Page 183 - Contributed Paper Session (CPS) - Volume 8

CPS2231 Syafawati A. R. et al.
a
Table 4: Coefficients of Stepwise Regression, Tourist Arrival and 8 Main Group of CPI
Unstandardized Coefficient Correlations Collinearity Statistics

Model Standardized t Sig.

Beta Std. Error Coeffic ient Zero - Partial Part Tolerance VIF

orde
r
Constant 5169432.766 827380.33 6.248 0.000
Clothing -43273.737 9255.686 -0.523 4.675 0.000 -0.523 -0.523 -0.523 1.000 1.000
and footwear
4. Discussion and Conclusion
Discussion
Based on the result obtained in the analysis done with SLR, there exist a
positive relationship between tourist arrival and CPI in Melaka. This shows
that with the increase in the total number of tourist, there will also be an
increase in the CPI. One of the factors that could lead to the positive
relationship is with the higher number of tourist arrival, the demand for
tourism goods and services will also increase which could lead to an
increase in the price of goods and services. However, the impact of tourist
arrival on the CPI is very minimal where only 23 per cent of CPI is affected
by the tourism industry. This may be due to the CPI’s basket of goods does
not comprehensively covers all products and services in the market
particularly tourism products. The CPI’s baskets of goods only covers
selected product and services based on the findings from Household
Expenditure Survey.
This could further be proven by Table 3 where the correlation value for
selected main groups is less than 0.01. This may be attributed by smaller
number of foreign tourist arrival where in 2016 only 32 per cent of foreign
tourist arrival recorded in Melaka, which is less than half compared to
domestic tourist arrival at 68 per cent. Thus there is a minimal effect on
price of goods and services due to tourism activity or foreign currency
exchange. Furthermore, high demand from domestic tourism does not
affect the price of goods and services.
Although the overall trend of the tourist arrival and main group of CPI
shows a positive relationship, there also exist a negative relationship
between tourist arrival and the Clothing and Footwear. Based on Table 4,
the Beta value for both standardized and unstandardized coefficient prove
the negative relationship between both variables. This imply that when the
tourist arrival increases, the index for Clothing and Footwear group
decreases. One of the possible factors is sellers tend to reduce the price of
their products in order to attract more buyer.
The tourism is a dynamic industry, where there are many factors that
affect the industry such as facilities and product and services offered by

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