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The Determinant of Tourist Arrivals in Malaysia: a Panel Data Regression Analysis.

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The Determinant of Tourist Arrivals in Malaysia: a Panel Data Regression Analysis.
THE DETERMINANT OF TOURIST ARRIVALS IN MALAYSIA:
A PANEL DATA REGRESSION ANALYSIS.

TABLE OF CONTENT

CONTENT PAGE

Chapter 1- Introduction

Background of the Study 1
Problem Statement 2
Scope and Rational of the Study 2
Significance of Study 2
Research Objectives 3

Chapter 2- Literature Review

History of Tourism in Malaysia 4

Chapter 3- Methodology

Methodology 6
Model Specification 10

References
CHAPTER 1

INTRODUCTION

The tourism industry continued to contribute towards generating foreign exchange earnings, employment and income. Although in Malaysia, the industry was affected by the economic crisis in 1997 and 1998, its quick rebound contributed to the strong economic recovery of the nation. This was attributed mainly to the concerted efforts by the public and private sectors as well as the successful implementation of measures outlined in the National Economic Recovery Plan (NERP) to revitalize the tourism industry.

Tourist arrivals increased at an average rate of 6.5 per cent per annum during the Seventh Plan period. Tourist arrivals however declined in 1997 and 1998 mainly due to occurrences of haze, localized outbreaks of Nipah and Coxsackie viruses as well as the Asian financial crisis. The number of tourist arrivals to Malaysia declined by about 13 per cent in 1997 and 10.6 per cent in 1998. However, the tourism industry responded well to the measures taken to revitalize the industry, which included increased promotional efforts targeted at markets not affected by the economic crisis such as China, India, Middle East, Australia and Europe. As a result, the tourism industry recovered quickly as reflected by the rapid increase in the number of tourists to 7.9 million in 1999, which represented an increase of 43.6 per cent over the 1998 figure. In 2000, a record of 10.2 million tourist arrivals was achieved, which surpassed the target by 3.7 million



References: Morley, C.L. (1998). A Dynamic international tourism demand model. Annual of Tourism Research, 25, 70-84. Muňoz, T.G. (2006). Inbound international tourism to Canary Islands: a dynamic panel data model Narayan, P.K. (2004). Fiji tourism demand: the ARDL approach to cointegration. Pesaran, M.H., and Shin, Y. (1995). Autoregressive distributed lag modeling approach to cointegration analysis Pesaran, M.H., and Shin, Y. (1999). An autoregressive distributed lag modeling approach to cointegration analysis, in storm, S., ed, Econometrics and Economic Pesaran, M.H., Shin, Y., and Smith, R.J. (1996). Testing the existence of long-run relationship Pesaran, M.H., Shin, Y., and Smith, R.J. (2001). Bound testing approaches to the analysis of level relationships Philips, P.C.B. (1986). Understanding spurious regression in econometrics. Mohd Salleh N.H, Hook L.S, Ramachandran S. Shuib A. Mohd Noor Z. (2008). Asian Tourism Demand for Malaysia: A Bound Test Approach. Contemporary Management Research, 351-368, Vol 4, No4.

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