IDEAS home Printed from https://ideas.repec.org/a/ukm/jlekon/v47y2013i1p131-138.html
   My bibliography  Save this article

Determinants of International Tourism in Malaysia: Evidence from Gravity Model

Author

Listed:
  • ,

    (Graduate School of Studies University Putra Malaysia 43400 Serdang Selangor MALAYSIA)

  • Ismail, Normaz Wana

    (Department of Economics Faculty of Economics and Management University Putra Malaysia 43400 Serdang Selangor MALAYSIA)

  • Kaliappan, Shivee

    (Department of Economics Faculty of Economics and Management University Putra Malaysia 43400 Serdang Selangor MALAYSIA)

Abstract

The present study uses the Gravity type approach for panel data spanning from 1998 to 2009 to identify demand and supply factors in the Malaysian tourism industry. The findings reveal that the market size for both destination and source countries, country that share common border and common language with Malaysia are major factors that increases inbound international tourist and thus increase the tourist receiptin Malaysia. On the other hand, shorter distance and lower transportation costs also attract more tourists. The role of the exchange rate and the cost of living are equally important, as the depreciation of the Ringgit Malaysia (RM) and the lower cost of living attract more tourists to Malaysia. Alongside demand factors, the present study also examines supply factors, such as room availability and various components of infrastructure. The number of hotel rooms; quality in road infrastructure; and air transport infrastructure appear to be an important factor among international tourists.

Suggested Citation

  • , & Ismail, Normaz Wana & Kaliappan, Shivee, 2013. "Determinants of International Tourism in Malaysia: Evidence from Gravity Model," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 47(1), pages 131-138.
    • Handle: RePEc:ukm:jlekon:v:47:y:2013:i:1:p:131-138
    as

    Download full text from publisher

    File URL: http://www.ukm.my/jem/wp-content/uploads/2021/06/jeko_471-13.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aslan, Alper & Kaplan, Muhittin & Kula, Ferit, 2008. "International Tourism Demand for Turkey: A Dynamic Panel Data Approach," MPRA Paper 10601, University Library of Munich, Germany.
    2. Giovanni Ferro Luzzi & Yves Fl¸ckiger, 2003. "An Econometric Estimation Of The Demand For Tourism: The Case Of Switzerland," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 289-303, October.
    3. Ms. Evridiki Tsounta, 2008. "What Attracts Tourists to Paradise?," IMF Working Papers 2008/277, International Monetary Fund.
    4. Jie Zhang & Camilla Jensen, 2005. "Comparative Advantage in Tourism - A Supply-Side Analysis of Tourism Flows," ERSA conference papers ersa05p183, European Regional Science Association.
    5. Yair Eilat & Liran Einav, 2004. "Determinants of international tourism: a three-dimensional panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1315-1327.
    6. Teresa Garin-Munoz & Teodosio Perez Amaral, 2000. "An econometric model for international tourism flows to Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 7(8), pages 525-529.
    7. Christine Lim, 1997. "An Econometric Classification and Review of International Tourism Demand Models," Tourism Economics, , vol. 3(1), pages 69-81, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deluna, Roperto Jr & Jeon, Narae, 2014. "Determinants of International Tourism Demand for the Philippines: An Augmented Gravity Model Approach," MPRA Paper 55294, University Library of Munich, Germany.
    2. Wamboye, Evelyn F. & Nyaronga, Peter John & Sergi, Bruno S., 2020. "What are the determinant of international tourism in Tanzania?," World Development Perspectives, Elsevier, vol. 17(C).
    3. Zdravko Šergo & Amorino Poropat & Pavlo Ružić, 2014. "The determinants of length of stay and arrivals of tourists in the Croatia: a panel data approach," Tourism and Hospitality Industry section8-4, University of Rijeka, Faculty of Tourism and Hospitality Management.
    4. Gangwei Cai & Baoping Zou & Xiaoting Chi & Xincheng He & Yuang Guo & Wen Jiang & Qian Wu & Yujin Zhang & Yanna Zhou, 2023. "Neighborhood Spatio-Temporal Impacts of SDG 8.9: The Case of Urban and Rural Exhibition-Driven Tourism by Multiple Methods," Land, MDPI, vol. 12(2), pages 1-37, January.
    5. Xueying Huang & Yuanjun Han & Xuhong Gong & Xiangyan Liu, 2020. "Does the belt and road initiative stimulate China’s inbound tourist market? An empirical study using the gravity model with a DID method," Tourism Economics, , vol. 26(2), pages 299-323, March.
    6. Ahlfeldt Gabriel M. & Franke Bastian & Maennig Wolfgang, 2015. "Terrorism and International Tourism: The Case of Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(1), pages 3-21, February.
    7. Chukiat Chaiboonsri & Prasert Chaitip & N. Rangaswamy, 2008. "A Panel Unit Root and Panel Cointegration Test of the Modeling International Tourism Demand in India," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 8(1), pages 95-124.
    8. Chukiat Chaiboonsri & Jittaporn Sriboonjit & Thanes Sriwichailamphan & Prasert Chaitip & Songsak Sriboonchitta, 2010. "A Panel Cointegration Analysis: An Application To International Tourism Demand Of Thailand," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 10(3), pages 69-86.
    9. Yang, Chih-Hai & Lin, Hui-Lin & Han, Chia-Chun, 2010. "Analysis of international tourist arrivals in China: The role of World Heritage Sites," Tourism Management, Elsevier, vol. 31(6), pages 827-837.
    10. Konstantakopoulou, Ioanna, 2022. "Does health quality affect tourism? Evidence from system GMM estimates," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 425-440.
    11. María Santana-Gallego & Francisco Ledesma-Rodríguez & Jorge Pérez-Rodríguez, 2011. "Tourism and trade in OECD countries. A dynamic heterogeneous panel data analysis," Empirical Economics, Springer, vol. 41(2), pages 533-554, October.
    12. Davide Provenzano, 2020. "The migration–tourism nexus in the EU28," Tourism Economics, , vol. 26(8), pages 1374-1393, December.
    13. Defilippi, Enzo & Gutierrez Andrade, Jesús, 2021. "More flights seats, more tourists?: evidence from Perú ," Working Papers 21-01, Centro de Investigación, Universidad del Pacífico.
    14. Teelucksingh, Sonja S. & Watson, Patrick K., 2013. "Linking tourism flows and biological biodiversity in Small Island Developing States (SIDS): evidence from panel data," Environment and Development Economics, Cambridge University Press, vol. 18(4), pages 392-404, August.
    15. Tarik Dogru & Umit Bulut & Ercan Sirakaya-Turk, 2021. "Modeling tourism demand: Theoretical and empirical considerations for future research," Tourism Economics, , vol. 27(4), pages 874-889, June.
    16. Emanuele Breda & Giacomo Oddo, 2019. "The determinants of foreign tourism demand: separating elasticities for the extensive and the intensive margin," Questioni di Economia e Finanza (Occasional Papers) 482, Bank of Italy, Economic Research and International Relations Area.
    17. Salih Katircioğlu & Sami Fethi & Hamit Caner, 2014. "Testing the higher education-led growth hypothesis in a small island: an empirical investigation from a new version of the Solow growth model," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(2), pages 729-744, March.
    18. Eita, Joel Hinaunye & Jordaan, Andre C., 2007. "Estimating The Tourism Potential In Namibia," MPRA Paper 5788, University Library of Munich, Germany.
    19. Aslan, Alper & Kaplan, Muhittin & Kula, Ferit, 2008. "International Tourism Demand for Turkey: A Dynamic Panel Data Approach," MPRA Paper 10601, University Library of Munich, Germany.
    20. Nuno Carlos LEITÃO & Muhammad SHAHBAZ, 2012. "Migration and Tourism Demand," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(567)), pages 39-48, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ukm:jlekon:v:47:y:2013:i:1:p:131-138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Asri Abd Ghani (email available below). General contact details of provider: https://edirc.repec.org/data/feukmmy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.