Asymmetric effects of real exchange rate on inbound tourist arrivals in Malaysia: An analysis of price rigidity


Karimi M. S. , KHAN A. A. , KARAMELİKLİ H.

INTERNATIONAL JOURNAL OF TOURISM RESEARCH, cilt.21, ss.156-164, 2019 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 21 Konu: 2
  • Basım Tarihi: 2019
  • Doi Numarası: 10.1002/jtr.2249
  • Dergi Adı: INTERNATIONAL JOURNAL OF TOURISM RESEARCH
  • Sayfa Sayıları: ss.156-164

Özet

Present research is sought to analyse asymmetrical effects of exchange rates and income of tourists on tourist arrivals in Malaysia. A non-linear model has been formulated to examine symmetrical and asymmetrical effects of exchange rate quarterly data from year 2000 to 2017. Results have revealed that both depreciation and appreciation of domestic currency value lead to a decrease in number of inbound tourist arrivals at long run. Moreover, it is found that price rigidity in Malaysian tourism sector may influence decision of tourists to select alternative destination. Besides, reduction in the real-effective exchange rate does not have adverse effect in the long run.