Economic factors affecting tourism industry in Malaysia

Malaysia have many cultural heritage sites that become attractions for the development of tourism and technology. This study aims to determine whether tax, exchange rate, unemployment rate, and energy use in Malaysia could affect the tourism sector. Although gross domestic product (GDP) could be used to replace human development in monitoring economic progress and human well-being in relation to tourism, this definition is narrow and focuses on the economic side, and ignores social and cultural factors. The results show that the known relationship could act as a guide for policymakers in achieving greater social and cultural development in order to encourage growth. The methodology employed in this study appears to be very useful for policymakers in developing new approaches to improving the various factors influencing Malaysia’s regional and global tourism industry demand for the upcoming Visit Malaysia Year 2020. In addition, the study provided well-considered policies to increase long-term improvements in the tourism, exchange rate, and service sectors through effective resource management and intelligent resource usage in the tourism industry.