Demand for Tourism in Malaysia by UK and US Tourists: A Cointegration and Error Correction Model Approach

  • Norsiah Kadir
  • Mohd Zaini Abd Karim


The travel and tourism industry is one of the world’s largest and most diverse industries. Many nations rely on this dynamic industry as a primary source for generating revenues, employment, infrastructure development and economic growth. Over the last few years, tourism has become one of the fastest growing industries in the service sector and the second largest gross domestic product (GDP) contributing industry for Malaysia. The industry performed favorably as reflected in the growth of tourist arrivals and tourist receipts. According to the Malaysia Tourism Promotion Board (MTPB),1 total tourist arrivals reached a high record of 20.7 million in 2007 as compared to 1.2 million in 1974. The share of tourism revenue in total earnings of the services account of the balance of payment increased from 32.7% in 2000 to 43% in 2005 while net contribution by tourism improved by RM11.2 billion to RM18.1 billion for the same period.2

Despite the important role of tourism industry...


Severe Acute Respiratory Syndrome Unit Root Test Relative Price Cointegration Test Error Correction Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  1. 1.Faculty of Business and ManagementUniversity Teknologi MARAPerlisMalaysia
  2. 2.Faculty of EconomicsUniversiti UtaraSintokMalaysia

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