The direct economic impact of the Baba Nyonya Heritage Museum is the Gross Domestic Product (GDP).
The expenditure or consumption of visitors at the Baba Nyonya Heritage Museum is the tourism sector's main measurement, also known as the main revenue recognized by the museum management. In the interview session with one of the workers, she explained that the annual income in 2021 is the worst compared with other years.
The number of tourists arriving has decreased since 2019 because of the COVID-19 pandemic. She also mentioned that, during this period, the government had introduced various assistance measures to ensure business sustainability and support the tourism industry's recovery. In 2022 the Malaysian government launched the "2022 Tourism Recovery Plan" for the tourism sector. Therefore, the contribution of Baba Nyonya Heritage Museum to Gross Domestic Products in 2022 has been increasing until now. For example, income taxes, sales and services tax, land tax, and more have contributed to the state government and city council.
The direct impact of decreased visitor expenditure at a heritage museum can significantly affect employment. When fewer tourists visit the museum and spend less on entrance fees, souvenirs, and other services, the museum's revenue declines. This decrease in revenue can lead to budget cuts, which might result in the museum having to reduce its workforce to cut costs. Reduced staff numbers can affect various areas, including museum guides, security personnel, administrative staff, and maintenance workers. For instance, during the interview with an employee, she mentioned that the museum used to offer guided tours daily, but this has been reduced to Saturdays only since the COVID-19 pandemic. Consequently, this reduction in employment can lead to a broader economic impact, affecting the livelihoods of those directly employed by the museum and potentially reducing overall economic activity in the surrounding community.
Local businesses that rely on museum visitors, such as restaurants, cafes, hotels, and shops, may be affecting various aspects of the local economy and community. Travellers spend money on accommodations, food, transportation, souvenirs and activities, creating jobs and supporting local businesses. This economic boost can contribute to infrastructure development, public services and overall economic growth.
Suppliers that provide goods and services to the museum (such as catering companies, cleaning services, and merchandise suppliers) may see increased orders and growth opportunities since there is visitor count surged in the Year 2023. Higher volumes of goods and services demanded by the tourism sector can lead to economies of scale and improve supply chain efficiency for local businesses.