Page 249 - Contributed Paper Session (CPS) - Volume 4

CPS2218 Rusnani Hussin et al.
services, Travel agencies and other reservation services, Cultural, sports and
recreation services, Retail trade.

Average tourism multipliers
An average tourism of Type I output multiplier showed that for every
Ringgit increase in the tourist expenditure would eventually increase output
by 1.81 Ringgit. Consequently, tourism average income multiplier leads to the
creation of incomes namely salaries, wages, profits, rents and interest as a
result of tourist expenditure. The average Type I income multiplier of tourism
indicates that for every Ringgit tourist spending generates 0.31 Ringgit of
Malaysian household incomes. Type I value added multiplier was 0.81 Ringgit
on average.

Output Multiplier
On average, Type II output multiplier showed that one Ringgit increase in
demand for tourism leads to a total of 2.44 Ringgit of output generated in the
economy (Table 1). Of 2.44 Ringgit, 0.45 Ringgit created by direct effect 1.36
Ringgit by indirect effect while 0.63 Ringgit by induced effect. Among the
related Tourism sectors, Travel agencies yield the highest output multiplier of
Type I (1.95) and Type II (2.72). Of 2.72 Ringgit, the contributions of direct,
indirect and induced effect are 0.54, 1.42 and 0.77 Ringgit respectively. The
second most important sector is Passenger transport with multiplier Type I
(1.91) and Type II (2.49). Of 2.49 Ringgit, 0.50 Ringgit created by direct effect,
1.42 Ringgit by indirect and 0.57 Ringgit by induced effect. Food and beverage
and Accommodation generated output multiplier above tourism industry
average with 2.48 and 2.44 Ringgit respectively.

Income Multiplier
Income multiplier estimates the amount of income generated to Malaysian
household residents as a result of unit increase in Ringgit of tourism
expenditure. On average, Type II income multiplier showed that one Ringgit
increase in demand for tourism leads to a total of 0.41 Ringgit (Table 2). Of
0.41 Ringgit, 0.18 Ringgit created by direct effect 0.13 Ringgit by indirect effect
while 0.10 Ringgit by induced effect. Travel Agencies posted the highest
Income multiplier Type I (0.38) and Type II (0.50). Of 0.50 Ringgit, direct,
indirect and induced were 0.20 Ringgit, 0.17 Ringgit and induced 0.13 Ringgit
respectively. Accommodation secured above average income multiplier with
Type I (0.37) and Type II (0.49).

Value Added Multiplier
On average, Type II value added multiplier showed that one Ringgit
increase in demand for tourism leads to a total of 1.09 Ringgit of value added

238 | I S I W S C 2 0 1 9