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Malaysia’s tourism demand: A gravity model approach= Permintaan pelancongan di malaysia: pendekatan model graviti

Othman, Muhammad Hanif and Mohamad, Noorihsan and Mat Ghani, Gairuzazmi and Ariffin, Muhammad Irwan (2018) Malaysia’s tourism demand: A gravity model approach= Permintaan pelancongan di malaysia: pendekatan model graviti. Journal of Business and Social Development, 6 (1). pp. 39-50. ISSN 2289-2915

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Abstract

The tourism sector in Malaysia has undergone substantial growths as a result of the efforts taken by the Ministry of Tourism in policy planning and implementation. It is the government’s long-term goal to make Malaysia as the most popular tourism destination. The growth of tourism sector in Malaysia can be measured by tourist arrivals and receipts. Since this industry is able to drive Malaysian economy forward, more studies should be done in determining factors that influence demand for tourism. Therefore, this study was conducted to identify the demand factors of tourist arrivals in Malaysia and estimate their relative importance. Through understanding the determinants of Malaysia’s tourism demand, the government can design strategies and policies to enhance Malaysia’s competitiveness as a tourist destination. This study employed the bilateral tourism flows gravity model. The model includes income level of origin country and exchange rate to control for international shocks. This study also includes supply factor which is number of hotel room availability. The data used includes 149 countries, including countries with small numbers of arrivals. The bilateral tourism flows gravity model was estimated using Least Squares Dummy Variable (LSDV). The finding shows that population of country origin, country that share common border with Malaysia, income level of origin country and OIC country are major factors that increase international tourist arrivals. Since this study principally analyses the issue from a macroeconomic perspective, it is suggested that future studies re-examine the issue by using micro level data such as survey data of inbound tourists. In doing so, such findings would be more precise and informative compared to studies reliant on macro data. Sektor pelancongan di Malaysia telah mengalami pertumbuhan yang besar hasil daripada perancangan dan pelaksanaan dasar oleh Kementerian Pelancongan Malaysia. Ini juga salah satu matlamat jangka panjang kerajaan untuk menjadikan Malaysia sebagai destinasi pelancongan paling popular. Pertumbuhan sektor pelancongan di Malaysia boleh diukur dari segi ketibaan pelancong dan pendapatan hasil daripada sektor pelancongan. Memandangkan industri ini dapat memacu ekonomi Malaysia ke hadapan, lebih banyak kajian harus dilakukan dalam menentukan faktor-faktor yang mempengaruhi permintaan untuk pelancongan. Oleh itu, kajian ini dijalankan untuk mengenal pasti faktor-faktor ketibaan pelancong di Malaysia dan menganggarkan kepentingan mereka. Dengan memahami faktor penentu permintaan pelancongan Malaysia, kerajaan dapat merangka strategi dan dasar untuk meningkatkan daya saing Malaysia sebagai sebuah destinasi pelancongan. Kajian ini menggunakan model graviti dengan memasukkan faktor seperti kadar pendapatan negara asal, nilai pertukaran dan ketersediaan bilik hotel. Data yang digunakan merangkumi 149 buah negara termasuk negara dengan bilangan ketibaan yang kecil. Model graviti dianggarkan menggunakan Least Squares Dummy Variable (LSDV). Hasil kajian menunjukkan bahawa populasi negara asal, negara yang berkongsi sempadan yang sama dengan Malaysia, kadar pendapatan negara asal dan negara OIC adalah faktor utama yang meningkatkan ketibaan pelancong antarabangsa. Oleh kerana kajian ini secara asasnya menganalisis isu ini dari perspektif makroekonomi, adalah dicadangkan kajian masa depan mengkaji semula isu tersebut dengan menggunakan data tahap mikro seperti data tinjauan pelancong masuk. Dengan berbuat demikian, penemuan akan lebih tepat dan bermaklumat berbanding dengan kajian yang bergantung kepada data makro.

Item Type: Article (Journal)
Additional Information: 3623/63326
Uncontrolled Keywords: Gravity model, tourism sector, tourist arrival, demand Model graviti pelancongan, ketibaan pelancong, sektor pelancongan, Kementerian Pelancongan Malaysia
Subjects: H Social Sciences > HB Economic Theory > HB801 Consumption. Demand
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences
Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Dr. Noorihsan Mohamad
Date Deposited: 17 Apr 2018 14:45
Last Modified: 17 Apr 2018 14:45
URI: http://irep.iium.edu.my/id/eprint/63326

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