ENERGY TRAILS OF TOURISM: ANALYZING THE RELATIONSHIP BETWEEN TOURIST ARRIVALS AND ENERGY CONSUMPTION IN MALAYSIA

Abstract

This study aims to investigate the long-term relationship between Malaysian tourism, energy consumption, and their association with economic growth, and financial development, using the Autoregressive Distributed Lag (ARDL) method. Utilizing annual data spanning from 1990 to 2020, this research examines how increased international tourist arrivals, economic growth, and financial development contribute to energy consumption in Malaysia. The study's findings reveal that growing tourism escalates energy demands for transportation, accommodation, and leisure activities. Furthermore, economic expansion drives energy usage through business expansion and increased industrial activities. Financial progress facilitates capital accessibility, leading to investments in energy-intensive sectors. In conclusion, to ensure sustainable future energy demand, this study underscores the importance of eco-friendly tourism practices that stimulate economic growth while minimizing emissions. Sustainable economic and financial strategies are also essential.

Keywords

• energy use; tourist arrivals; economic growth; financial development; sustainable tourism; climate change