THE IMPACT OF FOREIGN ECONOMIC FACTORS TOWARD TOURISM RECEIPTS IN MALAYSIA
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Universiti Malaysia Sarawak (UNIMAS)
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This study examines the influence of significant foreign macroeconomic variables on Malaysia's tourism revenues, concentrating on three principal ASEAN nations: Indonesia, Brunei, and Singapore. This study aims to examine the correlation between Malaysia's tourism receipts and three macroeconomic indicators: Gross Domestic Product (GDP), Inflation Rate (IR), and Exchange Rate (ER) in the chosen source nations of Brunei, Indonesia, and Singapore. The research employs annual panel data from 2003 to 2023 and utilizes various econometric methodologies, including the Panel Unit Root Test, Panel Cointegration Test, Fully Modified Ordinary Least Squares (FMOLS), and Panel Granger Causality Test. The findings indicate that GDP exerts a statistically significant positive influence on Malaysia’s tourism receipts, suggesting that economic growth in source nations promotes outbound travel and tourist expenditure. Fluctuations in exchange rates exhibit a significant inverse correlation, wherein an appreciation of the Malaysian Ringgit results in a decrease in tourism revenue. Conversely, the inflation rate exhibits a diminished and statistically insignificant impact. These findings underscore the significance of regional economic conditions in shaping Malaysia’s tourist sector and offer valuable insights for policymakers to devise focused tourism development strategies.