The effects of tourism industry on selected macroeconomic variables in Malaysia / Wan Yusnaniza Wan Yusof

This project paper is conducted to analyze the effects of tourism industry on selected macroeconomic variables in Malaysia .The tourism industry that consist of tourist arrival (ta), length of stay (los) and tourist expenditure (te) is viewed to determine the macroeconomic variables in Malaysia such as unemployment rates (UR), gross domestic product (GDP), balance of payment (BOP) and exchange rate(ER).This study uses the non parametric techniques that are Pearson chi square and spearman correlation coefficient of SPSS program for analyzing the gross domestic product , balance of payment ,unemployment rates and exchange rates with the tourism industry in terms of tourist arrival ,tourist expenditure and length of stay in Malaysia. The purpose of this study is to analyze and determine the effects and relationship between tourism industries with the selected macro economic variables in Malaysia. The data of the tourist arrival, tourist expenditure and length of stay is obtain from Malaysia Tourism Centre of Malaysia(MTC) and the data of selected macro economic variables were gathered from Bank Negara Malaysia library that is from its annual report and economic of Malaysia provided by Department of Statistics of Malaysia. The data use in this study is yearly basis that started from 1975 until 2005. Overall, the empirical result indicates that the tourism industry has a significant positive relationship with the selected macroeconomic variables that are gross domestic product, and exchange rates. But unemployment rates have a negative significant with the tourism industry. Only bop has positive insignificant relationship with the tourism industry.