KUALA LUMPUR: The government would spend some RM1.85 billion under the Ninth Malaysia Plan (9MP) to drive the country’s global appeal as a major tourism destination, the National SME Development Council said.

Out of the allocation, 56 per cent will be used to upgrade and maintain tourism related facilities and amenities, the council said in the SME Annual Report 2007 released here yesterday.

Based on 9MP projection, the tourism industry is expected to grow at an average rate of 8.4 per cent per annum from now until 2010 while total tourist arrivals are expected to increase to 24.6 million by 2010 from 21 million in 2007 with average tourism receipts to go up by 13.9 per cent to RM54.9 billion. Some 520,700 jobs are expected to be generated in the industry.

The council said tourism was an important industry for the country and has been designated as a priority sector by the government in the 9MP.

“Tourism had been Malaysia’s second largest foreign exchange earner since 2000 with RM17.3 billion, increasing to RM46.1 billion in 2007,” it said.

The increase in tourism activities is expected to generate multiplier effects in other sectors of the economy such as the hotel industry, retail businesses, restaurants and transportation.

Tourist arrivals started to increase significantly particularly after 1990, rising at a rate of 7.5 per cent per annum on average from 7.5 million in 1995 to RM21 million in 2007 with tourism receipts increasing by more than 500 per cent to RM47.4 billion last year.

To enhance the distinct appeal of Malaysian products and services, the government has renewed its focus to promote the country’s traditional attractions namely its cultural and natural heritage.

Other tourism products include shopping, leisure, sports-related activities and business related events as well as ecotourism.

Funds available for small and medium enterprises (SMEs) in the tourism sector includes the Tourism Special Fund benefiting all existing and new enterprises carrying out or planning to carry out tourism projects.

The minimum loan amount is RM50,000 with a lending rate of 5.5 per cent per annum and a loan tenure of up to 20 years. — Bernama