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Exploring the Impact of Political Stability and Climate Change on Inbound Tourism Demand: Evidence from Dynamic Panel Data Analysis

In: Regional Science Perspectives on Tourism and Hospitality

Author

Listed:
  • Chor Foon Tang

    (Universiti Sains Malaysia)

  • Evan Lau

    (Universiti Malaysia Sarawak)

Abstract

By employing the dynamic panel generalised method of moments (GMM), the present study attempts to investigate empirically how inbound tourism demand in Malaysia from 45 tourism source countries responds to income, prices, political stability, climate change and word-of-mouth. Despite the widely researched demand for inbound tourism in Malaysia, the role of political stability and climate changes has received little attention. Hence, it is essential to estimate the demand behaviour of inbound tourism in Malaysia. We find that both economic factors, namely income and prices, explain tourism demand, and they also demonstrate the expected positive and negative relationships, respectively. Based on the findings of the present study, we find that political stability and climate change provide a significant impact on tourism demand in Malaysia. Based on these findings, some relevant policies are recommended.

Suggested Citation

  • Chor Foon Tang & Evan Lau, 2021. "Exploring the Impact of Political Stability and Climate Change on Inbound Tourism Demand: Evidence from Dynamic Panel Data Analysis," Advances in Spatial Science, in: Mauro Ferrante & Oliver Fritz & Özge Öner (ed.), Regional Science Perspectives on Tourism and Hospitality, edition 1, pages 403-419, Springer.
    • Handle: RePEc:spr:adspcp:978-3-030-61274-0_20
    DOI: 10.1007/978-3-030-61274-0_20
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