V.

Economic impact and funding

The results of the Blueprint will double Langkawis 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 in tourism receipts and additional agri- and aquaculture revenues from the farming and sheries initiative (categorised as tourism-related income). There is also likely to be further potential upside to the GNI as our forecast currently excludes income that may be generated from real estate sales as well as the multiplier effect (as income from tourism ows into other related sectors to generate more income).

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V. Economic impact and funding

The results of the Blueprint will double Langkawis 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 in tourism receipts and additional agri- and aquaculture revenues from the farming and sheries initiative (categorised as tourism-related income). There is also likely to be further potential upside to the GNI as our forecast currently excludes income that may be generated from real estate sales as well as the multiplier effect (as income from tourism ows into other related sectors to generate more income). Tourism receipts are expected to double from RM1.9 bn in 2010 to RM3.8 bn in 2015
By launching tailored marketing campaigns, enhancing ight connectivity and developing more products targeted at the luxury market, we expect to shift the mix of tourists to higher spending tourists. In addition, the Blueprint will also create a greater variety of quality products, thereby encouraging visitors to spend more on attractions and stay longer. The increase in these key levers (visitor arrivals, average spend per day and average length of stay) will drive Langkawis tourism receipts to grow at 14% p.a. from RM1.9 bn in 2010 to RM3.8 bn in 2015. opportunity. For example, local entrepreneurs will benet from healthier market competition given strict enforcement against illegal operators. Similarly, students who were previously deterred from entering the tourism industry due to a lack of training opportunities and uncertain work prospects will now be able to pursue a good education at the Tourism Academy followed by a guaranteed job placement with a participating industry member.

Cumulative funds of over RM5 bn are required, of which only 8% is expected to be publicly funded
We estimate to spend over RM5 bn from 2011 to 2015 to implement the Blueprint initiatives. Of this amount, ~84% will go towards capital expenditure for the product initiatives, for instance, the building of hotels, commercial zones and new attractions like the Interpretive Centres. We expect the private sector to participate actively in these initiatives and contribute 92% of funding. The remaining 8% that is funded by the public sector will primarily go towards the acquisition of land for the development of the accommodation and commercial zones and the enhancement of baseline infrastructure (e.g., agriculture dams). In the 2012 Budget tabled on October 2011, RM420 mn was allocated towards the implementation of the initiatives within this Blueprint.

The Blueprint will create an incremental 4,200 jobs by 2015

The Blueprint will be a growth catalyst for Langkawis tourism industry. More accommodation and commercial zones are expected to be developed, leading to generation of new jobs at hotels and retail shops. The fragrant rice programme and integrated cage sh farming initiative will create more jobs for farmers and shermen as well. As a result, the Blueprint is expected to create an incremental 4,200 jobs, of which ~55% will require vocational or certicate qualications and ~45% will earn over RM2,000 per month. Critically, the Blueprint will improve the livelihoods of the local community by addressing current career frustrations and opening up a new landscape of

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