rm 500 million business model
DESCRIPTION
Business IdeaTRANSCRIPT
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RM 500 Million RM 500 Million Business ModelBusiness Model
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Opportunity AssessmentOpportunity Assessment
• Tourism IndustryTourism Industry
– 22.08 million visit Malaysia in 2008, with receipt at RM 22.08 million visit Malaysia in 2008, with receipt at RM 48.5 billion48.5 billion
– #1 location in Asean, #2 in whole Asia, on tourist arrival#1 location in Asean, #2 in whole Asia, on tourist arrival– Top 5 generating market :Top 5 generating market :
• Singapore (49.9%)Singapore (49.9%)• Indonesia (11%)Indonesia (11%)• Thailand (6.8%)Thailand (6.8%)• Brunei (4.9%)Brunei (4.9%)• China (4.3%)China (4.3%)* Interesting to note that Europe record highest market growth * Interesting to note that Europe record highest market growth
(21.8%)(21.8%)
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Value of Opportunity Value of Opportunity
• In 2008, major spending activities are:In 2008, major spending activities are:
– Accommodation (33.3% / RM 16.7 billion)Accommodation (33.3% / RM 16.7 billion)– Shopping (26.6% / RM 13.3 billion)Shopping (26.6% / RM 13.3 billion)– Medical tourism (1% / RM 500 million)Medical tourism (1% / RM 500 million)– Eco tourism (3% / RM1.5 billion)Eco tourism (3% / RM1.5 billion)– On average, tourist spend USD700 w/ 6.7 room nightOn average, tourist spend USD700 w/ 6.7 room night– ‘‘Quality tourist spend USD1,200 w/ 8 room nightQuality tourist spend USD1,200 w/ 8 room night– On a specific note:On a specific note:
• UK’s spent RM 3,699 w/ 9.5 room nightsUK’s spent RM 3,699 w/ 9.5 room nights• Danes’ spent RM 2,991 w/10.4 nightsDanes’ spent RM 2,991 w/10.4 nights• Singaporean spent RM 2,000 w/ 4.6 daysSingaporean spent RM 2,000 w/ 4.6 days• Saudi’s spent RM 8,000 w/ 10.1 days (per capita)Saudi’s spent RM 8,000 w/ 10.1 days (per capita)
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Depth of OpportunityDepth of Opportunity
• Mix selling factor:Mix selling factor:
– Middle eastern: shopping, weather, halal environmentMiddle eastern: shopping, weather, halal environment– Chinese: chinese community, Genting Highland, good Chinese: chinese community, Genting Highland, good
food(Penang)food(Penang)– European: low currency exchange, European: low currency exchange, – Medical & healthMedical & health– EducationEducation– MICE (Meeting, Incentive, Convention & Exhibition)MICE (Meeting, Incentive, Convention & Exhibition)– MM2H (M’sia My 2MM2H (M’sia My 2ndnd Home) Home)– Ecotourism: Tmn Negara, Sipadan IslandEcotourism: Tmn Negara, Sipadan Island
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Competitive EnvironmentCompetitive Environment
• Strength:Strength:– ‘‘Malaysia-Truly Asia’: Long-term Malaysia-Truly Asia’: Long-term
marketing and branding campaign – marketing and branding campaign – launch 1999launch 1999•winner of Asia Best by Media Magwinner of Asia Best by Media Mag
•Triple gold award by Pacific Asia Travel Triple gold award by Pacific Asia Travel AssociationAssociation
•‘‘World Best Tourism Destination’ by Global World Best Tourism Destination’ by Global Traveller MagTraveller Mag
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Competitive EnvironmentCompetitive Environment
• Challenges:Challenges:– Airline competitionAirline competition– Hotel competitionHotel competition– Gov to gov relationGov to gov relation– Regulation: eg. MM2H conditional requirement to Regulation: eg. MM2H conditional requirement to
identify genuine from fraud (terrorist, money identify genuine from fraud (terrorist, money laundering) ; 6-months cooling off period .laundering) ; 6-months cooling off period .
– Public amenities: toilet cleanlinessPublic amenities: toilet cleanliness– Dishonest taxi driver & tourist guideDishonest taxi driver & tourist guide– Confusing signboardConfusing signboard– Crime rate: in 2007, 772 case / 100,000 population Crime rate: in 2007, 772 case / 100,000 population
compare to Singapore 740/100,000, HK at 1,166 compare to Singapore 740/100,000, HK at 1,166 /100,000, Japan at 1,569/100,000/100,000, Japan at 1,569/100,000
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Risk & Return AnalysisRisk & Return Analysis
• Calculation:Calculation:– RM500 x 12 mnths x 5 years x 20,000 RM500 x 12 mnths x 5 years x 20,000
membershipmembership– Return RM600 mill within 5 yearsReturn RM600 mill within 5 years
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Target marketTarget market
• Middle managerMiddle manager– Income above RM5K /mnth or RM60K p.aIncome above RM5K /mnth or RM60K p.a– Small family : 2-3 kids Small family : 2-3 kids – 4-5 years working experience.4-5 years working experience.– Can spend 10% of annual income for Can spend 10% of annual income for
family holiday / family holiday /