Determinants of international tourism in Malaysia: evidence from gravity model

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 languag...

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Main Authors: Ahmad Kosnan, Siti Shuhada, Ismail, Normaz Wana, Kaliappan, Shivee Ranjanee
Format: Article
Language:English
Published: Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia 2013
Online Access:http://psasir.upm.edu.my/id/eprint/30834/1/1Determinants%20of%20international%20tourism%20in%20Malaysia.pdf
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author Ahmad Kosnan, Siti Shuhada
Ismail, Normaz Wana
Kaliappan, Shivee Ranjanee
author_facet Ahmad Kosnan, Siti Shuhada
Ismail, Normaz Wana
Kaliappan, Shivee Ranjanee
author_sort Ahmad Kosnan, Siti Shuhada
collection UPM
description 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.
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spelling upm.eprints-308342015-09-09T03:06:35Z http://psasir.upm.edu.my/id/eprint/30834/ Determinants of international tourism in Malaysia: evidence from gravity model Ahmad Kosnan, Siti Shuhada Ismail, Normaz Wana Kaliappan, Shivee Ranjanee 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. Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/30834/1/1Determinants%20of%20international%20tourism%20in%20Malaysia.pdf Ahmad Kosnan, Siti Shuhada and Ismail, Normaz Wana and Kaliappan, Shivee Ranjanee (2013) Determinants of international tourism in Malaysia: evidence from gravity model. Jurnal Ekonomi Malaysia, 47 (1). pp. 131-138. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/2013.html
spellingShingle Ahmad Kosnan, Siti Shuhada
Ismail, Normaz Wana
Kaliappan, Shivee Ranjanee
Determinants of international tourism in Malaysia: evidence from gravity model
title Determinants of international tourism in Malaysia: evidence from gravity model
title_full Determinants of international tourism in Malaysia: evidence from gravity model
title_fullStr Determinants of international tourism in Malaysia: evidence from gravity model
title_full_unstemmed Determinants of international tourism in Malaysia: evidence from gravity model
title_short Determinants of international tourism in Malaysia: evidence from gravity model
title_sort determinants of international tourism in malaysia evidence from gravity model
url http://psasir.upm.edu.my/id/eprint/30834/1/1Determinants%20of%20international%20tourism%20in%20Malaysia.pdf
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