ABSTRACT

In year 2012, Malaysia has experienced an impressive tourism growth. Tourism sector in
Malaysia has claimed as one of the largest contributor to the Malaysian economy. The
purpose of this study is to determine the relationship of economic variables and tourism
in Malaysia. In this study, tourism is referring to the tourism receipts. The economic
variables being tested are Gross Domestic Product (GDP), Inflation, Unemployment,
Exchange Rate, and Foreign Direct Investment (FDI). The study employed a Multiple
Regression Model to identify the relationship between the variables. The analysis
proposed is based on time-series data approach, which the dataset covers from 1982-
2011, yearly.