QUESTION 2 (MACROECONOMICS)

Ministry has strategies for tourism recovery

PUTRAJAYA: THE Covid-19 pandemic has badly affected the country's tourism sector, with only 4.2 million international tourist arrivals and RM12.6 billion in tourism receipts so far this year.

In the first half of the year, Malaysia's tourism industry suffered losses of about RM45 billion in tourist expenditure due to the Covid-19 pandemic. In an interview with theNew Straits Timesrecently, Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri said the two figures, the lowest in four years, was a drop of 68.2 and 69.8 per cent, respectively, compared with the same period last year.

She said the ministry had come up with a transformation agenda that would focus on increasing revenue, securing partnerships and investments, empowering local communities and ensuring the sustainability and resilience of the industry.

Nancy said government incentives played important roles in boosting the domestic tourism sectors. "We are lucky that the government has provided incentives and assistance through economic stimulus packages such as Prihatin, Prihatin SMEs and the National Economic Recovery Plan (Penjana) that can be utilised by tourism and culture industry players.

Adapted from New Straits Times Online, 12 April 2020 (https://www.nst.com.my/news/government-public-policy/2020/09/624300/ministry-has-strategies-tourism-recovery)

1) State the type of unemployment that may occur due to the losses stated in the second paragraph. Give a reason for your answer.

(3 marks)

2) State the transformation plan proposed by the Tourism, Arts and Culture Minister.

(6 marks)

3) Based on the statement in the fourth paragraph, in your opinion, what kind of policies are implemented by the government to boost domestic tourism? Give reasons for your answer.

(6 marks)