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The Pattern and the Impact of Middle Eastern Tourist Spending on Malaysia’s Economy

Author

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  • Salleh, Norlida

    (Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia)

  • Othman, Redzuan

    (Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia)

  • Hasim, Mohd Safar

    (Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia)

  • Jaafar, Abdul Hamid

    (Pusat Pengajian Ekonomi Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia)

Abstract

The main objective of this research is to study the spending patterns of tourists from the Middle Eastern countries and to analyse their impact on Malaysia’s economy utilising the input-output method. The Malaysian Input Output Table 2000 is used to estimate the important indicators such as the output, the tax revenue, the import and the employment multipliers. Aside from the data and the information in the input-output table, this study also estimates the expenses of the Middle Eastern tourists using a survey. The input-output table is aggregated into 18 sectors, and 5 of the sectors are related to tourism. From the estimation, the values of the multipliers range from 1.109-2.17 for the output multiplier, 0.048-0.592 for the import multiplier, 0.001-0.194 for the employment multiplier and 0.002-0.053 for the tax revenue multiplier. The differences in the multiplier values would provide a different degree of impact from tourist spending on the sectors in the economy. The sectors that provide more services to tourists would benefit from a greater impact than other sectors. The degree of impact experienced by the different sectors is determined by the pattern of tourist spending.

Suggested Citation

  • Salleh, Norlida & Othman, Redzuan & Hasim, Mohd Safar & Jaafar, Abdul Hamid, 2012. "The Pattern and the Impact of Middle Eastern Tourist Spending on Malaysia’s Economy," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 46(1), pages 53-63.
    • Handle: RePEc:ukm:jlekon:v:46:y:2012:i:1:p:53-63
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    References listed on IDEAS

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    1. Josaphat Kweka & Oliver Morrissey & Adam Blake, 2003. "The economic potential of tourism in Tanzania," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 335-351.
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    1. Mohd Nor, Norma Azuli & Mohd Salleh, Norlida Hanim & Falatehan, A Faroby, 2021. "The Effect of Tourism Expenditure on the Economy: A New Evidence," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(3), pages 23-34.

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