Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis

Maldives depends heavily on tourism industry. According to 2016 Tourism Yearbook, the demand for international tourism remains robust despite political and economic conflicts around the world. In 2015, tourist arrivals grew at a pace of 4% exceeding the long-term average (3.8%) for the sixth consecu...

Full description

Bibliographic Details
Main Authors: Auzar, Hussain, Mhd Bani, Nor Yasmin, Ishak, Suryati
Format: Article
Language:English
Published: Penerbit Universiti Malaysia Terengganu 2020
Online Access:http://psasir.upm.edu.my/id/eprint/22907/1/Modelling%20tourism%20demand%20from%20United%20Kingdom%20to%20Maldives%20a%20cointegration%20analysis.pdf
_version_ 1825925249183514624
author Auzar, Hussain
Mhd Bani, Nor Yasmin
Ishak, Suryati
author_facet Auzar, Hussain
Mhd Bani, Nor Yasmin
Ishak, Suryati
author_sort Auzar, Hussain
collection UPM
description Maldives depends heavily on tourism industry. According to 2016 Tourism Yearbook, the demand for international tourism remains robust despite political and economic conflicts around the world. In 2015, tourist arrivals grew at a pace of 4% exceeding the long-term average (3.8%) for the sixth consecutive years (Ministry of Tourism, Maldives, 2016). Europe has been one of the major market generators for Maldives tourism since 1990’s. At the end of 2015, United Kingdom was the third largest market with 7.5% market share behind Germany and China. The aim of this paper is to examine the short run and long run demand for tourism to Maldives by United Kingdom. Using quarterly data from 2006Q1 to 2016Q4, the paper examines the significance of the Gross Domestic Product (GDP) of United Kingdom, tourism price and cost, as well as exchange rate in determining the important factors for tourist arrivals. The paper employs a cointegration approach that is the bounds testing approach within the ARDL framework which has been used previously in tourism demand model. The findings are consistent with the theory and existing literature whereby income, tourism price and transportation cost are important determinants for tourism demand in Maldives.
first_indexed 2024-03-06T07:55:20Z
format Article
id upm.eprints-22907
institution Universiti Putra Malaysia
language English
last_indexed 2024-03-06T07:55:20Z
publishDate 2020
publisher Penerbit Universiti Malaysia Terengganu
record_format dspace
spelling upm.eprints-229072020-04-15T16:19:03Z http://psasir.upm.edu.my/id/eprint/22907/ Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis Auzar, Hussain Mhd Bani, Nor Yasmin Ishak, Suryati Maldives depends heavily on tourism industry. According to 2016 Tourism Yearbook, the demand for international tourism remains robust despite political and economic conflicts around the world. In 2015, tourist arrivals grew at a pace of 4% exceeding the long-term average (3.8%) for the sixth consecutive years (Ministry of Tourism, Maldives, 2016). Europe has been one of the major market generators for Maldives tourism since 1990’s. At the end of 2015, United Kingdom was the third largest market with 7.5% market share behind Germany and China. The aim of this paper is to examine the short run and long run demand for tourism to Maldives by United Kingdom. Using quarterly data from 2006Q1 to 2016Q4, the paper examines the significance of the Gross Domestic Product (GDP) of United Kingdom, tourism price and cost, as well as exchange rate in determining the important factors for tourist arrivals. The paper employs a cointegration approach that is the bounds testing approach within the ARDL framework which has been used previously in tourism demand model. The findings are consistent with the theory and existing literature whereby income, tourism price and transportation cost are important determinants for tourism demand in Maldives. Penerbit Universiti Malaysia Terengganu 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/22907/1/Modelling%20tourism%20demand%20from%20United%20Kingdom%20to%20Maldives%20a%20cointegration%20analysis.pdf Auzar, Hussain and Mhd Bani, Nor Yasmin and Ishak, Suryati (2020) Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis. Journal of Sustainability Science and Management, 15 (1). pp. 26-36. ISSN 1823-8556; ESSN: 2672-7226 http://jssm.umt.edu.my/wp-content/uploads/sites/51/2020/02/TABLE-OF-CONTENTS-JSSM-_15.1_Januari_2020.pdf
spellingShingle Auzar, Hussain
Mhd Bani, Nor Yasmin
Ishak, Suryati
Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis
title Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis
title_full Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis
title_fullStr Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis
title_full_unstemmed Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis
title_short Modelling tourism demand from United Kingdom to Maldives: a cointegration analysis
title_sort modelling tourism demand from united kingdom to maldives a cointegration analysis
url http://psasir.upm.edu.my/id/eprint/22907/1/Modelling%20tourism%20demand%20from%20United%20Kingdom%20to%20Maldives%20a%20cointegration%20analysis.pdf
work_keys_str_mv AT auzarhussain modellingtourismdemandfromunitedkingdomtomaldivesacointegrationanalysis
AT mhdbaninoryasmin modellingtourismdemandfromunitedkingdomtomaldivesacointegrationanalysis
AT ishaksuryati modellingtourismdemandfromunitedkingdomtomaldivesacointegrationanalysis