Tourism industry contributing the world a six percent of gross domestic product (GDP) and hiring over 127 million people internationally (Holloway, 2002). The industry is recognized as one of the major industries in providing foreign exchange profit and generating employment to the people in the country. As for the case in Malaysia, the tourism industry is obvious that the amount of tourists arriving for business or vacation purposes as well as transient passengers’ en-route to other destinations have been increasing simultaneously every year. In 2009 the hospitality and tourism sector contributed RM26.6 billion to the Malaysia Gross Domestic Product (GDP) and it was ranked second, after the manufacturing sector, in terms of overall economic contribution (Ministry of Finance/Central Bank of Malaysia, 2010).
As noted earlier, in Malaysia, the hospitality and tourism industry has experienced a remarkable growth in the past few years and have been receiving strong support from the government. The growing number of tourist arrivals has led to an increase in the provision of hotel accommodation. Hotel and resort industries play a role in supporting the Malaysian tourism. many hotels in Malaysia are now opulent, with new hotels achieving the highest standards of presentation. Hotel and resort provide hospitality to the visitors or known as guests. There is no definite meaning when explaining the term of hospitality. People around the world have described the term ‘Hospitality Industry’ in different ways and modes. According to Mr. Murray Mackenzie from the School of Hotel & Tourism Management, hospitality industry is involving tangible and intangible qualities when in the process of delivering the service to guests.
The hotel and resort industry have been making historic contribution to the economic growth in Malaysia with some countries reliant on tourism as a major catalyst for growth and development. Growth in tourist arrivals increased by 9.5% in 2009 and the average increase in the last six years (2003-2009) has been 10.2% (Ministry of Finance [MOH, 2008). Although growth in tourist arrivals is above the national average for the industry worldwide, hotel development within Malaysia has been increasing at a rate that is higher than the increase in tourist numbers. This increase in available rooms has increased competition within the hotel sector and as a result, hotels now need to compete vigorously to remain viable. However, there have been trends that are currently affecting the competition in the hospitality industry in Malaysia. In the following research paper, some trends will be presented and explained the consequences of the industry in detail.
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