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The determinants of inbound tourism to Malaysia: a panel data analysis

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  • Fateh Habibi

Abstract

Malaysia has experienced a significant increase in tourist arrivals over the past 10 years. The challenge is to sustain this growth and therefore it is important to understand the factors influencing inbound tourism to Malaysia. This paper investigates the economic and non-economic determinants of international tourist flows to Malaysia using the generalized method of moment. The annual panel data set includes the number of arrivals from 33 countries during the period 2000–2012, and the number of possible explanatory variables. It is found that habit persistence (word of mouth), income, hotel room and political stability have a positive impact on tourism demand for Malaysia. Also, results indicate that the estimated coefficients of substitute tourism price in the model are negative. This implies that the five alternative destinations are complementary destinations to Malaysia. In addition, the dummy variable for Visit Malaysia Year in 2007 and severe acute respiratory syndrome in 2003 had positive and negative impacts on tourism demand for Malaysia, respectively.

Suggested Citation

  • Fateh Habibi, 2017. "The determinants of inbound tourism to Malaysia: a panel data analysis," Current Issues in Tourism, Taylor & Francis Journals, vol. 20(9), pages 909-930, July.
    • Handle: RePEc:taf:rcitxx:v:20:y:2017:i:9:p:909-930
    DOI: 10.1080/13683500.2016.1145630
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    Cited by:

    1. Joey Pek U Sou & Thea Vinnicombe, 2023. "Does governance quality matter for FDI-led tourism development? A supply-side perspective," Tourism Economics, , vol. 29(2), pages 392-408, March.
    2. Ngassam, Sylvain B. & Asongu, Simplice A. & Ngueuleweu, Gildas Tiwang, 2024. "A revisit of the natural resource curse in the tourism industry," Resources Policy, Elsevier, vol. 88(C).
    3. Guiling Yue & Ahsan Zubair & Muhammad Usman & Muhammad Azeem Abro, 2024. "Institutional Environment and Tourism: Moderating Role of Host Countries’ Health System," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7358-7374, June.
    4. Salvatore Costantino & Maria Francesca Cracolici & J. Paul Elhorst, 2023. "A spatial origin‐destination approach for the analysis of local tourism demand in Italy," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 393-419, April.
    5. Muhammad Amin Hasan & Mr. Abdullah & Muhammad Arsalan Hashmi & Ali Sajid, 2022. "International Remittances and International Tourism Development in South Asia: The Moderating Role of Political Stability," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 177-187.
    6. Malaj, Emi & Malaj, Visar, 2023. "Determinants of international tourism: Empirical evidence from three Mediterranean countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 66-72.

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