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Demand for Indonesia, Singapore and Thailand Tourist to Malaysia:Seasonal Unit Root and Multivariate Analysis

Author

Listed:
  • Nanthakumar Loganathan

    (Faculty of Management and Economics, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Malaysia)

  • Ang Shy Han

    (Faculty of Management and Economics, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Malaysia)

  • Mori Kogid

    (School of Business and Economics, Universiti Malaysia Sabah)

Abstract

This is pioneer study conducted in Malaysia combining seasonal unit root and multivariate approach. Malaysia is a favorite destination for international tourist and the major tourism demand for Malaysia is from Indonesia, Singapore and Thailand. These three countries is neighboring country for Malaysia and tourists are more flexible to visit Malaysia using flights, rails and road transportations. This study attempts to investigate the seasonal and structural break analysis of tourist arrivals to Malaysia using seasonal unit, structural break analysis and multivariate co-integration analysis. This study uses monthly time series data from 1995 (January) until 2010 (December) with monthly seasonal dummies. The finding of this study shows that, there is no seasonal effect of tourism demand from Singapore, Thailand and Indonesia to Malaysia. In term of multivariate analysis, we found that real effective exchange rate (REER) and Malaysia’s consumer price index (CPI) has causal relation with Singapore, Thailand and Indonesia tourist arrival for the entire period this study. Overall, this study has proven that ‘Malaysia is truly Asia’ in term of receiving ASEAN tourist without any seasonal effects although had faced several unstable situations such as Asian financial crises and SARS pandemic.This paper opens up new insights for Malaysia to attract tourism in up-coming years.

Suggested Citation

  • Nanthakumar Loganathan & Ang Shy Han & Mori Kogid, 2013. "Demand for Indonesia, Singapore and Thailand Tourist to Malaysia:Seasonal Unit Root and Multivariate Analysis," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(2), pages 15-23, Februray.
    • Handle: RePEc:ijr:journl:v:1:y:2013:i:2:p:15-23
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    References listed on IDEAS

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    Cited by:

    1. Agiomirgianakis, George & Serenis, Dimitrios & Tsounis, Nicholas, 2017. "Effective timing of tourism policy: The case of Singapore," Economic Modelling, Elsevier, vol. 60(C), pages 29-38.
    2. Wen-Chuan FU & Chia-Jui PENG & Tzu-Yi YANG, 2020. "Influence of Tourism on Economic Development in Asian Countries," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(2), pages 207-216, December.

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    More about this item

    Keywords

    Multivariate Analysis; Seasonal Unit Root; Tourism Demand;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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