Page 250 - Contributed Paper Session (CPS) - Volume 4

CPS2218 Rusnani Hussin et al.
generated in the economy (Table 3). Of 1.09 Ringgit, 0.46 Ringgit created by
direct effect 0.34 Ringgit by indirect effect while 0.28 Ringgit by induced effect.
Among the related Tourism sectors, Accommodation contributed the highest
value added multiplier Type I (0.85) and Type II (1.18). Of 1.18 Ringgit, the
contributions of direct, indirect and induced effect are 0.55, 0.30 and 0.33
Ringgit respectively. The second most important sector is Travel agencies with
multiplier Type I (0.82) and Type II (1.16). Of 1.16 Ringgit, 0.40 Ringgit created
by direct effect, 0.43 Ringgit by indirect and 0.34 Ringgit by induced effect.

4. Conclusion:
This paper measured the multipliers of the tourism industry for the
Malaysian economy using input output technique. Tourism industry in
Malaysia has been identified as a key driver in the services sector. 11th MP
focus on capturing high yield tourists to stimulate the industry’s contribution
to the economy. Domestic tourism will be harnessed to further increase the
vibrancy of the industry. Based on Type I multipliers, on average for every
Ringgit increase in the tourist expenditure would eventually generate output
by 1.81 Ringgit. In addition, for every Ringgit tourist spending generated an
average income multiplier of 0.31 Ringgit. This industry has resilient inter-
sectoral linkages with other sectors of the economy.
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. Of 2.44 Ringgit, 0.45 Ringgit created by direct effect 1.36 Ringgit by
indirect effect while 0.63 Ringgit by induced effect. Results showed Travel
agencies was the highest Type I output and income multipliers with 1.95 and
0.38 Ringgit respectively. For Type I value added multiplier, Accommodation
registered the highest with 0.85 Ringgit. Meanwhile Type II output, income
and value added multiplier showed that Travel agencies with 2.72, 0.50 and
1.16 Ringgit respectively. Type I value added multiplier was 0.81 Ringgit on
average.
Nonetheless, on this study, evidently the tourism industry is contributing
significantly to the Malaysian economy in terms of generating output, income
and value added. Thus, it also can be used as a tool for policy analysis and
economic planning in tourism Industry.

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