POSITIVE IMPACT OF TOURISM TOWARDS MALAYSIAN ECONOMIC DEVELOPMENT

Actually many impact of tourism towards the development of Malaysia. Today tourism to
effects a positive in Malaysia. A positive effects tourism can increasing the income of country. Many
tourist come visit to Malaysia to become increasing the income of country. Besides, the positive
effects of tourism to our country become famous in the world. Our country become famous with
tourism because with overseas tourist we can to introduce advantage our country for they. Malaysia
many places interesting to can visit, such as Pangkor island, edang island, !angkawi island, Penang
island and others. "o, with tourism our country become famous in the world. Besides, with tourism
can open more work opportunity especially to local society. !ocal society can involved with tourism,
they can work because more work opportunity to can apply. The effects of tourism in Malaysia we can
prepared good infrastructure in our country. At the same time we can prepared good infrastructure in
our country for the main attraction for tourist come to our country. Besides, with tourism we can make
good relationship or close relationship between tourist and local.
Tourism demand in Malaysia based on the key economic factors like income, price, e#change
rate, consumer price inde#, distance, population and economic crisis using a modified $ravity model.
The movement, pattern and changes of international tourist arrivals are also e#amined. A cross%
sectional pool time%series of tourist arrivals from Australia, &ong 'ong, (ndonesia, )nited 'ingdom,
Thailand, Taiwan and *hina through using modified $ravity Model was applied. !og%linear e+uation
indicates that the tourism demand is highly correlated with $ross ,ational (ncome -$,(. of the
countries which showing the impact on the standard of living.
/oreign e#change earnings and increase in government revenues from tourism result in
infrastructure development such as roads, sewage, public transport, electricity and communications. (t
also generates millions of 0obs globally and contributes to local economies.
On the other hand, tourism demand negatively correlated with 1#change ate -1. as tourist
from higher purchasing power prefers to visit Malaysia. *onsumer Price (nde# -*P(. or inflation rate
reduce number of tourist to travel. The increasing number of tourist arrivals was influenced by
population growth and distance may reduce tourism demand. 1conomic crisis negatively affected the
tourism demand from the A"1A, countries but positively correlated with the western and other
continents. This study clearly indicates that despite of regional economic crisis Malaysian government
can still rely on tourism industry as a means of sustaining the economy through international tourists.
Tourism in general has become one of the ma0or cultural and economic forces in the world
today and is regarded as an important means to benefit local communities. !angkawi for e#ample,
has e#perienced tremendous development since declared a duty free island in 2345. Many
construction pro0ects are carried out on the islands with only one purpose6 to accommodate tourism
development. apid investments by the government and private sector had significantly turned
!angkawi into a popular destination and a shopping haven for local and foreign tourists. &owever,
despite the rapid development in this industry, the economic and socio%cultural impacts of tourism
were hardly discussed and e#plained in academic literature. Therefore, a study on !angkawi (slands,
Malaysia was conducted to e#plore and identify impacts of tourism development to the islands and
local residents. A household survey based on stratified random sampling was conducted in !angkawi
for 4 weeks. 738 +uestionnaires were completed from 549 respondents approached: representing a
;<= response rate for this study. An e#ploratory factor analysis -1/A. using principal component
analysis was carried out to identify the respondents> perception of the impacts from tourism
development to the !angkawi (slands.
/indings from data analysis identified three factors representing ;;.?7= of the e#plained
variance e#tracted from 82 variables, namely6
*osts from tourism development.
Benefits from tourism development
"ocio%economic effects from tourism development. /inally, findings from data analysis
suggested that tourism development in !angkawi has provided more benefits that costs to the
residents.
The main elements of successful performance in economic growth among developing nations
in 1ast Asia particularly *hina, (ndonesia and Malaysia. The approach however does not identify all
the variables and indicators that are attributable to economic growth across these countries, rather it
is an attempt to discern which factors are the most critical and imperative that illuminate the
differences between fast and slow growing economies.
There are three dimension of e#planatory variables that have been categori@ed as the
determinants of economic growth:
-2. demographic variable -life e#pectancy at birth.: -8. policy variables -openness to trade,
civil liberties and political rights, foreign direct investment -/A(. , -7. human development indicator
which can be e#plained by fertility rate. eal $AP per capita, on the other hand is used as a pro#y
variable to measure economic growth. Aata were collected for three 1ast Asian countries including
*hina,(ndonesia and Malaysia from 234<%8<<;. )sing a least s+uare +uantitative method, our findings
suggest that life e#pectancy, foreign direct investment, openness and political freedom have positive
influences and statistically significant determinants of growth in *hina, (ndonesia and Malaysia during
234<%8<<;. The result also shows that fertility rate and civil liberty are positively related to economic
growth, but have no significant effects on these developing nations. (n the concluding section, we
demonstrate several important elements that have accelerated economic growth in each country. /A(
and civil liberties are the ma0or significant determinants of growth in *hina while the persistence of
high fertility rate and greater openness are found to be significantly stimulating $AP in (ndonesia.
Malaysia, on the other hand, is performing well in both political freedom and civil liberty.
Economic benefits
1conomic benefits resulting from tourism can take a number of forms including6
2. Bobs
1mployment may be associated directly, such as tour guide or managerial positions: or in supporting
industries like food production or retail suppliers.
8. (ncreased spending
(ncreased spending in the community generated from visitors or tourism businesses can directly and
indirectly promote the viability of local businesses.
7. 1conomic diversification
Tourism operators can play a role in highlighting the broad prosperity that tourism can bring to a
community and will contribute to a greater understanding and respect for the value of tourism.
1conomic diversification is, for many communities, an insurance policy against hard times. By offering
an additional means of income, tourism can support a community when a traditional industry is under
financial pressure, particularly where that community relies heavily on a single industry.
Malaysia is one of the fastest growing tourist destinations in "outheast Asia. /rom 2334 to
8<<5, tourist arrivals in Malaysia grew by 57.5= and total receipts in 8<<5 was M9? billions
compared to M7? billions in 8<<? -Malaysia Tourism Board.. !ately, there has been increasing
numbers of visitor arrivals to marine parks in Malaysia such as Pulau Tioman, Pulau edang, Pulau
"ipadan and Pulau Perhentian. There are many impacts of of island tourism, however the three main
impacts of tourism to the local people are economic impacts, impacts on the environment -physical.
and social impacts. ,evertheless, there is considerably little research on the factors that contributes to
the impacts of marine ecotourism as perceived by the residents of islands in Malaysia. Therefore, this
study attempts to identify the contributing factors that affect the social and visual +ualities of Pulau
Tioman. This paper is based on a perception survey of Pulau Tioman residents which was conducted
in August 8<<4. A total of 88< +uestion naires were distributed in ? out of 3 villages at Pulau Tioman
namely, 'ampung Tekek, 'ampung Buara, 'ampung Air Batang, 'ampung "alang, 'ampung Paya,
and 'ampung $enting. /actor analysis was conducted and the results show that there were four
factors affecting the social and visual +ualities of Pulau Tioman which are, the attitudes of tourists
and tourist operators, the cleanliness of amenities, tourism development and tourism activities and
lastly, the social relationship between tourists, tourists> operators and local residents. This paper
suggested that proper tourism development plans has to be implemented in order to sustain the social
land good visual environment of the islands in Malaysia.