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Jurnal Ekonomi Malaysia

55 (3) 2021 23 – 34

The Effect of Tourism Expenditure on the Economy: A New Evidence

Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor
MALAYSIA.

normaazuli@gmail.com

Center of Sustainable and Inclusive Development
Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor
MALAYSIA.

ida@ukm.edu.my

Department of Resource and Environment Economics
Faculty of Economics and Management
IPB University
Jln. Agatis Kampus IPB Darmaga, Bogor 16680
INDONESIA

alfaroby@apps.ipb.ac.id

Abstract

The aim of this study is to evaluate the impact of development on the Malaysian economy through the impact of tourist expenditure by using the Social Accounting Matrix (SAM). The discussion of the study focused on the value of multipliers, factors of production and household income from tourism activities in urban and rural areas. The results had shown that tourist expenditure on the arts, entertainment and recreation subsectors produced the largest multiplier effect on output. Meanwhile, other sub-sectors such as shopping, food and beverage, accommodation and transportation did not show significant differences. In addition, there is a large income distribution gap in urban and rural areas although income distribution to factors of production and households has a positive effect. This inequality needs to be addressed to ensure that tourism development can benefit the overall economy. Among the steps that can be done is Community -Based Tourism (CBT) which involves collaboration between local communities and stakeholders to support authenticity, environmental sustainability, and strengthen management and supervision. It is expected to overcome the problems encountered as a result of the findings of the study. This is expected to increase the positive economic impact of tourism development.

Keywords

income distribution; output multiplier; social accounting matrix; Tourism

JEL Codes

B21, C63, C67, Z32
http://dx.doi.org/10.17576/JEM-2021-5503-02
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Bibliography

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Mohd Nor, N. A., Mohd Salleh, N. H., & Falatehan, A. F. (2021). The Effect of Tourism Expenditure on the Economy: A New Evidence. Jurnal Ekonomi Malaysia, 55(3), 23–34. http://dx.doi.org/10.17576/JEM-2021-5503-02

@article{mohdnor2021effect,
  title={The Effect of Tourism Expenditure on the Economy: A New Evidence},
  author={Mohd Nor, Norma Azuli and Mohd Salleh, Norlida Hanim and Falatehan, A Faroby},
  journal={Jurnal Ekonomi Malaysia},
  volume={55},
  number={3},
  pages={23—34},
 

year={2021},
}

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