Micro Impacts and Benefits of Business Tourism in Malaysia: A Case Study of Kuala Lumpur Convention Centre

Hussain, Kashif; Nayve JR, Ruben M.; Ragavan, Neethiahnanthan Ari
October 2012
International Proceedings of Economics Development & Research;2012, Vol. 50, p68
Academic Journal
The purpose of this study is to investigate the micro impacts and benefits of business tourism in Malaysia. The objective of the study is to highlight the micro areas of delegate spending and their experiences specifically in the case of Kuala Lumpur Convention Centre (The Centre). The current study operationally defined business tourism as 'travel related activities and travel expenditures of business tourists attending international MICE-related events' at The Centre either as local or foreign participants. The study limits its scope specifically in five (5) MICE-related events conducted at The Centre in 2011 to provide better view of the micro impacts and benefits of business tourism in Malaysia. The current study attempts to use mainly quantitative research approach with only few qualitative questions. The survey instrument was based on three (3) major sections and demographics. The first section comprises on "travel information", the second section comprises on "delegate spending in US$", and the third (last) section comprises on "delegates experience". The sample population of the study comprises of local and foreign delegates attending MICE- related events in The Centre likewise refer in the study as business tourists. Five (5) events were selected from the reserved list of events of The Centre in 2011 (held from May to November 2011). The delegates were targeted with a non-probability convenience sampling technique. A fieldwork was carried with a team five (5) trained junior researchers (from Taylor's University masters & degree students), and a total of n=950 (n=sample) survey questionnaires were collected, however, only n=809 (sample size) surveys were found to be useful, representing 85.15% response rate from the original sample (n=950). Descriptive analysis such as frequencies, percentages, means, and standard deviations are calculated, and for few structured open-ended questions, patterns and trends in the responses were observed to reach some conclusions. Major findings of the study represents that a majority of the respondents (70%) were foreign nationalities coming from 154 cities and 76 countries around the world while the remaining are local Malaysians. Respondents of the study highly preferred Malaysian Airlines per recommendation of their company/conference organizer. Majority traveled by direct flights via economy class. Most preferred hotels are found to be Traders Hotel, Mandarin Hotel, Impiana Hotel and Hotel Novotel. Their average length of stay is 3-5 days while average spending amounting to less than US $3,200 during their period of stay. Their average spending on various items such as conference registration, airfare, hotel/accommodation, local transportation, food and beverage, shopping and entertainment are all less than US$ 500, thus, business tourists attending MICE-related events in The Centre have higher spending thus generate more income for the domestic economy of Malaysia. With regards to respondents' travel experiences in Malaysia, they have high perception regarding The Centre facilities and services and shopping facilities while they have low perceptions for airlines, hotel accommodation, local transportation, restaurants and entertainment/activities. Some notable concerns raised by the respondents are further discussed in the findings and conclusion of the study, with recommendations.



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