The Impact of Climate Change on the International Tourism Sector in Malaysia

Global tourism has significantly contributed to the economic growth of developing nations by stimulating consumption, creating employment, and driving economic expansion. However, the sector also poses environmental challenges, particularly through increased pollution and energy consumption linked to tourism-related activities. Therefore, this study aims to examine the impact of climate change on international tourism in Malaysia from 1998 to 2019. Employing the autoregressive distributed lag (ARDL) model, this study simultaneously examines short-term and long-term effects. This research aims to elucidate the interrelationship between climate change, proxied by carbon dioxide emissions (CO2 emissions), precipitation patterns, and temperature changes, and their impact on international tourism dynamics. The study incorporates gross domestic product per capita (GDP per capita) as a control variable to bolster the analytical rigor. The outcomes reveal that climate-related factors (CO2 emissions, precipitation, and temperatures) have a positive and lasting impact on international tourist receipts. These results emphasize the importance of implementing more sustainable and eco-friendly tourism policies to preserve the environment and the economy for future generations in Malaysia. Through the implementation of these strategies, Malaysia can effectively attain a state of balanced symbiosis between economic advancement and the conservation of the environment. This study uncovers the significant impact of climate variables on Malaysia's tourism. It provides actionable insights for developing sustainable tourism policies crucial for the nation’s long-term economic and environmental well-being.