WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 23, 2026
An In-Depth Analytical Study on the Key Factors Influencing and Shaping Tourist Inflows into Malaysia's Growing Tourism Sector
Authors: , , ,
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Abstract: This study investigates the factors influencing tourist arrivals in Malaysia. It examines how price levels, measured by the Consumer Price Index (CPI), respond to changes in tourist inflows, income, and the exchange rate. Using quarterly time-series data from 2000 to 2017, the analysis employs the Autoregressive Distributed Lag (ARDL) approach to capture both short- and long-term interactions among variables. Findings reveal that inflation (CPI) does not significantly impact tourist arrivals. While short-run equilibrium is achieved among income, exchange rates, and prices, income remains relatively rigid in the short term, and exchange rates show no strong relationship with prices. The study highlights that economic recovery, particularly driven by global vaccination efforts, plays a crucial role in boosting tourism. By applying rigorous econometric methods, the research offers comprehensive insights into the economic determinants of tourism flows in Malaysia. The results provide valuable guidance for policymakers aiming to enhance tourism development amid global economic recovery.
Pages: 1018-1026
DOI: 10.37394/23207.2026.23.77