Abstract
The purpose of this study is to estimate an inbound tourism demand model for Malaysia by incorporating new control variables – environmental pollution and crime rate. We found that tourism demand is sensitive to income, price of tourism in Malaysia, price of alternative tourism destinations, pollution, and to the crime rate in Malaysia. We also found that the September 2001 terrorist attack incident and the health epidemic diseases, such as the severe acute respiratory syndrome and avian flu, had a negative impact on tourism demand in Malaysia. Thus, apart from economic factors, tourists’ decisions of where to go are also dependent on environmental quality, security, and health factors.
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