Effect Of Tourism On Asian Economic Growth

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1.1 Introduction

Tourism is one of key industry in the development of some countries in Asia. Malaysia, itself depend on tourism in its nation growth. In Asia, country like Malaysia has benefited a lot from the development of its tourism industry. The developments of tourism in Asia are differing amongst countries. Natural disaster such as air pollution, floods and earthquake will bring an effect on the tourism industry in Asia.

1.2 Environmental Disaster and Tourism

There has been previous research regarding to tourism which study the relationship between natural disaster and tourism. In the year of 2010, hazardous flooding in Pakistan has influence its economy growth. Decision-making by tourists on travel plan is influenced by economic, technological, international or political, sociocultural and environmental factors including those directly related to environmental and natural hazards ( Mathieson and Wall, 1993). According to Sinclair and Stabler (1997), the range of goods and services encompassing tourism include natural resources and especially the non-price feature and the positive benefits derived from attractive environment and the negative effect of pollution. Sinclair and Stabler noted that the perceived cost of travel increases by the realization of natural disaster has effect tourism at all.

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The research by Campos, (1999) stated that there was relationship between tropical cyclone (natural disaster) and the income of hotels (tourism industry), meanwhile Chang (1983) found that hurricane and other natural disaster can decreases revenues to a municipality through reduce tourism revenues, although the increases assistant by Federal Government to the effect area.

1.3 Tourism in Asia: Development of Tourism in Some Countries in Asia

Comparison and effect of tourism in Asia on the development of economy can be discussed specifically by making comparison between the chosen countries. The countries included on the list of this study were Malaysia, Singapore, Brunei, Philippines, Indonesia,Thailand, Vietnam, Laos and Cambondia.

1.3.1 Malaysia

The research by Mohd Hafiz Hanafiah and Mohd Fauzi Mohd Harun in June 2010 regarding to tourism in Malaysia show that tourism in Malaysia is the third largest industry after oil and automobiles. Malaysian economy will increase due to the increase in tourism sector. Number of tourists visits Malaysia is a major factor which influences the Malaysian economy alone. During Asian Financial Crisis 1997, number of tourists declined and reached a new record after the economic stalemate.

There was another research which shows how tourists influence the growth of tourism in some countries. According to Song and Witt (2000), they described tourist products as the amount of tourism demand that the consumers are willing to acquire during a specific period of time and under certain conditions which controlled by the explanatory factors used in the demand equation. Smeral (1988) and Syriopoulos and Sinclair (1993) empirically examined the relationships between the variables underlying the determinants of tourism demand.

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