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Determinants of Chinese demand for tourism in Malaysia

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  • Puah, Chin-Hong
  • Huan, Suk-Hie
  • Thien, Fung-Thai

Abstract

Tourism sector in Malaysia has always been one of its focal service industries not only in the past, but in the future as well in which Malaysian government has been focusing on diverting its economic activities from a resource-based to a service-based economy in its new economic model. China, a strongly emerging economy has been ranked as the third main tourist generating country for Malaysia since 2012. Hence, this study empirically identifies the macroeconomic determinants affecting the tourism demand from China to Malaysia. These determinants include real income, travel cost, exchange rate and trade openness. Particularly, real income and trade openness are evident to positively affect Chinese tourism demand while travel cost and exchange rate are found to adversely influence Chinese tourists’ decision to travel to Malaysia.

Suggested Citation

  • Puah, Chin-Hong & Huan, Suk-Hie & Thien, Fung-Thai, 2018. "Determinants of Chinese demand for tourism in Malaysia," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 14(3), May.
    • Handle: RePEc:ags:pdcbeh:287211
    DOI: 10.22004/ag.econ.287211
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    Cited by:

    1. Jong, Meng-Chang & Hong, Puah & Arip, Mohammad Affendy, 2020. "Modelling Tourism Demand: An Augmented Gravity Model," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(2), pages 105-112.
    2. Jong, Meng-Chang & Soh, Ann-Ni, 2021. "Responsible Recovery from COVID-19: An Empirical Overview of Tourism Industry," MPRA Paper 107661, University Library of Munich, Germany.
    3. Ann-Ni Soh & Chin-Hong Puah & M. Affendy Arip, 2019. "Forecasting Tourism Demand with Composite Indicator Approach for Fiji," Business and Economic Research, Macrothink Institute, vol. 9(4), pages 12-22, December.
    4. Jong, Meng-Chang, 2020. "Empirical Review on Tourism Demand and COVID-19," MPRA Paper 103919, University Library of Munich, Germany.

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    More about this item

    Keywords

    Public Economics;

    JEL classification:

    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development
    • F2 - International Economics - - International Factor Movements and International Business

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