Page 246 - Contributed Paper Session (CPS) - Volume 4

CPS2218 Rusnani Hussin et al.
GDP and employment increase dramatically in 2009. The GDP created by the
inbound tourism is reached to 0.352% of total GDP. The number of inbound
Chinese visitors increases in line with the value of macroeconomic variables. It
is acknowledged that the input-output model has limitations. In the future, the
impact analysis can be conducted using the tourism CGE model, which is

currently under updating. Furthermore, if the expenditure function in the
evaluation system can be utilized to estimate the tourism expenditure for
Chinese visitors, the evaluation of the tourism policy is expected to increase
its accuracy.
Hunziker and Krapf (1942) proved that tourism influences towards national
economy. They showed that tourism could affect positively and negatively to
the national income depending on the inward and outward direction of tourist
flows. Consequently, tourism firstly brings about a redistribution of national

income, dividing the world into tourist-generating and tourist-receiving
countries, regions and destinations; and, secondly, it also leads to a
redistribution of income between sectors and companies within the economy,
with the latter reflecting the fact that tourism consumption differs from
personal consumption.
Camelia (2009) indicated the role and importance of different economic
value added, incomes and employment and it analyses the existing connection
in an economy. Input-Output Analysis is an economic tool used to measure
the impact of an existing, proposed or anticipated business operation,
decision or event on the economy. I-O analysis was used to measure the
impact of hotels and restaurants for two different years, 2000 and 2005

respectively, the latest available I-O table year for the Romanian economy. The
multipliers, estimated on the basis of the IO analysis, are defined as the system
of economic transactions that follow a disturbance in an economy. The
multipliers can be used to identify the degree of structural interdependence
between each sector and the rest of the economy.

2. Methodology:
To determine tourism multipliers through input-output techniques, the
2015 Malaysian national inputoutput transaction tables were used. Sectoral
gross output and household income for 2015 were obtained from the 2015
Input-Output transaction table.

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