The Economic Impact of Tourism in Malaysia: An Input Output Analysis

Tourism industry is the second biggest contribution to Malaysia’s economic growth. This study aims is to measure the economic impact of tourism to the Malaysian economy through the use of input output analysis. Using input output table 2005 which published by Department Of Statistic Malaysia, the tourism sector was disaggregate from the rest of the economy. The economic multiplier and inter sectoral linkages of 21 sector from Malaysian Input Output Table 2005 were analyzed using Microsoft Excel Software. The multiplier results showed tourism contributes significantly to the economy in term of generating output and household income. Inter sectoral linkages analysis showed tourism is a key sector in creating demand and stimulating production within the sector as well as other sector of the economy.