An ECM Analysis of Thai Tourism Demand in Malaysia

Tourism industry is one of the important service industries that play a crucial role in the development of Malaysian economy. Thailand has been ranked among the top five tourist generating countries for Malaysia since the last decade. This paper intends to determine factors affecting Thai tourism...

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Main Authors: Fung-Thai, Thien, Chin-Hong, Puah, MKH, Hassan, M Affendy, Arip
Format: Article
Language:English
Published: MCSER Publishing, Rome-Italy 2015
Subjects:
Online Access:http://ir.unimas.my/id/eprint/13018/
http://ir.unimas.my/id/eprint/13018/1/An%20ECM%20Analysis%20of%20Thai%20Tourism%20Demand%20in%20Malaysia%20%28abstract%29.pdf
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author Fung-Thai, Thien
Chin-Hong, Puah
MKH, Hassan
M Affendy, Arip
author_facet Fung-Thai, Thien
Chin-Hong, Puah
MKH, Hassan
M Affendy, Arip
author_sort Fung-Thai, Thien
building UNIMAS Institutional Repository
collection Online Access
description Tourism industry is one of the important service industries that play a crucial role in the development of Malaysian economy. Thailand has been ranked among the top five tourist generating countries for Malaysia since the last decade. This paper intends to determine factors affecting Thai tourism demand in Malaysia from the macroeconomic perspective by utilizing quarterly data from 2000Q1 to 2013Q4. The Thai tourism demand model is estimated using the error-correction model and a battery of diagnostic tests were carried out to ensure the robustness of the model. The empirical results indicate that there is a long-run equilibrium relationship between Thai tourism demand and the specified explanatory variables, which are Thai real income, real travel cost and exchange rate. Specifically, higher Thai real income will reduce Thai tourist to Malaysia, while higher real travel cost and stronger currency attract more Thai visitor to Malaysia. As a conclusion, this paper has achieved its aim to determine the factors affecting Thai tourism demand in Malaysia.
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format Article
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institution Universiti Malaysia Sarawak
institution_category Local University
language English
last_indexed 2025-11-15T06:37:49Z
publishDate 2015
publisher MCSER Publishing, Rome-Italy
recordtype eprints
repository_type Digital Repository
spelling unimas-130182016-08-16T18:05:59Z http://ir.unimas.my/id/eprint/13018/ An ECM Analysis of Thai Tourism Demand in Malaysia Fung-Thai, Thien Chin-Hong, Puah MKH, Hassan M Affendy, Arip H Social Sciences (General) HB Economic Theory Tourism industry is one of the important service industries that play a crucial role in the development of Malaysian economy. Thailand has been ranked among the top five tourist generating countries for Malaysia since the last decade. This paper intends to determine factors affecting Thai tourism demand in Malaysia from the macroeconomic perspective by utilizing quarterly data from 2000Q1 to 2013Q4. The Thai tourism demand model is estimated using the error-correction model and a battery of diagnostic tests were carried out to ensure the robustness of the model. The empirical results indicate that there is a long-run equilibrium relationship between Thai tourism demand and the specified explanatory variables, which are Thai real income, real travel cost and exchange rate. Specifically, higher Thai real income will reduce Thai tourist to Malaysia, while higher real travel cost and stronger currency attract more Thai visitor to Malaysia. As a conclusion, this paper has achieved its aim to determine the factors affecting Thai tourism demand in Malaysia. MCSER Publishing, Rome-Italy 2015 Article PeerReviewed text en http://ir.unimas.my/id/eprint/13018/1/An%20ECM%20Analysis%20of%20Thai%20Tourism%20Demand%20in%20Malaysia%20%28abstract%29.pdf Fung-Thai, Thien and Chin-Hong, Puah and MKH, Hassan and M Affendy, Arip (2015) An ECM Analysis of Thai Tourism Demand in Malaysia. Mediterranean Journal of Social Sciences, 6 (3). pp. 162-168. ISSN 2039-2117 http://www.mcser.org/journal/index.php/mjss/article/view/6231 Doi:10.5901/mjss.2015.v6n3p162
spellingShingle H Social Sciences (General)
HB Economic Theory
Fung-Thai, Thien
Chin-Hong, Puah
MKH, Hassan
M Affendy, Arip
An ECM Analysis of Thai Tourism Demand in Malaysia
title An ECM Analysis of Thai Tourism Demand in Malaysia
title_full An ECM Analysis of Thai Tourism Demand in Malaysia
title_fullStr An ECM Analysis of Thai Tourism Demand in Malaysia
title_full_unstemmed An ECM Analysis of Thai Tourism Demand in Malaysia
title_short An ECM Analysis of Thai Tourism Demand in Malaysia
title_sort ecm analysis of thai tourism demand in malaysia
topic H Social Sciences (General)
HB Economic Theory
url http://ir.unimas.my/id/eprint/13018/
http://ir.unimas.my/id/eprint/13018/
http://ir.unimas.my/id/eprint/13018/
http://ir.unimas.my/id/eprint/13018/1/An%20ECM%20Analysis%20of%20Thai%20Tourism%20Demand%20in%20Malaysia%20%28abstract%29.pdf