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V. Economic impact and fundingThe results of the Blueprint will double Langkawi’s tourism andtourism-related gross national income (GNI) from RM0.8 bnin 2010 to RM1.9 bn in 2015. This doubling is driven by anexpected increase in tourism receipts and additional agri- andaquaculture revenues from the farming and fi sheries initiative(categorised as ‘tourism-related’ income). There is also likely tobe further potential upside to the GNI as our forecast currentlyexcludes income that may be generated from real estate salesas well as the multiplier effect (as income from tourism fl ows intoother related sectors to generate more income).- 66 -MSG027_SquareA4_inlay.indd 66 2011-12-01 17:44


V. Economic impact and fundingThe results of the Blueprint will double Langkawi’s tourism and tourism-related gross national income(GNI) from RM0.8 bn in 2010 to RM1.9 bn in 2015. This doubling is driven by an expected increase intourism receipts and additional agri- and aquaculture revenues from the farming and fi sheries initiative(categorised as ‘tourism-related’ income). There is also likely to be further potential upside to the GNIas our forecast currently excludes income that may be generated from real estate sales as well as themultiplier effect (as income from tourism fl ows into other related sectors to generate more income).Tourism receipts are expected to double fromRM1.9 bn in 2010 to RM3.8 bn in 2015By launching tailored marketing campaigns, enhancingfl ight connectivity and developing more productstargeted at the luxury market, we expect to shift themix of tourists to higher spending tourists. In addition,the Blueprint will also create a greater variety of qualityproducts, thereby encouraging visitors to spend moreon attractions and stay longer. The increase in thesekey levers (visitor arrivals, average spend per day andaverage length of stay) will drive Langkawi’s tourismreceipts to grow at 14% p.a. from RM1.9 bn in 2010 toRM3.8 bn in 2015.The Blueprint will create an incremental 4,200jobs by 2015The Blueprint will be a growth catalyst for Langkawi’stourism industry. More accommodation and commercialzones are expected to be developed, leading togeneration of new jobs at hotels and retail shops.The fragrant rice programme and integrated cage fi shfarming initiative will create more jobs for farmers andfi shermen as well. As a result, the Blueprint is expectedto create an incremental 4,200 jobs, of which ~55%will require vocational or certifi cate qualifi cations and~45% will earn over RM2,000 per month.Critically, the Blueprint will improve the livelihoods ofthe local community by addressing current careerfrustrations and opening up a new landscape ofopportunity. For example, local entrepreneurs willbenefi t from healthier market competition givenstrict enforcement against illegal operators. Similarly,students who were previously deterred from enteringthe tourism industry due to a lack of trainingopportunities and uncertain work prospects will nowbe able to pursue a good education at the TourismAcademy followed by a guaranteed job placementwith a participating industry member.Cumulative funds of over RM5 bn are required,of which only 8% is expected to be publiclyfundedWe estimate to spend over RM5 bn from 2011 to2015 to implement the Blueprint initiatives. Of thisamount, ~84% will go towards capital expenditurefor the product initiatives, for instance, the buildingof hotels, commercial zones and new attractions likethe Interpretive Centres.We expect the private sector to participate actively inthese initiatives and contribute 92% of funding. Theremaining 8% that is funded by the public sector willprimarily go towards the acquisition of land for thedevelopment of the accommodation and commercialzones and the enhancement of baseline infrastructure(e.g., agriculture dams). In the 2012 Budget tabledon October 2011, RM420 mn was allocated towardsthe implementation of the initiatives within thisBlueprint.- 68 -MSG027_SquareA4_inlay.indd 68 2011-12-01 17:44

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