Determinants of Tourism Demand in Sarawak: An Augmented Gravity Model

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ABSTRACT

This study investigates the determinants affecting tourism demand in Sarawak. An augmented gravity model is employed and analysed using a static panel approach covering the period of 2010 through 2018. An interesting finding reveals that tourists’ income levels negatively affects tourism demand in Sarawak, which contradicts findings of previous studies, and thus contributes to the current literature gap. In addition, the income level in Sarawak positively influences tourism demand. Meanwhile, higher transportation costs and tourism prices will discourage tourists from visiting Sarawak. These findings can inform feasible strategic plans by the Sarawak government for tourism development in the long term

KEYWORDS

Tourism demand, geographical distance, origin income, tourism price, augmented gravity model, panel analysis.

Cite this paper

Meng-Chang Jong, Chin-Hong Puah, Mohammad Affendy Arip, Ann-Ni Soh. (2020) Determinants of Tourism Demand in Sarawak: An Augmented Gravity Model. International Journal of Economics and Management Systems, 5, 276-282