpose to travel.

The finding from the study can help the tourism agencies or researcher to more understand the evolution of ITs’ processing power in the last decade have change their capabilities as they constantly increase the ability of technology to influence the tourism industry. There is different capable type of information technology being use by the tourist especially when they wanted to go for a vacation. With the huge no of tourist from outside and inside of Malaysia has leaded to increase the Gross Domestic Income.

Besides that, the trend of tourist are changing also has change drastically especially after population of human is increase from year to year. Through this study, can help tourism or researcher more focus on the personnel trend of tourist to ensure every aspect of tourist behavior being update accordingly to current situation.

LITERATURE REVIEW

2.1 Introduction

This chapter is discussing about use of information technology in tourism industry.

2.2.1 Literature review

As the tourism industry are growing up in other countries like China tourism industry compare with Malaysia tourism. Although with new form of tourism has grow rapidly but the size and destination of Chinese outbound travel are still become an obstacle to China because of their government policies. The CPC Central Committee at its conference about economy in late 1998 giving opinion that the tourist industry as one of the new growth points of the national economy in the years to come (Qian, 1999) Therefore, Hong Kong, Macao, some of the ASEAN (Association of Southeast Asia Nations) countries, Australia and South Korea have choose China as their major target market by setting up a variety of promotion campaigns. Based on the state statistics, among the country’s 5,201 hotels entitled to accommodate overseas visitors in 1997, 734 were joint venture hotels with over 330,000 hotel bed-spaces, making up 23.5 per cent of the grand total of hotel bed-spaces in the country (CNTA, 1998). Increasingly, ICTs play a critical role for the competitiveness of tourism organizations and destinations as well as for the entire industry as a whole (UNWTO, 2001).Based on the previous researcher, tourists who searched on the Internet mostly spend more time at their destinations as compared to those who consult other information sources.(Bonn, Furr, & Susskind, 1998; Luo, Feng, & Cai, 2004).

There are other countries resources about tourism industry which to use as variable to measure factor the use of information technology that affect Malaysia tourism industry. By using some example about the advantage of information technology especially online application as variable to test the factor will give impact to the Malaysia’s tourism. Those variables may include pricing, less time spent on waiting and planning more time on enjoyment, increased the number of choice for consumer, effective mechanism to air complain, and many other factors. Other than that, the internet provides a best solution to sell their products globally to potential travelers at anytime. For example, the supplier can monitor their servers by depend on the display information of product and services at an electronic speed (Inkpen, 1998: Law, 2000). As in the modern era, Information Communication Technologies (ICTs) have impact on the process of how business is performed and how organizations compete with it (Porter, 1985, 2001; Porter & Millar, 1985). There are reason of encourages the use of travel agencies is because personal agencies be able to provide personal information and advice to traveler (Palmer and McCole(1999) ; and walle(1996). For tourist, they make reservations and receive tickets at home through travel websites which can save their time on waiting and planning (O’Connor & Frew, 2001). As we know, there are factor which emphasizes the online booking for air ticket because this will convenient the tourist. Based on information technology applications, there are also e-shopping which provides a large geographic coverage that allows consumers to buy from a great variety of product when they shop at home (Peterson et al., 1997).

Moreover, ICTs also become a very effective mechanism for consumers to make air complaints. Based on previous record there are less than 5 percent of customers who were dissatisfied and already voiced out their complaints using online application (Albrecht & Zemke, 1985). For example Electronic Word-Of-Mouth (WOM) becomes useful tool to voice complaints about brands through websites, chat rooms and consumer forums (Gelb & Sundaram, 2002). There are some sources call Untied.co is probably one of the most famous examples for one individual who not only used his website to complain against United Airlines himself but also to accumulate thousands of complaints from other traveler. The research being carried up to know whether Malaysia tourist using information technology when they want to travel because of is depend on the effective mechanism to voice some complain. Nowadays, individuals have enough power to take on powerful organizations such as airlines (Buhalis, 2004).This show how effective the impact of information technology on tourism industry around whole world.

In addition, according to (Shea, Enghagen, and Khullar, 2004) have illustrated a real case “Yours is a very bad Hotel” Which publish the unpleasant experience made by at least seven newspapers and magazines report. In this literature review, (Werthner and Ricci, 2004) have found that the tourism industry is leading through e-Commerce applications. This application being applied in many Malaysia tourism agencies because of the effeteness of information technology. The information technology was fully supports by Three-dimensional (3D) interactive websites have attracted the online consumer to do online purchases, and to create loyalty (Fiore, Kim & Lee, 2005).

Furthermore, tourists can get visualized tourism information from digital maps with aerial and satellite images in both two dimensions and even three dimensions (Raggam & Almer, 2005).With this kind of information technology will lead to the factor which encourages Malaysia tourism industry to growth stable. This study reviewed the literature to determine factors encourage the use of information technology on Malaysia’s tourism industry.

In this literature review, the objective show that the impacts of information technology to Malaysia tourism industry are becoming more obvious nowadays until change the personnel trait of the tourist when choosing one location as their vacation. This may involve the socio-economic about study of the relationship between economic activity and social life. Travel and holidays are one of the most expensive items purchased regularly by households around the world and it represents a significant proportion of individual’s annual budget. The Internet has changed tourism consumer behavior dramatically (Mills & Law, 2004). Moreover, majority of the customers search for travel related information, air ticket bookings using online, room reservations by online and other by online purchases themselves by travel agencies to undertake this process for them (Morrison et al., 2001). According to (Gursoy and McCleary, 2004) already have developed a comprehensive theoretical model that integrated all psychological, economics, and processing approaches into a cohesive whole for understanding tourists’ information by seeking their behavior. Normally, through the increasingly of profiling will bring a better personalization, customization and interaction between consumers and tourism organizations.

According to (Pouloudi, Vassilopoulou, and Ziouvelou, 2002) have stated that the Internet users’ profiles mostly divide into seven e-social factors, namely: geography, culture, regulation, economic, professional, social capital, and social structure. Although the online travel sales and marketing volume keeps increasing, they not depend fully to information technology application but traveler or tourist still depend on travel agents for some human touch and service( Palmer and McCole and Travel Association of America, 1998). Mostly probably when the web users search for travel information, they will tend to browse online about their holiday vacation through multiple websites. As a result, their start finding information in a generic search engine likes Google. By ensure there are systematic applications such as recommender system to ensure assistance in the social process of indicating about what options are better suited in a specific case for some individuals (Resnick & Varian, 1997, Gretzel et al,, 2004). With this recommender system can provide valuable information to assist consumers’ decision making process (Ricci, 2002). Other than that, with this kind of recommender system can help travelers when facing complex decision-making process by correlating those to other consumers and their preferences and also by identifying better customer requirements (Fesenmaier, Werthner, & Wöber, 2003, Ricci & Werthner, 2002, 2006). In Malaysia, majority of the tourist still depend on tourism agencies to choose their vacation. Selection of vacation destinations and the choice of leisure activities throughout the vacation, and with other travel-related decisions are based on personality (Mardrigal, 1995).

In some of the information search being make, behavior has a significant relationship with demographic and lifestyle characteristics. For example in online ticket reservation booking for room of hotel which can allow consumers to set their online profile and to include personal data that suit their preference. Thus, with such application can support tourism organizations to provide better service in future to the consumer especially the tourist. In tourism if there are understandings how different market segments appreciate different tourism products or services also can increase the possibilities to put suitable products forward for customer. For example, Lastminute.com is one of the web collects suitable information to personalize the weekly newsletter that being sent to consumers and also trace what parts of the newsletter are accessed by most of the consumers so can provide the right personalize in future. For tourism agencies in Malaysia, there are some web which provides demographics and life cycle information about customer profiling. For example, when choosing a vacation for holidays depend on joint decision-making process between husbands and wives mostly. Other than that, children also can play a key role in the decision making process when involve choosing one location for vacation (Wang et al., 2004).With the attractive of the web because of games and chat-rooms on the Internet on some of the travel agencies web encourage some children often seek fun. As a result, children become the target of tourism attractions especially by provide some of interactive games in order to attract children to visit and engage with their websites (Tufte & Rasmusse, 2003). Nowadays, consumer trend when using information technology to search information involve all layer of age. According to (Graeupl, 2006) the consumers aged between 50 to 60 are likely to become the most higher category involve in searching for flight information and accommodation are but most of them were not interested in package holidays. As a result, probably we will know there are different personal traits of tourist which lead them to choose one location as their vacation.

2.2 Proposed Theoretical Framework

There are independent variables such as the factor that can influence type of information technology on Malaysia’s tourism industry. The independent variables in this research are factor that encourages the use of information technology on Malaysia’s tourism industry and the personnel traits of tourist are mediating variable. Factor there are encourage the use of information technology include the element of:

Require less time and planning

Price cheaper

Effective mechanism to air complain

Easy for making payment

Increase of the number of choice for tourist

The use of it without border or region barrier

Virtual communities

Meanwhile the dependent variable is the type of information technology use in tourism industry.

The effective between factors that encourage the use of information technology on type of information technology through the personnel trait of tourist is show in diagrammed in figure 1:

Independent Variables

Factor of the use of IT on Malaysia tourism industry

Time and planning

Price

Effective to air complain

Easy for making payment

number of choice for tourist

The use without border or region barrier

Virtual communities

Dependent Variables

Demographic variable

Type of information technology on tourism industry

Personnel trait of tourist

Figure 1: Theoretical framework to describe effect between the factors that encourage the use of IT on type of information technology on tourism industry through personnel trait of tourist.

2.3 Hypothesis Development:

A hypothesis of this study will develop to check the factor there are encourage the use of information technology on type of information technology through personnel trait of tourist. There are sample of 100 survey form being taken from different state in Malaysia to test the variable. The question is whether there is an effect between these variables.

H01: Factors that encourage use of information technology will predict significantly the different type of information technology.

Ha1: Factors that encourage use of information technology will not predict significantly the different type of information technology.

H02: There will be a significantly relationship between factors that encourage use of information technology and tourist personnel trend from the innovation of information technology.

Ha2: There will be no significantly relationship between factors that encourage use of information technology and tourist personnel trend from the innovation of information technology.

H03: Tourist personnel trend from the innovation of information technology will significantly predict the use of different type of information technology.

Ha3: Tourist personnel l trend from the innovation of information technology will not significantly predict the use of different type of information technology.

H04: Tourist personnel trend from the innovation of information technology will mediate the relationships between that factor encourage use of information technology and the use of different type of information technology.

Ha4: Tourist personnel trend from the innovation of information technology will not mediate the relationships between factor that encourage use of information technology and the use of different type of information technology.

Chapter 3: Methodology

3.0 Introduction

This chapter describes the research methodology used throughout the study. The study is to measure what is relationship between variables: factors that encourage the use of information technology, type of information technology and the personal trait of tourist. Topic included in this chapter is the overall research design which consists of seven chapters. First part is about the introduction, seconds is about the research design, third is data collection method ,fourth is sampling design, fourth is about the researcher instrument ,fifth involve measurement scales, sixth is data processing and last part is about data analysis statistic .

3.1 research design

In the research design, there are an answer questions like “how” or “why” in designing the questionnaire (Robert K. Yin, 1994). In developing the questionnaire, there no fast rules. However there are some guideline that help prevent the most common mistake being make by researcher’s in develop a questionnaire. There criteria must be emphasized such as to avoid leading and loaded questions.

Moreover, use of questionnaire techniques to collect data for this study. By planning on the research question can ensure the two criteria a questionnaire to meet the researcher’s purpose (Zigmund, 2002).The questionnaire must have relevancy and accuracy to objective. The use of word may bring to some of misleading thought (Herbert Spencer, 1820-1903). Thus, the questionnaire must be based on capability to avoid any order bias.

There are also quantitative data which the number that can be used to measure the variable. There are either descriptive which mean subjects usually measured once or experimental which mean subjects measured before and after a treatment in the quantitative research designs (Will G Hopkins, 2000). When measurement the variable from theory it more on the numbers, and the neutrality makes them become the source of remedial suggestions ( Kuhn, 1961).

Other than that, quantitative data very efficient because it be able to test the hypotheses but may miss some of contextual detail (Miles & Huberman,1994).Moreover, the qualitative approach is a general way of thinking about conducting qualitative research. It describes, either explicitly or implicitly, In-Depth Interviews.

3.2. Data collection method

Data refer to simply facts of certain phenomena (Zigmund, 2002). There are two type of data collection which divides into primary data and secondary data. The observed or collected directly from first-hand experience is called primary data .Other than that, published data and the data collected in the past or other parties, is called secondary data. Moreover, all data are classified into qualitative or quantitative from the primary data and secondary data.

3.2.1 Primary data

This study utilized primary data collected survey in different state in Malaysia. A questionnaire was sent to a random sample of 100 respondents near to vacation which have many tourists near different state in Malaysia. A personal questionnaire was designed to solicit firstly: socio-economic profile of respondents; and secondly, to measure some consumer attitudinal dimension towards fundamental aspects of choosing a vacation using information technology which include time and planning, price, effective to air complain, easy for making payment, number of choice for tourist, the use without border or region barrier, and virtual communities.

The socio-economic variables include: age, gender, race, education, income level and occupation. Likert scales were employed to measure the intensity of the consumers’ attitude towards the proposed concepts or statements. (Fatimah Mohd Arshad et al, 2001).

3.2.2 Secondary data

Secondary data are usually historical, already assembly, and do not require access to respondents or subjects. The fact finding of it is aimed at collecting descriptive information to support decision making. The use of secondary data is to get more accurate information. Secondary data being used as the research design due to primary research and can provide a guide which the collected primary data results can be compared to it.

3.3 Sampling design

3.3.1 Target population

Majority of the target population is focus on tourist from different state in Malaysia.

3.3.2 Sampling Elements

The study is to choose different tourist from different age, race and country.

3.3.3 Sampling Technique

There are several ways of sampling technique for taking a sample. The methods are probability and non-probability sampling techniques. A probability sampling scheme is one in which every unit in the population has a chance (greater than zero) of being selected in the sample, and this probability can be accurately determined. Non-probability sampling is a sampling technique in which the units of the sample are selected on the basic of person judgment or convenience. Convenient sampling is a procedure used to obtain those units or people conveniently available. Moreover, convenience sampling being use because it is a low cost and the list of population was took randomly.

3.3.4 Sampling Size

In this study, survey form being distributed to 100 respondents of tourist from different age from different area.

3.4 Research Instrument

There are questionnaire being used for data collection. The questionnaire involve the combination of the questionnaire on factors that encourage the use of information technology, personal trait of tourist, and the type of information technology being use by tourist in tourism industry. The questionnaire being set up and modified based on the objective of study.

The factors that encourage the use of information technology

The questionnaire on factors that encourage the use of information technology was measured using the factor scale developed by (Dimitrios Buhalis and Maria Cristina Licata, 2004).The scale comprised of seven parts such as time and planning, price, effective to air complain, easy for making payment, number of choice for tourist, the use without border or region barrier, and virtual communities. There are 5-point likert scale was use ranging from strongly disagree(1), disagree(2), partly agree(3), agree(4), strongly agree(5).

The personal trait of tourist

The personnel trait of tourist was measured using example develop by (Rob Law, Kenith Law, and James Wong, 2004).The questions pertaining to the respondents’ gender, ethnic, age, income, marital status, education, employees status, country origin, and travel purpose. Respondent need to choose one of preference that are suitable for them .Moreover, the choices of questions are already classified.

3. The different type of information technology

The different type of information technology was measured using different type IT scale developed by (D. Buhalis and M.C. Licata, 2004). The scale consisted of type such as World Wide Web, Computer Reservation Systems (CRSs), Global Distribution Systems

(GDSs) and other. The 5-point likert scale was use ranging from strongly disagree(1), disagree(2), partly agree(3), agree(4), strongly agree(5).

3.5 Measurement Scales

A scale being defined as any category of item which being progressively according to value or magnitude. For normally there are four types of measurement scales used in research such as nominal, ordinal, interval, and ratio scales. In this study, only nominal and interval scales being use. Interval scales being use to test variable in section 1 and 3 and measure the different in the choice making of respondent. Nominal scale used in section 2 to measure the demographic variable of respondent.

3.6 Data processing

In this study, the SPSS (Statistical Package for the Social Science) software version 17 will use to process the data being collected. SPSS data input be coding and transform to output through SPSS software. All the input be collected being put into the SPSS input to get the more accurate and reliable.

3.7 Data Analysis

3.7.1 Descriptive Analysis

By changing the raw data into a form that will ensure the output is easy to understand and interpret it known as descriptive analysis (Zikmund, 2002). It also can rearr