The Impact Of Tourists Expenditure Pattern In Malaysia with special reference to Muslim Countries

The main objective of the study is to examine the profile and expenditure patterns of tourists from West Asia and its impacts on the Malaysian economy. The study analyses the expenditure patterns of West Asia tourists in Malaysia using secondary data and survey questionnaire. An input-output technique of tourist impact analysis was adopted to determine the multiplier effects of each Ringgit spent on output, income and employment. The results highlighted a number of effects on each of the sectoral output, income and employment and explain which sector can benefit from tourist expenditure through direct, indirect and induced income and employment generations. The findings indicated that hotel and restaurants sector has the highest total output multiplier followed by the entertainment sector. With respect to income multiplier, entertainment sector ranks first followed by wholesale and retail trade sector. Entertainment sector has the highest total employment multiplier followed by business services sector. Sectors that enjoy greater economic benefits from tourism are entertainment, hotel and restaurants, wholesale and retails trade and business scrvices; as reflected by the size of the contribution in each total output and in generating greater income and employment. Survey questionnaires were also administered to the West Asian tourists during mid 2004. 'The survey findings supported the empirical evidence with regards to the tourists' expenditure patterns. In conclusion, this study proves that differences in expenditure profile among classes of tourists and the changing composition of tourist's arrivals in Malaysia have important policy recommendations on the economy. The tourism's policy, therefore, should provide more emphasis on the development of these strategic industries. The study also suggested some possible policy responses to promote Malaysia as an ideal destination for tourist from Islamic countries.