Page 184 - Contributed Paper Session (CPS) - Volume 8

CPS2231 Syafawati A. R. et al.
both the public and private sector. Even though price for goods and
services is expected to increase particularly in a state with high tourism
activity, the findings in this study shows otherwise. The impact of tourism
industry to the Melaka’s CPI are unsubstantial due to the majority demand
for goods and services in the tourism industry are from domestic tourist.

Conclusion
This study set out to examine empirically the impact of tourism industry
to the CPI in the case of Melaka by employing Simple Linear Regression
and Stepwise Regression. This study has found that generally there exist a
positive relationship between the two variables.
The result of this study support the idea that tourism industry indirectly
increase the CPI level in Melaka. However, it is unfortunate that this study
was limited only to Melaka thus makes these findings less generalizable to
understand the effect of tourism industry on Malaysia’s CPI. Therefore,
further study is necessary in order to understand the impact of tourism
activity on Malaysia’s CPI.
As the state of Melaka is focusing on making the services sector as the
main driver of the economic growth, the tourism industry has to remain
sustainable and competitive in order to face the dynamic changes and
challenges in the industry. As tourism generates high multiplier effects
across many sectors, more coordinated efforts must be taken to mobilise
and channel resources to upgrade the requisite tourism infrastructure and
facilities as well as developing more innovative tourism products and
services.

References
1. Department of Statistics Malaysia. (2018). Tourism Satellite Account,
December 2017.
2. Malaysia Tourism Promotion Board. (2018). Tourism Malaysia Integrated
Promotion Plan, 20182020.
3. MAMPU. (2018). Statistik Ketibaan Pelancong Mengikut Negara Asal dan
Benua ke Negeri Melaka Termasuk Peningkatan Peratus Dari Tahun 2014
sehingga 2016. Retrieved 21 December 2018, from
http://www.data.gov.my/data/ms_MY/dataset/statistic-pelancong-
mengikut-negaraasal-ke-negeri-melaka/resource/380a0340-43b5-476a-
b2cf-2dd08cb3a0e3
4. Ministry of Tourism & Culture of Malaysia. (2018). Malaysia Tourism
Statistics, 2017. Retrieved 20 December 2018, from
https://www.tourism.gov.my/statistics

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