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

Mohammad Sharif Karimi; Ashfaq Ahmad Khan; Huseyin Karamelikli

doi:10.1002/jtr.2249

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

Mohammad Sharif Karimi
, Ashfaq Ahmad Khan
, Huseyin Karamelikli

Research output: Contribution to journal › Article › Research › peer-review

27 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	156-164
Number of pages	9
Journal	International Journal of Tourism Research
Volume	21
Issue number	2
DOIs	https://doi.org/10.1002/jtr.2249
Publication status	Published - 1 Mar 2019
Externally published	Yes

Keywords

Asymmetric models
exchange rate
Malaysia
price rigidity
tourism

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10.1002/jtr.2249

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

abstract = "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.",

keywords = "Asymmetric models, exchange rate, Malaysia, price rigidity, tourism",

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year = "2019",

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doi = "10.1002/jtr.2249",

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T2 - An analysis of price rigidity

AU - Karimi, Mohammad Sharif

AU - Khan, Ashfaq Ahmad

AU - Karamelikli, Huseyin

PY - 2019/3/1

Y1 - 2019/3/1

N2 - 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.

AB - 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.

KW - Asymmetric models

KW - exchange rate

KW - Malaysia

KW - price rigidity

KW - tourism

UR - https://www.scopus.com/pages/publications/85055860963

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DO - 10.1002/jtr.2249

M3 - Article

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SN - 1099-2340

VL - 21

SP - 156

EP - 164

JO - International Journal of Tourism Research

JF - International Journal of Tourism Research

IS - 2

ER -

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

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Keywords

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