International Journal of Environmental Science and Development

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Volume 13 Number 5 (Oct. 2022)

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IJESD 2022 Vol.13(5): 189-194 ISSN: 2010-0264
doi: 10.18178/ijesd.2022.13.5.1392

Investigating the Impact of International Tourist Arrivals on Economic Growth under Environmental Hazards in Malaysia

Chuie-Hong Tan and See-Nie Lee
Abstract—Tourist receipts is a crucial determinant in Malaysian economic growth. However, environmental hazards due to climate change is perceived as potential threats to tourism. This paper aims to understand the effect of environmental hazards on the international tourist arrivals in Malaysia. Malaysian monthly data was analyzed using the linear regression approach to examine the tourism-led economic growth. Granger Causality Test is employed to test for directional cause analysis among variables. Overall results also show that an increase in environmental hazards that moderated with international tourist arrivals leads to a lower Malaysian economic growth in Malaysia. Meanwhile, better air quality boosts the number of international tourist arrivals, hence stimulates Malaysian economic growth. Granger causality results indicate that there exists a bidirectional cause between international tourist arrivals and climate change (temperature, and thunderstorm) but a unidirectional causality exists between international tourist arrivals and economic growth, carbon emission, air quality and rainfall, respectively. Effective mitigation of climate change needs to be implemented by the authorities to reduce the environmental risk.

Index Terms—International tourist, economic growth, environment hazards, Malaysia.

The authors are with the Faculty of Management, Multimedia University, Cyberjaya, Malaysia (e-mail: nina_leeseenie@hotmail.com).

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Cite: Chuie-Hong Tan and See-Nie Lee, "Investigating the Impact of International Tourist Arrivals on Economic Growth under Environmental Hazards in Malaysia," International Journal of Environmental Science and Development vol. 13, no. 5, pp. 189-194, 2022.

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