MALAYSIA
Market Profile
Overview
$2.0-2.5bn
In 2014, Malaysia was Australia’s seventh largest inbound market for
visitor arrivals, eighth largest market for total visitor expenditure and
12th for visitor nights.
Potential to be worth
by 2020
Findings from Tourism Australia’s Consumer Demand Project indicate that Malaysian
leisure travellers look for (in order of importance) safety and security, value for money
and interesting attractions when choosing a holiday destination. The Great Barrier
Reef, wildlife and cities are the most appealing Australian attractions. Aquatic wildlife
and shopping are the most preferred experiences.
324,000
1
Visitor arrivals
(á 17 per cent)
Aviation routes from Malaysia to Australia3
$1.1bn
Europe
Total spend
(á 14 per cent)
2
Kuala Lumpur
Override Show
6.8m
Visitor nights
(á 10 per cent)
2
0
Brisbane
Gold Coast
Feb-Mar and Sep
Booking peak period
Perth
Sydney
1
Melbourne
Chinese New Year, Jul
and school holidays
Travel peak period
Which airlines3 do Malaysian visitors
use to travel to Australia?
Airline
2010
2011
2012
2013
Air Asia X
46%
42%
48%
49%
53%
Malaysia Airlines
26%
32%
31%
32%
30%
Singapore Airlines
12%
12%
8%
6%
5%
4%
4%
3%
3%
3%
12%
11%
10%
10%
9%
100%
100%
100%
100%
100%
4
Emirates
Others
Total
2014
1. Source: Department of Immigration and Border
Protection as at year ending December 2014
2. Source: International Visitor Survey, Tourism
Research Australia, December 2014 quarter
3. Source: CAPA-Centre for Aviation, Tourism
Australia analysis
4. Table includes direct and indirect capacity.
Source: Department of Immigration and
Border Protection
Visitor profile2
HOLIDAY
BUSINESS
»»124,500 arrivals (53%*)
»»56,400 arrivals (24%*)
»»18,300 arrivals (8%*)
»»$2,489 spend per trip
»»$2,708 spend per trip
»»$3,434 spend per trip
»»$235 spend per night
»»$130 spend per night
»»$275 spend per night
»»61% repeat visitors
»»86% repeat visitors
»»75% repeat visitors
Data refers to an average of 2010-2014
1
VISITING FRIENDS AND RELATIVES
MALAYSIA Market Profile 2015
* Refers to share of arrivals of respective purpose of visit
MALAYSIA
Market Performance
The charts on this page provide a trend overview of visitor arrivals and expenditure by main purpose of visit and also the age
demographic split of leisure* visitors and expenditure (based on latest 12 months data).
Visitor arrivals by main purpose of visit
324,000
250
Other
Visitor expenditure
Jun-14
Dec-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Visitor expenditure by main purpose of visit
$1.1bn
500
Total trip spend (A$000s)
1.2
1.0
0.8
0.6
0.4
0.2
450
Holiday
400
Education
350
300
Visiting friends
or relatives
Employment
250
200
150
Business
100
50
Other
Expenditure by age†
60 yrs & over
7%
30 – 44 yrs
28%
45 –59 yrs
31%
15 – 29 yrs
29%
60 yrs & over
12%
* Leisure refers to main purpose of visit of holiday and visiting friends and relatives
†Age profile data refers to an average of 2010-2014
Source: Department of Immigration and Border Protection
International Visitor Survey, Tourism Research Australia
MALAYSIA Market Profile 2015
45 –59 yrs
27%
30 – 44 yrs
19%
15 – 29 yrs
47%
Jun-14
Dec-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Jun-10
Dec-10
Jun-09
Year ending
Year ending
Arrivals by age†
Dec-09
Jun-08
Dec-08
Jun-07
Dec-07
Dec-06
Jun-14
Dec-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Jun-10
Dec-10
Jun-09
Dec-09
Jun-08
Dec-08
Jun-07
Dec-07
Dec-06
Jun-06
Dec-05
Jun-06
0
0.0
Dec-05
Total trip spend ($bn)
Jun-10
Jun-09
Year ending
Year ending
2
Dec-10
Employment
Dec-09
Jun-14
Dec-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Jun-10
Dec-10
Jun-09
Dec-09
Jun-08
Dec-08
Jun-07
Dec-07
Jun-06
Dec-06
0
Dec-05
0
Business
50
Jun-08
50
100
Dec-08
100
Visiting friends
or relatives
Education
Jun-07
150
150
Dec-07
200
Holiday
200
Jun-06
250
Dec-06
300
Visitor arrivals (000s)
Visitor arrivals (000s)
350
Dec-05
Visitor arrivals
MALAYSIA
Aviation Landscape
»» More than half of Malaysian visitors to
Australia travelled on AirAsia X and its
share has been increasing (see chart
page 1). Malaysia Airlines is the next
most utilised airline (30 per cent).
»» In 2014 direct capacity from Malaysia
to Australia increased by 33 per cent
following strong growth in previous
years. This growth was driven by
AirAsia X and Malaysia Airlines.
Tourism Australia expects more
moderate growth in 2015, up an
estimated 10 per cent as the airlines
temporarily reduce frequencies and
withdrew services such as Kuala
Lumpur-Adelaide.
»» During 2014, average loads were
74 per cent, down five percentage
points compared to 2013. Outside
the peak of Australian holiday periods
(January, July, and October) and Chinese
New Year (January/February), load
factors are relatively low (between
60‑75 per cent).
»» The Australian and Malaysian
governments are expected to meet
later this year to discuss bilateral
agreements and reducing restrictions
imposed on the number of seats
allowed to be operated between the
two countries. In 2014 bilateral limits
were almost reached but have since
eased following capacity reductions.
»» In 2014, the airline sector in
Malaysia was unprofitable following
profitability in 2013. Weaker market
conditions were due to excessive
capacity coupled with weaker
demand associated with MH370 and
MH17 incidents. Both Malaysia Airlines
and AirAsia X are shrinking their fleets
in 2015 and adopting new capacity
and pricing strategies to restore yields
and profitability. The outlook for
2015 is brighter with lower fuel prices
and further capacity consolidation
is expected.
»» Negotiations for the ASEAN single
market agreement, which is expected
to fully liberalise air travel between
member states in the ASEAN region,
are ongoing however there are hopes
it could be finalised in 2015. Once the
agreement is ratified by all members
demand is expected to be diverted
away from Australia in the short term
as intra-Asian travel is stimulated.
Direct aviation capacity from Malaysia to Australia
Seat Capaci t y (000)
1,200
Malaysia Airlines
1,000
800
AirAsia X
600
Australian Airlines
400
Jetstar
Dec-14
Dec-13
Dec-12
Dec-11
Dec-10
Dec-09
Dec-08
Dec-07
Dec-06
Dec-05
0
Dec-04
200
Year ending
Source: Bureau of Infrastructure and Regional Development
Weekly services to Australia
Operating
Airlines
Malaysia
Airlines
AirAsia X
Flights
per week Route
21
Kuala Lumpur-Sydney
21
12
7
7
3
2
Kuala Lumpur-Melbourne
Kuala Lumpur-Perth
Kuala Lumpur-Brisbane
Kuala Lumpur-Adelaide
Kuala Lumpur-Darwin
Kota Kinabalu-Perth
Kuala Lumpur-Melbourne
Kuala Lumpur-Perth^
Kuala Lumpur-Sydney
Kuala Lumpur-Gold Coast^
Kuala Lumpur-Adelaide^
10-12
14à11
14à7
5-7
5à0
Emirates
3
7
Dubai-Kuala LumpurMelbourne
MALAYSIA Market Profile 2015
Alliance/ code share partner
(on route)
KLM, Sri Lankan Airlines
^ AirAsia X suspended five weekly Kuala
Lumpur- Adelaide services on 25 January
2015 and in late 2014 the airline reduced
frequencies on Sydney and Perth services
Source: CAPA- Centre for Aviation and OAG, Tourism
Australia analysis.
Coyne Airways
MALAYSIA
The Leisure Traveller
Malaysia is Australia’s fifth largest market for leisure visitor arrivals, ranking eighth with respect to visitor
expenditure and 14th for visitor nights.
How does Australia
perform?
According to consumer research
conducted by Tourism Australia,
more than half of Malaysian leisure
travellers cite safety and security as
their main motivation when selecting
a travel destination. Other important
factors for them include value for
money, interesting attractions and
world class beauty.
Australia performs strongly in terms
of its interesting attractions, world
class beauty and safety and security
among Malaysian leisure travellers.
There is room for improvement with
respect to Australia’s associations
with rich history and heritage, in
addition to value for money.
Australia’s coastline, wildlife and
cities generate the greatest appeal
for Malaysian travellers in terms of
attractions, with aquatic wildlife
rating as the preferred Australian
experience for over just under half of
Malaysian respondents.
Motivations when selecting a travel destination
A safe and secure destination 59%
Value for money 42%
Interesting attractions to visit 41%
World class beauty and nature 33%
Clean cities, good infrastructure 32%
A family friendly destination 29%
Good food and wine 26%
Friendly and open citizens 25%
Rich history/heritage 19%
Coastal scenery 18%
Top Australian attractions
Australian beaches 46%
The Australian wildlife 44%
The major Australian cities 38%
Local culture and art 35%
Australian food and wine 34%
Island experiences 33%
The Great Barrier Reef 33%
Australian coastal lifestyle 32%
The Australian climate 32%
Travelling around 30%
Most preferred Australian experiences
Aquatic Wildlife 53%
Shopping 45%
Beach/Coastal/Harbour 44%
Wildlife (non-aquatic) 44%
City Experience 43%
Food and Wine 41%
Wilderness/Rainforest 39%
Outback/Indigenous 37%
Niche: Diving, Golf etc 29%
Aspiration versus visitation
For aspiration and awareness, Australia
ranks in 2nd position for the Singaporean
traveller, just behind Japan. Australia
also falls into the top three positions
for intention to visit. When it comes to
converting this into actual visitation,
Australia falls slightly to 4th place –
behind competitors such as China, Hong
Kong and Taiwan.
2ND 2ND 3RD 4TH
ASPIRATION
AWARENESS
INTENTION
VISITATION
These findings are based on consumer research conducted by Tourism Australia in 2014 in 11 of Australia’s key tourism markets. Charts show the percentage of
people in the survey who rank these attributes as important or appealing.
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MALAYSIA Market Profile 2015
MALAYSIA
Distribution
Online bookings are growing rapidly in Malaysia amongst the Free and Independent Traveller (FIT) segment,
particularly for flights, accommodation, car rental, day tours and entrance passes. The online environment is
providing consumers with extensive destination information, and the ability to conduct price comparisons.
Social media is also fast gaining popularity with Malaysians for sharing information. The distribution system
has become more complex as consumers use a combination of traditional and online channels to plan and book
travel. The preference for last minute travel purchases remains entrenched for most Malaysian travellers.
Distribution system
Wholesalers/ Large Agents
Retail Agents
Online
Commission Level: 10% to 15%
Commission Level: 5% to 10%
»» There is no formal distinction between
wholesalers and retails agencies. A few
large travel agencies such as AD Travel,
Airlink Travel, Golden Deluxe, Golden
Tourworld, LKW Travel, Malaysian
Harmony, PNL Travel and Reliance take
reservations from consumers through
their own retail network. Some also
take reservations from smaller travel
agencies which have limited access to
inbound tour operators (ITOs) and do
not undertake consumer advertising.
»» There are approximately 1,300 retail
travel agencies in Malaysia, with more
than 300 agencies selling Australian
products and packages. The majority
of agencies are small to medium sized,
independently-owned enterprises.
Around 20 key agencies partner with
Tourism Australia and State and
Territory Tourism Organisations (STOs)
in marketing campaigns.
»» All major retail agencies have an
online presence, and online business is
growing. However, the number of direct
consumer enquiries and visits to offline
agents still remains high.
»» With increasing interest from the Free
and Independent Traveller (FIT), more
travel agencies are organising their
own tour packages to meet customers’
needs and demands, rather than relying
solely on packages developed by the
larger agencies and ITOs.
»» Familiarity with Australia and active
engagement by State and Territory
Tourism Organisations, ITOs and
Australian suppliers has made Australia
a very ‘modular’ destination. This has
enabled many small travel agents to
offer their own holiday packages to
specific destinations within Australia
for leisure, incentives and semipackaged FIT trips.
»» Packages for international sports and
events are growing for Malaysia visitors,
particularly the Gold Coast Marathon,
Vivid Sydney and Food & Wine festival.
»» Key Online Travel Agencies include
Expedia-AirAsia, Lastminute.com,
Priceline, 12Fly and PYO.
»» Airline sites are increasing in popularity
for flight and accommodation bookings,
especially those with popular services
to Australia such as AirAsia X, Malaysia
Airlines, Singapore Airlines, Emirates,
Scoot, Tiger Airways and Jetstar.
Aussie Specialists
»» The Aussie Specialist Program (ASP)
is the primary platform for Tourism
Australia to train and develop front line
travel sellers to best sell Australia.
»» As at 1 May 2015, there were
210 qualified Aussie Specialists in
Malaysia and a further 98 agents in
training. The majority of agents are
located in the Klang Valley (Kuala
Lumpur and surrounds), Penang,
Ipoh, Johor Bahru, Kuching and
Kota Kinabalu.
Inbound Tour Operators
Commission Level: up to 20%
»» Inbound tour operators (ITOs) remain a
key link in the distribution of product in
the Malaysian market place. However,
there is a noticeable trend to direct
deals with hoteliers and operators,
in particular for accommodation and
day tours.
»» ITOs also handle a large proportion of
FIT and non-group itineraries.
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MALAYSIA Market Profile 2015
MALAYSIA
Distribution
Trends
Planning a visit to market
Distribution
Planning and purchasing travel
Top tips for sales calls
»» The increased competition in the
Malaysian aviation sector has
resulted in:
>> Travellers becoming increasingly price
sensitive as airlines offer competitive
airfares on a regular basis.
>> Travellers booking airfares
online, due to attractive website
promotions and increasing
acceptance of online purchasing.
>> Some travellers planning and
purchasing earlier, especially
in the FIT segment, to take
advantage of ‘early bird’ airfare
deals and promotions.
»» Consumers in Malaysia are value
conscious and actively review a range of
destinations and information sources,
seeking favourable deals before making
travel purchases.
»» Malaysian travel trade partners value
personal relationships and loyalty.
Persistent visits and contact can assist
in this process.
»» Due to competitive pricing, group
package tours are still the basis for
outbound travel for new destinations.
For repeat visitation, FIT travel is
more common.
»» There is increased consumer interest
in the cruise market. Major cruise
lines operating in Malaysia are Royal
Caribbean Cruise, Crystal MSC, Princess
and Star Cruise.
»» Consumer travel fairs organised by
the Malaysian Association of Tour
and Travel Agents (MATTA) occur
in March (Kuala Lumpur, Ipoh and
Johor), July (Penang), and September
(Kuala Lumpur and Ipoh). There are
also additional consumer travel fairs
organised by the Malaysian Chinese
Tourism Association (MCTA/ MITM),
which occur in July (Penang & Johor)
and August (Kuala Lumpur).
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MALAYSIA Market Profile 2015
»» There are a significant number of
consumers who will purchase airfares
directly from airlines and secure ground
arrangements later.
»» Malaysia is a mature market and
consumers have a solid knowledge
of Australia.
»» Tourism Australia has an office in Kuala
Lumpur. Make your first call to the
Tourism Australia office to receive the
latest market information and provide a
product update.
»» Avoid sales calls on Monday and Friday
mornings and a week prior or during
major holidays, school holidays and
travel fairs.
»» Malaysian travel trade partners prefer
printed collateral and high resolution
images on a USB drive.
»» Value-add or competitive pricing
offers during the low season travel
period (March to August) are useful to
trigger tactical campaigns with travel
agents in particular consumer travel
fairs in March.
»» The best time of year for sales calls is
after Chinese New Year, April and June
to October.
»» The key market centres to visit are Kuala
Lumpur and the Klang Valley, which
accounts for 65 per cent of outbound
travel to Australia. The key secondary
markets are Penang, Ipoh and Johor.
»» For more general information on sales
calls and planning a visit to market,
please see Tourism Australia’s Planning
for Inbound Success ebook at
www.tourism.australia.com/
inboundsuccess.
MALAYSIA
Distribution
Key trade and consumer events in 2015 and 2016
Event
Location
Date
MATTA Travel Fair
Various
September 2015 and March 2016
MITM Travel Fair
Various
July 2015 and August 2015
Australian Tourism Exchange (ATE) Gold Coast,
Australia
15-19 May 2016 (TBC)
Where to find more information
Tourism Australia’s activities in Malaysia are managed from its Kuala Lumpur
office. For more information visit Tourism Australia’s corporate website at
www.tourism.australia.com.
Tourism and Events Queensland also operates in Malaysia.
Also see:
Malaysia Country Brief published by the Department of Foreign Affairs and Trade
at www.dfat.gov.au/geo
For the latest arrivals statistics, visit:
www.tourism.australia.com/statistics/arrivals
For the latest International Visitor Survey statistics, visit:
www.tourism.australia.com/statistics/international
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MALAYSIA Market Profile 2015