Forecasting international tourism demand from the US, Japan and South Korea to Malaysia: A SARIMA approach

Abstract

One of the major contributing sectors for Malaysia's economic growth is tourism. The number of international tourist arrivals to Malaysia has been showing an upward trend as a result of several programs and promotion introduced by the Malaysian government to attract international tourists to the country. This study attempts to model and to forecast tourism demand for Malaysia by three selected countries: the US, Japan and South Korea. This study utilized monthly time series data for the period from January 1999 to December 2012 and employed the well-known Box-Jenkins seasonal ARIMA modeling procedures. Not surprisingly the results show the number of tourist arrivals from the three countries contain strong seasonal component as the arrivals strongly dependent on the season in the country of origin. The findings of the study also show that the number of tourist arrivals from the US and South Korea will continue to increase in the near future. Meanwhile the arrivals from Japan is forecasted to show a drop in the near future and as such tourism authorities in Malaysia need to enhance the promotional effort to attract more tourists from Japan to visit Malaysia. © 2014 AIP Publishing LLC.