Factors Affecting Inbound Tourism Demand in Malaysia

This study examines the inbound tourism demand for Malaysia. Ten countries have been selected namely Singapore, Thailand, Indonesia, Brunei, China, Japan, Hong Kong, the United State of America, United Kingdom and Australia. These ten countries have been selected since they are among the most important generating tourists to Malaysia tourism industry. Seven macroeconomics variables are identified in the long run tourism market demand model for Malaysia. The variables are tourist arrivals to Malaysia, tourism price, substitute prices, travelling cost, income and exchange rates. They also have been tested for their significance in the short run along with other variables such as lagged dependent variable and dummy variables such Gulf War, the Asian economic crisis in 1997-98 and the outbreak of Severe Acute Respiratory Syndrome-SARS 2003. The cointegration analysis in the ARDL framework is applied to estimate the Malaysia tourism demand. This study starts with the stationarity test to perform the order of integration of the variables, followed by the estimation of the ARDL Model, the bounds test of the ARDL Model, the calculation and interpretation of the long-run and short-run elasticities, the diagnostic test and the accuracy evaluation of ARDL model. The empirical findings have shown that the 'bounds test' in overall model is consistent and reliable since the model fulfiU all the diagnostic test. Most of the variables such as tourism price, travelling cost, substitute cost and income are significant in the long-run as we1l as in the short-run. Most of them are statistica11y significant and theoretical1y correct, i.e: tourism prices are negatively related to the volume of tourist arrivals. Incomes in most cases have a positive relationship with tourist arrivals. For Singapore, Brunei, China and Australia tourists, Malaysia is considered as an inferior tourist destination as shown by their negative elasticity of income. Singapore and Thailand are seen either as complementary or substitute destinations by different originating countries. Word-of-mouth effect as represented by the past year tourist arrivals is a significant factor influencing inbound tourists. Dummy variables are also significant in the short run. However, in some markets such as Indonesia, Japan, United Kingdom and Australia, certain explanatory variables such as tourism prices are theoretically inconsistence but reasonable explanations have been provided. Based on the impirical findings some policy related to the tourism price and promotional of low cost fares as wen as development of tourism infrastructures and products can be suggested to enhance more development in Malaysia tourism industry

Valuing Outdoor Recreational Resources: A Case Study at Taman Negara, Pahang Darul Makmur

This case study estimated the demand for and value of the recreational resources in Taman Negara National Park, Pahang Darul Makmur. The two cardinal approaches used in this study were the Contingent Valuation Method (CVM) and Travel Cost Method (TCM). Since the benefit of non-market product is difficult to quantify, it is important to have proper and accurate evaluation techniques. The demand for outdoor recreation at Taman Negara National Park, is influenced by several factors. These include travel cost, income and socio-economic variables. The demand model in simple linear, semi-log and double log regression functional forms were estimated using the Ordinary Least Square (OLS) technique for Travel Cost Method; while the Logit and Probit techniques were used for the Contingent Valuation Method. The results show that only the average travel cost, the average on site cost and the average income influenced the demand for outdoor recreation in Taman Negara National Park. The economic value of outdoor recreation at the Taman Negara National Park was measured using the concept of user's willingness to pay in both Travel Cost Method and Contingent Valuation Method. The consumers' surplus for each individual was calculated to derive the economic values. The consumers' surplus of each individual for outdoor recreational resource at the Taman Negara National Park, using the Travel Cost Method was approximately RM123.60, calculated using the traditional approach and RM122.44 using the Gum-Martin approach. The Contingent Valuation Method yielded mean values of RM235.06 for the Logit technique and RM280.86 for the Probit technique

Importance-Satisfaction Analysis for Tioman Island Marine Park

The purpose of this research is to evaluate the importance and satisfaction level of tourists at the Tioman Island Marine Park (TIMP) toward the island’s environmental attributes and service quality offered. This research analyses the overall tourists, as well as comparison between the local and foreign tourists. The measurement of importance and satisfaction is based on the mean analysis, i.e. the importance mean (estimated/expected mean) and the perceived mean (satisfactory mean). The difference between these mean values shows the gap value. The gap analysis in this research is assisted by the t-analysis in explaining the existence of difference, if any. If there is no difference in this analysis, it shows that the tourists get what they expected from their trips to the TIMP. However, if there is existence of difference, it must be ascertained as to whether the trips satisfy their expectations or otherwise. Again, the gap analysis will be able to answer this question. The research result shows that all tourists (both locals and foreign) agree on the importance and satisfaction toward the TIMP‘s environmental attributes and service quality offered. Besides the existence of difference in value between the said means, whether through the gap analysis or the paired t-test; the gap analysis finds that the mean values for most of the environmental attributes and service quality evaluated, are negative. Thus, these negative values indicate a relatively low satisfaction level.Tourists’ perceptions, Environmental attributes, Environmental Service Quality, Tioman Island Marine Park

Hubungan pembangunan industri pelancongan dan pertumbuhan ekonomi di beberapa negara utama ASEAN

Purpose - This study investigated the pattern of relationship between the development of tourism industry and the economic growth in major ASEAN countries namely Malaysia, Thailand, Singapore, and Indonesia. More specifically,this study tested hypotheses whether tourism development is a cause for economic growth (tourism-led economic growth – TLG) or the economic growth is a cause for tourism development (economic growth led tourism – GLT). Design/Methodology/Approach - An econometric analysis which applied the cointegration test and Granger causality analysis was employed to clarify these issues. Findings - Results of the study had shown that there is only a one-way relationship between tourism development and economic growth in these countries. For Thailand and Indonesia economic growth is the leading factor for tourism development (GLT) whereas in Malaysia and Singapore, tourism development is the leading factor for economic growth (TLG).Originality/Value - This paper investigate whether tourism-led economic growth – TLG) or the economic growth led tourism development– GLT). It is important especially for the policy makers since it can give some ideas to further develop economic growth as well as the tourism industry

Kepentingan beberapa pasaran utama negara ASEAN kepada pembangunan industri pelancongan Malaysia

One noticeable feature of the Malaysian tourism industry is the dependence upon ASEAN countries for its tourist arrivals. In 1985, ASEAN countries contributed about 75% to the total tourist arrivals to Malaysia. In 2000, the figure had dropped slightly to 68% and increased back to 75% in 2004. The most important providers for tourist arrivals is dominated by Singapore, followed by Thailand and Indonesia (named as ASEAN3). The ASEAN3 controlled about 96% and 97% of the total ASEAN tourist arrivals in 2000 and 2004 respectively. Due to the importance of ASEAN3 to the growth of the Malaysian tourism industry, this study has attempted to identify and analyse economic factors influencing their arrivals to Malaysia. Among these important factors were expenses while traveling in Malaysia, their income, alternative destinations, global economic and environmental crisis, and promotional campaign for visiting Malaysia. The study empirically estimated the mentioned variables utilising the Engle-Granger cointegration framework. Findings of this study have shown that most of the coefficients estimated were statistically significant and consistent with the theoretical framework

Relationship Between Tourism Industry Development and Economic Growth in Major ASEAN Countries.

ABSTRAK Penulisan ini bertujuan mengkaji corak hubungan antara pembangunan ekonomi dengan pertumbuhan industri pelancong di beberapa negara utama ASEAN iaitu Malaysia, Thailand, Singapura dan Indonesia. Khususnya kajian cuba menguji hipotesis sama ada perkembangan industri pelancongan sebagai perangsang kepada pertumbuhan ekonomi (tourism-led economic growth - (TLG) atau pertumbuhan ekonomi sebagai perangsang kepada perkembangan industri pelancongan (economic growth-led tourism – GLT). Untuk tujuan tersebut, analisis ekonometrik yang menggunakan kaedah ujian kointegrasi dan penyebab Granger digunakan. Hasil kajian mendapati wujud hubungan satu hala antara perkembangan industri pelancongan dengan pertumbuhan ekonomi. Bagi negara Thailand dan Indonesia didapati pertumbuhan ekonomi sebagai penyebab kepada perkembangan industri pelancongan (GLT), sementara bagi Malaysia dan Singapura pula perkembangan industri pelancongan adalah penyebab kepada pertumbuhan ekonomi (TLG). Kertas ini mengaplikasikan teori dan realiti iaitu penggunaan pendekatan penyebab Granger dalam menganalisis realiti industri pelancongan dan pertumbuhan ekonomi. ABSTRACT This study is trying to investigate the pattern of relationship between the development of tourism industry and the economic growth in major ASEAN countries namely Malaysia, Thailand, Singapore and Indonesia. Precisely, this study attempts to test the hypotheses that tourism development as a cause to economic growth (tourism-led economic growth – TLG) or the economic growth as a cause to tourism development (economic growth led tourism – GLT). An econometric analisis which applied the cointegration test and Granger causality analysis is employed to clarify these issues. Results of the study have shown that there is only one way relationship between tourism development and economic growth in these countries. For Thailand and Indonesia the economic growth is the leading factor to the tourism development (GLT) whereas in Malaysia and Singapore the tourism development is the leading factor to the economic growth (TLG).Kata kunci: Pertumbuhan Ekonomi, Pembangunan Industri Pelancongan, Ujian Kointegrasi, Penyebab Granger.Economic Growth, Tourism Development, Contegration, Granger Causality.

Malaysia’s tourism demand from selected countries: the ARDL approach to cointegration

This paper investigates the long-run and short-run relationships between tourist arrivals to Malaysia and tourism price in Malaysia, tourism prices at alternative destinations, traveling costs, incomes and exchange rates, using the bounds testing approach developed within the autoregressive distributed lag (ARDL) framework. The empirical results show that in the long run, tourism price in Malaysia, traveling costs, tourism prices at alternative destinations and incomes are the important determinants of Malaysia’s tourism demand from the selected countries namely Singapore, Japan, Hong Kong and Australia. The results also indicate that the 1997-98 East Asian economic crisis and the outbreak of Severe Acute Respiratory Syndrome – SARS significantly affected Malaysia’s tourism demand

Hubungan Pembangunan Industri Pelancongan Dan Pertumbuhan Ekonomi Di Beberapa Negara Utama ASEAN.

ABSTRAK Penulisan ini bertujuan mengkaji corak hubungan antara pembangunan ekonomi dengan pertumbuhan industri pelancong di beberapa negara utama ASEAN iaitu Malaysia, Thailand, Singapura dan Indonesia. Khususnya kajian cuba menguji hipotesis sama ada perkembangan industri pelancongan sebagai perangsang kepada pertumbuhan ekonomi (tourism-led economic growth - (TLG) atau pertumbuhan ekonomi sebagai perangsang kepada perkembangan industri pelancongan (economic growth-led tourism – GLT). Untuk tujuan tersebut, analisis ekonometrik yang menggunakan kaedah ujian kointegrasi dan penyebab Granger digunakan. Hasil kajian mendapati wujud hubungan satu hala antara perkembangan industri pelancongan dengan pertumbuhan ekonomi. Bagi negara Thailand dan Indonesia didapati pertumbuhan ekonomi sebagai penyebab kepada perkembangan industri pelancongan (GLT), sementara bagi Malaysia dan Singapura pula perkembangan industri pelancongan adalah penyebab kepada pertumbuhan ekonomi (TLG). Kertas ini mengaplikasikan teori dan realiti iaitu penggunaan pendekatan penyebab Granger dalam menganalisis realiti industri pelancongan dan pertumbuhan ekonomi. ABSTRACT This study is trying to investigate the pattern of relationship between the development of tourism industry and the economic growth in major ASEAN countries namely Malaysia, Thailand, Singapore and Indonesia. Precisely, this study attempts to test the hypotheses that tourism development as a cause to economic growth (tourism-led economic growth – TLG) or the economic growth as a cause to tourism development (economic growth led tourism – GLT). An econometric analisis which applied the cointegration test and Granger causality analysis is employed to clarify these issues. Results of the study have shown that there is only one way relationship between tourism development and economic growth in these countries. For Thailand and Indonesia the economic growth is the leading factor to the tourism development (GLT) whereas in Malaysia and Singapore the tourism development is the leading factor to the economic growth (TLG)

Hubungan Pembangunan Industri Pelancongan dan Pertumbuhan Ekonomi di Beberapa Negara Utama ASEAN

Makalah ini bertujuan mengkaji corak hubungan antara pembangunan ekonomi dengan pertumbuhan industri pelancong di beberapa negara utama ASEAN iaitu Malaysia, Thailand, Singapura dan Indonesia. Khususnya kajian cuba menguji hipotesis sama ada perkembangan industri pelancongan sebagai perangsang kepada pertumbuhan ekonomi (tourism-led economic growth - (TLG) atau pertumbuhan ekonomi sebagai perangsang kepada perkembangan industri pelancongan (economic growth-led tourism – GLT). Bagi tujuan tersebut, analisis ekonometrik yang menggunakan kaedah ujian kointegrasi dan penyebab Granger digunakan. Hasil kajian mendapati wujud hubungan satu hala antara perkembangan industry pelancongan dengan pertumbuhan ekonomi. Bagi negara Thailand dan Indonesia didapati pertumbuhan ekonomi sebagai penyebab kepada perkembangan industry pelancongan (GLT), sementara bagi Malaysia dan Singapura pula perkembangan industri pelancongan adalah penyebab kepada pertumbuhan ekonomi (TLG). Makalah ini mengaplikasikan teori dan realiti iaitu, penggunaan pendekatan penyebab Granger dalam menganalisis realiti industri pelancongan dan pertumbuhan ekonomi.